Kotak Premier Income Plan

About Kotak Premier Income Plan

The Kotak Premier Income plan is a limited-pay, participating life insurance plan. It is a protection- and savings-oriented plan that offers guaranteed annual income post Premium Paying Term PPT to provide the insurer with an additional annual income every year which means longer you invest; higher guaranteed annual income you get for longer duration. It also provides with accrued bonuses at the end of the policy term in lump sum while providing life cover throughout the policy term. The plan offers additional protection through riders.

How Does the Plan Work?

The individual decides the annual premium to be paid for a pre-determined policy term and premium paying term.
The premium levels are as follows:

• Minimum: For 8 and 10 pay is INR 30,000 p.a.; for 12 pay it is INR 25,000 p.a.
• Maximum: No limits, subject to U/W acceptance

Once the PPT is over immediately the policyholder starts receiving a guaranteed annual income till the end of the policy term or date of death whichever is earlier.

A) Guaranteed annual income rates vary by PPT and be as % of Annualized Premium:

• For 8 pay option: 103% of the annualized premium will be paid
• For 10 pay option: 108% of the annualized premium will be paid
• For 12 pay option: 113% of annualized premium will be paid

B) Payout period for each of the PPT option is as follows:

• For 8 pay: Payout will start from the beginning of the 9th policy year and will end at the beginning of 15th policy year
• For 10 pay: Payout will start from the beginning of the 11th policy year and will end at the beginning of 19th policy year
• For 12 pay: Payout will start from the beginning of the 13th policy year and will end at the beginning of 23th policy year

Now, let us understand the further actions of this plan with the help of various benefits offered with this plan: 

A) Death Benefits: 

In case of an unfortunate event of death of the policyholder during the policy term, the nominee will receive the following irrespective of the guaranteed annual income already paid:
Sum Assured on death + Accrued Simple Reversionary bonuses (if any) + Interim bonus (if any) + Terminal Bonus (if any)

Where sum assured on death is, higher of the following:

• 11 times of (annualized premium including extra premium, if any) 
• 105% of (all premiums paid including extra premium, if any) till the date of death

B) Maturity Benefit:

On survival till the end of the policy term the following maturity benefit will be paid:
Accrued Simple Reversionary bonus (if any) + Terminal bonus (if any)

Riders

1. Kotak Premier Income Plan offers the following riders:
2. Kotak Term Rider (UIN: 107B003V03)
3. Kotak Accidental Death Benefit Rider (UIN: 107B001V03)
4. Kotak Permanent Disability Benefit Rider (UIN: 107B002V03)
5. Kotak Life Guardian Benefit (UIN: 107B012V02)
6. Kotak Accidental Disability Guardian Benefit (UIN: 107B011V02)

Why Should You Buy This Plan?

Along with the various benefits that are mentioned above, there are various other reasons to ‘why you must buy this plan?’. They are as follows:

• Tax benefits:
  Premiums paid under the plan would be exempt from tax under Section 80(C). The death/maturity/survival benefit received would be tax exempt under Section 10(10D) of the Income Tax Act. These benefits are subject to change as per tax rules.
• Vesting in case of minor life:
  If the policy has been taken on the life of a minor, the policy shall automatically vest on him/her with effect from the date of completion of 18 years of age and the Life Insured will become the Policyholder from such date.
• Free Look Period: 
  The individual is advised to go through the policy thoroughly, if s/he finds any objections to the terms and conditions of the policy than s/he can cancel the policy within 15 days (i.e. the free look period) by giving a signed written notice to the insurance company stating the reasons for objection of the policy and the individual will be entitled to a refund of the premium paid excluding few charges.
• Grace Period:
  The plan provides a grace period of 30 days for yearly, half-yearly & quarterly modes and 15 days for monthly mode from the due date of unpaid premium. If the premium is not paid within the grace period, the policy will get lapsed.
• Policy Revival:
  A lapsed or a Reduced Paid-Up policy can be revived within 2 years from the last unpaid premium date.
• Surrender Value:
  An policy shall receive surrender value only if the policy holder has paid full premiums of 2 years (if PPT is of 8 yrs) and at least 3 years (if the PPT is of 10 yrs and 12yrs).
• Nomination:
  Before the policy matures the nomination facility is permitted as per Section 39 of the Insurance Act, 1938. 
• Assignment: 
  The insured individual is enabled to assign his/her policy to a party by submitting a notice in writing to the insurance company as per Section 38 of the Insurance Act, 1938. 

Who Should Buy This Plan?

The minimum entry age to buy this plan is 3 years whereas the maximum entry age is 
50 years for 8 pay; 55 years for 10 pay and 12 pay.
Kotak Premier Income plan proves to be an ideal plan for it accommodates your requirements for a comfortable today by asking for limited premiums, whilst securing a bright tomorrow by offering high protection cover along with additional benefits.