Premier
Income Plan
A Limited Pay Participating Life Insurance Plan
Small joys.
Big life.
KOTAK PREMIER INCOME PLAN
A Limited Pay Participating Life Insurance Plan
We all have dreams and aspirations for a better life for our family; we would want to give them a little
‘extra’, to make them feel loved and cared for. To support you in achieving these aspirations for your
family, Kotak Life Insurance presents Kotak Premier Income Plan a savings and protection oriented
plan that provides Guaranteed Annual Income immediately after the premium payment term to
provide you with an additional annual income. It will also provide you all the accrued bonuses at the
end of the policy term in lump sum while providing life cover throughout the policy term.
Key Advantages
• Guaranteed Annual Income immediately after Premium Payment Term
• Enhanced Sum Assured rates for female lives and higher premiums
• Upside potential through bonuses accruing throughout the policy term
• Additional protection through optional riders
How Does the Plan Work?
Kotak Premier Income Plan is a participating savings cum protection plan which provides Guaranteed
Annual Income payouts immediately after the completion of the Premium Payment Term. Payouts will be
done at the beginning of each policy year. Your savings will grow with yearly declared Simple
Reversionary Bonuses and Terminal Bonus, if any to be declared on maturity. The plan provides protection
cover throughout the policy term with option to add riders for enhancing your protection cover.
Guaranteed Annual Income:
Post completion of Premium Payment Term, Guaranteed Annual Income will be paid out for the
remaining Term at the beginning of each policy year, till the last Policy year or date of death whichever
is earlier.
Guaranteed Annual Income rates will vary by Premium Payment Term and will be as % of Annualised
Premium1:
For 8 pay : 103% of Annualised Premium
For 10 pay : 108% of Annualised Premium
For 12 pay : 113% of Annualised Premium
Payout period for each of the Premium Payment Term option is as follows:
For 8 Pay : Payout will start from the beginning of 9th policy year and will end at the beginning of
15th policy year
For 10 Pay : Payout will start from the beginning of 11th policy year and will end at the beginning of
19th policy year
For 12 Pay : Payout will start from the beginning of 13th policy year and will end at the beginning of
23rd policy year
Longer you invest; higher Guaranteed Annual Income you get for longer duration …
Plan Working:
Age : 35 years Gender : Male
Policy Term : 19 years Premium Payment Term : 10 years
Annual Premium : ` 100,000 Guaranteed Loyalty Addition : ` 108,000
Sum Assured : ` 776,070 (Derived basis Premium, Age, Gender, PPT & Policy Term)
Note:
• The Sum Assured is not payable on Maturity and is used for calculation of death benefit and bonuses
under this product.
• Bonuses under the plan are as a percentage of Sum Assured and will get payable upon death or
maturity.
Maturity Value:
Accrued bonuses & TB, if any
@ 4% p.a. : 223,935
@ 8% p.a. : 859,876
Pay ` 100,000 p.a. for a PPT of 10 years
Get Guaranteed Annual Income ` 108,000
Policy Term = 19 years
Guaranteed Annual Income will start 19th year
from beginning of 11th policy year end
In case of the unfortunate event of death of death of Life Insured anytime during the policy term, the Death
Benefit payable will be: Rs. 11,00,000 PLUS Accrued Reversionory Bonuses PLUS Interim bonus (if
any) & Terminal Bonus (if any)
Note: Figure not drawn to scale
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Enhanced Sum Assured rates:
Enhanced Sum Assured rates as additional % of the Base Sum Assured rate will be offered for higher
premium and for female life insured. The rates offered will be as follows:
Base Sum Assured increase %
Premium Bands
Male Female
Annualised Premium less than ` 40,000 NIL 2%
Annualised Premium between ` 40,000 & less than ` 75,000 2% 4%
Annualised Premium equal to or greater than ` 75,000 6% 8%
Additional Protection through riders:
Increase the protection level under the plan by choosing from wide range of optional riders:
• Kotak Term Rider (UIN: 107B003V03): Allows additional death cover on the life of Life Insured
over and above the base plan’s Death Benefit
• Kotak Accidental Death Benefit Rider (UIN:107B001V03): 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 (UIN:107B002V03): Installments paid on
admission of a claim on Life Insured becoming disabled due to accident
• Kotak Life Guardian Benefit (UIN: 107B012V02): 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 (UIN 107B011V02): On accidental disability of
Policyholder / Life Insured, 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
For more details on riders and exclusions please refer to the Individual Rider Brochure before
concluding the purchase.
Plan Benefits:
Death Benefit4:
In the unfortunate event of death during the term of the policy, the nominee will receive:
Sum Assured on death
PLUS Accrued Simple Reversionary bonuses, if any
PLUS Interim bonus, if any
PLUS Terminal bonus, if any
Where Sum Assured on death is, higher of the following:
1) 11 times of (Annualised Premium including extra premium, if any) OR
2) 105% of (all premiums paid including extra premium, if any) till the date of death
Please note that the above Death Benefit will be payable irrespective of the Guaranteed
Annual Income already paid.
Maturity Benefit:
At the end of the policy term, on the date of maturity, the following will be paid out:
Accrued Simple Reversionary bonuses (if any) PLUS Terminal bonus (if any)
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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. Tax benefits are subject to change as per tax laws. You are
advised to consult your Tax Advisor for details. Goods and Services Tax and Cess as applicable shall be
levied over and above premium amount shown here as per applicable tax laws.
Eligibility
Entry Age Min: 3 years
(as on last birthday) Max: 50 years – 8 pay
55 years – 10 & 12 pay
Maximum Maturity Age Min: 18 years
(as on last birthday) Max: 78 years
Policy Term (Fixed) 15 years / 19 years / 23 years
Premium Levels Min: For 8 & 10 Pay : ` 30,000 p.a.
For 12 Pay : ` 25,000 p.a.
Max: No Limits, subject to U/W acceptance
Premium Payment Term (PPT) Limited: 8 years for 15 year term
10 years for 19 year term
12 years for 23 year term
Premium Payment Mode Yearly, Half yearly, Quarterly, Monthly
Premium Modal Factor Following modal loadings will be used to calculate installment
Premium:Yearly – 100%, Half yearly – 51%, Quarterly – 26%,
Monthly – 8.8%
Sum Assured Will be derived basis Premium, Age, Gender, PPT & Policy Term
Illustration:
Given below is an illustration of the benefits payable, for a healthy male aged 35 years for an Annual
Premium of ` 100,000 for a premium payment term of 10 years and policy term of 19 years and Sum
Assured of ` 776,070:
Non-Guaranteed Benefit Minimum
End Age Cumulative Guaranteed (Accrued Reversionary Bonus
of (years) Annual Annual Income & Terminal Bonus) (`) Death
Year Premium (`) (`) @ 4% p.a. @ 8% p.a. Benefit (`)
5 40 500,000 26,386 125,747 11,00,000
10 45 10,00,000 56,071 267,212 11,00,000
15 50 10,00,000 108, 000 p.a. 89,054 424,395 11,00,000
(From 11th year beginning
19 54 10,00,000 till 19th year beginning 223,935 859,876 11,00,000
Please note: The above illustration is an extract of a separate, more detailed benefit illustration. For full details,
please refer to the Benefit Illustration. Accrued bonuses shown above are cumulative bonuses and will be paid over
and above the minimum death benefit shown or will get paid out on maturity, whichever is earlier. The above
premium figures are exclusive of Goods and Services Tax and Cess, as applicable. Goods and Services Tax and Cess
thereon, shall be charged as per the prevalent tax laws over and above the said premiums.
The assumed non-guaranteed rates of return chosen in the illustration are 4% p.a. and 8% p.a. These assumed rates
of return are not guaranteed and they are not the upper or lower limits of what you might get back as the value of
your policy is dependent on a number of factors including future investment performance. The actual experience
may be different from the illustrated. The guaranteed and non-guaranteed benefits are applicable only if all due
premiums are paid. Reversionary Bonus and Terminal Bonus have been calculated at the assumed non-guaranteed
rates of return of 4% p.a. & 8% p.a. Please note that Bonuses are NOT guaranteed and may be as declared by the
Company from time to time.
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Terms and Conditions
1. Annualised Premium: It refers to the premium payable in a policy year, excluding the
underwriting extra premiums and loadings for modal premium, if any, e.g. If the policyholder is
paying Half-yearly premium of ` 51,000 than the Annualised Premium will be ` 100,000 (51,000
/ modal factor of 51%).
This premium will also be excluding Rider Premiums, if any and Goods and Services Tax and Cess,
as applicable.
2. Bonus:
• Simple Reversionary Bonus – At the end of each financial year the company may declare a
bonus expressed as a percentage of the Sum Assured. These bonuses will accrue from the
end of 1st policy year onwards throughout the policy term and will be payable either on
maturity or on death.
• Interim Bonus: In the event of a claim, an interim bonus (if applicable) may be payable at
such rate as may be decided by the Company. This interim bonus rate will be expressed as a
percentage of Sum Assured.
Interim bonus rate may be declared at the end of each Financial Year and shall be
applicable for the policies exiting between two policy anniversaries due to death claim or
surrenders. The Interim bonus will be proportionately calculated for the period starting from
previous policy anniversary till the date of exit.
#
Policy Year means the period from the last policy anniversary date (or the date of
commencement of policy for the first year) up to the next policy anniversary date.
• Terminal Bonus: The Company may decide to pay Terminal Bonus on Maturity at the end of
the policy term and shall be a percentage of the Sum Assured. It may also be payable for in-
force policies where death of the Life Insured occurs after the expiry of PPT or 10 years,
whichever is earlier. Terminal Bonus may be payable on policies which have been made
Reduced Paid-Up or Surrendered.
3. If the Life Insured is minor, the Policyholder should ensure that the Guaranteed Annual Income
payouts received while the Life Insured is still a minor is used for the benefits of the minor life.
4. Death Benefit: Following are some additional conditions pertaining to death benefit:
• If the death occurs during grace period, the due unpaid premium (if any) till the date of death
will be deducted from the aforesaid death benefit.
• For policies, where the Premium Payment mode is not annual, balance of the Premium for
that Policy year will also be deducted from the Death Benefit.
5. Grace Period: There is a grace period of 30 days from the due date for payment of premium for
the yearly, half-yearly and quarterly mode, and 15 days for the monthly mode.
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6. Vesting in case of minor life:
If the policy has been taken on the life of a minor, the policy shall automatically vest on him/her
with effect from the date of completion of 18 years of age and the Life Insured will become the
Policyholder from such date.
7. Lapses: Policy shall lapse from the due date of the first unpaid premium in accordance with the
following rules and no benefits will be payable:
• For 8 yrs PPT: If premiums for the first two policy years are not paid within the grace period;
• For 10 yrs & 12 yrs PPT: If premiums for the first three policy years are not paid within the
grace period.
8. Policy Revivals: A lapsed / Reduced Paid Up policy can be revived within two years from the due
date of the first unpaid premium.
• The revival can be done without evidence of good health on payment of the outstanding
premiums with interest rate (currently 9% p.a. of outstanding premiums), if the payment is
made within six months. Thereafter to revive the policy, evidence of good health would be
required along with payment of the outstanding premiums with interest rate (currently 9%
p.a. of outstanding premiums). Extra premiums may be required based on the underwriting
decision.
• Policy will not be eligible for declared bonuses during the lapse period. However, all benefits
including bonuses under the policy will be reinstated on the revival of the policy.
• If lapsed policy is not revived during the revival period, the policy will be terminated without
paying any benefits.
• If policy in Reduced Paid Up mode is not revived during the revival period, it will continue in
that mode until maturity.
• All benefits under the policy will be reinstated on revival of the policy.
• Riders cannot be revived independently and can only be revived along with the revival of the
base plan.
9. Surrender:
• For 8 yrs PPT, the policy will acquire Surrender Value after payment of full premiums for two
consecutive years;
• For 10 yrs PPT & 12 yrs PPT term, the policy will acquire Surrender Value after payment of full
premiums for three consecutive years
Guaranteed Surrender Value (GSV) shall be a percentage of all the total Premiums paid
(excluding Goods and Services Tax and Cess and Rider premium, if any) as on the date of first
unpaid premium LESS Guaranteed Annual Income already paid out, if any PLUS value of
Subsisting Bonuses if any.
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GSV Factors as percentage of total premiums paid are mentioned in the table below:
Guaranteed Surrender Value factors (As a % of Premiums paid)
Year PPT-8 PPT-10 PPT-12
1 - - -
2 30% - -
3 30% 30% 30%
4 50% 50% 50%
5 50% 50% 50%
6 52% 54% 52%
7 54% 57% 57%
8 57% 59% 60%
9 66% 59% 63%
10 70% 62% 66%
11 72% 64% 67%
12 73% 70% 77%
13 74% 80% 80%
14 75% 80% 82%
15 87% 81% 84%
16 82% 87%
17 85% 88%
18 85% 89%
19 93% 90%
20 91%
21 92%
22 93%
23 99%
GSV Factors for applicable bonuses are mentioned in the table below:
Value of Subsisting Bonus (if any) is calculated as: [(Accrued Simple Reversionary Bonuses +
Interim Bonus) X GSV Factor as on the date of Surrender)]
GSV Factor as % of the subsisting bonus
Year PPT-8 PPT-10 PPT-12
1 - - -
2 28% - -
3 31% 21% 15%
4 34% 23% 16%
5 37% 25% 17%
6 41% 28% 19%
7 45% 31% 21%
8 50% 34% 23%
9 55% 37% 25%
10 61% 41% 28%
11 67% 45% 31%
12 74% 50% 34%
13 82% 55% 37%
14 90% 61% 41%
15 100% 67% 45%
16 74% 50%
17 82% 55%
18 90% 61%
19 100% 67%
20 74%
21 82%
22 90%
23 100%
Subject to the Minimum Guaranteed Surrender Value, the company may however pay a Special
Surrender Value (SSV) calculated according to the basis and method in use from time to time after
getting IRDAI’s approval.
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On Surrender, higher of SSV (if available) or GSV will be payable. The surrender value will be paid out
as a lump sum benefit. After the Surrender benefit payout, all other benefits under the plan will fall
away and the policy will get terminated.
10. Reduced Paid-Up Policy:
After the policy acquires Surrender Value, if the subsequent premiums are not paid within the grace
period the policy will be converted into a Reduced Paid-Up policy by default.
• Policy will not be eligible for any future reversionary bonuses once it has been converted
into a Reduced Paid-Up policy;
• All rider benefits may cease depending upon rider features
• Sum Assured on Death will also be reduced to:
Reduced Paid-Up Sum Assured on death: Sum Assured on death as on the date of
policy being made reduced paid-up X [(Total Premiums paid / Total premiums payable over
the policy term)]
• If a Reduced Paid-up policy is surrendered, the surrender value (if any) for Base Policy
and Rider (if any) will be calculated as per the Surrender Value mentioned under
“Surrender” section
• Reduced Paid-Up policy can be revived and reinstated (to the original benefits) within 2
years from the date of first unpaid Premium subject to the conditions mentioned under
“Revival” section
• If policy in Reduced Paid Up mode is not revived during the revival period, it will
continue in that mode until maturity
• Payouts in-case the plan continues in Reduced Paid-Up mode:
Payout on Death:
Reduced Paid-Up Sum Assured on Death PLUS Accrued Reversionary Bonuses, (if any) PLUS
Terminal Bonus (if any)
Payout of Guaranteed Annual Income:
It will get reduced in the following proportion and paid during the scheduled period:
[(No. of premiums paid / No. of premiums payable) X Guaranteed Annual Income]
Payout on Maturity:
At the end of the policy term, accrued reversionary bonus till the date of first unpaid premium
and Terminal Bonus (if any) will be paid out
11. Nomination: Nomination will be allowed under the plan as per the provisions of Section 39 of
the Insurance Act, 1938 as amended from time to time.
12. Assignment: Assignment will be allowed in the plan as per the provisions of Section 38 of
the Insurance Act, 1938 as amended from time to time.
13. Free Look Period: The policyholder is offered 15 days free look period for a policy sold
through all channels (except for Distance Marketing* Channel which will have 30 Days)
from the date of receipt of the policy wherein the policyholder may choose to return the
policy stating the reason thereof within 15 days / 30 days of receipt if s/he is not agreeable
with any of the terms and conditions of the plan. Should s/he choose to return the policy,
s/he shall be entitled to a refund of the premium paid after adjustment for the expenses of
medical examination, stamp duty and proportionate risk premium for the period of cover.
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Distance Marketing includes every activity of solicitation (including lead generation) and
sale of insurance products through the following modes: (i) Voice mode, which includes
telephone calling (ii) Short Messaging service (SMS) (iii) Electronic mode which includes e-
mail and interactive television (DTH) and (iv) Physical mode which includes direct postal mail
and newspaper & magazine inserts.
14. General Exclusion:
In the event of the life insured committing suicide within 12 months from date of
commencement of risk of the policy, 80% of the total Premiums paid will be payable.
In case of suicide after 12 months from date of commencement of risk of the policy,
following will be applicable:
• In case of suicide within one year of the date of revival of the policy when the revival is
done within 6 months from the date of first unpaid premium, Suicide Exclusion shall not
be applicable and the Death Benefit under the product shall be payable.
• However, in case of suicide within 1 year of the date of revival, when the revival is done
after 6 months from the date of first unpaid premium, the benefit payable shall be
higher of 80% of total Premiums Paid (including extra premium, if any) or Surrender
Value (if any) at the date of claim event.
Extract of Section 41 of the Insurance Act, 1938 as amended from time to time
states:
(1) No person shall allow or offer to allow, either directly or indirectly, as an inducement to
any person to take or renew or continue an insurance in respect of any kind of risk
relating to lives or property in India, any rebate of the whole or part of the commission
payable or any rebate of the premium shown on the policy, nor shall any person taking
out or renewing or continuing a policy accept any rebate, except such rebate as may be
allowed in accordance with the published prospectuses or tables of the insurer. (2) Any
person making default in complying with the provisions of this section shall be liable for
a penalty which may extend to ten lakh rupees.
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About Us
Kotak Mahindra Life Insurance Company Ltd (Formerly known as Kotak Mahindra Old Mutual Life
Insurance Ltd.)
Kotak Mahindra Life Insurance Company Ltd. (Kotak Life Insurance) is a 100% owned subsidiary of
Kotak Mahindra Bank Ltd. (Kotak). Kotak Life Insurance provides world-class insurance products with
high customer empathy. Its product suite leverages the combined prowess of protection and long term
savings. Kotak Life Insurance is one of the fastest growing insurance companies in India and has
covered over several million lives. For more information, please visit the company's website at https://
insurance.kotak.com
Kotak Mahindra Group
Established in 1985, Kotak Mahindra Group is one of India's leading financial services conglomerate. In
February 2003, Kotak Mahindra Finance Ltd. (KMFL), the Group's flagship company, received banking
license from the Reserve Bank of India (RBI), becoming the first nonbanking finance company in India to
convert into a bank - Kotak Mahindra Bank Ltd. The Group offers a wide range of financial services that
encompass every sphere of life. From commercial banking, to stock broking, mutual funds, insurance
and investment banking, the Group caters to the diverse financial needs of individuals and the
corporate sector. The Group has a wide distribution network through branches and franchisees across
India, and International Business Units.
For more information, please visit the company’s website at www.kotak.com
BEWARE OF SPURIOUS PHONE CALLS AND FICTITIOUS/FRAUDULENT OFFERS
IRDAI clarifies to public that
• IRDAI or its officials do not involve in activities like sale of any kind of insurance or financial products nor invest
premiums.
• IRDAI does not announce any bonus.
• Public receiving such phone calls are requested to lodge a police complaint along with details of phone call
number.
clientservicedesk@kotak.com
http://insurance.kotak.com
Kotak Premier Income Plan UIN: 107N099V01, Form No: N099, Ref. No.:KLI/17-18/E-PB/469.
Kotak Term Rider, UIN: 107B003V03, Form No: B003; Kotak Accidental Death Benefit Rider, UIN: 107B001V03, Form
No: B001; Kotak Permanent Disability Benefit Rider, UIN: 107B002V03, Form No: B002; Kotak Life Guardian Benefit,
UIN: 107B012V02, Form No: B012; Kotak Accidental Disability Guardian Benefit, UIN: 107B011V02, Form No: B011
Kotak Mahindra Life Insurance Company Ltd. (Formerly known as Kotak Mahindra Old Mutual Life Insurance Ltd.)
Regn. No.:107, CIN : U66030MH2000PLC128503, Regd. Office: 2nd Floor, Plot # C- 12, G- Block, BKC, Bandra
(E), Mumbai - 400 051. Website: http://insurance.kotak.com I Email: clientservicedesk@kotak.com | Toll Free
No:1800 209 8800.
This is a participating anticipated endowment plan. For sub-standard lives, extra premium may be charged based on
Kotak Life Insurance’s underwriting policy.The product brochure gives only the salient features of the plan. Please refer
the policy document for specific details on all terms and conditions. For more details on riders please read the Rider
Brochure.
Trade Logo displayed above belongs to Kotak Mahindra Bank Limited and is used by Kotak Mahindra Life
Insurance Company Ltd. under license.
