Is Kotak Premier Money Back Plan worth purchasing?
Updated On Oct 28, 2021
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A Balanced Savings and Insurance Plan To ensure your tomorrow, safeguard your now. We want to give our loved ones all they desire, as much as we want to protect them. Our ultimate goal, whether in their professional or personal life, is to ensure their pleasure and safety. As a result, Kotak Life Insurance provides the Kotak Premier Money back Plan, a unique savings and protection plan. It's a limited-pay plan that pays you lump sums at regular periods to cover your temporary financial needs and allow you to provide your family the best.
Kotak Premier Money Back Plan Features
The following are some of the benefits of purchasing this policy:
- The premiums paid for the coverage are deductible under section 80C of the Income Tax Act.
- The death/maturity benefits received from this policy are tax deductible under section 10(10D) of the Income Tax Code Act.
- If the sum promised exceeds Rs. 5 lakhs, the premiums are discounted by Rs. 2 for every Rs. 1,000 of the value assured.
- If no more premiums are paid after the policy reaches surrender value, it is changed to a paid up insurance at a lower value rather than lapse.
What are the Kotak Premier Money back Plan Benefits?
Allowance for Death
The nominee receives the Sum Assured on Death plus cumulative Reversionary bonuses and Terminal bonus in the case of the life insured's death due to natural causes within the policy's term. The Basic Sum Assured or a multiple of yearly premium determines the Sum Assured on Death. When the entry age is less than or equal to 45 years, the multiple is 11 times, and when the entering age is greater than 45 years, the multiple is 7 times. The entire death benefit must equal at least 105 percent of the total premiums paid at the time of death. An extra Basic Sum Assured is paid together with the Death Benefit in the case of the life insured's death due to an accident.
Advantage of Maturity
40 percent of the Sum Assured plus Maturity Addition plus Accrued Reversionary Bonus plus Terminal Bonus is paid if the life insured survives until the policy's maturity date.
Payments on a Regular Basis
At regular periods, regular cash backs as a proportion of the initial sum assured are payable. At the policy's maturity, the balance sum guaranteed is paid.
At the conclusion of each financial year, a portion of the Sum Assured is announced as a Simple Reversionary Bonus. These incentives are earned starting with the first policy year and continue until death or maturity. Interim bonus is paid for the portion of the fiscal year for which no bonus was allocated in the previous fiscal year. The Terminal Bonus is a percentage of the sum guaranteed that is paid out as part of the maturity benefit. If the premiums have been paid for ten years, the firm may opt to pay the bonus on death.
Benefits of a Loan
This insurance does not allow for the use of a loan.
Value of Surrender
Surrender Value can be obtained after paying at least two full policy years' premium for a 16-year policy term, and after paying at least three full policy years' premium for a 20-year or 24-year policy term. Guaranteed Surrender Value or Special Surrender Value, whichever is higher, is the Surrender Value payable.
The Kotak Premier Money Back Plan is a savings and protection plan that pays out a lump amount on a monthly basis. The payout is determined by the policy term and the sum guaranteed selected by the policyholder at the outset. Reversionary bonuses and maturity additions are also available, which are paid out at policy maturity. Bonuses are sometimes declared under the scheme as early as the conclusion of the first policy year. Extra insurance for accidental death can be added to the Kotak Premier Money Back Plan.
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.