Kotak Assured Income Plan

POSTED BY Dipesh ON August 28, 2012 12:44 am COMMENTS (14)

Hi ,
Can you let me know how is the Kotak Assured Income Plan , my agent said its a good plan as it gives assured returns.

http://insurance.kotak.com/individual/savings-invest/assured-income-plan.php

Following is the points:
1.Kotak Assured Income Plan guarantees you an Assured Annual Income every year for a period of 20 years, provided the policy is in force. It will be paid starting from the end of 10th policy year as a percentage of your Basic Sum Assured as mentioned below:
Premium Bands Assured Annual Income

Up to Rs. 24,999 9.10%
Rs. 25,000 to Rs. 74,999 9.60%
Rs. 75,000 and above 10.10%

In addition to guaranteeing you a regular stream of income for 20 years, this plan provides you a lump sum equal to 110% to 104% of Basic Sum Assured on maturity

Should i go for the plan ?

14 replies on this article “Kotak Assured Income Plan”

  1. Prakhar says:

    Hello All,

    I am 31 years old male working in IT sector.

    Few years back, I opted for “Kotak Assured Income Plan” from the sole aim of Tax saving. However very recently I realized that more than tax saving, my primary objective is worthy returns.

    Please find the policy details below:
    Policy commencement date: 7 March’ 2011
    Premium amount: Rs 5094/quarter
    Premium paying term: 15 years
    Policy term: 30 years

    Kindly suggest if it is worth-while to continue with this policy. If not, what are my exit options?

    1. Its surely not . I suggest you shift to mutual funds. Our team can help you on that incase you are new to that

      We think our pro membership will help you as it fits in your requirement. We have various benefits under it like life insurance, health insurance, mutual funds and your financial analysis too..

      Just check out our Pro membership once and schedule a FREE call with us to know more – https://www.jagoinvestor.com/pro

  2. Rishabh says:

    Hello Ashal,
    I was also suggested this plan by Kotak Executive.
    As i have read your comments I am looking to chuck this and invest in some other plans.
    My age is 25 and looking forward to invest on average 5000rs per month.
    Could You please suggest me some plans where i can invest?
    I normally invest in FD’s
    Thanks in Advance

  3. Tarun says:

    What are the best options (least bad options) if I wish to exit this Kotak assured Income plan for which 2 premiums have been already been paid.

    1. WAit till the lock in period and then get out of it . Dont pay any more premiums !

      1. venkat gollapalli says:

        Hi Manish,

        I am also one of the victim for this, I want to exit from this plan. As per your comment can u please tell me what is lock period for this ? My premium is for 15 years.

  4. sundeep says:

    HDFC, DSP,Rreliance are all good fund houses..you should diversify in it… Also you should check your risk profile and invest a good part part in debt mutual funds…

    http://wealth.moneycontrol.com/jtrisks.php#res
    http://wealth.moneycontrol.com/jtassets.php

    regards,
    sundeep

  5. Kotak Support Team says:

    Dear Sir,

    Thank you for your interest in our company.

    We request you to kindly visit our website and download the brochure of Assured Income Plan to know the benefits in detail.

    Kindly find below summary of the same:

    Key benefit of this plan is guaranteed basic sum assured will be paid as Assured Annual Income from the 11th year for 20 years.

    For further clarifications kindly write to us on clientservicedesk@kotak.com

    Regards,
    Kotak Support Team

  6. sundeep says:

    Dear Dipesh
    NEver trust life insurance plus investment schemes… They usually give very low returns…
    you Should calculate the total assured return (Income + lumpsome) you ll get from this policy (annualised)..
    If it is difficult for one to understand the math one not should invest in it (warren buffet)..These people make it difficult for us to understand the math(Because they know u ll not invest in it if u know the actual return)..If it is more than the the current FD or PPF rates then go for it.
    If it is 4.69% as ashal told then you are not even getting inflation rate which is around 6%
    if you want life insuarance go for term insurances.
    If you are going to invest for more 10 years your best bet would be to divesify in equities, gold,silver and debt.Convert to monhly income plans By MFs or FD when you need income for 20 years. you ll get a much higher lumpsome return at the end

  7. Dear Dipesh, I checked for age 35Y male, 10L Sum assured & 1L Rs. yly Prem. pmt. As per company prem. calculator, the gtd. income is 101000 from year 11 to 29 & in year 30, the final maturity amount is 1065000. Looks very good. No?

    Well I put in the nos. in an exl sheet & calculate the XIRR of this return. As I expected the XIRR for this plan for the given nos. is 4.69%. Yes you read it right. 4.69%, A super duper return.

    “ll you go for it or not, please update with your views.

    Thanks

    Ashal

    1. Dipesh says:

      Thanks a lot Ashal and Sandeep !

      I was under impression that it will be a worthless plan but didnt knew maths(as Sandeep said below) to make sure it is. I’ll not go forward with this. Instead I’ll opt for equity and gold funds. Below funds have been suggested to me I have to do some research and home work:-
      HDFC top 200
      DSP blackrock small and midcap
      Kotak gold fund/Relaince gold saving fund.

      Could you please guide me on these funds. Are these good funds, should I research on these and make decision. Or if you can suggest any other funds for my homework.
      Sorry if I am taking thread out of topic.

      Thanks,
      Dipesh

      1. Dear Dipesh, My choice of funds for you ‘ll be

        HDFC Top 200
        Quantum Long Term Eq.

        Only 2 funds.

        Thanks

        Ashal

  8. Dear Dipesh, May I know your age & the possible Sum assured you are looking for in this plan?

    Thanks

    Ashal

  9. Dear Dipesh, just dig in a little deep in the nos. & you ‘ll notice that this plan is again a worthless plan. Try to locate on your own. Else we are here to help you.

    Thanks

    Ashal

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