Kotak Guaranteed Savings Plan
Kotak Guaranteed Savings Plan are savings plans certified by Kotak Mahindra Bank Ltd. Kotak Guaranteed Savings Plan plans have been designed to help you build your savings while you are still alive and enjoy the benefits of your hard-earned money. The Kotak Guaranteed Savings Plan comes in two variations: regular and super. The Kotak Guaranteed Savings Plan standard plan allows you to deposit a fixed amount every month and pays an interest rate on the amount you have saved with the company. The super plan allows you to set up a recurring deposit (RDP) for a fixed term, which means that if you set up an RDP of Rs 5000 every month for three years, your employer will be required to give you this amount without any extra charges or fees being charged on top of it.
Kotak Guaranteed Savings Plan are good because they provide an excellent way for people who do not have much money in their bank accounts or who do not have access to any other type of savings plans like fixed deposits, life insurance policies etc., can start building their savings over time without too much effort on their part. This article will discuss everything about the Kotak Guaranteed Savings Plan.
What are Kotak guaranteed savings plan?
Kotak guaranteed savings plan are a product offered by Kotak Mahindra Bank. Kotak Guaranteed Savings Plan allows you to place your money in an interest-earning account and pay you interest on the balance you keep there. The amount held in the said account is Rs.40 lakhs. With Kotak Guarantee Savings Plans, you can choose the amount you want to save each month, and with no minimum balance requirement, you can start saving as little as Rs 500 per month.
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The main benefits of Kotak Guaranteed Savings Plan are
- You can earn up to 7% interest per annum on your savings with Kotak assurance savings plans.
- There are no charges for maintenance or management of these accounts
- The minimum balance requirement for opening a new version is Rs.25000 only
- You can open an account even if you don’t have any existing bank account
Is Kotak Assured Savings Plan Good?
Kotak assured savings plan is good for people who want to start saving for future use or for their children’s education. It is also good for anyone who wants to earn interest on their savings at a low-interest rate.
Kotak guarantee savings plan are one of the best products from Kotak Mahindra. The main benefit of this product is that it gives you a chance to save more than your average salary. It is also good for those who have not yet got into saving money, as this will help them learn how to save and put aside money for later. There are several kinds of Kotak guarantee savings plan, each with benefits. Some plans allow you to take a loan from the bank, while others are all-inclusive and cover all your expenses until you reach a certain age limit or decide to retire.
Kotak insurance products are also available on these plans, which can help you pay off some of your debts faster if you get into trouble with them at some point during your working life.
Who is eligible for the Kotak Guaranteed Savings Plan?
You must fulfill the following eligibility requirements to apply for the Kotak Guaranteed Savings Plan:
Plan Type: Guaranteed benefits non-linked, non-participating life insurance plan.
● Minimum entry age is three years.
● 60 is the maximum age to enter.
● Minimum age of maturity – 18 years
● Maximum age: 75
Add-On Plans / Riders – Extra protection provided by the Kotak Guaranteed Savings Plan:
Owners of Kotak Guaranteed Savings Plan may include the following riders in their insurance policies:
Accidental Death Benefit Rider by Kotak
In the event of an accident-related fatality, this rider provides a lump sum payment. It is provided in addition to the plan’s death benefit.
Guardian Benefit Rider from Kotak Life
If the policyholder passes away, this rider will waive all future premiums and allow the benefits of the base plan to continue.
Rider for Kotak Permanent Disability Benefit In the event of an accident-related permanent disability, it pays 120% of the Rider Sum Assured. Within five years, the sum will be paid in installments.
Rider for Kotak Accidental Disability Benefits
In the event of accidental disability, it waives all future premiums and permits the base plan to continue as-is.
Term Benefit Rider from Kotak
Over and beyond the plan’s death benefit is provided to the life insured.
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Tax advantages – How to use the Kotak Guaranteed Savings Plan to save?
The following two sections of the Income Tax Act of 1969 provide tax benefits to Kotak Guaranteed Savings Plan holders:
● Sections 80C and 10D.
Why should you purchase Kotak’s Guaranteed Savings Plan?
Due to Kotak Life Insurance’s reputation as one of the most reliable insurance providers in India, purchasing the Kotak Guaranteed Savings Plan may be advantageous. About 4 million Indians own the company’s insurance products. It is renowned for its customer care, which clients can contact 24 hours a day for any questions about claims or policies. The business uses cutting-edge technology to expedite the claims procedure and guarantee total transparency. One of the company’s most well-liked life insurance products is the Kotak Guaranteed Savings Plan.
The table on Maturity benefits:-
| Annualised Premium Band | Guaranteed Loyalty Addition Rates | ||||
| Below Rs.50,000 | 7/14 year 8/16 years 10/15 years 10/20 years 100% 110% 115% 120% | ||||
| Rs.50,000 and above to below Rs.1 lakh | |||||
| 135% | 148% | 155% | 162% | ||
| Rs.1 lakh and above | 150% | 165% | 172% | 180% |
Conclusion:-
Kotak Life Insurance provides a non-linked, non-participating life insurance product called the Kotak Guaranteed Savings Plan. Anyone between the ages of 3 and 60 may apply for single life insurance coverage. The Kotak Life Savings Plan provides life insurance with rewards that are guaranteed. The following riders can be added to this policy by policyholders to boost protection:
● Accidental Death Benefit Rider from Kotak.
● Term Benefit Rider by Kotak.
● Rider for the Kotak Permanent Disability Benefit.
● Guardian Benefit Rider for Accidental Disability from Kotak.
Guardian Benefit Rider from Kotak Life.
The first year’s premium for this coverage is Rs. 20,000*. Policyholders may benefit from tax breaks under Sections 10(D) and 80C of the Income Tax Act of 1961, in addition to the death benefit and maturity benefit.
FAQ:-
1. What Is the Kotak Premier Income Plan?
Ans: As soon as the premium payment term is over, the Kotak Premier Income Plan makes distributions of Guaranteed Annual Income. It is active savings and credit protection plan. At the start of each insurance year, payments are made.
2. How is the surrender value determined for Kotak Life Insurance?
Ans: The surrender value of a Kotak Mahindra Life insurance policy is calculated by multiplying a single premium by 75% of the remaining term (either full term or term till maturity).
3- How reliable is Kotak’s Guaranteed Savings Plan?
Ans: The Kotak Guaranteed Savings Plan is one of the company’s well-known insurance programmes. It is a fantastic choice for those seeking inexpensive protection while building wealth to meet their long-term financial objectives.
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Hello there, my name is Phulutu, and I am the Head Content Developer at Nivesh Karlo. I have 13 years of experience working in fintech companies. I have worked at Policybazaar, Paytm Money, Investopedia, and others. I love writing about personal finance, investments, mutual funds, and stocks. All the articles I write are based on thorough research and analysis. However, it is highly recommended to note that neither Nivesh Karlo nor I recommend any investment without proper research and read all the documents carefully.
