Getting a guaranteed savings plan is a great idea when you want an investment that is free from the impact of market volatility. However, before you go ahead and invest in the plan, it helps to have a clear idea about what the plan includes and what it doesn’t. So, before you sign the dotted line, here’s giving you some clarity on the matter. Read on to know the details!
Things not covered when you invest in Kotak Guaranteed Savings Plan
Regardless of whether you need to make a claim now or maybe sometime in the future, it helps to know all the things that are not covered under the plan. So, here is a brief overview of that:
Policyholder’s demise from being a participant in a crime
Irrespective of the savings plan chosen by a person, if a policyholder dies because of participating in a crime, then the death benefits are not given to the family. Death due to any illegal activity done by the insured is not the ground to seek any such benefit. For instance, maybe the policyholder died due to a police altercation as he was robbing a bank. The family will get nothing as compensation.
Loss of life due to certain specific diseases
Before you invest in Kotak Guaranteed Savings Plan, it is important to know the diseases that are covered. For certain diseases, such as STDs and HIV, some plans do not offer death benefits to the beneficiary of the policyholder. Also, if the death of the policyholder is due to deliberate self-harm or suicide, then the coverage might be withdrawn by the insurance company.
Demise due to participation in adventure sports
Maybe the policyholder met an untimely demise due to participation in adventure sports, such as rock-climbing, paragliding, or rafting. The insurer can refuse to offer death benefits to the beneficiary in that case.
Death during the contestability period of a policy
Contestability refers to a time period after a policy comes into effect when the insurance company can still review the application and run a background check. During this time, if the insurer finds that they have been misguided or fed wrong information, then they might deny the claim of the beneficiary. Depending on the extent of misinformation being given to the insurer, they might not cancel the policy but at least reduce the amount of money to be received by the beneficiary.
What is covered by a Guaranteed Savings Plan?
You get the standard coverage that your plan has. If you have taken any rider with the policy, such as an accidental death benefit rider or premium waiver rider, then they are also covered by the policy. Moreover, you get the maturity benefits, loyalty additions, and interest additions as deemed by the rules and guidelines of your chosen policy.
In simple words, as long as you are not lying in your policy or being a part of a criminal activity, you don’t have much to worry about. A guaranteed savings plan is a reliable investment.
Click here to know more about Kotak Guaranteed Savings Plan: https://www.kotaklife.com/online-plans/savings-plan
