KOTAK LIFE INSURANCE

This plan helps to multiply your money and is flexible to use as and when required in regular withdrawals. It has more benefits than any other. Additional death benefits can be availed. This plan also has other benefits like accident death benefit, permanent disability benefits etc.

Who can avail of this plan?
How old do you have to be to avail of this plan?

Minimum age - 18 years
Maximum age - 60 years

For what term can you choose to pay the premiums (called the Build-up Period)?
5 yrs - 30 yrs

What is Vesting Age?
The policies have certain conditions whereby the title will automatically pass on to the insured child, on his attaining age of majority. This process is called Vesting. The policy anniversary corresponding to the age of majority, or any later date as may be chosen, of the insured child is the vesting Date. The Vesting Age cannot be earlier than 18 years. This is because there cannot be a valid contract with the minor. The differed date and the Vesting Age need not be same.

From what age can you choose to start making withdrawals (called the Vesting Age)?
Any age upto 65 yrs

What is the minimum premium that you need to pay and at what intervals can you pay them?

Mode Amount
Quarterly --------------Rs. 2620
Half Yearly----------- Rs. 5115
Annually--------------- Rs.10000

What are the advantages of this plan?

What value-adds can you opt for?
You may avail of these value-adds for a nominal premium at the time of taking the policy, subject to aggregate premium on the value-adds not exceeding 30% of the basic premium for the policy.

Term/ Preferred Term Benefit: In the event of death during the term of this benefit, the beneficiary would receive an additional Death Benefit amount, which is over and above the Sum Assured. The maximum amount of benefit you can avail is equal to the Basic Sum Assured. Where the Term Benefit cover applied for is more than Rs.10 lakhs, better rates may apply, subject to meeting eligibility requirements.

Accidental Death Benefit: In the event of death as a result of an accident during the term of this benefit, your beneficiary/ nominee will receive an additional Death Benefit amount, which is over and above the basic benefit. The maximum Accidental Death Benefit you can avail of is equal to the Basic Sum Assured (subject to an overall limit of Rs. 10 lakhs).

Critical Illness Benefit (CI+15):
The maximum Critical Illness Benefit Sum Assured you can avail of is equal to the Basic Sum Assured (subject to a limit of Rs.20 lakhs).

(i) In case of the first occurrence of a critical illness during the build-up period, an advance payment of 110% of the Critical Illness Benefit Sum Assured will be added to your Supplementary Accumulation Account, and will be available from your chosen vesting age.

On the addition of this benefit to the Supplementary Accumulation Account, the Basic Sum Assured would reduce by the Critical Illness Benefit Sum Assured, the Accumulation Account would reduce proportionately, and the Critical Illness Benefit would cease. The future premiums for the plan (if applicable) would be recalculated based on the reduced Basic Sum Assured.

(ii) In case of the first occurrence of critical illness during the withdrawal period, an advance payment equal to 10% of the Critical Illness Benefit Sum Assured will be added to your Accumulation Account. On the addition of this benefit to the Accumulation Account, the Basic Sum Assured would reduce by the Critical Illness Benefit Sum Assured, and the Critical Illness Benefit would cease.

(Please contact our Life Advisor for a list of Critical Illnesses)

Permanent Disability Benefit:
If you meet with an accident during the term of this benefit, and are permanently disabled, you would be entitled to an additional amount, which is over and above the basic benefit. This amount is added to your Supplementary Accumulation Account and will be available from your chosen vesting age. The maximum Permanent Disability Benefit available is equal to the Basic Sum Assured (subject to a maximum of Rs.10 lakhs).

Permanent Disability is defined as permanent and immediate inability to work or permanent loss of use of two limbs or total and permanent loss of sight.

Life Guardian Benefit:
In case of the unfortunate death of the proposer, this benefit keeps the policy alive by waiving all future premiums on the policy. This is available only where the proposer and the life insured are two different individuals.

Accidental Disability Guardian Benefit: In case the proposer is permanently disabled as a result of an accident, this benefit keeps the policy alive by waiving all future premiums on the policy. This is available even if the proposer is also the life insured.

Are there any Tax Benefits?
Section 80C, 10(10D) of Income Tax Act would apply. Premiums paid for Critical Illness Benefit qualify for benefits under Section 80D. These benefits are as per the currently prevailing tax regulations and you are advised to consult your tax advisor for details.

*Please consult your tax advisor for details.

What happens in the event of the death of the life insured during the build up period?
The beneficiary will receive greater of:
(i) Basic Sum Assured less all the premiums due but not paid, or
(ii) Accumulation Account, Plus,
(i) An additional amount of 10% of the Basic Sum Assured, and
(ii) The balance in the Supplementary Accumulation Account.

"What happens in the event of death of the life insured during the withdrawal period?"
The beneficiary will receive the following:
(i) 10% of the Basic Sum Assured, and
(ii) The balance in the Accumulation Account (into which the Supplementary Accumulation Account has been added).

How does this plan work?
Mr. Mohan is a 35-year-old man who takes the Kotak Capital Multiplier Plan with a Basic Sum Assured of Rs.10 lakhs. He opts for the Accidental Death Benefit value-add. He wants to take his withdrawals from the age of 55 years. He chooses to pay his premiums annually. His total annual premium will be as follows:

Kotak Capital Multiplier Plan premium 43,993

Accidental Death Benefit premium 882

Total premium 44,875
(a)
(i) How big is Mr. Mohan's fund at the end of the premium paying term?

The amount available to Mr. Mohan at age 55 will be Rs. 10 lakhs plus bonus additions. Assuming that the Accumulation Account grows at 6% p.a, this amount will be equal to Rs.13,95,400. If the Accumulation Account grows at 10% p.a, this amount will be equal to Rs.22,27,100.

(b) What does Mr. Mohan's beneficiary receive in the event of the unfortunate death of Mr. Mohan :
(i) During the build up period?

Mr. Mohan's beneficiary will receive the greater of Rs.10 lakhs and the balance in his Accumulation Account. Supposing he dies at the end of the 15th year, his beneficiary will receive Rs. 10,00,000, assuming that his Accumulation Account grew at 6%, or Rs.12,20,500, if it grew at 10%. Also, he/she will get an additional Rs.1,00,000 (10% of Basic Sum Assured as additional life cover).

In the event that Mr. Mohan's dies due to an accident, his beneficiary will get an additional Accidental Death Benefit of Rs.10 lakhs as Mr. Mohan has paid a minimal premium of Rs. 882 p.a towards the benefit.

(ii) During the withdrawal period?
Mr. Mohan's beneficiary will receive the balance in his Accumulation Account. He/she will receive an additional Rs.1,00,000 over and above this balance, as life cover of 10% of Basic Sum Assured is still available.

In the illustration, some benefits are guaranteed and some are variable. Guaranteed Returns are marked "guaranteed" in the illustration. Variable returns are shown at two different rates of assumed future returns. These assumed rates of return are not guaranteed and they are not the upper or lower limits of what you might get back .The actual return may be different depending on a number of factors including future investment performance.

General Exclusion.
In case the life insured commits suicide within 1 (one) year of the plan, no benefits outlined in the plan would be payable.

Exclusions for Accidental Death Benefit and Permanent Disability Benefit:
The Accidental Death Benefit, Permanent Disability Benefit, Critical Illness Benefit & Kotak Accidental Disability Guardian Benefit would not be paid out in the following circumstances:

(a) Self inflicted injuries, suicide, insanity, immorality, committing any breach of law or being under the influence of drugs, liquor etc.

(b) When the life insured is engaged in aviation or aeronautics other than as a passenger on a licensed commercial aircraft operating on a scheduled route.

(c) Due to injuries from war (whether war is declared or not), invasion, hunting, mountaineering, motor racing of any kind, other dangerous hobbies or activities, or having been on duty in military, para-military, security or police organization.

Additional Exclusions for Critical Illness:
(a) Unreasonable failure to seek or follow medical advice.
(b) Any pre-existing medical condition not disclosed at inception.
(c)Infection with Human Immunodeficiency Virus (HIV) or condition due to Acquired Immune Deficiency Syndrome (AIDS).
In addition, no benefit would be paid in respect of the exclusions specific to each critical illness.

"Prohibition of Rebates"
Section 41 of the Insurance Act, 1938 states:

(1) No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take out or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any person taking out or renewing or continuing a policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectuses or tables of the insurer.

(2) Any person making default in complying with the provision of this section shall be punishable with fine, which may extend to five hundred rupees.