Kotak Premier Life Plan

About Kotak Premier Life Plan

The Kotak Premier Life plan is a limited premium paying, non-linked participating whole life plan that offers life coverage up to 99 years of age. Moreover, the policy provides bonus pay-outs at the end of the premium paying term and a wide range of riders are offered to enhance your plan and returns.

Let’s understand this plan in brief before getting into its details:

How Does the Plan Work?

The individual decides the premium payment term (PPT) of 8, 12, 15, or 20 years. The individual decides the sum assured on maturity. Based on the PPT and the sum assured, the premium payable is calculated. The individual then has to choose between two bonus options:

• Cash pay-outs
• Paid-up additions

Now, let’s understand the benefits offered with this plan:

A) Survival Benefits: On the survival of the policyholder throughout the policy term, s/he receives sum assured on maturity + bonus in the form of either a cash pay-out (where bonuses are paid in cash) or paid-up additions (where the bonus amount would be used to buy paid-up additions and accumulate a corpus). The survival benefit shall be payable as per the bonus option selected, as explained here:

• Cash Payout: Under this option, the accrued simple reversionary bonus is payable at the end of the premium payment term. Further, at the end of each policy year after the expiry of 3rd year, cash bonus is payable till the end of the policy term or death or surrender, whichever is earlier.
• Paid-up Additions: Under the paid-up additions option, the accrued simple reversionary bonus and cash bonus will be utilized to purchase paid-up additions. Paid-up additions are additional guaranteed benefits payable on death or maturity. 
  The formula for calculating paid-up additions is: paid-up addition factor multiplied by the accrued simple reversionary bonus or cash bonus, as the case may be.

B) Maturity Benefits: On survival till the end of the policy term, the maturity benefit payable will be the sum assured on maturity plus cash bonus (if any) plus accrued paid-up additions (if any) plus terminal bonus (if any).

C) Death Benefits (applicable for both options): Here are the death benefits offered under this plan:

• In case of unexpected death of the policyholder during the premium payment term, sum assured on death + accrued simple reversionary bonus + terminal bonus is payable to the nominee.
• In case of unexpected death of the policyholder after the premium payment term and during the policy term, sum assured on death + accrued paid-up additions + terminal bonus is payable to the nominee.

Note that the sum assured on death is higher of sum assured on maturity or 11 times of annualized premium or 105% of the premiums paid till the date of death.

Riders

The Kotak Premier Life plan offers the following riders:

1. Kotak Term Benefit Rider
2. Kotak Accidental Death Benefit Rider
3. Kotak Permanent Disability Rider
4. Kotak Life Guardian Benefit Rider
5. Kotak Accidental Disability Guardian Benefit Rider

Why Should You Buy This Plan?

In addition to the benefits mentioned earlier, here are other reasons to opt for the Kotak Premier Life plan:

• Tax Benefits: Premiums paid under the plan would be exempt from tax under Section 80(C). The death benefit or the maturity benefit received and the survival benefit received would also be tax exempt under Section 10(10D) of the Income Tax Act. These benefits are subject to change as per tax rules.
• 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, s/he can cancel the policy within 15 days (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 a few charges like stamp duty charges.
• Grace Period: The plan provides a grace period of 30 days for yearly, half-yearly, and 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 Loan Facility: You can avail loans up to 80% of surrender value subject to a minimum loan amount of INR 10,000.

Who Should Buy This Plan?

The Kotak Premier Life 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 protection up to 99 years of age. The minimum entry age to buy this plan is 3 years. The maximum entry age to buy this plan varies based on PPT, as follows: