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.
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
|
Payout @ 5th Year |
Payout @ 10th Year |
Payout @ 15th Year |
Payout @ 20th Year |
Payout @ 25th Year |
15 Years Plan |
25% |
25% |
50% + 20% GA |
- |
|
20 Years Plan |
20% |
20% |
20% |
40% + 30% GA |
- |
25 Years Plan |
15% |
15% |
15% |
15% |
40% + 40% GA |
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
|
Minimum |
Maximum |
Policy Term (in years) |
15/20 |
25 |
Premium Payment Term (in years) |
Equal to Policy Term |
|
Entry Age of Life Insured (in years) |
18 |
60 |
Age at Maturity (in years) |
- |
75 |
Regular Premium (in Rs.) |
4000 |
No Limit |
Payment modes |
Yearly, Half-Yearly, Quarterly and Monthly |
Age of Life Insured = 30, 35 and 40 years respectively
Policy Term = 25 years
Sum Assured = Rs.5,00,000
Riders – There are 6 additional riders available with this policy:
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.