Kotak Money Back Plan

Kotak Life Money Back Plan

Kotak Money Back Plan is a Traditional Participating Money Back Plan. Thus, it is a non-linked insurance plan with Bonus facility.

How it works –In this plan, the premiums paid, after deduction of charges, are credited in the Accumulation Account and invested as per IRDA norms. Since this is a participating plan, i.e. with Bonus facility, the returns as per declared (i.e. Bonus) are credited to the Accumulation Account.

This plan offers Guaranteed Payout every 5 Policy Years along with Guaranteed Addition on maturity.

The Death Benefit under this plan increases by 7% every year to keep pace with the inflation.

However, if the Life Insured dies within the policy tenure, the associated Sum Assured is paid as Death Benefit, irrespective of the amount already paid out.

There are 6 additional riders available in this plan.

Key Features of Kotak Money Back Plan

• This is  a Traditional Money Back Plan with Bonus facility
• This plan offers Guaranteed Payout every 5 Policy Years
• This plan also offers Guaranteed Additions on Maturity- 20% for 15 years Term, 30% for 20 years Term and 40% for 25 years Term.
• The Death Benefit under this plan increases by 7% every year to keep pace with the inflation
• This plan provides for Automatic Cover Maintenance facility which ensures that the policy remains in force even if you miss premium payments after the first 3 year premiums have been paid
• There are 6 additional riders with this plan

Benefits you get from Kotak Money Back Plan

Death Benefit – If the Life Insured dies within the policy tenure, the associated Sum Assured is paid as Death Benefit, irrespective of the amount already paid out

Survival Benefit— This plan offers Guaranteed Payout every 5 Policy Years

Maturity Benefit – On maturity the remaining Sum Assured is paid along with Guaranteed Additions and vested Bonus as Maturity Benefit.

Income Tax Benefit - Life Insurance premiums paid up to Rs.1,00,000 are allowed as a deduction from the taxable income each year under section 80C

 Eligibility conditions and other restrictions in Kotak Money Back Plan

Sample illustration of premium of Kotak Money Back Plan

Age of Life Insured = 30, 35 and 40 years respectively

Policy Term = 25 years

Sum Assured = Rs.5,00,000

Additional Features and Benefits of Kotak Money Back Plan

Riders – There are 6 additional riders available with this policy:

1. Kotak Term/Preferred Term Benefit
2. Kotak Accidental Death Benefit
3. Kotak Permanent Disability Benefit
4. Kotak Critical Illness Benefit
5. Kotak Life Guardian Benefit
6. Kotak Accidental Disability Guardian Benefit

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).

You want a loan against your policy - There is no Loan available under this plan.