Take a Look at T&C of Kotak Assured Savings Plan Before Investing


Kotak Life has come up with a new savings plan, Kotak Assured Savings Plan. This is a fixed deposit cum savings plan that offers you the flexibility of investing your money in a fixed deposit and also availing the benefits of a savings account. Before you invest in Kotak Assured Savings Plan, it is crucial to understand its terms and conditions. In this blog post, we will look at the T&C of Kotak Assured Savings Plan.

Let’s take a look at these points.

  1. Annualised Premium

The annualised premium is the amount you will pay yearly to keep your policy active. It is important to note that the premium may increase over time, so it is essential to check the terms and conditions of your policy to see how much the premium may increase by. The annualised premium will be Rs. 70,00,000 if the policyholder pays a half-yearly premium of Rs. 40,00,000 (modal factor of 51%). Additionally, this premium will be exempt from any relevant Rider Premiums and Goods and Services Tax & Cess.

  1. Grace Period

Kotak Life Insurance provides a grace period of up to 30 days for its customers on the Kotak Assured Savings Plan. This means that you can make late payments without any penalty or interest being charged. However, if you do not make the minimum payment within the grace period, your account will be considered delinquent, and you may be subject to additional fees.

  1. Vesting in Case of Minor Life

Kotak Assured Savings Plan vests immediately on the death of the life insured, even if he/she is a minor. The proceeds are then paid to the nominee. In case of maturity, however, vesting happens only when the life insured attains 18 years of age.

  1. Policy Loan

You can avail of a policy loan from Kotak Assured Savings Plan. The loan limit will be up to 50% of the Surrender Value. Kotak Mahindra Life Insurance Company will declare the interest rate on the loan from time to time. Currently, 8.80% per annum is the interest rate. Moreover, the policy loan can be repaid in a lump sum or in easy instalments.

  1. Lapses

Policy lapse occurs when the policyholder stops paying premiums. This can happen for various reasons – change in financial circumstances, forgetting to pay premiums, etc. Awareness of the consequences of lapsing a life insurance policy is important. The savings plan can lapse for non-payment of premiums within 15 days from the due date.

  1. Surrender

If you have paid premiums for at least two full years, you can surrender the policy.

  1. Nomination

According to the guidelines of Section 39 of the Insurance Act of 1938, as updated from time to time, nominations will be permitted under the plan.

  1. Free Lock Period

From the date of commencement of this policy, the policyholder has 15 days to review it without paying. The policyholder has this time to decide whether to keep the insurance or return in the specified 15 or 30 days.

The Bottom Line

Kotak Assured Savings Plan is a great investment option for those looking for guaranteed returns. However, it is crucial to understand the terms and conditions of the plan before investing. The terms and conditions may vary from one plan to another. Also, by investing in Kotak Assured Savings Plan, you will get the best possible returns on your investment.