Kotak Life Insurance: A Brief Synopsis
Previously known as ‘Kotak Mahindra Old Mutual Life Insurance Ltd.’, Kotak Life Insurance Company is one of the fastest growing service providers in this domain. Their products fall under – protection plans, retirement plans, savings and investment plans and child plans. Here we will be discussing Kotak Sampoorn Bima Micro Insurance plan; benefits, features, eligibility, etc. to help you understand this plan better, hence leading to a better purchase of the same.
Kotak Sampoorn Bima Micro Insurance Plan: A Quick Overview
This is a single premium plan that comes with 5 years of fixed policy term. This insurance plan is specifically designed to cater to the various needs of low-income group customers. Only a small amount (as low as Rs.200) is to be paid as the premium and this insurance plan shall provide the insured with assured and fixed maturity benefits. However, certain factors play a pivotal role in determining this particular benefit.
Features
Key features of this insurance plan have been explained below:
- Single Premium Plan:This is a single premium insurance plan that comes with affordable premiums. This allows the customers to make most of their insurance plan without putting a lot of financial pressure on their pockets. This premium amount is capped at Rs.200.
- Guaranteed Payouts: When a customer opts for Kotak Sampoorn Bima Micro Insurance Plan, they get assured payouts at the end of the policy term or at maturity date or at the death of the policyholder. Other benefits such as bonuses (if any) are also included in these payouts.
- Easy to Buy Insurance Plan:Unlike other insurance plans, no medical examination and tests are involved here. This makes this insurance plan an easy to buy option to cover life against several financial and non-financial uncertainties.
Benefits
Kotak Sampoorn Bima Micro Insurance plan offers a number of benefits to its customers. Some of them are listed below:
Maturity Benefit: This benefit is provided by the insurer to the policy owner upon survival till the policy term. Depending on the age of the insured, they will get the following amount as survival benefit:
| Entry Age Group | 18-25 years | 26-40 years | 41-55 years |
| Survival Benefit | Rs. 310 | Rs. 300 | Rs. 275 |
Death Benefit: In case of an unforeseen event such as the death of the policy owner during the policy tenure, Rs. 5,000 will be paid by the insurance company to the legally appointed nominee. This amount is given to fulfil their immediate financial needs.
One notable point here is that this particular benefit is a subject to the minimum 1.25 times of the single premium paid i.e. Rs. 250 under all possible circumstances.
Surrender Value or Benefit: Surrender value or benefit is the amount that is paid by the insurance company to the policyholder who surrenders their life insurance policy before maturity. Policy can be surrendered at any time during the chosen policy term. At the time of surrender, the following amount or value will be paid back to the policyholder:
| Years of Surrender | 1 | 2 | 3 | 4 | 5 |
| Surrender Benefit or Payout | 140 | 140 | 140 | 180 | 190 |
Income Tax Benefit: Income tax benefits are typically a subject to certain terms and conditions that are specified under sections 80C and 10 (10D) of the Income Tax Act, 1961. These laws can be changed at any time and so as the given benefits. Customers are suggested to keep themselves up-to-date with the prevailing tax laws to avail or claim the benefits.
Eligibility
After benefits, now look at the following table to review the eligibility criteria of Kotak Sampoorn Bima Micro Insurance plan:
| Particulars | Details |
| Policy Term | 5 years (fixed) |
| Premium Payment | Single |
| Entry Age | 18-55 years |
| Maturity Age | 60 years |
| Premium | Rs. 200 (fixed) |
Connect with Kotak Life Customer Care for More Details
An individual can step out to their nearest Kotak Life Insurance branch to get detailed information about this plan. You can also contact customer service by phone or email.
- Call (toll-free): 1800 209 8800 (between 8 am to 10 pm)
- Email: clientservicedesk@kotak.com
FAQs
1) What is meant by nomination?
Ans. Nomination is the process whereby if the policyholder dies within the term of the policy, the insurer would payout the profits of that insurance policy to the legally appointed nominee. The process of choosing that nominee or beneficiary is called nomination.
2) What is free look period? Is it available on all insurance plans offered by Kotak Life Insurance?
Ans. Free look period is the duration in which a new insurance policyholder can terminate their plan without any penalty. This free look period may differ from one insurer to another and one insurance plan to another. For Kotak Sampoorn Bima Micro Insurance plan, free look period is of 15 days and 30 days. Read your policy documents to know more about the conditions.
3) What is assignment or transfer of an insurance policy?
Ans. Assignment or transfer is a process of transferring all the rights and benefits attached to an insurance plan to another institution or individual as security to repay the loan
4) What is the Basic difference between assignment and nomination
Ans. Assignment of a life insurance policy is the process to assign or transfer all the liabilities and rights of the insurance plan in favor of the assignee. Assignment cannot be revoked once made.
Other the other hand, nomination is appointing someone to receive the policy benefits and amount in the case of any unforeseen event. This process does not give the beneficiary an absolute right over the benefits received. Further, this can be cancelled or revoked at any time during and after the policy term.
5) What are the details required to be showcased or submitted if anyone wishes to change or add nominee in their policy?
Ans. Changing or adding nominee in an existing insurance plan is quite an easy process. The following are the details that needed to be submitted at that time:
- Name of the new nominee
- Address details
- Date of birth
- Share percentage
6) What is the benefit of buying an insurance plan at an early age?
Ans. There are a number of benefits when an individual buys an insurance plan at an early age. The premium amount a customer pays towards an insurance policy mainly depends on two major things – applicant’s age and policy tenure. The younger the applicant is, the lower the premium amount. At younger age, the applicants are usually physically sound and less prone to serious medical conditions. Further, it decreases the premium amount. So, it is best to buy an insurance plan as early as possible to reduce the overall cost of the plan
7) What is a rider? What are the different riders and their benefits offered by Kotak Life Insurance?
Ans.Riders are an added benefit that can be availed onto the basic life insurance plan including Kotak Sampoorna Bima Micro Insurance Plan. These riders give the policyholder an added advantage of increasing their life cover against certain uncertainties.
Kotak Life Insurance offers the following riders to its customers:
| Rider | Benefit |
| Accidental Death Benefit | In case of the death of the policyholder, the nominee can get up to maximum twice the total basic sum assured. |
| Permanent Disability Benefit | Waiver of all future premiums in case of disability of the policyholder.
|
| Critical Illness Benefit | Waiver of all future premiums in case of death or disability of the insured due to listed critical illness. |
| Term Benefit | An amount is received by the nominee on the death of the policyholder within the policy term that can be doubled of the basic sum assured through this rider. |
| Kotak Preferred Term Benefit | – |
| Kotak Life Guardian Benefit | Waiver of all future premiums in case of unfortunate demise of the policyholder or guardian of the policy. This rider is for those policies wherein proposer and policyholder are different persons. |
| Kotak Accidental Disability Guardian Benefit | Waiver of all future premiums in case of accidental disablement of the policyholder or guardian of the policy. This rider is for those policies wherein proposer and policyholder are different persons. |