"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).
"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.
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 Kotak Endowment Plan
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 sum assured) to the beneficiary
in the event 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
can be added to the basic life insurance
plan to provide financial support in
case of permanent disability due to
an accident. The amount payable under
this benefit 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).
Critical Illness Benefit: This benefit
can be added to the basic life insurance
plan 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
emergenc.
Life Guardian Benefit: This benefit
can be availed of, only in 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.
"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
