Facebook TwitterLinkedInYoutubewhatsapp Start Planning for your Financial goals
Schedule Your Free Consultation
  • Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
Holistic investment planners, financial planning Chennai, Private wealth management Chennai

Holistic investment planners, financial planning Chennai, Private wealth management Chennai

Financial Planning chennai India, Private wealth management chennai India, Investment Advisory India, Systematic Investment Plan, Mutual Fund SIP, Mutual Fund ELSS, Tax Saving scheme

  • Home
  • About Us
    • Who we are & What we do
    • Services
      • Financial Road Map
      • Retirement Roadmap
      • Asset Allocation Plan
      • Webinar
      • Money Management
      • Wealth Management
    • In the Media
    • Testimonials
    • What Makes Us Different
    • How we can help you
    • Specialties
    • Honors and Awards
    • Vision & Mission
  • Resources
    • Blog
    • Articles
    • Podcast
  • Ideal Client
  • Contact Us
Kotak Assured Savings Plan: Insightful & In-depth Review

Kotak Assured Savings Plan: Insightful & In-depth Review

by Holistic Leave a Comment | Filed Under: Financial Planning

Listen to this article



Any Investment strategy is done in the hopes of meeting your future financial goals. You may be looking for investment products that give you the potential to accumulate wealth to achieve your financial goals.

Will Kotak Assured savings Plan take an active role in your portfolio to build wealth? This detailed review will help you in deciding the placement of the Kotak assured Savings Plan in your portfolio.

Table of Contents:

1.)What is Kotak Assured Savings Plan?
2.)Features of the Kotak Assured Savings Plan
3.)Eligibility Criteria of the Kotak Assured Savings Plan
4.)Benefits under the Kotak Assured Savings Plan

  • Death Benefit
  • Maturity Benefit
  • Bonuses
  • Guaranteed Yearly Addition (GYA) & Guaranteed Loyalty Addition (GLA)

5.)A Grace Period, Lapse, Reduced Paid-Up Policy & Policy Revival of the Kotak Assured Saving Plan
6.)Free Look Period of the Kotak Assured Savings Plan
7.)Surrendering the Kotak Assured Savings Plan
8.)Advantages of the Kotak Assured Savings Plan
9.)Disadvantages of the Kotak Assured Savings Plan
10.) Research Methodology
11.) IRR Analysis of the Kotak Assured Savings Plan
12.)Kotak Assured Savings Plan Vs Other Investments Alternatives
13.)Final Verdict on the Kotak Assured Savings Plan

What is Kotak Assured Savings Plan?

Kotak Assured Savings Plan is a Non-Participating, Endowment, Assurance Plan. This Plan not only provides affordable protection but also helps accumulate wealth for achieving your Future Financial Goals by giving Guaranteed Benefits. At Maturity, you will receive a Guaranteed Maturity Benefit.

Features of the Kotak Assured Savings Plan

  • Limited premium paying option – 5,6,7 & 10 years.
  • Guaranteed Yearly Additions are added every time premium is paid & finally payable at maturity or death whichever is earlier.
  • Longer the premium paying term, the higher the benefits i.e., all the additions increase with the increase in premium paying term.
  • Option to enhance Protection through a wide range of Riders.
  • Tax benefit on premiums paid u/s 80(C) and benefit received u/s 10(10D).

Eligibility Criteria of the Kotak Assured Savings Plan

The basic information we need to know to enter the Kotak Assured Savings Plan is mentioned below;

Minimum Maximum
Entry Age (Last Birthday) 3 years 60 years
Maturity Age (Last Birthday) 18 years 75 years
Premium Paying Term (PPT) & Policy Term (PT) PPT Policy Term
5 Pay 10 / 15 Years
6 Pay 12 /18 years
7 Pay 14 / 20 Years
10 Pay 15 / 20 Years
Premium Paying Frequency Annual, half-yearly, quarterly, monthly
Annualized Premium 20,000 No limit
Sum Assured Depends on premium, age, term, and PPT
Premium Modal Factor (% of annualized premium) Annual 100%
Half-yearly 51%
Quarterly 26%
Monthly 8.80%

Benefits under the Kotak Assured Savings Plan

Death Benefit

In case of an unfortunate event of death of the life insured during the term of the plan, the nominee will receive the following;

  • Basic Death Benefit, Plus
  • Guaranteed Yearly Additions accrued as on the date of death.

Where the Basic Death Benefit is defined as, Higher of;

  • 11 times the annualized premium (for entry age less than 50) / 7 times of annualized premium (for entry age 50 Years & above).
  • Guaranteed Minimum Death Benefit.
  • 105% of total premiums paid (excluding any extra premiums).

The guaranteed minimum death benefit is defined as a percentage of the Basic Sum Assured mentioned below;

PPT Guaranteed minimum death benefit (% of Basic Sum Assured)
5 Pay 110%
6 Pay 112%
7 Pay 114%
10 Pay 120%

Maturity Benefit

On survival till the end of the policy term, the following Guaranteed Maturity Benefit will be paid provided the policy is in force and all premiums are paid.

  • Basic Sum Assured, PLUS
  • Accrued Guaranteed Yearly Additions, PLUS
  • Guaranteed Loyalty Addition

Guaranteed Yearly Addition (GYA) & Guaranteed Loyalty Addition (GLA)

GYA will be calculated as a % of the Cumulative Annualized Premium paid every year. It will accrue throughout the premium payment term and will be paid out at Maturity or on Death.

GLA will be calculated as a % of the Basic Sum Assured and be paid out at Maturity. The rate of such an addition will be based on the opted premium payment term.

PPT Guaranteed Yearly Additions as % of Cumulative Annualized Premium Guaranteed Loyalty Addition
5 Pay 7% 10%
6 Pay 8% 12%
7 Pay 9% 14%
10 Pay 10% 20%

A Grace Period, Lapse, Reduced Paid-Up Policy & Policy Revival of the Kotak Assured Saving Plan

Grace period:

There is a grace period of 30 days from the due date of payment of the premium for the policyholders who have opted for the yearly, half-yearly, and quarterly modes, and 15 days for the policyholders who have opted for the monthly mode.

Lapse:

If premiums are discontinued anytime during the first two policy years, the policy shall lapse at the end of the grace period and no benefits shall be payable.

Reduced Paid-Up Policy:

After the policy acquires Surrender Value after 2 policy years, if the subsequent premiums are not paid within the grace period the Base Policy along with Riders (if any) will be converted into a Reduced Paid-Up policy by default.

Policy Revival:

A lapsed or a Reduced Paid-Up policy can be reinstated for full benefits on revival within five years of the first unpaid premium or before the end of the policy term whichever is earlier.

Free Look Period of the Kotak Assured Savings Plan

The policyholder may choose to return the policy to the corporation within 15 days of the date of receipt if he/she is not agreeable with any of the terms and conditions of the plan.

The Free Look Period will be extended up to 30 days for E-policies and policies purchased through Distance Marketing mode.

Surrendering the Kotak Assured Savings Plan

The policy acquires a Surrender Value provided premiums due for at least 2 policy years have been paid in full.

The higher of the Guaranteed Surrender Value and Special Surrender Value will be payable.

Advantages of the Kotak Assured Savings Plan

  • The plan offers flexibility to choose the policy term and premium payment frequency at your convenience.
  • Since it is a non-linked & non-participating policy, the benefit amount of Maturity or Death receivable is Guaranteed.
  • The plan offers a loan facility of up to 50% of the surrender value.
  • Guaranteed Additions and Guaranteed Loyalty Additions increase the final maturity benefit or death benefit.
  • Additional protection is available through riders.

Disadvantages of the Kotak Assured Savings Plan

  • The main disadvantage is both the additions (Loyalty Addition & Guaranteed Addition) depends on your premium paying term. Higher the premium paying term, the higher the additional benefits.
  • The Maturity Benefit will not suffice to meet your future goals.
  • There is no adequate life cover.

For further details, you can refer to the Kotak Assured Savings Policy Brochure.

Research Methodology

As an investor, you should be aware of the cash flow of the policy. This will determine the suitability of the policy.

Here in the Kotak Assured Savings plan, the premium paying term is limited & at the end of the policy term, you will receive the Maturity Benefit along with the Guaranteed additions & Loyalty additions.

With this cash flow, we can estimate the Internal Rate of this policy. Also, we can compare this rate with other investments to make a sensible decision.

IRR Analysis of the Kotak Assured Savings Plan

The Assumptions for Comparison:

Male 35 years
Sum Assured 10,09,029
Policy Term 15 years
Premium paying term 10 years
Annual premium Rs. 1 Lakh

In this illustration, a 35-year-old male buys this for an annualized premium of Rs. 1 Lakh. The Sum Assured is Rs 10, 09,029, the premium paying term is 10 Years & the policy term is 15 years.

At the end of the policy term, a Guaranteed Maturity Benefit of Rs. 17,60,835 is receivable. You can infer the following table for the cash flow.

Kotak Assured Savings Plan
Age Year Annualized premium / Maturity Benefit Death Benefit
35 1 -1,00,000 10,09,029
36 2 -1,00,000 10,09,029
37 3 -1,00,000 10,09,029
38 4 -1,00,000 10,09,029
39 5 -1,00,000 10,09,029
40 6 -1,00,000 10,09,029
41 7 -1,00,000 10,09,029
42 8 -1,00,000 10,09,029
43 9 -1,00,000 10,09,029
44 10 -1,00,000 10,09,029
45 11 0 10,09,029
46 12 0 10,09,029
47 13 0 10,09,029
48 14 0 10,09,029
49 15 0 10,09,029
50 17,60,835
IRR 5.42%

The IRR for the given cash flow is 5.42%. This rate of return is somewhat lower than the bank FD rates at present.

Moreover, this rate of return will not help to cope with the rising economic inflation. The Bank FDs offer more liquidity than the Kotak Assured Savings Plan. Therefore, from the above table, it is evident that this policy is not suitable for a long-term investment.

Kotak Assured Savings Plan Vs Other Investments Alternatives

The mediocre return from the Kotak Assured Saving plan leads you in search of other better investment options.

You can opt for a risk-free instrument like PPF or market linked instrument like ELSS. It is important to mention that both offer a tax benefit for an annual contribution.

So, let us compare the Kotak Assured Savings Plan with other Investment Options below to see which fares better potentially in the long run through an in-depth IRR Analysis.

Kotak Assured Savings Plan Vs. Pure Term Insurance + PPF / ELSS

The Assumptions for Comparison:

Pure Term Insurance Policy
Sum Assured Rs. 10 Lakhs
Policy Term 15 years
Premium paying term 10 years
Annual premium Rs. 6,600
Balance Amount for investment Rs. 93,400

Similar to the Kotak Savings plan, the life cover for a Sum Assured of Rs. 10 lakhs can be bought for 15 years of coverage in a Pure Term Insurance Policy. The annual premium is Rs. 6,600 for a 10-year premium paying term. The balance amount of Rs. 93,400 out of Rs. 1 lakh can be utilized for investment.

The lock-in period for PPF is for 15 years. But in the illustration, the cash outflow is only for 10 years. Therefore, a minimum subscription of Rs. 500 is adjusted in the last 5 years.

Term Insurance + PPF Term insurance + ELSS
Age Year Term Insurance premium + PPF Death benefit Term Insurance premium + ELSS Death benefit
35 1 -1,00,000 10,00,000 -1,00,000 10,00,000
36 2 -1,00,000 10,00,000 -1,00,000 10,00,000
37 3 -1,00,000 10,00,000 -1,00,000 10,00,000
38 4 -1,00,000 10,00,000 -1,00,000 10,00,000
39 5 -1,00,000 10,00,000 -1,00,000 10,00,000
40 6 -1,00,000 10,00,000 -1,00,000 10,00,000
41 7 -1,00,000 10,00,000 -1,00,000 10,00,000
42 8 -1,00,000 10,00,000 -1,00,000 10,00,000
43 9 -1,00,000 10,00,000 -1,00,000 10,00,000
44 10 -97,500 10,00,000 -1,00,000 10,00,000
45 11 -500 10,00,000 0 10,00,000
46 12 -500 10,00,000 0 10,00,000
47 13 -500 10,00,000 0 10,00,000
48 14 -500 10,00,000 0 10,00,000
49 15 -500 10,00,000 0 10,00,000
50 19,56,048 30,15,078
IRR 6.44% 10.64%

The above table elucidates the potential returns of other investment options. The Pure term + PPF yields 6.44% & Pure term + ELSS yields 10.64%.

The risk-free PPF yield is just in close touch with the inflation rate. The ELSS yield is over & above the inflation rate.

If you plan to build your corpus by investing in these investments, it will help you achieve your future financial goals. The final maturity value can be utilized for your life’s financial goals.

Final Verdict on the Kotak Assured Savings Plan

Kotak Assured Savings Plan is designed to provide guaranteed returns along with life insurance coverage to individuals who want to save for their future financial goals. However, it is important to note that the returns under this plan are guaranteed and may be lower than the returns offered by other investment products that are available in the market.

Kotak Assured Savings Plan may not be suitable for individuals who are looking for higher returns or want to take on more risk in their investments.

Consult your Financial Advisor for choosing an appropriate Pure Term Policy & Investment plans for better results.


Reader Interactions

Previous article: HDFC Life Sampoorn Samridhi Plus Plan Review (2023): Good or Bad?
Next article: HDFC Life Capital Shield Plan Review: Good or Bad?

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Client Login

Recent Posts

  • ABSLI Child’s Future Assured Plan Review: Good or Bad
  • Max Life Smart Wealth Income Plan Review: Is It Worth Investing?
  • ABSLI Vision Star Plan Review: Is It Worth Buying or Not?
  • Bajaj Allianz Life Flexi Income Goal Plan Review – Is It Good or Bad?
  • Tata AIA Life Insurance Wealth Pro Plan Review: Good or Bad?
Jey S
Jey S
24. September, 2021.
I have been using Holistic Investment Planners for the last three years. Mr. Srinivasavaradhan answered all my questions and doubts very patiently during the first free consultation. I was able to clearly define my short-, medium- and long-term goals once I signed up for the comprehensive plan and got their investment plan suggestion to achieve my goals. They are very polite and highly professional whenever I contact them for any queries or make investments. They never pressurize you to invest on their recommended financial products. I would have been lost money by investing directly without their help since I do not have time and knowledge about different financial products. Risk planning is also done as part of financial planning. Truly, they are holistic planners when it comes to your financial planning. They help you to define your life goals, understand your financial resources and establish a plan to invest towards reaching those goals. They do review your plan as you progress to make sure that you are on correct path to achieve those goals. Kudos to the team and keep up the good work!!! I am happy that I found holistic investment planners for my financial planning and management.
aksaswadkar
aksaswadkar
24. September, 2021.
I was about to retire and really not understanding how to invest money to have financial freedom and fulfilling my goals. Was desperately searching on internet way out and fortunately came across Holistic Investment Planners. I read number of articles on their website and realized that this is the agency which I want and engaged their services for my retirement planning. It is an excellent experience to be associated with Holistic. Right from day one our interaction was fantastic and they gave me such a wonderful plan that I had never imagined. I am fortunate enough to be in the client list of Holistic. I have recommended Holistic to my friends as well.
Lionel Faber
Lionel Faber
16. September, 2021.
I've been availing their services for the past year. They are highly knowledgeable in the field and are very patient with all doubts and queries. Personalized financial planning is provided keeping your short term, medium term and long term goals in mind. They do not pressurize you to purchase schemes of their choice. They provide their input and suggestions and leave the decision up to you which shows their honesty and high principle.
Sridhar
Sridhar
8. September, 2021.
Financial planning brings peace in life. Holistic Investment have supported in arriving financial plan based on future goals. My investments are regular since then. They are professionals in their business, will recommend others.
Nitesh Agrawal
Nitesh Agrawal
6. September, 2021.
I have been using Holistic Investment Planners from last one year. The journey has been fantastic. Being a finance person myself I always thought we can look after and plan own finances also. However, due to lack of time and deciplain the things are not always as desired. After joining with Holistic Investment for the first time Icame to know the Financial goals and quantified them. Some dreams were unrealistic based on the earnings and savings so had a reality check. Also got the information and deciplain of investing on regular and more rewarding securities. I definetly suggest to use Holistic Investment Planners. They are professionals, available and hear youor full story before presenting plans. They are flexile in the sense if there are some urgent deviations required, they help to plan the same. For all professionals/individuals I would suggest using professional help of Holistic Investment Planners for best results in long term investment and financial goals achivements. Last advise will be to start early in your life. It really pays well to start in the beginning itself else the dreams needs to adjust :)
Swetha Vasanth
Swetha Vasanth
6. September, 2021.
This is my first year service with the Holistic Team and I would say that they are very much helpful in creating a financial plan and follow ups during the year. I would definitely suggest them if anyone who is willing to proceed with their savings professionally.
Joseph Mathias
Joseph Mathias
6. September, 2021.
I came to know about Holistic Investment Planners online while searching for different investment ideas. Once I contacted them the journey was very smooth. Mr. Ramalingam explained all the aspects of Financial planning in detail and it opened my mind. I realized how important it is to have a Financial planning. Mr. Rajan suggested all the requirements as per my goals and made a Investment plan keeping in mind of my goals. I started my Investment journey with them. I wish I had done it some years back then it would have been in a different level. Review meetings were held every six month to check the implementation of the plan and check the results as per the requirements and to check if any changes required. Overall it was a good experience with Holistic Investment team and would like to continue in the years to come.
Srinvas Kannan
Srinvas Kannan
30. July, 2021.
I came across Holistic investment planners almost 5-6 years back, but I did not have the trust since I had met a few of them who did not sound promising. Then I started investing through a financial advisor of my friend. After 4 years of investing the returns were very low. I was disappointed and started looking for financial advisors when I came across Holistic investment. I had a detailed discussion about my goals and the way they would approach achieving my goal before deciding to switch my investments to them. After a thorough analysis of my then existing portfolios, they suggested new ones and we zeroed-in on 6 schemes/funds where our investment would be split. I am glad I made the decision of switching over and taking Holistic planner's advise, my returns are handsome and I only wish I could have taken their help/advise 5 years back itself. Neverthless, I would like to recommend their services for investment and financial advise if someone is serious about their investments.
Shivaram Andiappan Selvaraj
Shivaram Andiappan Selvaraj
3. July, 2021.
I got a free first time consultation. I got my doubts resolved. They also gave additional advises for investment planning which was also useful.
Nellai B
Nellai B
26. June, 2021.
I have been associated with them for the past three years. They are very professional and polite in answering all our questions. I have complete trust in their suggestions. I strongly recommend for anyone. I am looking forward to have strong and successful association with them.
Google rating score: 4.4 of 5,
based on 61 reviews

Google Reviews

Jey S
Jey S
24. September, 2021.
I have been using Holistic Investment Planners for the last three years. Mr. Srinivasavaradhan answered all my questions and doubts very patiently during the first free consultation. I was able to clearly define my short-, medium- and long-term goals once I signed up for the comprehensive plan and got their investment plan suggestion to achieve my goals. They are very polite and highly professional whenever I contact them for any queries or make investments. They never pressurize you to invest on their recommended financial products. I would have been lost money by investing directly without their help since I do not have time and knowledge about different financial products. Risk planning is also done as part of financial planning. Truly, they are holistic planners when it comes to your financial planning. They help you to define your life goals, understand your financial resources and establish a plan to invest towards reaching those goals. They do review your plan as you progress to make sure that you are on correct path to achieve those goals. Kudos to the team and keep up the good work!!! I am happy that I found holistic investment planners for my financial planning and management.
aksaswadkar
aksaswadkar
24. September, 2021.
I was about to retire and really not understanding how to invest money to have financial freedom and fulfilling my goals. Was desperately searching on internet way out and fortunately came across Holistic Investment Planners. I read number of articles on their website and realized that this is the agency which I want and engaged their services for my retirement planning. It is an excellent experience to be associated with Holistic. Right from day one our interaction was fantastic and they gave me such a wonderful plan that I had never imagined. I am fortunate enough to be in the client list of Holistic. I have recommended Holistic to my friends as well.
Lionel Faber
Lionel Faber
16. September, 2021.
I've been availing their services for the past year. They are highly knowledgeable in the field and are very patient with all doubts and queries. Personalized financial planning is provided keeping your short term, medium term and long term goals in mind. They do not pressurize you to purchase schemes of their choice. They provide their input and suggestions and leave the decision up to you which shows their honesty and high principle.
Sridhar
Sridhar
8. September, 2021.
Financial planning brings peace in life. Holistic Investment have supported in arriving financial plan based on future goals. My investments are regular since then. They are professionals in their business, will recommend others.
Nitesh Agrawal
Nitesh Agrawal
6. September, 2021.
I have been using Holistic Investment Planners from last one year. The journey has been fantastic. Being a finance person myself I always thought we can look after and plan own finances also. However, due to lack of time and deciplain the things are not always as desired. After joining with Holistic Investment for the first time Icame to know the Financial goals and quantified them. Some dreams were unrealistic based on the earnings and savings so had a reality check. Also got the information and deciplain of investing on regular and more rewarding securities. I definetly suggest to use Holistic Investment Planners. They are professionals, available and hear youor full story before presenting plans. They are flexile in the sense if there are some urgent deviations required, they help to plan the same. For all professionals/individuals I would suggest using professional help of Holistic Investment Planners for best results in long term investment and financial goals achivements. Last advise will be to start early in your life. It really pays well to start in the beginning itself else the dreams needs to adjust :)
Swetha Vasanth
Swetha Vasanth
6. September, 2021.
This is my first year service with the Holistic Team and I would say that they are very much helpful in creating a financial plan and follow ups during the year. I would definitely suggest them if anyone who is willing to proceed with their savings professionally.
Joseph Mathias
Joseph Mathias
6. September, 2021.
I came to know about Holistic Investment Planners online while searching for different investment ideas. Once I contacted them the journey was very smooth. Mr. Ramalingam explained all the aspects of Financial planning in detail and it opened my mind. I realized how important it is to have a Financial planning. Mr. Rajan suggested all the requirements as per my goals and made a Investment plan keeping in mind of my goals. I started my Investment journey with them. I wish I had done it some years back then it would have been in a different level. Review meetings were held every six month to check the implementation of the plan and check the results as per the requirements and to check if any changes required. Overall it was a good experience with Holistic Investment team and would like to continue in the years to come.
Srinvas Kannan
Srinvas Kannan
30. July, 2021.
I came across Holistic investment planners almost 5-6 years back, but I did not have the trust since I had met a few of them who did not sound promising. Then I started investing through a financial advisor of my friend. After 4 years of investing the returns were very low. I was disappointed and started looking for financial advisors when I came across Holistic investment. I had a detailed discussion about my goals and the way they would approach achieving my goal before deciding to switch my investments to them. After a thorough analysis of my then existing portfolios, they suggested new ones and we zeroed-in on 6 schemes/funds where our investment would be split. I am glad I made the decision of switching over and taking Holistic planner's advise, my returns are handsome and I only wish I could have taken their help/advise 5 years back itself. Neverthless, I would like to recommend their services for investment and financial advise if someone is serious about their investments.
Shivaram Andiappan Selvaraj
Shivaram Andiappan Selvaraj
3. July, 2021.
I got a free first time consultation. I got my doubts resolved. They also gave additional advises for investment planning which was also useful.
Nellai B
Nellai B
26. June, 2021.
I have been associated with them for the past three years. They are very professional and polite in answering all our questions. I have complete trust in their suggestions. I strongly recommend for anyone. I am looking forward to have strong and successful association with them.
Google rating score: 4.4 of 5,
based on 61 reviews

Footer

  • Articles
  • Gallery
  • Ideal Client
  • Jobs(Full Time)
  • Podcast
  • Services
  • Testimonials

Connect With Us

Holisticinvestment.in
10/15, Second Cross Street,
Seethammal Extn.,
Teynampet,
Chennai – 600 018,
INDIA.

Copyright © 2022. Holisticinvestment.in | All rights reserved.    Cared with ❤ by T-Square Cloud

×