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Kotak e-Term Plan

Kotak e-Term Plan provides a high level of protection to your loved ones in your absence. Know more

Kotak Guaranteed Savings Plan

Kotak Guaranteed Savings Plan is a savings and protection plan that helps you achieve long-term financial goals and provides an insurance cover against any eventuality. Know more

Kotak E-Invest

Kotak e-Invest plan is a complete Unit-Linked Insurance Plan that can be customized as per your goals and needs. Know more

Kotak Health Shield

Kotak Health Shield Plan helps secure your finances in sudden medical expenses such as Cardiac, Liver, Neuro, and Cancer (all early and significant illness stages/conditions of cancer), along with offering protection for personal accidents - in case of accidental death or disability. Know more

Kotak Lifetime Income Plan

Kotak Lifetime Income Plan gives you the security of your income continuing throughout your life and in your absence throughout your spouse's lifetime! Know more

ULIP: Buy Unit Linked Insurance Plans Online in 2022 (Kotak E-Invest Plan)

Guaranteed Savings Plan

Guaranteed Savings Plan

Achieve your financial goals without risks with Kotak Guaranteed Savings Plan.

What are Guaranteed Savings Plans?

A NON-LINKED NON-PARTICIPATING ENDOWMENT LIFE INSURANCE PLAN

Life is all about moments- some happy, some sad, some endow us with life lessons and some make us humble. But for a lot of people, it teaches them the importance of planning for the right future. It is easier to brave the unpredictable highs and lows with a robust financial plan.

Hence, a guaranteed savings plan is critical in your financial portfolio. It combines

What are the benefits of Guaranteed Savings Plans?

When you decide to invest in a Guaranteed Savings Plan, you can expect to receive a variety of privileges. Here's a rundown of the key benefits that you can expect:

Maturity Benefits

Maturity benefit is the lump sum amount that you receive as a return after the policy term is completed. You can build your own house, plan a vacation with your family or maybe plan your retirement with it.

Death Benefit

We all love our families, and our families equally love us. If something unfortunate happens to us, our families might have to go through hardships, not only emotionally, but also financially. Death benefit, comes as a lump sum payout for the beneficiary of a life insurance policy.

Loan Facility

A Guaranteed Savings Plan permits you to take a loan for your financial requirements, but only when the insurance reaches a surrender value. Once you have surpassed that period, you are eligible for a loan against the policy.

Payment Options

Premiums are supposed to help you insure your family and get guaranteed returns, not to make you feel stressed. Therefore, you can choose between two premium payment modes: one lump sum payment or over a specified duration of time. For example, if you don't want to deal with the stress of remembering premium due dates, you can pay them in a single go. An interesting fact about this advantage is that you get a higher interest rate on the sum assured than you would on a normal life insurance policy.

Partnering for a secure tomorrow

What are some key features of Guaranteed Savings Plan?

Term Period

You can select a policy term period that best fits your requirements. You might choose the short-term savings plan if you anticipate you will need your money soon. Or you can extend your insurance for a higher number of years if you want to save for the long term.

Premiums

You have the option of paying your premiums over a specified time period or all at once. These choices are available to make the policyholder's life easier and more convenient. The chosen payment method in no way impacts the assured benefits.

Guaranteed Benefits

This plan provides guaranteed maturity and death benefits subject to policy’s terms and conditions. The maturity benefit is given if the policyholder survives the policy tenure and the death benefit is given to the beneficiary in the event of the policyholder’s unfortunate demise.

Free Look Period

Insurance policies mostly come with a small time frame called free-look period. Savings plan also come with this disclaimer. If a policyholder has some doubts about the policy or he/she is not happy with the clauses put forth, they can return the policy within 15-30 days. The premium paid will be refunded without any extra fees.

Grace Time

Several banks also offer a 30-day grace period. For annual, half-yearly, and quarterly plans, the grace period indicates that the premium can be settled in less than 30 days. The bank does not impose any fines or deductions during this time. This privilege is given to the policyholder so the policy does not lapse and they get enough time to arrange the premium amount.

Missed Payment

Let's say you stop paying your premiums after four insurance years - then the insurance will be deemed as paid in that instance. The final cost and interest rate will be calculated based on the paid premiums prior to their discontinuance.

Kotak Guaranteed Savings Plan

Achieve your long term goals with guaranteed returns

Features

  • Enhanced Protection Through Riders
  • Tax Savings
  • @ Guaranteed Loyalty Additions
  • Maturity & Death Benefit
  • Multiple Premium Payment Terms

What are some Characteristics of Guaranteed Savings Plan?

You must establish long- and short-term financial objectives. It will provide a great deal of clarity and assist you in selecting the best investment strategy. This will assist you in deciding which plan to purchase and prove to be beneficial in the long run.

You must always look at the tax benefits that are provided with your insurance product when making a savings investment. Various financial products, such as life and health insurance, provide options for tax exemption. Investing in them would save you money while also protecting you in the case of an emergency.

When you choose a strategy, think about how much liquidity you'll need. Your savings account should have enough liquid assets to meet your demands. You must confirm that the plan supplies you with finances in the event of an emergency.

Your money-saving strategy should not be limited to just one type of investment. To lower the related risks, you will need to diversify them. Hence, you should consider all of the investment possibilities that will broaden your portfolio and help you achieve your goals.

It is critical to assess your inventory at least once a year in addition to making any essential adjustments as needed. You should not just forget about an investment once you've made it, and regularly review it to take the required steps so that you can enhance your profits.

What are some Characteristics of Guaranteed Savings Plan?

Your Objective

You must establish long- and short-term financial objectives. It will provide a great deal of clarity and assist you in selecting the best investment strategy. This will assist you in deciding which plan to purchase and prove to be beneficial in the long run.

Understand the Role of Tax

You must always look at the tax benefits that are provided with your insurance product when making a savings investment. Various financial products, such as life and health insurance, provide options for tax exemption. Investing in them would save you money while also protecting you in the case of an emergency.

Liquidity Aspect

When you choose a strategy, think about how much liquidity you'll need. Your savings account should have enough liquid assets to meet your demands. You must confirm that the plan supplies you with finances in the event of an emergency.

Diversification

Your money-saving strategy should not be limited to just one type of investment. To lower the related risks, you will need to diversify them. Hence, you should consider all of the investment possibilities that will broaden your portfolio and help you achieve your goals.

Performance

It is critical to assess your inventory at least once a year in addition to making any essential adjustments as needed. You should not just forget about an investment once you've made it, and regularly review it to take the required steps so that you can enhance your profits.

Guaranteed Savings Plan FAQs

GSP is the abbreviation for Guaranteed Savings Plan. It is a policy that assists you in achieving your long-term life goals by providing you with reliable insurance coverage against unforeseen events and guaranteed returns on your money.

Guaranteed Savings Plans keep their word and deliver on their promise of guaranteed returns. Despite the continued market turmoil and fluctuations, you earn a standard and stable income rate since you are not susceptible to market volatility. This plan provides a safe location to put money for investors who have a low-risk appetite.

The premiums paid are eligible for a deduction of up to ₹150,000 under section 80C of the Income Tax Act, 1961 You can also benefit from a tax-free payout because the maturity benefit is exempt from taxation under Section 10 (10D).

To choose the best GSP, you should look at factors like minimum age criteria, maximum age criteria, policy term period, premium payment methods, yearly premiums, sum assured amount and the additional benefits that are being provided. Once all these factors align with your personal requirements, you will know that it is the ideal plan for you.

If you choose to discontinue the plan, you will only receive the surrender value of the savings plan. However, this clause will only apply if the policy has been in force for more than three years.

Terms and Conditions

Annualised Premium

It refers to the premium payable in a policy year, excluding the underwriting extra premiums, loadings for modal premium, if any. For example, if the policyholder is paying a half-yearly premium of ₹51,000, then the Annualised Premium will be ₹100,000 (51,000/modal factor of 51%). This premium will also be excluding rider premiums if any, Goods and Services Tax, Cess, as applicable.

Vesting in case of a minor

If the policy has been taken on the life of a minor, it shall automatically vest on him/her with effect from the date of completion of 18 years of age, and the insured will become the policyholder from that date.

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

Loan

Loans can be availed under this plan through Kotak Life Insurance up to the limit of 50% of the surrender value of the policy. The company shall determine the rate of interest from time to time. Currently, the interest rate is 9.30% p.a. but it can be revised as per the methodology approved by IRDAI. The policy will be unconditionally and fully assigned to Kotak Life Insurance as security for the loan and interest repayments during the period of the loan. It will not be auto foreclosed where all due premiums have been paid. In case of any benefit payout before the end of term or at maturity, the company is entitled to deduct any outstanding loan amount, together with all the interest payable before making such benefit-related payments. The minimum amount of loan that can be granted is ₹10,000.

Lapses

The policy shall lapse from the due date of the first unpaid premium if premiums for the first two policy years are not paid within the grace period.

Surrender Value

The policy will acquire the surrender value after payment of full premiums for two consecutive policy years.

Guaranteed Surrender Value

The GSV shall be a percentage of the total premiums paid including extra premium, if any (but excluding Goods and Services Tax and Cess and rider premium, if any), plus the value of accrued guaranteed additions, if any.

Policy Revival

A lapsed/reduced paid-up policy can be revived within five 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 an interest rate (currently 9% p.a. of outstanding premiums), if the payment is made within six months. Thereafter, to revive the policy (referred to as major revival), evidence of good health would be required along with payment of the outstanding premiums with an interest rate (currently 9% p.a. of outstanding premiums).
  • The interest rate may be revised from time to time. Extra premiums may be required based on the underwriting decision.
  • If the lapsed policy is not revived during the revival period, it will be terminated without paying any benefits.
  • If the 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 the revival of the policy.
  • Riders cannot be revived independently and can only be revived along with the revival of the base plan.

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.

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.

Free-look Period

The policyholder is offered a 15-day free look period for a policy sold through all channels (except for policies obtained through distance marketing mode; electronic policies will have 30 days) from the date of receipt of the policy wherein the policyholder may choose to return the policy, stating the reasons thereof within 15-30 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, they 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. A policy once returned shall not be revived, reinstated, or restored at any point in time, and a new proposal will have to be made for a new policy. In addition to the above, this free look provision is also applicable to the rider contract. The rider stands cancelled when the free look provision of the policy is exercised.

Tax Benefits & Disclaimers

You may avail of tax benefits as per f Income Tax Act, 1961, 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 You may avail of tax benefits as per Income Tax Act, 1961 Tax benefits are subject to change as per tax laws. Kotak Guaranteed Savings Plan UIN: 107N100V03, Form No: N100. This is a non-linked, non-participating endowment plan. This is a saving and protection oriented plan. For sub-standard lives, extra premium may be charged based on Kotak Life Insurance’s underwriting policy. For more details on risk factors, terms and conditions, please read sales brochure carefully before concluding a sale. For more details on riders please read the Rider Brochure.

@Guaranteed benefits due under this plan are available provided premiums are paid regularly for the entire premium payment term and the policy is in force. Ref. No. KLI/22-23/E-WEB/307

Section 41-

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 lakhs rupees.

Section 45-

Fraud and Misstatement would be dealt with in accordance with provisions of Section 45 of the Insurance Act, 1938 as amended from time to time. Please visit our website for more details:

Read more about section 38_39_45_of_insurance_act_1938

Kotak Mahindra Life Insurance Company Ltd.

Reg No. 107 | CIN : U66030MH2000PLC128503

Regd. Office:

8th Floor, Plot # C- 12, G- Block, BKC, Bandra (E), Mumbai – 400051, Toll Free: 1800 209 8800

Website: www.kotaklife.com | WhatsApp: 9321003007

BEWARE OF SPURIOUS PHONE CALLS AND FICTITIOUS/FRAUDULENT OFFERS

IRDAI is not involved in activities like selling insurance policies, announcing bonus or investment of premiums. Public receiving such phone calls are requested to lodge a police complaint.

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