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Kotak Eternal Life Plan

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This plan has been withdrawn by the insurance company and is no longer available for sale.

Kotak Eternal Life Plan

Kotak Eternal Life Plan is a Traditional Participating Whole Life Plan. Thus, it is a non-linked Limited Pay Insurance Plan with Bonus facility which continues till 99 years of age. There are 2 variants of this plan:
 
How it works –In this plan, premiums are paid for the entire Premium Paying Term from 10 to 40 years as selected but the Life Coverage continues till the end of the Policy tenure, that is 99 years. In Kotak Eternal Life Plan-Premier Shield, the premium increases by 5% every year till the Life Insured’s age is 50 years so that there is lesser premium at lower age and premium liability rises with higher paying capacity.
 
Simple Reversionary Bonus accrues after 5 policy years and Terminal Bonus after 10 policy years. Thus, on survival till the end of the Premium Paying Term, accrued Reversionary Bonus + Special Terminal Bonus is payable as Survival Benefit and the policy continue.
 
On Policy Maturity, i.e. if the Life Insured survives till 99 years of age, Sum Assured + Terminal Bonus (if any) would be paid as Maturity Benefit and the policy would be terminated.
 
However, if the Life Insured dies within the Premium Paying Term, then Sum Assured + accrued Reversionary Bonus + Interim Bonus + Terminal Bonus would be paid as Death Benefit and the policy would be terminated.
 
But if the Life Insured dies within the Policy Tenure, but after the Premium Paying Term, then Sum Assured + Terminal Bonus would be paid as Death Benefit and the policy would be terminated.
 
There are 3 additional riders available in this plan. Kotak Eternal Life Plan-Premier Shield has a built in rider of Accidental Disability Benefit for the Premium Payor where the future premiums would be waived off is case of accidental disability of the policyholder and a lump sum amount is paid.
 
 

Key Features of Kotak Eternal Life Plan

  • This is a Traditional Whole Life Plan with Bonus facility
  • There are 2 variants of the plan- Classic Shield and Premier Shield
  • This Plan offers Limited Payment Option where premium needs to be paid only for a small time while the Life Coverage continues till 99 years
  • For Premier Shield variant, the premium increases by 5% each year till the age of the life insured is 50 years old.
  • On survival till the end of the Premium Paying Term, accrued Reversionary Bonus + Special Terminal Bonus is payable as Survival Benefit
  • Sum Assured + accrued Bonuses are paid on Policy Maturity or on earlier Death
  • This plan offers different premium rates for males and females as well as for smokers and non-smokers but beyond Rs 10 Lakhs of Sum Assured
  • There are 3 additional riders available with this plan
  • Premier Shield variant has 1 built in rider of Accidental Disability Benefit for the Premium Payor
  • This plan offers Simple Reversionary Bonuses, Special Terminal Bonus, Interim Bonus as well as Terminal Bonus.


 

Benefits you get from Kotak Eternal Life Plan

Death Benefit – If the Life Insured dies within the policy tenure, the following is paid as Death Benefit
  • Within the Premium Paying Term, the nominee would receive the Sum Assured + accrued Reversionary Bonus + Terminal Bonus (if any) + Interim Bonus (if any) would be paid as Death Benefit and the policy would be terminated
  • After the Premium Paying Term, the nominee would receive the Sum Assured + Terminal Bonus if any) would be paid as Death Benefit and the policy would be terminated
 
Survival Benefit— On survival till the end of the Premium Paying Term, the vested Simple Reversionary Bonus + Special Terminal Bonus is payable as a Survival Cash Benefit
 
Maturity Benefit – On maturity, i.e. if the Life Insured survives till 99 years of age, then the Sum Assured + Terminal Bonus (if any) would be paid to the policyholder as Maturity Benefit
 
Income Tax Benefit - Life Insurance premiums paid up to Rs. 1,50,000 are allowed as a deduction from the taxable income each year under section 80C and the Maturity proceeds are tax free under section 10(10)D subject to fulfilment of terms and conditions.
 
 

Eligibility conditions and other restrictions in Kotak Eternal Life Plan

 
Minimum
Maximum
Sum Assured (in Rs.)
1,50,000
No Limit
Policy Term (in years)
99- Age at Entry
Premium Payment Term (in years)
10
40 or
till Life Insured’s age=75 or
till Minor’s age=18
Entry Age of Life Insured  (in years)
0
65
Age at Maturity when premium ceases (in years)
-
75
Age at Maturity (in years)
-
99
Annual Premium (in Rs.)
PPT=10-14 years, Rs 10,000
PPT=15+ years, Rs 6,000
No Limit
Payment modes
Yearly, Half-Yearly, Quarterly and Monthly
 
 

Additional Features and Benefits of Kotak Eternal Life Plan

Riders – There are 3 additional riders available with this policy:
  1. Kotak Critical Illness Benefit
  2. Kotak Life Guardian Benefit
  3. Kotak Term/Preferred Term Benefit
Bonus—
  • Simple Reversionary Bonus is payable after the 5th year for all the first 5 policy years as well, which is payable on survival at the end of the Premium Paying Term or on earlier death
  • Special Terminal Bonus is payable on survival till the end of the Premium Paying Term
  • Interim Bonus is payable in case of death within the course of a financial year
  • Terminal Bonus is payable after 10 policy years or more, provided all due premiums are paid
 
 

What happens if?

You stop paying the premium – The policy will lapse if the premium stops. However, it can be revived within 2 years from the date of first unpaid premium. If at least 3 years’ premiums have been paid, then the policy can be converted to a Paid Up Policy and continued for a reduced Sum Assured without paying further premiums.
 
You want to surrender the policy – If premiums for 3 years have been paid up, then surrender of policy is allowed.
Guaranteed Surrender Value = 30% of basic premiums paid – 1st year’s premium and additional premium paid (if any).
This policy also offers Special Surrender Value.
 
You want a loan against your policy - There is Loan available under this plan after 3 Policy Years upto 80% of the Surrender Value.



 
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