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Kotak Life e-Assured Savings Plan

Kotak E-Assured Savings Plan is an online life insurance plan that is designed to help individuals achieve their financial goals together with protection. This savings cum insurance plan enables users to accumulate wealth to fulfil various financial objectives. This plan offers basic sum assured, accrued guaranteed yearly addition as well as guaranteed loyalty addition.

About Kotak Mahindra Life Insurance Company Ltd.: Kotak Life Insurance is a subsidiary of Kotak Mahindra Bank Ltd. The insurance company provides world-class products with high customer empathy. It is among the fastest growing insurers in India, providing solutions to more than 20 million lives across the globe, as on 31st March 2018.

(Note – All the information contained in this page has been sourced from the official website of Kotak Mahindra Life Insurance Company.)

Features of Kotak e-Assured Savings Plan

The features of Kotak e-Assured Savings Plan are as follows:

  • Guaranteed maturity benefit payable (at maturity) - Under this policy, one can get basic sum assured plus accrued guaranteed yearly additions and guaranteed loyalty addition.
  • Increasing life cover - Guaranteed yearly additions are added each time premium is paid. This will be payable at maturity or earlier demise.
  • More benefits for longer premium commitment - With increase in premium payment term, guaranteed yearly additions and guaranteed loyalty addition increases.
  • Option to boost coverage through riders – Add-ons available with the plan include Kotak Term Benefit Rider and Kotak e-Accidental Death Benefit Rider.
  • Tax benefits - Tax deduction on premiums paid under Section 80C of the Income Tax Act, 1961, and tax exemption on the proceeds received under Section 10(10D) of the Income Tax Act.

Benefits of Kotak e-Assured Savings Plan

How Kotak e-Assured Savings Plan Works: A policyholder has to pay premiums every year for the chosen premium payment term. Once the premium payment term expires, the policy shall continue till maturity. At maturity, the insured will receive guaranteed maturity benefit i.e. total of basic sum assured, accrued guaranteed yearly additions and guaranteed loyalty addition. The basic sum assured shall be based on the premium, policy period, premium payment term and the life insured's age. Death Benefit: In the event of the life assured’s demise during the policy period, the nominee will receive the following:

  • Basic Death Benefit, Plus
  • Guaranteed Yearly Additions accrued as on the date of death. The basic death benefit for entry age below 50 years is the higher of:
  • 11 times of annual premium, and
  • Guaranteed minimum death benefit
  • 105% of total premiums paid (with the exclusion of any extra premiums) The basic death benefit for entry age 50 years and above is the higher of:
  • 7 times of annual premium, and
  • Guaranteed minimum death benefit
  • 105% of total premiums paid (with the exclusion of any extra premiums) Guaranteed minimum death benefit is a percentage of the basic sum assured as mentioned below:
PPTGuaranteed Minimum Death Benefit (% of Basic Sum Assured
5 years110%
10 years120%

Maturity Benefit: If the life assured survives the policy term, guaranteed maturity benefit shall be paid. This benefit comprises of:

  • Basic Sum Assured plus
  • Accrued Guaranteed Yearly Additions and
  • Guaranteed Loyalty Addition Guaranteed yearly additions shall be assessed as a percentage of cumulative annual premium paid each year. It will accrue at the end of the policy year till the end of premium payment term, and shall be paid at maturity or on the insured’s demise. The rate of such additions is on the basis of the premium payment term chosen, which is as follows:
PPTGuaranteed Yearly Additions as % of Cumulative Annual Premium
5 years7%
10 years10%

Eligibility Criteria

Criteria Eligibility
Entry Age
Minimum - 3 years
Maximum - 60 years
Entry Age
Minimum - 3 years
Maximum - 60 years
Policy and Premium Payment Term
PPT Policy Payment Term
5 pay 10 / 15 years
10 pay 15 / 20 years
Annual Premium
Minimum: Rs. 20,000
Maximum: No limit, subject to underwriting
Premium Payment OptionLimited only
Premium Payment OptionMonthly, Quarterly, Half Yearly and Yearly
Modal Factor
Yearly - 100%
Half Yearly - 51%
Quarterly - 26%
Monthly - 8.8%

Other Details of Kotak e-Assured Savings Plan

Additional FeaturesBenefits
Convenient premium payment term & modesPremiums can be paid on yearly, half-yearly, quarterly or monthly basis. There is an option to change the premium payment mode on the policy anniversary
Additional Protection
  • One can increase their insurance protection by attaching the below mentioned optional riders to the base cover:
  • Kotak Term Benefit Rider - In the event of the demise of the life insured, the rider sum assured shall be paid along with the death benefit under the base plan.
  • Kotak e-Accidental Death Benefit Rider - Lump sum benefit shall be paid on the accidental death of the insured along with the death benefit under the base plan.
  • Policy Loan FacilityLoans can be availed up to 50% of Surrender Value, subject to a minimum loan amount of Rs. 10,000.
    Reduced Paid-Up BenefitOnce the policy acquires Surrender Value (if subsequent premiums are not paid within the grace period), the base plan along with riders (if any) will be converted into a Reduced Paid-Up
    High Premium BenefitThe insurer rewards policyholders paying higher premium by increasing Basic Sum Assured.
    Annual premium bands% increase in Basic Sum Assured Rate
    Less than Rs. 30,000Nil
    Rs. 30,000 to Rs. 74,9993%
    Rs. 75,000 and above5%

    Document required

    An individual will have to submit certain documents to avail Kotak e-Assured Savings Plan. The documents include:

    • Identity Proof
      • PAN card,
      • Aadhaar card,
      • Passport, etc.
    • Address Proof
      • Aadhaar card,
      • Passport,
      • Driving license, etc

    Exclusions - Kotak e-Assured Savings Plan

    If the life assured commits suicide within a year from the date of policy issue, 80% of the premiums paid will be payable. If the suicide occurs within a year from the date of the policy’s revival when the revival is done within six months from the date of first unpaid premium, suicide exclusion shall not apply and the death benefit will be paid.

    In case of suicide within a year from the date of revival, when the revival is done after six months from the date of first unpaid premium, the benefit paid shall be the higher of 80% of premiums paid or surrender value, if any, at the date of claim event.

    Review of Kotak e-Assured Savings Plan

    Kotak e-Assured Savings Plan gives users the potential to grow their wealth, thereby enabling them to achieve various future financial goals. It provides affordable protection and helps individuals accumulate wealth through guaranteed benefits.

    FAQs Kotak Life e-ssured Saving Plan

    What are the premium payment modes for Kotak e-Assured Savings Plan?

    Premiums toward Kotak e-Assured Savings Plan can be paid on a monthly, quarterly, half yearly or yearly basis.

    What are the tax benefits of availing Kotak e-Assured Savings Plan?

    Tax deduction of up to Rs. 1,50,000 can be claimed under Section 80C of the Income Tax, 1961, for the premiums paid toward Kotak e-Assured Savings Plan. The proceeds from policy are tax-free in the hands of the receiver under Section 10(10D) of the Income Tax Act, 1961.

    Under what condition does insurance cover of Kotak e-Assured Savings Plan lapse?

    For PPT of 5 years, the policy shall lapse if the premiums for the first two policy years are not paid within the grace period. For PPT of 10 years, the policy shall lapse if the premiums for the first three policy years are not paid within the grace period.

    What is the policy loan facility on Kotak e-Assured Savings Plan?

    One can avail loans up to 50% of surrender value, subject to a minimum loan amount of Rs. 10,000. The company will assess the interest rate from time to time. At present, the interest rate is 12.5% compounding half-yearly. However, it can be revised from time to time subject to the insurance regulator’s approval.

    Which riders can be taken with Kotak e-Assured Savings Plan?

    Kotak e-Accidental Death Benefit Rider is an add-on that can be availed with Kotak e-Assured Savings Plan. In the event of the demise of the life assured due to an accident during the benefit term of the rider, the rider sum assured shall be paid in lump sum to the nominee or legal heir. With the Kotak Term Benefit Rider, one can enhance the existing protection available under base plan at affordable rates. In case of the life assured’s death during the rider term, the sum assured will be paid in lump sum to the nominee or legal heirs.

    What is the free look period of Kotak e-Assured Savings Plan?

    The insured is offered a free look period of 30 days from the date of the policy's receipt. If the policyholder does not agree with any of the terms and conditions of the policy, the individual can choose to return the policy within 30 days. He or she will be entitled to a refund of the premium paid, after adjustment for the expenses related to stamp duty, medical examination and proportionate risk premium for the period of cover.

    When does Kotak e-Assured Savings Plan acquire surrender value?

    The insurance policy acquires a surrender value on the basis of the premium payment term chosen as well as the number of premiums paid:

    • For policies whose premium payment term is 5 years: The insurance cover acquires surrender value after complete payment of the due premiums for first two policy years.
    • For policies whose premium payment term is 10 years: The insurance cover acquires surrender value after complete payment of the due premiums for first three policy years.
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