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Kotak Life Insurance launches Kotak Premier Life Plan

Kotak Life Insurance launches Kotak Premier Life Plan
Last Updated: Jan 07, 2016 | 975 Views
Kotak Life Insurance's Premier Life Plan is a limited premium payment, participating whole life plan. The plan provides insurance cover against death and optional accident or disability covers along with bonus payout (if any) up to 99 years of age. The term of the policy is 99 years minus the entry age.

This plan allows you to decide the sum assured on maturity and choose premium payment term basis which is the basis of premium payable by you.

Key Features
  • Life Insurance available from premium as low as Rs 6,975 (exclusive of taxes, for a 30 year old non-smoking male with 1 crore sum assured and policy term of 25 years)
  • Lower premium for women, non-tobacco consumers
  • In case of total and permanent disability due to accident, future premium payments are waived off but policy is continued (available only if accident insurance rider is availed)
  • Flexible Payout Options: Policyholder has the option wherein in case of their unfortunate death, the nominee will receive 10 percent of sum assured upfront and the remaining balance in 15 years as monthly income. However, if nominee sees it fit they can opt to receive the entire sum assured at a discounted value instead of regular monthly income. The lump sum will be discounted at 6.5 percent per annum compounding yearly of the entire outstanding regular payouts.
  • Immediate Payout: Entire sum assured is disbursed to nominee of person assured at the time of death.

Death Benefit: In case of death of the policyholder, other than sum assured the plan also pays out bonus, due to the participating nature of the plan.
Sum assured on death is higher of the two:
  • Sum assured on maturity, or
  • 11 times of annualized premium, or
  • 105 percent of premium paid until death (minus service tax & cess as applicable and rider premium)
Maturity Benefit: When policyholder survives policy term, maturity benefit is sum assured on maturity plus cash bonus (if any) plus paid-up additions bonus (if any) plus terminal bonus (if any).

There are two bonus options available: Cash payout and Paid-up additions.

In cash payout option, bonus accrued during the premium payment term is paid in a lump-sum. Additionally, cash bonus (if any) would be paid annually after the end of every year post the premium-payment period till the end of policy term or death whichever is earlier.

While under paid-up addition, the yearly bonus mentioned above will get accrued which means the annual bonus is used to buy paid-up additions (PUAs)

Tax Benefits
Tax benefit under Section 80C and Section 10(10D) of Income Tax Act, 1961.

Add-on Covers

The cover can be increased by adding below optional riders the your base plan:

Kotak Term Benefit Rider: In case of death of the life insured, rider sum assured will be paid in addition to the death benefit under the base plan.

Kotak Accidental Death Benefit Rider: In case of an accidental death of the insured, rider sum assured will be paid in addition to the death benefit under the base plan.

Kotak Life Guardian Benefit Rider: In case of death of the policyholder (if different from life insured), outstanding premiums are waived and will be paid by Kotak Life Insurance.

Kotak Accidental Disability Guardian Benefit Rider: In case of disability due to accident, outstanding premiums are waived and will be paid by Kotak Life Insurance.

In Nutshell:
Minimum Sum Assured on Maturity Rs. 200,000
Premium Payment Option Limited payment
Premium Minimum – Based on sum assured on maturity, entry age, gender and premium payment term
Maximum – No limit (Subject to amount underwritten)
Premium Payment Term (PPT) Fixed PPT of 8, 12,15 and 20 years
Premium Payment Mode
Yearly, Half-yearly, Quarterly and Monthly 
Entry Age
Min: 3 years
8 years PPT
12 years PPT
15 years PPT
20 years PPT
55 years
53 years
50 years
45 years
Maturity Age  99 years
Policy Term 99 less entry age
Premium Pay  
Premium is determined basis the below mentioned
Sum Assured on maturity bands:
Band 1 - Below Rs 5,00,000
Band 2 -Rs 5,00,000 to below Rs 7,00,000
Band 3 - Rs 7,00,000 to below Rs 10,00,000
Band 4 - Rs 10,00,000 and above Premium rates will be lower for higher Sum Assured on maturity bands. An additional discount of Rs 1 per 1,000 Sum Assured on maturity will be available for female lives


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