Kotak Premier Endowment plan
Kotak Premier Endowment plan is a traditional Endowment plan developed with a long term perspective to build a strong corpus for the policyholder and his family. This Endowment plan also provides life insurance coverage.
Kotak Premier Endowment Plan – Key Features
It is a non-participating plan with regular and limited premium payment option
Guaranteed Additions are paid annually for the first five policy years
Bonuses accrue from the 6th policy year onwards
Interim Bonus, Simple Reversionary Bonus, Terminal Bonus and the Guaranteed Additions increase the corpus substantially.
Details About Premium
Annual premium in Rupees
Kotak Premier Endowment Plan – Policy Details
Grace Period: 15 days grace period is allowed for premium payment in monthly mode and 30 days in other modes.
The policy lapses if the insured surpasses the grace period to make payments.
Policy Termination or Surrender Benefit: Policy taker is allowed to surrender the policy provided that he or she pays the complete premium for 2 or 3 years.
The Surrender Value will be higher of the Guaranteed Surrender Value or the Special Surrender Value.
GSV = GSV Factor * Basic premiums paid including GSV of the accrued Guaranteed bonuses and Additions.
Free Look Period:
Those who have opted for the policy, but are not yet sure about the terms and conditions of the policy have fifteen days so as to know the policy thoroughly before confirming. After this period the policyholder can also cancel the policy if they have yet not claimed any amount.
The loan is provided under the plan to a maximum of 80% of the Surrender Value with a minimum amount of Rs.10,000.
Add-ons or Riders
There are six riders available under the plan:
Kotak Term / Preferred Term Benefit
Kotak Accidental Death Benefit
Kotak Permanent Disability Benefit
Kotak Critical Illness Benefit
Kotak Life Guardian Benefit
Kotak Accidental Disability Guardian Benefit
There is a discount in premium for choosing high coverage of 5 lakhs and above @ 0.2% of the SA
The nominee gets only 80% of the premium if the policyholder commits suicide within 12 months of the taking up the policy. Moreover, in another case, if the policyholder commits suicide within 12 months of revival, then the user gets to receive higher of the Surrender Value or premiums paid.
Frequently Asked Questions
1: What are the Guaranteed Additions offered by the policy?
During first five years of the policy, Guaranteed Additions at 5% per annum on the Basic Sum will be added; this is paid at the time of death or on maturity.
2: From which year I get to avail the Bonuses?
You get to avail the bonuses from the sixth year onwards.
3: What is the premium payment term?
Following is the premium payment term:
Regular Pay: Same as policy term
Limited Pay: 5, 7, 10 & 15 years
4: What is the entry age?
The policy allows people lying in the age slot of 18-60 years to take up the policy.
5: What are the different modes of Paying the Premium?
There are four modes of paying the premium such as Yearly, Half-yearly, Quarterly, and Monthly.
6: What is the Premium Modal Factor?
Premium Modal factor is categorized as: Yearly – 100%, Half yearly – 51% , Quarterly – 26% , Monthly – 8.8%
7: Is there a discount offered for choosing high premiums?
Yes, there is a discount for choosing high coverages such as 5 Lakhs and above @0.2 % of the sum assured.
8: What if the policyholder commits suicide within one year of taking the policy?
In such cases, the nominee receives 80% of the premiums paid by the policyholder. However, if the suicide is committed after the revival of the period, then the higher of the sum assured or 80% of the premium is paid.
9: What if I wish to discontinue the policy after a month of taking up the policy?
The policy offers a free-look period of 15 days and after this period you are allowed to quit. Wherein, this is not feasible after a month.
10: Can we choose from different premium payment term offered by the plan?
Yes, you have the leverage to choose among limited premium or regular premiums payment for 5, 7, 10 or 15 years for numerous Term combinations.