Home Investment What is the Maturity Benefit in an Assured Savings Plan?

What is the Maturity Benefit in an Assured Savings Plan?

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Savings is a critical aspect of prudent financial planning. Traditionally, savings meant keeping a part of the income aside for future goals and needs. However, today, savings is not just about parking your money in a bank account. You need to invest your savings smartly in different instruments that let you build your wealth and strengthen your savings.

There are many investment options available in the market, like mutual funds, NPS, shares, etc. However, if you are looking for a safe and secure option that gives you guaranteed returns with minimal or zero risk, then you should consider investing in Kotak Assured Savings Plan by Kotak Life Insurance.

As the name suggests, Kotak Assured Savings Plan is a savings-cum-insurance plan. If you don’t have life insurance cover for your family, then this policy will help you secure your family’s financial future by protecting them from future uncertainties while at the same time allowing you to accumulate wealth and achieve your financial goals. This plan offers you guaranteed maturity benefits.

What is the maturity benefit in Kotak Assured Savings Plan?

Typically, life insurance plans like term plans do not offer any maturity benefit. This means when your policy expires, you don’t get any returns from the insurance company. However, with Kotak Assured Savings Plan, you get guaranteed maturity benefits.

If you outlive the policy term, then the insurer will pay the guaranteed maturity benefit provided you have paid all your premiums, and your policy is in force.

The guaranteed maturity benefits in this plan include:

  •         The basic sum assured
  •         Accrued guaranteed annual additions
  •         Guaranteed annual loyalty additions

Let’s know more about these guaranteed annual additions that you get as part of the maturity benefit.

  •         Guaranteed annual addition

The guaranteed annual addition is calculated as a percentage of the cumulative annual premium amount you pay to the insurance company. The annual additions accrue throughout the premium payment period, and the amount is paid when the policy matures or in the event of your demise, whichever is earlier.

  •         Guaranteed loyalty addition

Like the guaranteed annual addition, the loyalty addition in Kotak Assured Savings Plan is calculated as a percentage of the basic sum assured, and it is paid when the policy matures. The insurance company decides the rate of loyalty addition based on the premium payment term you choose.

Do you know about the free look period in Kotak Assured Savings Plan?

When you buy Kotak Assured Savings Plan, you get a free look period of 15 days. This means if you don’t agree with the terms and conditions of the plan or think the policy is ill-suited to you, then you can return the policy within 15 days from the date of receiving the policy papers.

When you return the policy, you get a refund of the premium after reducing the expenses incurred for the medical examination (if any), and the stamp duty. Also, once you return the policy, you cannot restore, revive, or reinstate it.

Final Word

The assured savings plan is an excellent investment option that allows you to get valuable returns while keeping your family protected from uncertainties. Make sure that you read the terms and conditions carefully before buying the plan to avoid any disputes later.

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