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Kotak SmartLife Plan Brochure1
Kotak SmartLife Plan Brochure1
You earn and work hard to accomplish your dreams and aspirations at every stage of
life. In this journey, you will come across some unexpected financial commitments as
well as planned ones like marriage; child education etc. During your golden years of
retirement when income earning capacity reduces, it becomes even more difficult to
fulfill these dreams and aspirations.
What if you have a support that will not only help you in fulfilling your dreams but will
also take care of your near and dear ones in case you are not around …
To support you in this journey, Kotak Life proudly presents “Kotak SmartLife Plan”, a
limited pay participating endowment plan which will provide you option either to
receive Cash bonus payouts every year right from the end of 1st policy year onwards to
take care of interim financial requirements or utilize such Cash bonuses for
accumulating and creating a corpus to fulfill bigger goals and plan for a stress-free life.
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Key Advantages
• Offers protection up to the age of 75 years
• Convenience of choosing Bonus options: Cash Payout or Paid-Up Addition
• Avail chosen Bonus option from end of 1st policy year onwards on monthly or yearly basis
• Additional protection through optional riders on payment of additional premium
Plan Benefits:
• Death Benefit5:
If all the due Premiums have been paid, death benefit shall be:
• Under Cash Bonus Payout option:
Sum Assured on death PLUS Interim bonus, if any PLUS Terminal bonus, if any PLUS
Present Value5 of outstanding monthly cash bonus payout for the remaining months of
the year of the death of Life Insured, if monthly frequency is opted under Cash Bonus
• Under Paid-Up Addition option:
Sum Assured on death PLUS Accrued Paid-up Additions, if available PLUS Interim bonus,
if any PLUS Terminal bonus, if any
Where Sum Assured on death is:
higher of:
1) 11 times of Annualised Premium1(including extra premium, if any) OR
2) Basic Sum Assured, which is the guaranteed maturity benefit OR
3) 105% of all premiums paid (including extra premium, if any) till the date of death
• Survival Benefit:
The Survival Benefit shall be payable as per the chosen Bonus option, as explained below:
• Cash Payout option:
Under this option, at the end of each policy year, starting from the end of 1st policy year -
Cash Bonus declared will get paid out till end of the policy term or death or surrender,
whichever is earlier.
You also have the option to choose Cash Payout on a monthly basis, which shall be
calculated as :
(102.25% * Yearly Cash Bonus Payout) / 12
The first monthly Cash Bonus Payout (if any) under this option shall start from the first
policy anniversary date.
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• Paid-Up Addition option:
Under this option, at the end of each policy year, starting from the end of 1st policy year -
Cash Bonus declared will get utilized to purchase Paid-Up Additions (additional Sum
Assured). The “Cash Bonus”, for Basic Sum Assured and Paid-Up Additions will be
declared separately which in turn will get utilized to Purchase Paid-Up Addition at the end
of the policy year.
Paid-Up Additions are additional guaranteed benefits payable on death or maturity. Paid-
Up Addition will be calculated as: [Paid-Up Addition Factor for the attained age X
Cash Bonus]
Some sample Paid-Up Addition factors are as follows:
Age on exercising Paid-Up Addition option Paid-Up Addition Factor
25 1.72756
35 1.63573
45 1.51175
55 1.36284
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• Basic Sum Assured Band 2: `. 5,00,000 to less than `. 7,00,000
• Basic Sum Assured Band 3: `. 7,00,000 to less than `. 10,00,000
• Basic Sum Assured Band 4: `. 10,00,000 and above
An additional discount of `.1 per 1,000 Basic Sum Assured will be available for female lives.
Additional Protection through riders
Increase the protection level under the plan by choosing from wide range of optional riders
available on payment of additional premium:
• 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 off and
the base plan will continue as it is without any change in the plan benefits.
• Kotak Critical Illness Plus Benefit Rider (UIN: 107B020V01): Rider Sum Assured shall
be payable on admission of a claim on any one of the 37 covered critical illness, subject to
terms and conditions, definitions and specific exclusions.
For more details on riders and exclusions, please refer to the Individual Rider Brochure before
concluding the purchase.
Eligibility:
Min: 3 years
Entry Age of Life Insured Max: 50 years – 6 & 15 pay
(as on last birthday) 55 years – 8 &10 pay
54 years – 12 pay
Maturity Age of Life Insured
75 years
(as on last birthday)
Policy Term 75 years less Entry Age of Life Insured
Min: `. 2,50,000
Basic Sum Assured
Max: No limits, but it will be subject to Underwriting
Min:
6 Pay : `. 40,120
8 Pay : `. 30,955
Premium Levels 10 Pay : `. 26,175
12 Pay : `. 22,778
15 Pay : `. 19,505
Max: No Limits, subject to Underwriting acceptance
Premium Payment Term 6, 8, 10, 12 and 15 years
Premium Payment Mode Yearly, Half yearly, Quarterly, Monthly
Premium Modal Factor Yearly – 100% , Half yearly – 51% , Quarterly – 26% , Monthly – 8.8%
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Illustration
Given below is an illustration of the benefits payable, for a healthy male aged 35 years for Basic Sum
Assured of `. 10 Lakhs for a premium payment term of 12 years and an Annual Premium of `. 94,140
with Bonus Option as Paid-Up Addition
Please note: The above illustration is an extract of a separate, more detailed benefit illustration. For
full details, please refer to the Benefit Illustration. The above premium figures are exclusive of Goods
and Services Tax and Cess, as applicable. Goods and ServicesTax and Cess thereon, shall be charged as
per the prevalent tax laws over and above the said premiums.
# Sum of Basic Sum Assured, Accrued Paid-up Additions (if available), Cash Bonuses, if any and
Terminal bonus, if any.
*Accrued Paid-Up Additions (if any), Terminal Bonus (if any) and interim Bonus (if any) will be payable
over and above the Sum Assured on death.
^
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. Cash
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 then 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:
• Cash Bonus: At the end of each financial year throughout the policy term, the company
may declare a bonus expressed as a percentage of the Basic Sum Assured. The Cash Bonus
will be this percentage multiplied by the Basic Sum Assured. These Bonuses are not
guaranteed. These Cash bonuses will be applicable provided all due premiums have been
paid in full.
Based on the Bonus option selected i.e. Cash Payouts or Paid-Up Additions, the declared
Cash Bonus respectively would either be payable at the end of the Policy year on a monthly
or yearly basis as opted for or will be utilized to purchase Paid-Up Addition.This will be
done till the end of the policy term or death or surrender, whichever is earlier.
These Paid-Up Additions shall also participate in the profits of the Company. At the end of
each financial year, the Company may declare Cash Bonus Rates which will be applied on
Basic Sum Assured and Accrued Paid-Up Addition. The Cash Bonus rate on Paid –Up
Additions and Cash Bonus rate on Basic Sum Assured may be different.
Once the policy has been made Reduced Paid-Up, Cash Bonuses are not declared in
subsequent years for that policy unless the policy is revived.
• 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 Basic Sum Assured or Accrued Paid-Up Additions (if available), as the case
may be. 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. This bonus will be applicable on both
Basic Sum Assured and Paid-Up Addition (if any).
• Terminal Bonus: The Company may decide to pay Terminal Bonus on exit of the Policy
and shall be a percentage of the Basic Sum Assuredand Paid-Up Additions (if available), as
the case may be. It may be payable after completion of PPT or 10 policy years whichever is
earlier as on date of exit. The Terminal Bonus rate on Paid –Up Additions and Terminal
Bonus rate on Basic Sum Assured may be different.
3. For policies issued on minor life, the risk commences immediately after the policy is issued. If the
Life Insured is minor, the Policyholder should ensure that while the Life Insured is still a minor,
the CashPayouts or the encashment of Paid-Up Addition (depending on the Bonus option
chosen)is used for the benefits of the minor life. In case of death of the Policyholder during the
policy term when the life insured is still minor, the benefits shall be payable to Legal guardian of
the minor Life Insured.
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4. The change from Cash Payout option to Paid-Up Addition shall be allowed only once during the
policy term.The change can be done on any policy anniversary by giving a written request to the
company, within 3 months prior to the policy anniversary. In case the request is not received
within the defined time frame, the policy will continue as per the option selected at inception.
Change of option from “Paid-Up Addition” to “Cash Payout” will not be allowed.
5. Death Benefit: Following are some additional conditions pertaining to death benefit:
• Under Cash Bonus Payout Option, if monthly payout has been opted for, the present value
of outstanding monthly cash bonus payout for the remaining months of the year of death
of Life Insured, shall be payable using the present value factors as mentioned below :
No. of installments to be received during
PV factor Applicable
policy year of death
11 10.7359
10 9.7796
9 8.8194
8 7.8553
7 6.8873
6 5.9154
5 4.9395
4 3.9596
3 2.9757
2 1.9878
1 0.9959
• 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 withnon-annual Premium Payment mode, balance of the Premium for that
Policy year will also be deducted from the Death Benefit.
6. 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. During this
period the policy will be considered to be in-force with risk cover as per the terms of the policy.
9. 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 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 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.
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• 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.
10. Surrender:
The policy acquires a Guaranteed Surrender Value (GSV) after payment of full premiums for
two consecutive policy years.
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Cash Value of Paid-Up Addition (if available) is calculated as:
[Accrued Paid-Up Addition (if any) X ‘Cash Value Factor for Paid-Up Addition’]
Sample ‘Cash Value Factor for Paid-Up Additions’ for standard lives are given in the table below:
Age on Surrender/Encashment Cash Value Factor for Paid-Up Additions
30 0.593218
40 0.633898
50 0.694517
60 0.781427
70 0.917709
Subject to the minimum Guaranteed Surrender Value, the company may consider paying a Special
Surrender Value (SSV) calculated according to the basis and method in use from time to time after
getting IRDAI’s approval.
On Surrender, higher of SSV 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.
Payout on Death:
• Under Cash Bonus Payout option: Reduced Paid-Up Sum Assured on Death PLUS
Terminal bonus, if any
• Under Paid-Up Addition option: Reduced Paid-Up Sum Assured on Death PLUS
Accrued Paid-Up Addition, if any PLUS Terminal bonus, if any
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Payout on Maturity:
• Under Cash Bonus Payout option: Reduced Paid-up Basic Sum Assured PLUS Terminal
bonus, if any
• Under Paid-Up Addition option: Reduced Paid-up Basic Sum Assured PLUS Accrued
Paid-Up Additions, if any PLUS Terminal bonus, if any
12. 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.
13. 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.
14. 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
reasons 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.
If the Policy has been opted through Insurance Repository (IR), the consideration of the free
look period of 15 / 30 days (as per the applicable channel as mentioned above) shall be from the
date of email sent by the IR.
* 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.
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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
punishable with fine which may extend to ten lakhs rupees
About Us
Kotak Mahindra Life Insurance Company Ltd is a 100% owned subsidiary of Kotak Mahindra
Bank (Kotak) which 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.
Kotak SmartLife Plan UIN: 107N102V02, Form No: N102, Ref. No.: KLI/19-20/E-BB/499
Kotak Term Benefit 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 Critical Illness Plus Benefit Rider - 107B020V01, Form No.: B020
This is a Savings-cum-Protection oriented Participating 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.
Kotak Mahindra Life Insurance Company Ltd. Regn. No.: 107, CIN: U66030MH2000PLC128503, Regd.
Office: 2nd Floor, Plot # C- 12, G- Block, BKC, Bandra (E), Mumbai 400 051. Website: https://insurance.kotak.com
Email:[email protected]. Toll Free No. – 1800 209 8800
Trade Logo displayed above belongs to Kotak Mahindra Bank Limited and is used by Kotak Mahindra
Life Insurance Company Ltd.