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Kotak Premier Income Saving and Investment Life Insurance Plan and Policy

Kotak Premier Income Saving and Investment Life Insurance Plan and Policy - One of the main reasons why individuals earn is not just to live a life that is comfortable, but to also ensure that their family is well cared for, even in the event of their untimely death. Life insurance plans do the needful in such circumstances. The Premier Income Plan by Kotak Life Insurance is a protection oriented and savings plan that provides a host of benefits and features such as accrued bonuses and a Guaranteed Annual Income post premium payment term. This income provides the policyholder with an additional income every year. Payouts will be provided at the commencement of every policy year.

Another unique feature of this product is enhanced rates of Sum Assured for female policyholders who will also receive higher premiums. This Limited Pay Participating Life Insurance policy also offers further protection through riders if policyholders choose to procure them.

Eligibility - Kotak Premier Income Saving and Investment Life Insurance Plan and Policy

In order to avail the Kotak Premier Income Plan, individuals will have to meet the following eligibility requirements.

Parameter Details
Minimum Maximum
Age of entry as on previous birthday (in years) 3 years
  • In case of 8 pay option - 50 years
  • In case of 10 and 12 pay - 55 years
Maximum age of maturity (as on previous birthday) 18 years 78 years
Policy Tenure The policy tenure is fixed and the options available are:
  • 15 years
  • 19 years
  • 23 years

Sum Assured and Premium Range - Kotak Premier Income Saving and Investment Life Insurance Plan and Policy

Sum Assured:

The Sum Assured that the policyholder will receive is dependent on the age of the holder, gender, premium payment tenure, premium amount being paid and the tenure of the policy.

  • Guaranteed Annual Income

Additionally, one of the unique advantages offered by the Premier Income Plan is Guaranteed Annual Income. Once the premium payment term has been completed, Guaranteed Annual Income will be paid for the rest of the term at the commencement of every policy year until the final policy year or date of death of policyholder, whichever is earlier.

This income rate will differ based on the premium payment term and will be a percent of the Annualised premium.

  • For an 8 Pay option, 103% of the Annualised premium will be paid
  • For a 10 Pay option, 108% of the Annualised premium will be paid
  • For a 12 Pay option, 113% of the Annualised premium will be paid

The payout period for every Premium Payment Term option is as given below:

  • If the policyholder has chosen the 8 Pay option, the payout will commence from the start of the 9th year of policy and will end at the start of the 15th year of policy.
  • If the policyholder has chosen the 10 Pay option, the payout will commence from the start of the 11th year of policy and will end at the start of the 19th year of policy.
  • If the policyholder has chosen the 12 Pay option, the payout will commence from the start of the 13th year of policy and will end at the start of the 23rd year of policy.

Longer the investment tenure, higher will be the Guaranteed Annual Income that the policyholder will receive. Policyholders should note that the Sum Assured will not be payable on policy maturity but is used for calculating the death benefit as well as bonuses under this product. All bonuses will be a percent of the Sum Assured.

  • Enhanced Sum Assured Prices

In case the premium is high or the Life Insured is a female, the Sum Assured rate will be an added percentage of the Base Sum Assured rate. The rates offered are as given below:

Premium Range % increase in Base Sum Assured
Male Female
Annualised premium below Rs.40,000 - 2%
Annualised premium between Rs.40,000 and Rs.75,000 2% 4%
Annualised premium greater than or equal to Rs.75,000 6% 8%

Premium Range:

Premium Levels
  • For 8 and 10 Pay - Rs.30,000 per annum
  • For 12 Pay - Rs.25,000 per annum
No limit but is subject to acceptance of U/W
Premium Payment Tenure The tenure is limited:
  • 8 years for a term of 15 years
  • 10 years for a term of 19 years
  • 12 years for a term of 23 years
Premium Payment Mode Annually/Semi-Annually/Quarterly/Monthly
Premium Modal Factor
  • Annual - 100%
  • Semi-annual - 51%
  • Quarterly - 26%
  • Monthly - 8.8%
The above will be used to calculate installment premium.

*Premiums vary based on age, location, plan tenure and other factors.

Plan Coverage - Kotak Premier Income Saving and Investment Life Insurance Plan and Policy

The Premier Income Plan by Kotak Mahindra offers a number of benefits to customers. These benefits are listed below:

Death Benefit

In case of untimely demise of the policyholder during policy tenure, the nominee will receive Sum Assured upon death along with Accrued Simple Reversionary bonuses, if applicable and interim bonus, if applicable and terminal bonus, if applicable.

  • Sum Assured on death is a higher of 11 times Annualised premium which also includes extra premium, if applicable or 105% of all premiums that have been paid including extra premium, if applicable, until the date of death.
  • Individuals should note that Death Benefit will be paid regardless of the Guaranteed Annual Income that has already been paid.
Maturity Benefit
At the end of the tenure of the policy on the maturity date, policyholder will receive Accrued Simple Reversionary bonuses, if applicable along with Terminal bonus, if applicable.

Riders/Add-On Plans - Kotak Premier Income Saving and Investment Life Insurance Plan and Policy

Customers have the option to increase their level of protection under the Premier Income Plan by opting from a wide variety of riders. The available riders are as follows:

Kotak Term Rider
This rider provides additional death cover on the Life Insured of the policyholder that is over and above the base plan’s Death Benefit.
Kotak Accidental Death Benefit Rider
By procuring this rider, policyholder can avail a lump sum benefit that will be paid on accidental death of the Life Insured. This is in addition to Death Benefit under the base plan.
Kotak Permanent Disability Benefit Rider
Under this rider, installments will be paid on claim admission if Life Insured becomes disabled as a result of an accident.
Kotak Life Guardian Benefit
On policyholder’s death, all future premiums of the plan will get waived and base plan will continue without any other changes in plan benefits.
Kotak Accidental Disability Guardian Benefit
On disability due to accidents of the policyholder, future premiums of this plan will get waived and the base plan will continue to progress without any other change in plan benefits.

Exclusions - Kotak Premier Income Saving and Investment Life Insurance Plan and Policy

In case the policyholder commits suicide within a period of 12 months from date of beginning of risk of the Premier Income Plan, 80% of the all Premiums will be payable. In case the policyholder commits suicide after 12 months of policy risk cover commencement, the following will be applied:

  • If policyholder commits suicide within a year of the date of policy revival when the revival is completed within a period of 6 months from date of the very first unpaid premium, the Suicide Exclusion will not be applicable and only Death Benefit under the plan will be paid.
  • However, if the policyholder commits suicide within a year from revival date and when the revival is done after a period of 6 months from the first unpaid premium date, the benefit that will be paid will be a higher of 80% of all Premiums Paid which also includes extra premium, if applicable. If not, Surrender Value, if applicable will be paid on date of claim event.

Other Key Features - Kotak Premier Income Saving and Investment Life Insurance Plan and Policy

Annualised Premium
This refers to the premium that is payable in one policy year and does not include underwriting extra premiums along with loadings for modal premium. This premium also excludes premiums for rider along with Cess and Service Tax.
Bonus
There are three types of bonuses and these are-
  • Simple Reversionary Bonus wherein at the end of every financial year, the company may or may not declare a bonus that is expressed as a percent of the Sum Assured. This particular bonus will accrue from the end of the first year if policy throughout the entire entire tenure of the policy and will be paid on maturity or on death of policyholder.
  • Interim Bonus is another type of bonus. In case of a claim an interim bonus will be paid at a rate that is decided by the Company. This will be a percent of the Sum Assured.
  • Terminal Bonus may be paid by the Company on Maturity and is a percent of the Sum Assured. This bonus may be paid on policies which have been Surrendered or Reduced Paid-Up.
Grace Period
30 days is the grace period that is applicable from the due date for the premium payment for annual, semi-annual and quarterly payment mode. For monthly mode of payment, the grace period available is 15 days.
Vesting in case of minor
In case the policy has been procured on a minor’s life, this policy will vest automatically on the child with effect from the date when the child completes 18 years. After this the Life Insured will become a Policyholder.
Lapses
On the due date of the very first unpaid premium is when the policy will lapse in accordance with the rules given below and benefits will not payable:
  • For 8 years premium payment term, if the premium for the initial two policy years are not paid within the given grace period.
  • For 10 and 12 years premium payment term, if the premium for the initial three policy years are not paid within the given grace period.
Revival of Policy
A Reduced Paid-Up or lapsed policy can be revived within a period of two years from the due date of the very first premium that was unpaid. The policy will not be eligible for declared bonuses during the period in which the policy was lapsed. All policy benefits will be reinstated on policy revival.
Surrender
  • For a premium payment term of 8 years, the policy will acquire the Surrender Value only after full premiums for a period of two consecutive years have been paid.
  • For a premium payment term of 10 and 12 years, the policy will acquire the Surrender Value only after full premiums for a period of three consecutive years have been paid.
Guaranteed Surrender Value
The Guaranteed Surrender Value will be a percent of the total premiums that have been paid on the date of the first unpaid premium minus Guaranteed Annual Income that has already been paid out, if applicable and value of all subsisting bonuses, if applicable. This includes Cess and Service Tax.
Reduced Paid-Up Policy
Once the policy acquires Surrender Value, in case subsequent premiums have not been paid within the stipulated grace period, this policy will become a Reduced Paid-Up policy by default. If this is done, the policy will not be eligible for future reversionary bonuses and all rider benefits may cease depending on the features. Sum Assured will also be reduced to Reduced Paid-Up Sum Assured on death.
Nomination
Nomination is allowed under the plan based on provisions of Section 39 of the Insurance Act of 1938, as amended frequently.
Assignment
Assignment is allowed under the plan based on provisions of Section 38 of the Insurance Act of 1938, as amended frequently.
Free Look Period
A Free-Look period of 15 days is provided to the customer. However, if the policy is provided via distance marketing channels such as SMS, e-mail or any method that does not include personal interaction, a Free-Look period of 30 days is offered.

Tax Benefits - Kotak Premier Income Saving and Investment Life Insurance Plan and Policy

Policyholders can avail tax benefits when they procure the Kotak Premier Income Plan. Tax benefits can be procured under Section 80C and Section 10(10D) of the Income Tax Act of 1961. This is subject to all conditions that are specified in those sections. Customers must note that all tax benefits are subject to changes on the basis of tax laws.

Cess and Service Tax will be charged as applicable over and above the premium amount based on applicable tax laws.

Other Benefits - Kotak Premier Income Saving and Investment Life Insurance Plan and Policy

One of the premier insurance providers in the country, Kotak Life Insurance provides a plethora of products for every customer’s discerning need. A number of insurance products are available and all services offered by the company is tailored to be extremely convenient to customers. Policyholders can contact separate numbers depending on whether they are Indians or NRI customers.

Individuals need not have to visit a branch of Kotak Insurance as they access information about plans by visiting the official website. Customers can also apply online for the same. A live chat option is also available for those who wish to pose queries regarding various products and agents can also be reached via telephone or e-mail. Individuals also have the option of requesting for a ‘Life Advisor’ who will provide required information and guide potential customers with respect to the most suitable plan.

Additionally, potential customers can utilise the service of an online calculator available on the Kotak Mahindra website to calculate their premiums.

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