You must fulfil certain eligibility requirements to purchase an Assured Savings Plan from Kotak. Continue to read to know these requirements in detail.

Kotak Assured Savings Plans are a popular investment vehicle among investors with a limited appetite for risk. If you like investing in these plans, you should first understand the various prerequisites and eligibility requirements. 

Age Requirements

One of the primary requirements for purchasing a Kotak Assured Savings Plan is meeting the age requirement. Therefore, the individual’s age plays a vital role in determining the premium amount and the coverage to be provided by the policy.

The minimum age for purchasing this policy is 3 years. The maximum age to buy the plan is 60 years. Similarly, the policyholder must be at least 18 years old at the time of the plan’s maturity, or not more than 75 years. 

Policy Term

It is the duration for which the policyholder wishes to take the policy. The minimum policy term for the Savings Plan is 10 years, and the maximum policy term is 20 years. The policy term, along with the policyholder’s age can affect the premium amount and the maturity benefit that the policyholder will receive.

Premium Payment Term

It is the duration for which the policyholder needs to pay the premium amount. It is usually shorter than the policy term. For example, an Assured Savings Plan with a policy term of 10 years can have a premium payment term of 5 years. 

Premium Payment Mode

It is the frequency at which the policyholder wishes to pay the premium amount, such as yearly, half-yearly, quarterly, or monthly. 

It may be noted that you may have to shell out a bit more in premium amounts if you choose smaller frequencies than the longer ones. For example, consider the following table of the premium mode factor of an assured plan.

Frequency Percentage of Annualised Premium
Yearly 100%
Half-Yearly 51%
Quarterly 26%
Monthly 8.8%

It is clear from the table above that a monthly premium payment will result in paying a 5% extra premium annually than the yearly mode of payment. However, it’s up to you to decide which premium payment frequency can be better suited to your personal finance. 

Sum Assured

Sum Assured is the coverage amount the nominees will receive in case of the policyholder’s death during the policy term. You can select the sum assured at the time of purchasing the policy. The sum assured amount can depend on the policyholder’s age, premium amount, and policy term. 

Documents Required

You must keep the following documents and their photocopies ready before purchasing Kotak’s Assured Savings Plans.

  • Proof of age
  • Proof of identity
  • Proof of address
  • Bank account details

Aadhaar and PAN cards are usually enough to establish proof of age and identity. As for the address proof, the latest electricity bill, passport, Aadhaar card, or driving license in the policyholder’s name may suffice.

It is advised to ensure your eligibility beforehand to avoid confusion later. Once you’re confident of ticking all the required parameters, decide the premium amount and the policy term, and buy the plan.