It is a participating (with profits) insurance plan that offers the following features:
Payment of cash lumpsums, each of which is a proportion of the basic sum assured, at 5-year intervals during the term of the policy.
On survival up to maturity, a payment equal to the basic sum assured plus any bonus additions less the cash lumpsums paid earlier is provided.
In case of the unfortunate death of the life assured within the term of the policy, the basic sum assured plus any bonus additions is provided. This is over and above the earlier payouts.
Why should you buy this product?
This plan helps you plan for future anticipated expenses by paying periodic cash lumpsums to you at regular intervals. This plan also helps provide for the needs of your family in your absence by paying them the basic sum assured plus any bonus additions in the event of your unfortunate death during the term of the policy.
What optional benefits are available with this plan?
You can add the following optional benefits to customise your policy to suit your needs:
Critical Illness (CI) Benefit provides an amount, equal to the sum assured chosen under this optional benefit, on diagnosis of any one of the 6 common critical illnesses(1). The sum assured is payable if you survive for 30 days after the date of the claim. Once such a claim has been met, no further Critical Illness Benefit is payable. However, your basic policy continues even after we pay a claim on this benefit.
Additional Term Benefit (ATB) provides an additional amount, equal to the sum assured chosen under this optional benefit, in case of your unfortunate death.
Accidental Death Benefit (ADB) provides an additional amount amount equal to the basic sum assured in case you die:
due to an accident, and
within 90 days of the accident.
Waiver Of Premium (WOP) Benefit waives the premium for you in case you become totally disabled. The waiver is applicable during the period of total disability.
Life PayŽ Money Back Plan (Participating) Policy from Max New York Life
The policy will keep paying you a part of the Sum Assured at regular intervals, to take care of your periodic foreseen needs, and the balance keeps growing to take care of your long term saving needs, as well as provides insurance coverage till maturity.
Key featurs are :-
On death of life insured: Sum Assured plus Sum Assured of Paid Up Additions, if any(without deducting any money back installments, if already paid).
On maturity: Sum Assured less money backs already paid plus 10% of SA as guaranteed addition plus accrued bonuses (if any).
Bonus: From 3rd policy year, we will declare bonuses every year.
You are entitled to the following tax benefits under Income Tax Act 1961: Your premiums are eligible for deduction u/s 80C up to Rs.100,000/- every year.
Your DD rider premiums are eligible for an additional deduction u/s 80D up to Rs.10,000/- every year.
Your claim amounts (from death, thorugh surrenders or on maturity) are eligible for tax exemption u/s 10(10D).
Unlike ordinary endowment insurance plans where the survival benefits are payable only at the end of the endowment period, this scheme provides for periodic payments of partial survival benefits as follows during the term of the policy, of course so long as the policy holder is alive.
In the case of a 20-year Money-Back Policy (Table 75), 20% of the sum assured becomes payable each after 5, 10, 15 years, and the balance of 40% plus the accrued bonus become payable at the 20th year.
For a Money-Back Policy of 25 years (Table 93), 15% of the sum assured becomes payable each after 5, 10, 15 and 20 years, and the balance 40% plus the accrued bonus become payable at the 25th year.
An important feature of this type of policies is that in the event of death at any time within the policy term, the death claim comprises full sum assured without deducting any of the survival benefit amounts, which have already been paid. Similarly, the bonus is also calculated on the full sum assured.
The plan is a unit linked non-participating plan to give you efficient returns.
Tax free lump sum pay-outs, to take care of recurring needs.
A choice of three Investment Fund Options: Protector, Builder and Enhancer, with the freedom to switch between the Investment Fund Options anytime during the policy tenure.
Flexibility to make additional lump sum investments (top ups) to increase the savings portion of your policy.
Minimum Guaranteed returns of 3% p.a. on your premium and any top up amounts, net of all Policy Charges. More importantly the entire upside in the performance of the Investment Fund is passed on to you.
Options to make tax-free Partial Withdrawals**from your Fund Value anytime after three years.
Surrender of the policy without penalty after 4 policy years.
Increase the Sum Assured during the premium paying period any time depending on your needs.
Convenient premium payment options: Short or Regular Premium Payment Period.
The Kotak Money Back Plan not only covers your life, it also assures you a certain percent of the sum assured as cash payment at regular intervals of every 5 years. It is a savings plan with the added advantage of life cover and regular cash inflow. This plan is ideal for planning special moments like a wedding, your child's education or purchase of an asset etc. This is a participating plan (with profits).
Advantages of the plan
The plan not only covers your life but also provides you with a survival benefit payout every 5 years.
In the unfortunate event of death of life insured, the beneficiary would receive the death benefit. The death benefit keeps increases by 7% of the sum assured every year.
On maturity, you would receive the sum of the Survival Benefit, Bonus addition and Guaranteed addition
The amount available in the Accumulation Account is invested in various financial instruments (as per IRDA regulations) so your money works hard for you.
The Automatic Cover Maintenance facility ensures the policy remains in force even if you miss premium payments. This facility is available after the first three years of the term.
You have the benefit of a 15-day free look period.
You have the option of paying premiums quarterly, half yearly or yearly