Kotak Sampoorn Bima Calculator

Kotak Sampoorn Bima Calculator

What this calculator does

Kotak Sampoorn Bima is a non-linked, non-participating, individual savings-oriented micro-insurance plan built for low-income and underserved families who want affordable life cover along with a guarantee that their money comes back. Unlike a pure term micro-insurance plan (which pays nothing if you survive the term), Sampoorn Bima - "sampoorn" meaning complete - returns every rupee of premium paid as a Maturity Benefit (Return of Premium) if the life assured survives the full Policy Term.

It also offers an optional Spouse Cover, extending the same Sum Assured to the policyholder's spouse under a single policy, so one premium payment protects both partners in the household - a common feature in family-oriented micro-insurance products for the mass market.

This calculator gives you an indicative estimate of:

• the premium (regular yearly or a discounted single lump sum)
• the Death Benefit for the primary life, and for the spouse if Spouse Cover is included
• the Maturity Benefit - the total premiums returned if you survive the Policy Term
• the effective annual yield on your money
• a year-by-year schedule of premiums paid and the benefit payable

based on your entry age, Sum Assured, Policy Term, premium payment option, and whether you add Spouse Cover.

Formula Used

Eligibility. Entry age must be between 18 and 55 years, the Policy Term is 5, 10, or 15 years, and the age at maturity cannot exceed 65 years:

$$MaturityAge = EntryAge + PolicyTerm \le 65$$

Sum Assured. Kept in the micro-insurance range, from ₹10,000 to ₹2,00,000 - a smaller ticket size than a full-fledged savings plan, in keeping with the plan's affordability focus.

Regular annual premium. Since the plan returns 100% of premiums paid at maturity, the annual premium is driven mainly by spreading the Sum Assured over the Policy Term, plus a small mortality/expense loading that rises gently with attained age past 35:

$$AnnualPremium = SumAssured \times Rate(PolicyTerm) \times MortalityLoading(age)$$ $$Rate(PolicyTerm) = \begin{cases} 0.215 & 5\text{ years} \\ 0.112 & 10\text{ years} \\ 0.076 & 15\text{ years} \end{cases}$$ $$MortalityLoading(age) = 1 + \max(0, age - 35) \times 0.0006$$

Spouse Cover (optional). Extends the same Sum Assured to the spouse as an independent life under the same policy, priced as a loading on the primary premium (a simplified approximation that assumes a similar age/risk profile rather than a separate spousal age input):

$$SpousePremium = AnnualPremium \times 0.85 \ (\text{if Spouse Cover selected})$$

Single Premium option. A discounted lump sum versus paying the regular annual premium every year for the full term, reflecting the time value of receiving the money upfront:

$$SinglePremium = TotalAnnualPremium \times PolicyTerm \times 0.85$$

Death Benefit. The higher of the Sum Assured or 10 times the annualized premium for that life, payable if death occurs during the Policy Term:

$$DeathBenefit = \max(SumAssured,\ 10 \times AnnualPremium)$$

Maturity Benefit (Return of Premium). If the life assured (and spouse, if covered) survives the full Policy Term, every rupee of premium paid is returned:

$$MaturityBenefit = TotalPremiumPayable$$

Effective Annual Yield. Since the Maturity Benefit simply returns the premiums paid with no growth on top, the internal rate of return on the cash flows (premiums out, Return of Premium in at maturity) works out close to 0% - illustrating that a Return-of-Premium micro-insurance plan is primarily about affordable protection, not wealth creation.

Note: these premium rates and loadings are illustrative approximations for planning purposes, not Kotak Life's official IRDAI-approved tabular rates, which depend on the specific underwriting rules in force and can change over time. Always confirm exact figures with Kotak Life or an authorized agent before purchasing a policy.

How to Use

1. Enter your Age at Entry in years (18 to 55).
2. Enter your desired Sum Assured (₹10,000 to ₹2,00,000).
3. Choose your Policy Term - 5, 10, or 15 years (cover must end by age 65).
4. Choose your Premium Payment Option - Regular (Yearly) or Single Premium.
5. Choose whether to include Spouse Cover.
6. Click Calculate Premium to see your premium, death benefit, maturity benefit, effective yield, and the year-by-year schedule.

Worked Example

Suppose a 30-year-old chooses a Policy Term of 15 years, a Sum Assured of ₹1,00,000, Regular Premium, with no Spouse Cover.

$$AnnualPremium = 1{,}00{,}000 \times 0.076 \times 1.0 = ₹7{,}600$$

Over the 15-year Policy Term, the total premium payable is ₹1,14,000. If death occurs during the term, the family receives the Death Benefit of ₹1,00,000 (the Sum Assured, since it exceeds 10 times the annual premium). If the life assured survives to the end of the 15 years, the full ₹1,14,000 of premiums paid is returned as the Maturity Benefit - the effective annual yield works out to approximately 0%, reflecting that this is a pure Return-of-Premium protection plan rather than a growth-oriented investment.