Kotak Mahindra Life Insurance Company Ltd announced the launch of Kotak SmartLife Plan today. This is a limited pay, non-linked, participating life insurance plan which offers customers the freedom to choose a bonus option, which suits their life goals, and offers protection up to the age of 75 years. Further, it gives customers the choice to receive cash bonus under the plan as cash pay-outs every year right from the end of the first policy year. Alternatively, policyholders have the option to accumulate these bonuses into a corpus, with flexible accessibility to meet interim needs.

Talking about the policy, Sunil Sharma, Appointed Actuary & Chief Risk Officer, Kotak Mahindra Life Insurance Co Ltd, said, “Kotak SmartLife Plan allows customers to choose the way they wish to use their bonus. It empowers them to access their policy’s money without dipping into other saving options for interim needs. Endowment plans work better when ‘long term’ and ‘regular’ savings are taken care of along with providing protection cover.”

Key Advantages of the Plan

# Offers protection up to the age of 75 years

# Convenience of choosing Bonus options: Cash Payout or Paid-Up Addition

# Avail chosen Bonus option from end of 1 policy year onwards

# Additional protection through optional riders on payment of additional premium

How does the Plan work

You decide the Basic Sum Assured, premium payment term and frequency of premium payment. Based on these details and your age and gender, the premium payable is determined. You will also have to choose any one of the Bonus options i.e. Cash Payout OR Paid-Up Addition.

# In case Cash Payout option has been chosen – Cash Bonus (if declared) is payable every year from the end of 1st policy year till end of the policy term or death or surrender whichever is earlier.

# In case Paid-Up Addition option has been chosen – Cash Bonus (if any) are utilized to purchase Paid-Up Additions, which will keep on accumulating throughout the policy term. It will also provide the flexibility of en-cashing the cash value of accumulated Paid-Up Addition subject to Policy conditions.

# At the end of the Policy Term, Basic Sum Assured plus accrued Paid-Up Addition (if any) plus Cash Bonus (if any) plus Terminal Bonus (if any) will be paid out, depending on the Bonus Option chosen by you.

Tax Benefits:

You may avail of tax benefits under Section 80C and Section 10(10D) of Income Tax Act, 1961, subject to conditions as specified in those sections.

Additional Protection through Riders

Increase the protection level under the plan by choosing from a wide range of optional riders available on payment of additional premium:

# Kotak Term Rider: Allows additional death cover on the life of Life Insured over and above the base plan’s Death Benefit.

# Kotak Accidental Death Benefit Rider: Lump sum benefit paid on accidental death of the Life Insured in addition to Death Benefit under the base plan.

# Kotak Permanent Disability Benefit Rider: Installments paid on admission of a claim on Life Insured becoming disabled due to accident.

# Kotak Life Guardian Benefit: On death of Policyholder, future premiums of the plan will get waived of and the base plan will continue as it is without any change in the plan benefits.

# Kotak Accidental Disability Guardian Benefit: On accidental disability of Policyholder / Life Insured, future premiums of the plan will get waived off and the base plan will continue as it is without any change in the plan benefits.

# Kotak Critical Illness Plus Benefit Rider: Rider Sum Assured shall be payable on admission of a claim on any one of the 37 covered critical illness, subject to terms and conditions, definitions and specific exclusions.