"What
is Kotak Endowment Plan?"
Kotak
Endowment Plan is a protection plan that covers
your life and at the same time ensures that your
money does not lie idle. It invests a portion of
your premium in financial instruments and ensures
a considerable growth in savings. This is a participating
plan (with profits).
"Who
can avail of this plan?"
How old do you have
to be to avail of this
plan? |
Minimum age
- 18 years
Maximum age - 65 years |
 |
| For what term can I avail of
this plan? |
10-30 years |
| What is the maximum age that
the plan can cover you till? |
75 years |
|
"What
are the advantages of this plan?"
- On maturity, you would receive the sum assured
plus the bonus addition. Bonus addition is the
amount in the Accumulation Account*, in excess
of the sum assured.
*
Accumulation Account is your personal account,
in which the premiums that you pay are deposited,
the return declared every year is added and
risk and expense charges are deducted.
- The amount available in the Accumulation
Account is invested in various financial instruments
(as per IRDA regulations) so your money works
harder for you.
- The Automatic Cover Maintenance facility
ensures the policy remains in force even if
you miss premium payments. This facility is
available after the first three years of the
term.
- You can take a loan against your policy,
after the policy has been in force for at least
three years.
- You have the option of paying premiums quarterly,
half yearly or yearly. You also have the flexibility
to pay premiums through the full term of the
policy or pay it for a fixed term of 3, 5, 7,
10 or 15 years.
- You have the benefit of a 15-day free look
period.
"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. Sanjay Gupta, 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. Gupta 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 Mr. Gupta 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 Sanjay Gupta 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.Gupta’s unfortunate death at the end
of 10th year?
Since Mr. Gupta is the proposer on Mrs. Gupta’s
policy and has availed of the Life Guardian Benefit,
all future premiums on Mrs. Gupta’s policy
would be waived. Thereafter the policy will continue
as if the premiums are being paid regularly. On
maturity of her policy Mrs. Gupta 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.
Form no.: OMEP01
|
