Kotak Life Insurance's Premier Life Plan Review
Kotak Life Insurance's Premier Life Plan is a limited premium payment, participating whole life plan. The plan provides insurance cover for 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.
How it works
- The user decides the sum assured on maturity and choose premium payment term basis, on which premium payable is calculated. This is a limited premium plan which means premium payment term is lesser than the maturity period. The user has to choose from Cash payout or Paid-up addition bonus options available.
Key Features of Kotak Premier Life Plan
- Life Insurance is 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 continues (available only if accident insurance rider is availed)
- Flexible Payout Options: In case of unfortunate death of policyholder, 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.
Benefits under Premier Life Plan
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:
- 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)
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 benefit under Section 80C and Section 10(10D) of Income Tax Act, 1961.
Eligibility & Other Restrictions
|Minimum Sum Assured on Maturity
|Premium Payment Option
||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
||Min: 3 years
8 Years PPT
12 Years PPT
15 Years PPT
20 Years PPT
||99 less entry age
||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
Additional features and benefits
The cover can be increased by adding optional riders below to the 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.
What happens if?
If you do not pay your premium payments:
For >10 year premium payment term (PPT), where full premium for initial two years are not paid within the grace period, the policy will lapse. For PPT of <10 years, the policy will lapse if the premiums of first three years are not paid within the grace period and no benefits will be paid.
If you want to surrender your policy:
For PPT >10 years: The policy will attain Guaranteed Surrender Value (GSV) after payment of full two premiums for three consecutive years.
For PPT<10 years: Policy attains GSV after payment of premiums for three consecutive years.