Kotak SmartLife Insurance

Kotak SmartLife is a non-linked, participating life insurance plan. It provides an option to get cash bonus payouts from the end of the 1st policy year to look after immediate financial needs. Policyholders can use such bonuses to take care of their families in their absence.

Kotak SmartLife Plan is an endowment plan which enables the policyholder to achieve their life's financial goals while simultaneously ensuring the family's financial security in your absence. Let's take a look at some of the policy's characteristics.

Key Features of Kotak SmartLife Insurance

Below-mentioned are the features of Kotak SmartLife Plan that will help you to get an insight of the plan and will let you understand the plan in a better way:

1. Comprehensive Protection

   The plan offers insurance coverage up to the age of 75 years.

2. Flexibility

   The plan offers the flexibility to customize your bonus options. The two options available are: cash payout and paid-up addition.

3. Availability of Riders

   The plan allows the policyholder to avail of extra protection by adding several riders by paying extra premiums.

4. Grace period

   In case you are unable to make the premium payment on time, then the policy provides a grace period of 15 days (for monthly mode) and 30 days (for other payment modes).

What are the benefits available under Kotak SmartLife Insurance?

Kotak Mahindra Smart Life plan ensures that all your long-term goals are fulfilled and helps you to plan for a stress-free life. The plan comes with a wide range of benefits. Take a look at some of the Kotak SmartLife plan benefits:

1. Death Benefit

   In case of the unfortunate death of the policyholder, the death benefit will be paid provided all the due premiums have been paid. The Death Benefit paid will be:

   • Under the Cash Bonus Payment Option: Sum assured on death + Interim Bonus (if any) + Terminal Bonus (if any) + Present Value of Outstanding Cash Bonus Payout for the remaining months of the year of death of the policyholder.
   • Under Paid-up Addition Option: Sum assured on death + Accrued Paid-up additions (if any) + Interim Bonus (if any) + Terminal Bonus (if any).

2. Survival Benefit

   The company will pay the survival benefits on the basis of the bonus option chosen by the policyholder at the beginning of the policy.

   • Cash Payout Option: Declared cash bonus is paid till the end of the policy term or surrender/death, whichever is earlier. This is applicable at the end of each policy period, beginning from the end of the 1st policy year.

     One can also choose Cash Payout on a monthly basis, which will be calculated as:

     (102.25% * Yearly Cash Bonus Payout) / 12

   • Paid-up additions: Declared cash bonus is utilized to buy paid-up additions (additional sum assured). This is applicable at the end of each policy period, beginning from the end of the 1st policy year.

3. Maturity benefit

   Under this plan, if the policyholder survived till the end of the policy term, then the maturity benefit is provided as follows:

   • Cash payout: Basic Sum Assured + Cash Bonus + Terminal Bonus (if any).
   • Paid-up additions: Basic Sum Assured + Cash Bonus + Accrued Paid-up Addition (if any) + Terminal Bonus (if any).

4. Surrender

   Once the policy has acquired a guaranteed surrender value after full payment of premiums for two continuous years, an insured can surrender the policy.

5. Tax benefit

   You can avail tax benefits for the premium paid against this policy under Section 80C and Section 10(10D) of the Income Tax Act, 1961.

Additional Riders

To provide additional coverage to the individual, Kotak Smart Life comes with 6 riders. These riders are designed to allow the policyholder to customize their plan as per their needs & requirements. Take a look at the riders available under Kotak Mahindra Smart Life plan :

1. Kotak Permanent Disability Benefit Rider

   If the life insured is permanently disabled due to an accident, the benefit is paid in instalments.

2. Kotak Life Guardian Benefit Rider

   In case of the death of the policyholder, the premiums will be waived off and the plan will continue without any effect.

3. Kotak Critical Illness Plus Benefit Rider

   If the policyholder is the victim of any of the 37 critical illnesses (subject to terms and conditions), the rider sum assured will be paid.

4. Kotak Accidental Death Benefit Rider

   On the death of the insured, lump-sum benefit is paid along with death benefit under the base plan.

5. Kotak Accidental Disability Guardian Benefit

   If the insured is disabled due to an accident, all future premiums will be waived off and the base plan will continue the same way.

6. Kotak Term Rider

   In the case of the unfortunate death of the policyholder, this rider gives an additional death cover along with the basic death benefit of the base policy.

Eligibility Criteria Of Kotak SmartLife Insurance

**Last Updated on August, 2021

Sample Premium Illustration

For a better understanding of how much premium one needs to pay under Kotak SmartLife Insurance, take a look at the below example:

Mr Puneet, a 30 years old individual decided to invest in Kotak SmartLife Plan for the next 45 years. He chooses the Cash Payout bonus option with a sum assured of Rs. 10 Lakhs. Take a look at the annual premium payable by Mr Puneet under different premium payment term:

**Last Updated on August, 2021

Graphical Premium Illustration of Kotak SmartLife Insurance Plan

Exclusions Of Kotak SmartLife Insurance

Suicide Exclusion

If in case the policyholder dies by suicide within 12 months, starting from the date of policy inception, His/her nominee will be entitled to 80% of all premiums paid.

If in case the policyholder dies by suicide after 12 months from the commencement of risk, the following standards are applicable:

• Suicide exclusion shall stand void if in case the policyholder dies by suicide within 1 year from the date of policy revival, if policy revival has been done within 6 months from the date of the first unpaid premium. The death benefit in such situations is liable to be paid by the insurance provider.
• However, in case policy revival has been done after 6 months from the date of the first unpaid premium, the benefit payable by the insurance provider is higher of 80% of total Premiums Paid till the date of death or Surrender Value (if any) as on the date of death.

Procedure to Purchase Kotak SmartLife Plans

Kotak SmartLIfe Plan is available offline. To buy this plan, one needs to follow the below mentioned steps: