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Kotak Wealth Insurance Plan

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Kotak Wealth Insurance Plan

Kotak Wealth Insurance Plan is a unit linked insurance plan (ULIP) such that if the Life Insured dies within the policy tenure, the nominee would receive Triple Death Benefit. The nominee would receive Sum Assured, Fund Value and Lump Sum Benefit of all future premiums paid.

This plan has the unique feature of Death Benefit payment when the Life Insured and the Policyholder dies, in case they are separate. So for example, if a person takes the policy for his wife, then he is the policyholder who pays the premium and his wife is the Life Insured, on whose name the policy has been issued. Now, if he dies within the policy tenure, then a Lump Sum Benefit would be paid since the payor is not alive anymore. And in case, if the Life insured, i.e. the wife dies, then the beneficiary would get Sum Assured plus Fund Value as Death Benefit of the Life Insured.
 

Key Features of Kotak Wealth Insurance Plan

·         Unit linked insurance plan where the investment risk is borne by the policyholder

·         Offers a unique feature of Triple Death Benefit

·         Death Benefit is available even on death of the policyholder if different from the life insured.

·         Comes with option of shorter premium payment term


COMPARE THIS PLAN WITH OTHER ULIP PLANS
 

 

Benefits you get from Kotak Wealth Insurance Plan

Death Benefit – There is Triple Death Benefit under both options of this policy:

If the Life Insured and the Policyholder are the same, then death benefit is Sum Assured plus Fund value plus Lump Sum Benefit of all future premiums that are due.

If Life Insured and Policyholder are not the same, then

On Death of the Life Insured, Death Benefit is Sum Assured plus Fund value

On Death of the Policyholder, Lump Sum Benefit of all future premiums that are due would be paid

Maturity Benefit – On maturity, the Fund Value is paid to the policyholder.

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

 

Eligibility conditions and other restrictions in Kotak Wealth Insurance Plan

 

Minimum

Maximum

Sum Assured (in Rs.)

Higher of (10 X Annual Premium)

Or

(0.5 X Policy Term X Annual Premium)

25 X Annual Premium

Policy Term (in years)

10 years

30 years

Premium Payment Term (in years)

5 years / 10 years

Equal to policy term

Entry Age of Policyholder (in years)

0

65

Age at Maturity (in years)

18

75

Single Premium (in Rs.)

NA

NA

Payment modes

Only Yearly

 

 

Sample illustration of premium amount in Kotak Wealth Insurance Plan

Age = 35 years

Premium = Rs.50,000

Sum Assured = Rs 12,50,000

Policy Term = 20 yrs

Total Investment =Rs 50,000 X 20 years= Rs 10,00,000

Kotak Wealth Insurance Plan Sample Illustration 
 

Additional Features and Benefits of Kotak Wealth Insurance Plan

Riders – There are 3 riders available in this policy

1.       Kotak Accidental Disability Guardian Benefit (ADGB)

2.       Kotak Critical Illness Benefit (CIB)

3.       Kotak Accidental Death Benefit (ADB)

Investment Fund Options

In this plan there are 8 Investment Fund Options

1.       Classic Opportunities Fund

2.       Frontline Equity Fund

3.       Balanced Fund

4.       Dynamic Floor Fund II

5.       Bond Fund

6.       Floating Rate Fund

7.       Gilt Fund

8.       Money Market Fund

Top-up - You can invest additional premiums as top-up premiums anytime except in the last five policy years. The minimum top-up premium is Rs. 10,000. Every Top-up premium shall have an Additional Sum Assured which will be 1.25 times or 1.1 times of the Top-up premium paid. This Additional Sum Assured will be in addition to the life cover

Switching - You have the flexibility to switch investments from one fund to the other any time during the policy term. First 4 switches are free in every policy year.

Partial Withdrawal - You are allowed to make partial withdrawals in this policy after 5 complete policy years. The minimum amount of partial withdrawal should be Rs. 10,000 such that one annual premium should be maintained after Partial Withdrawal

 

What happens if?

You stop paying the premium before 5 years - If the policy holder stops paying the premium, the insurance cover will cease and the fund value net of any discontinuance charge will be transferred to the Discontinued Policy Fund. The Discontinued Policy Fund will be credited with a minimum interest rate of 3.5% p.a. and the proceeds from this will be payable after the fifth policy anniversary. In case of death of the Life Assured during this period, only the accumulated fund value will be payable to the nominee.

You stop paying the premium after 5 years - If the policy holder stops paying the premium after 5 years, then the accumulated policy fund amount till the date of discontinuance shall be paid to the policy holder and the policy will terminate immediately.

You want to surrender the policy – If the policy holder wants to surrender the policy before completing 5 years, then the insurance cover will cease and the fund value net of any discontinuance charge will be transferred to the Discontinued Policy Fund. The Discontinued Policy Fund will be credited with a minimum interest rate of 3.5% p.a. and the proceeds from this will be payable after the fifth policy anniversary. In case of death of the Life Assured during this period, only the accumulated fund value will be payable to the nominee.

If the policyholder surrenders the policy after completion of 5 policy years, then the insurance cover will cease and your fund value shall be paid immediately and the policy would be terminated.

You want a loan against your policy - Loans shall be granted against the policy once two years' premiums have been paid. The rate of interest shall be determined by the Company from time to time.

The maximum loan value is 40% of the Fund Value of the policy at that time



 

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