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What is Kotak Classic Endowment plan?
Kotak Classic Endowment Plan is a long term protection cum savings plan that offers protection benefit while earning Bonuses during the policy term. You select the Sum Assured on maturity as per your requirement basis which premiums payable is determined. You pay such premium for the selected premium payment term.
Why are endowment policies bad?
Here is the truth about endowment plans. By design, endowment policies are debt-heavy—that is, they invest only in approved debt or government securities, and not equities. Consequently, they cannot generate returns comparable to Ulips with an equity component.
What is Kotak Platinum Plan?
Kotak Platinum Plan is a unit linked insurance plan offered by Kotak Life Insurance. This plan provides for both life insurance and investment opportunity to people who want more than just protection from their insurance scheme.
How is surrender value of Kotak Life Insurance calculated?
Special surrender value can be calculated using a simple formula which is: (Paid-up value + accrued bonuses) X surrender value factor An obvious question that arises here is, what is paid up value? It is nothing but the basic sum assured X (number of premiums paid/number of premiums payable).
Are endowment plans safe?
Endowment plans are generally considered a low risk investment. While you can lose money if your guaranteed returns are lower than sum of the premiums paid over the years, that also means your losses are capped.
Are endowments risky?
Why are University Endowments Large and Risky? University endowments invest more than 75\% of their assets in risky securities. This large allocation to risky assets, commonly called “stocks for the long run”, matches the standard investment advice provided to individual investors with long horizons.
What happens when an endowment policy matures?
When the plan reaches the end of the policy term, no matter how many years, the endowment plan is said to mature. If the policyholder survives till the end of the policy term, a maturity benefit is paid out to them. If they die before the maturity of the plan, a death benefit is paid out at the time of death.
What are the benefits of endowment policy?
“The key benefits of any endowment plan include financial protection of loved ones, goal-based savings, tax benefits under section 80C and 10(10D) of the Income Tax Act and the options to obtain loan against the policy, in case of any financial emergency,” says Rushabh Gandhi, director – sales & marketing, IndiaFirst …
What are the benefits of endowment?
Enhances stability and prestige. A well-managed endowment sends a message of planned long-term stability, fiscal responsibility, and financial viability. It enhances the organization’s prestige and credibility. Relieves pressure on the annual fund.
Premium Payments Offered under Kotak Premier Life Plan:
Minimum Premium | Based on Sum Assured at maturity, entry age, gender and premium payment term (PPT) |
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Maximum Premium | Unlimited, subject to underwriting |
Minimum Sum Assured (on maturity) | Rs.2,00,000 |
Premium Payment Mode | Monthly, quarterly, half-yearly, yearly |