Kotak Assured Income Plan

A tutorial to Kotak Assured Income Plan- Money Back Plan

This tutorial to be used understand Overview, Benefits of the plan.

The author has studied the plan, and provided some recommendation.

Appreciate reading through and get an understanding of the product and provide you with
enough information in making decision to buy.

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 Kotak Assured Income Plan

How does the plan work?

Kotak Assured Income Plan is a comprehensive savings cum protection plan designed to help
you live your life with confidence and self-reliance. It is a plan that offers various benefits linked
to the Basic Sum Assured. Basic Sum Assured is 10 times the Annualized Premium.

In addition, on maturity you receive 110% to 104% of Basic Sum Assured. You also enjoy life
cover for the entire policy term thereby protecting your family should something happen to you.
This plan guarantees you an additional income every year, for 20 years. You also enjoy life cover
for the entire policy term thereby protecting your family should something happen to you.

Enjoy Assured Annual Income for 20 years

This plan does exactly that by guaranteeing you an Assured Annual Income every year for a
period of 20 years, provided the policy is in force and you survive the policy term. It will be paid
starting from the end of 10th policy year as a percentage of your Basic Sum Assured as
mentioned below:
Premium Bands Assured Annual Income
Let us see an Illustration of this plan Up to Rs. 24,999 9.10%
to learn how it works. Rs. 25,000 to Rs. 74,999 9.60%
Rs. 75,000 and above 10.10%
 Kotak Assured Income Plan

Illustration of this Plan

Before we learn about Key Benefits of Kotak Assured Income Plan, let us have an illustration of the plan to
understand “Assured Annual Income for 20 years“ and “Guarantees you an additional income every year”.
End Of Annualized Assured Annual
Age Of Life Insured 29 yrs Year Premium Death Benefit Income On Maturity
1 10000.00 100000.00
Gender Male 2 10000.00 100000.00
3 10000.00 100000.00
Policy Term 30 yrs 4 10000.00 100000.00
5 10000.00 100000.00
Premium Payment Term 15yrs
6 10000.00 100000.00
Mode Yearly 7 10000.00 100000.00
8 10000.00 100000.00
Premium Amount paid Yearly Rs 10000.00 9 10000.00 100000.00
10 10000.00 100000.00 9100.00
Sum Assured ( 10 times Annual Premium) Rs 100000.00 11 10000.00 100000.00 9100.00
12 10000.00 100000.00 9100.00
Maturity Benefit 107.10% 13 10000.00 100000.00 9100.00
14 10000.00 100000.00 9100.00
Assured Annual Income(%) 9.10% 15 100000.00 9100.00
16 100000.00 9100.00
Rs 9100.00 is Assured Income for 20 years and is 17 100000.00 9100.00
18 100000.00 9100.00
Guaranteed income. On Maturity the Policy 19 100000.00 9100.00
Owner gets the Sum-Assured. 20 100000.00 9100.00
21 100000.00 9100.00
22 100000.00 9100.00
23 100000.00 9100.00
If the premium amount was Rs 25000.00, Assured 24 100000.00 9100.00
Annual Income will be 9.6%. 25 100000.00 9100.00
26 100000.00 9100.00
27 100000.00 9100.00
Money Back Income Rs 24000.00 and Maturity 28 100000.00 9100.00
29 100000.00 9100.00
will be Rs. 267750.00 30 100000.00 107100.00
 Kotak Assured Income Plan

Key Features
Enjoy Assured Annual Income for 20 years
Receive lump sum on maturity
Provide protection to your family for 30 years
Avail of policy loan to meet sudden expenses
Boost your protective cover through optional rider benefits

Maturity Benefit
In addition to guaranteeing you regular income for 20 years, this plan provides you with a lump sum of 110%
to 104% of the Basic Sum Assured, depending on age. Maturity Benefit is a percentage of the Basic Sum
Assured and is calculated as {110% - 0.1% x Age at Entry}, i.e. 107% at Age at Entry of 30. Now the family
vacation you had long delayed, the second home you wanted to own or the car you always loved might just
become a reality.

optional riders
Kotak Accidental Death Benefit (ADB) - Lump Sum Benefit paid on accidental death
Kotak Permanent Disability Benefit (PDB) - Installments paid on being permanently disabled as a result of
an accident.
Kotak Life Guardian Benefit (LGB) - Premiums waived on death and all future premiums will able paid by
Kotak Life Insurance
Kotak Accidental Disability Guardian Benefit (ADGB) - Premiums waived on disability and all future
premiums will be paid by Kotak Life Insurance
 Kotak Assured Income Plan

Eligibility
Entry Age Min: 0 years, Max: 60 years
Maturity Age Min: 30 years, Max: 90 years
Policy Term 30 years
Premium Payment Term 15 years
Premium Payment Mode Yearly, Half yearly, Quarterly, Monthly
Premium Min: Rs. 10,000 p.a. Max: No Limit
Premium Modal Factor Yearly – 100% , Half yearly – 51% , Quarterly – 26% , Monthly –
8.8%
Policy Loan Facility You can avail of loans under this plan up to 80% of Surrender
Value after 3 policy years have elapsed.
Convenient premium Pay your premiums annually, half-yearly, quarterly or monthly
payment modes mode. You have the opportunity to change the payment mode
on policy anniversaries.
Reduced Paid-Up Benefit After 3 years' premiums are paid, if the subsequent premiums
are not paid within the grace period, the policy will automatically
be made paid-up to ensure that you continue to enjoy policy
benefits.
 SBI LIfe Smart Wealth Assure ULIP Plan

Recommendation
Should I Take This Plan? Yes. This plan is a Money Back Plan, cheaper than LIC India Jeevan Surabhi. Why and How it is
cheaper, see below:

In Jeevan Surabhi, premium for Age 29yrs, is Rs. 10650.00 compared to Premium in this plan Rs
10000.00. There is not much difference. Let us dig more into this plan. Assumed SA = Rs 100000
Return start at 10th year, that is Rs 9100.00 from year 10 until 29th year. Which is Rs 180000 and
also on Maturity the Insured gets Rs 150000.00. If compared to LIC Surabhi plan, you get
returns every 4th year and Bonus (around Rs. 70000-Rs. 80000) at the end of the term.

In this plan, the benefit is to get regular income after certain period of time. And this regular
income is TAX FREE and can add up to your Salary.

Do not forget to add the Accidental Riders, as this plan continues for 30 years, it is almost half
the life-span of a person. Remember to add the same, and it cost almost Rs 100.00 extra per
year.

Thank You
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