Know Everything About Kotak Premier Endowment Plan

This Kotak Life Insurance plan helps develop a corpus for a secure financial future by encouraging long-term investments. This coverage also includes life insurance for the duration of the policy.

Features of the Kotak Premier Endowment Plan:

• It's a non-participating plan featuring a standard premium payment option and a limited premium payment option.
• For the first five policy years, Guaranteed Additions are paid on an annual basis.
• From the sixth policy year onwards, bonuses are paid out.
• The corpus is greatly increased by the Interim Bonus, Simple Reversionary Bonus, Terminal Bonus, and Guaranteed Additions.
• Guaranteed Additions of 5% of the Sum Assured are paid during the first five years of the policy.
• The Minimum Death Benefit plus cumulative Guaranteed Additions + accrued Reversionary Bonuses + Terminal Bonus, if any, is paid upon the policyholder's death.
• Section 80C of the Income Tax Act provides a tax benefit for premiums paid and Section 10(10D) of the Income Tax Act provides a tax benefit for claims received. Make a Financial Plan

Know Everything About Kotak Premier Endowment Plan

Below is everything you must know about Kotak Premier Endowment Plan:

1. Free Look Period

Those who have chosen the policy but are unsure about the terms and conditions have fifteen days to learn everything there is to know about the policy before committing. If the policyholder has not yet claimed any money, they can cancel the policy after this time period.

2. Add-Ons Or Riders 

Under the plan, six riders are available:

• 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

 

3. Exclusions 

If the policyholder commits suicide within the first 12 months after purchasing the insurance, the nominee receives just 80% of the premium. Furthermore, if the policyholder commits suicide within the first 12 months of being revived, the user is entitled to the higher Surrender Value or premiums paid.

4. Documents Required To Implement The Policy

To apply for the policy, you must submit a proposal or an Application form, as well as appropriate medical records, proof of address, and other KYC papers. Depending on the age of the person purchasing the policy or the sum assured, you may also be required to undergo a medical examination.

5. Benefits Of Policy Termination Or Surrender

The policyholder may surrender the coverage if he or she pays the entire premium for two or three years. The Guaranteed Surrender Value or the Special Surrender Value will determine the Surrender Value.

6. Settlement Option

Under this option, the policyholder can receive 50% of the Maturity Benefit in a lump amount and the remaining 50% in installments over a period of 5 or 10 years, with a minimum of monthly payouts and a maximum of yearly payouts. If the nominee receives a Death Benefit, this option is also accessible to them.

7. Death Benefit 

In the event of the assured life's death, the nominee will get the Minimum Death Benefit. 

Guaranteed Additions, Reversionary Bonuses, Interim Bonuses, and Terminal Bonuses, if any, will be paid out as well. The Minimum Death Benefit (MDB) is determined by one of two methods. -

• If the entry age is less than 45 years, the MDB is the higher of the sum assured, 11 times annualized premium, or 105 percent of all premiums paid up to the date of death.

• The MDB will be the larger of the sum assured, 7 times annualized premium, or 105 percent of all premiums paid up to the date of death if the entrance age is higher than or equal to 45 years.

Conclusion

A classic participation endowment assurance plan that focuses on converting long-term deposits into assets that can help with financial security and future requirements. The strategy includes a guarantee that any unforeseen circumstances are handled more effectively. This plan has regular or restricted premium payment terms and is designed for customers who want to acquire a lump sum value from their investments by saving regularly over a longer period of time.

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Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.