Good financial planning is all about savings for the future, i.e., building a decent corpus, and having sufficient life insurance protection. Generally, you may need to invest in two different instruments for savings and insurance, there is one unique financial instrument that offers both protection and savings opportunity. This instrument is called Kotak Assured Savings Plan, which is offered by Kotak Life Insurance.
Kotak Assured Savings Plan is a non-participating endowment assurance policy that is more than a protection plan and allows you to take steps toward your long-term financial goals. It enables you to accumulate wealth and strengthen your finances for the future.
Apart from helping you save money for the future, Kotak Assured Savings Plan also allows you to extend the cover through riders or add-ons. Before we look at the different add-ons, let us first understand what add-ons are.
What are add-ons or riders?
Riders are additional benefits that you can purchase by paying an extra premium. They allow you to extend the coverage scope of your insurance policy and get protection against specific risks that aren’t covered by the plan.
Riders available with Kotak Assured Savings Plan
- Kotak Permanent Disability Benefit Rider
If you are the primary policyholder, and you meet with an accident that leaves you permanently disabled, then the insurance company will pay the benefits in instalments.
- Kotak Life Guardian Benefit
Typically, in the event of your demise, the life insurance policy ceases to exist. However, if you have purchased Kotak Assured Savings Plan and have Kotak Life Guardian rider, then all future premiums will be waived.
This means your family can continue to enjoy the benefits of the policy and get the sum assured plus the yearly additions after the policy matures.
- Kotak Accidental Disability Guardian Benefit
With this rider, all future premiums will be waived off and paid by Kotak Life Insurance if you meet with an accident and suffer from disability or loss of limbs.
- Kotak Critical Illness Plus Benefit Rider
With this rider, the insurance company will pay the rider sum assured in part or whole if you are diagnosed with any of the 37 critical illnesses covered under the plan (subject to terms and conditions).
- Kotak Accidental Death Benefit Rider
As a policyholder, if you meet with an accident that leads to fatal consequences, then this rider will help your family get the rider sum assured along with the death benefit under the policy. Thus, this rider is useful as it can help your family get additional financial protection.
Benefits of buying riders?
- Buying a rider is the most affordable and cost-effective way to get additional protection apart from the coverage offered by the base plan. It is the best alternative to buying a new insurance plan.
- Just like the basic policy, you get tax benefits on riders as per the prevailing tax rules.
- Riders allow you to customise your basic life insurance plan and get extra coverage that will come in handy during a financial crisis.
Final Word
Thus, riders are useful for all. However, you must know that with every rider you choose, you must pay an additional premium. So, assess your needs and buy the right riders. With Kotak Assured Savings Plan you can purchase the above riders and get comprehensive coverage.
