Kotak Assured Protection Plan

Kotak Assured Protection Plan No critical illness benefits will be payable if the critical illness occurs within six months

PRODUCT FEATURES:

It is a protection and savings product. This plan offers to provide life cover along with cover against accidental death and critical illness. Maximum sum assured in this plan in Rs 25 lakh. Minimum premium is Rs 5,000. With this plan, you have the option for paying premiums until the age of 60 years or for fixed term of 15 years.

ENTRY AGE:

You need to be minimum 18 years and maximum 50 years to buy this policy. Maturity age at which the policy terminates is 75 years. Critical illness cover and accidental death benefit terminates when policyholder attains 70 years.

LIFE COVER:

Along with basis sum assured, in case of an untoward incident, or if the policyholder dies in an accident, double of basic sum assured will be paid. In case of permanent disability due to accident, future premium will be waived off and the pol icy will continue.

CRITICAL ILLNESS:

This plan offers cover against diagnosis of attack for ailments like heart cancer, major surgeries, major burns and blindness, kidney failure. On diagnosis, 20 per cent of basic sum assured will be given to policyholder. For example if you sun assured of Rs 10 lakh, critical illness cover will be Rs 2 lakh.

WAITING PERIOD: No critical illness benefits will be payable if the critical illness occurs within six months of the date of policy issue.

PREMIUM: To a 35 year old male for basic sum assured of Rs 10 lakh, the company will charge annual premium of Rs 23,930. The customer needs to pay premium for 25 years (till attainment of 60 years).

The policy cover will continue till age of 75. Company does not specify rate of return it will pay. But policyholder will get basic sum assured on maturity.

Surrender:

In the first three years if you stop paying premium, your policy will lapse and no benefit will be payable. After three years, you will entitled for guaranteed surrender benefit of only 30 per cent of total premium paid by you.

It is an expensive product. One has to pay almost Rs 6 lakh in the entire policy tenure for sum assured of Rs 10 lakh. Instead you can buy a life cover along with death benefit rider and critical illness rider for much lesser amount for less than one third of the premium that you are required to pay in this policy. Invest rest in other investment products that can earn you better returns.