KOTAK LIFE INSURANCE - INIVIDUAL PLANS

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

Term Benefit / 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 term benefit you can avail of 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:
This benefit provides an additional amount (over and above the basic sum assured) to the beneficiary in the event of the accidental death of the life insured. The maximum cover available under this benefit is equal to the basic sum assured (subject to a maximum of Rs.10 lakhs).

Permanent Disability Benefit:
This benefit provides financial support in case of your permanent disability due to an accident. The amount payable is over and above the basic sum assured and would be paid out as an annuity. The maximum Permanent Disability Benefit that you can avail of is equal to the basic sum assured (subject to a maximum of Rs.10 lakhs).

Permanent disability is defined as a permanent and immediate inability to work, the permanent loss
of use of two limbs or a total and permanent loss of sight.

Critical Illness Benefit:
This benefit can be taken with the basic life insurance policy to provide financial support in the event of medical emergencies. On the first occurrence of critical illness during the term of the policy, you would receive a portion of the sum assured to reduce your financial burden in this emergency.
The maximum Critical Illness Benefit that you can avail of is equal to half the basic sum assured subject to maximum of Rs. 20 lakhs.

(Please contact our Life Advisor for the list of critical illnesses).

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

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 benefit is available also where the life insured is the proposer.

What happens in the event of death of the life insured?
In the event of death of the life insured during the term of the plan, the beneficiary would receive the sum assured or the amount in the Accumulation Account, whichever is higher.

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.

How does this plan work?
Mr. XYZ, who is 30 years old, decides to buy a Kotak Endowment Plan for a sum assured of Rs. 5,00,000 for a 20-year term for his wife, who is aged 28. Mr. XYZ decides to take the Life Guardian Benefit as a rider to the plan. He does this to provide enhanced security and protection to his wife.

The annual premiums paid by a Mr.XYZ are as follows

Amount (Rs.) Kotak Endowment Plan Premium 22,552

Life Guardian Benefit Premium 1,106

Total Annual Premium Paid 23,658

i) What would be the payout maturity?
On maturity Mr.XYZ would receive the sum assured or Accumulation Account, whichever is higher.
Assuming that the Accumulation Account grows at a rate of 6%, the payout on maturity would be Rs. 6,93,800. At a growth rate of 10%, the maturity amount payable would be Rs. 10,97,700.

ii) What would happen in the event of Mr.XYZ unfortunate death at the end of 10th year?
Since Mr. XYZ is the proposer on Mrs.XYZ policy and has availed of the Life Guardian Benefit, all future premiums on Mrs. XYZ policy would be waived. Thereafter the policy will continue as if the premiums are being paid regularly. On maturity of her policy Mrs. XYZ would receive amounts as discussed above.*

* Assuming that the Accumulation Account grows at 6% and 10% respectively p.a.

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.

LIMITED PREMIUM PAYMENT OPTION

What is the LIMITED PREMIUM PAYMENT OPTION?
Your life is uncertain and with rising costs and economic instability, you may not be sure about your future incomes. You need a product that not only offers you a cover for the term that you want, but also, at the same time gives you the flexibility to choose a premium term such that you pay premiums during the period that you are certain of a secure income. The Limited Premium Payment (LPP) option in the Kotak Endowment Plan:

Covers you for a term (years) of your choice.
At the same time does not burden you with the liability to pay premiums for that entire term.
Entitles you to Bonus Addition for the entire term of the plan.

For what term can I avail of the plan?
You may take a policy of term raging from 10 to 30 years. However, you may opt for a limited premium payment term of 3, 5, 7, 10, or 15 years. The premium payment term must be less than the policy term.

How does LPP option work?
Jiten is a TV actor, aged 30 years. He wants to buy the Kotak Endowment Plan of Rs.1 crore for 15 years. However, he is not too sure if his income would remain the same for 15 years, to be able to afford the premiums.

But Jiten is not worried because with the Kotak Endowment Plan, he can choose to limit the premium paying term on his policy to 3 years. Thus he pays premium for 3 years and gets protection and Bonus Addition for a period of 15 years.

In the event of maturity/death, Jiten/ his beneficiaries would receive the sum assured plus the Bonus Addition (if any).

What are the value-adds available with the LPP option?
You may choose any of the value adds available with the Kotak Endowment Plan. However, the value-add would be applicable only during the premium paying term of the policy.

What are the benefits of LPP option?

You can pay off all premiums over a short period of time and be free from paying premiums for the rest of the policy term, while enjoying the life cover for the entire policy term.

Enjoy the benefits of bonus additions for the entire term of the policy.

Tax benefits available.

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

(1) Self-inflicted injuries, suicide, insanity, immorality of the proposer, or his committing any breach of law or being under the influence of drugs, liquor etc.
(2) 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.
(3) Due to injuries from war (whether war is declared or not), invasion, hunting, other dangerous hobbies or activities, or having been on duty in military, para-military, security or police organization.

Additional Exclusions for Critical Illness:
(1) Unreasonable failure to seek or follow medical advice.

(2) Any pre-existing medical condition not disclosed at inception.

(3) 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.

No claim under the Life Guardian Benefit would be admitted if, within one year of the date of issue of this benefit, the proposer commits suicide, whether being sane or insane at the time of committing suicide.

No claim under the Accidental Disability Guardian Benefit would be admissible in the following circumstances:

(1) Self-inflicted injuries, attempted suicide, insanity, immorality of the proposer, or his committing any breach of law or being under the influence of drugs, liquor etc.
(2) Where the proposer is engaged in aviation or aeronautics other than as a passenger on a licensed commercial aircraft operating on a scheduled route.
(3) The proposer suffers 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.

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.