Kotak Life launches Ulip with higher protection cover, return of mortality charges

Kotak Life's new offering is a Ulip with higher protection cover component

Private life insurer Kotak Mahindra Life Insurance on December 20 announced the launch of its Term with Unit Linked Insurance Plan (T.U.L.I.P), a Ulip that offers life cover of up to 100 times the annual premium.

Given that some prospective policyholders often see mortality charges, which is the cost of providing the protection cover, as an expense that does not ‘yield any returns’, several life insurers offer products with the return of mortality charges.

Pure protection term insurance policies do not offer any returns or maturity benefits, but hand out the pre-agreed sum assured or life cover amount to the policyholder’s nominees in the case of her death.

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Pure risk term insurance covers offered by life insurance companies today insist on pre-medical check-ups before policy issuance. According to the company, the non-medical limits in T.U.L.I.P will be higher than those in regular, term insurance policies, though the cut-off age has not been specified.

T.U.L.I.P will refund one to three times the mortality charges 11th policy year onwards. It also promises to return twice the annual premium allocations charges in the 10th, 11th, 12th and 13th policy years.

The Ulip will offer policyholders eight fund options to choose from across equity, including mid-cap, debt and hybrid categories. The product also promises loyalty additions of up to 30 percent of the fund value as a part of maturity benefits to be paid out to policyholders at the end of the term.

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To bolster their protection portfolio, policyholders can choose to buy accidental death benefits and critical illness riders.

“TULIP offers our customers comprehensive protection like a term plan and also the opportunity to grow their wealth like a ULIP. It is aimed at taking care of our customer’s core financial needs,” Mahesh Balasubramanian, Managing Director, Kotak Mahindra Life Insurance Company Ltd said after the launch.