Kotak Signature Legacy Calculator

Kotak Signature Legacy Calculator

Kotak Signature Legacy Plan is a non-linked, non-participating savings insurance plan from Kotak Mahindra Life Insurance built around leaving a guaranteed lump sum "legacy" to yourself or your nominee. You pay premiums for a limited Premium Payment Term while a flat Guaranteed Addition accrues on the Sum Assured every policy year. At the Benefit Payout Age you choose, the accrued value is paid out as a lump sum Guaranteed Legacy Benefit. You can also opt for the Whole Life Legacy Option, which keeps a death cover active beyond that payout age, all the way to age 100.

This calculator estimates the sum assured, guaranteed legacy benefit, and death cover using illustrative rates modeled on the shape of the plan's benefit structure. It does not reproduce Kotak Life's official benefit illustration - always confirm exact figures with your policy document or a Kotak Life advisor before making a purchase decision.

Sum Assured on Death

In line with the IRDAI minimum floor for traditional non-participating plans, the base Sum Assured is a fixed multiple of the annualized premium - 10 times for entry ages below 45, and 7 times from age 45 onwards:

$$\text{Sum Assured} = \text{Annual Premium} \times \begin{cases} 10 & \text{Age at Entry} < 45 \\ 7 & \text{Age at Entry} \geq 45 \end{cases}$$

Policy Term

The Policy Term is simply the gap between your Age at Entry and the Benefit Payout Age you choose:

$$\text{Policy Term} = \text{Benefit Payout Age} - \text{Age at Entry}$$

The Premium Payment Term (how many years you actually pay premiums for) must be no longer than the Policy Term - a limited pay of 5, 7, 10, or 12 years is common, funding life cover for a much longer Policy Term.

Guaranteed Additions

A flat, non-compounding Guaranteed Addition accrues every policy year, at 4% of the Sum Assured per year, for as long as the policy is in force (capped at the Policy Term):

$$\text{Accrued Guaranteed Additions (Year } n\text{)} = \min(n, \text{Policy Term}) \times 4\% \times \text{Sum Assured}$$

Guaranteed Legacy Benefit

At the Benefit Payout Age, the full accrued Guaranteed Additions are added to the Sum Assured and paid out as a single lump sum:

$$\text{Guaranteed Legacy Benefit} = \text{Sum Assured} + \text{Accrued Guaranteed Additions (Year = Policy Term)}$$

Benefit Payable on Death

At any policy year, the benefit payable on death is the higher of the Sum Assured or 105% of premiums paid to date, plus whatever Guaranteed Addition has accrued so far:

$$\text{Benefit Payable on Death} = \max(\text{Sum Assured},\ 105\% \times \text{Premiums Paid to Date}) + \text{Accrued Guaranteed Additions}$$

Whole Life Legacy Option

If you select the Whole Life Legacy Option, a death cover of 105% of your total premiums paid over the Premium Payment Term continues from the Benefit Payout Age all the way to age 100, on top of the Guaranteed Legacy Benefit already paid out at maturity:

$$\text{Extended Cover Amount} = 105\% \times \text{Total Premium Paid}$$

If you choose the Standard option instead, cover ends once the Guaranteed Legacy Benefit is paid at the Benefit Payout Age.

How to use this calculator

1. Enter your Age at Entry.
2. Enter your Annual Premium.
3. Choose a Premium Payment Term (5, 7, 10, or 12 years).
4. Choose a Benefit Payout Age (60, 70, 85, or 100 - Whole Life).
5. Choose a Legacy Option - Maturity Benefit Only, or the Whole Life Legacy Option that extends cover to age 100.
6. Submit to see the Sum Assured, total premium paid, the Guaranteed Legacy Benefit, the extended cover amount (if selected), a plan feature checklist, and a year-by-year benefit schedule.

Worked example

Suppose you are 35 years old, pay an Annual Premium of ₹1,00,000 for a 10-year Premium Payment Term, choose a Benefit Payout Age of 70, and select the Whole Life Legacy Option.

• Sum Assured: ₹1,00,000 × 10 = ₹10,00,000 (age at entry is below 45)
• Policy Term: 70 - 35 = 35 years
• Total Premium Paid: ₹1,00,000 × 10 = ₹10,00,000
• Accrued Guaranteed Additions at Year 35: 35 × 4% × ₹10,00,000 = ₹14,00,000
• Guaranteed Legacy Benefit: ₹10,00,000 + ₹14,00,000 = ₹24,00,000, paid as a lump sum at age 70
• Extended Cover Amount: 105% × ₹10,00,000 = ₹10,50,000, active from age 70 to age 100 under the Whole Life Legacy Option