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Calculation of yearly additions (in case of Death) in Life Insurance policy
Share I lost my father recently and I applied for a claim (Kotak Life Insurance).
There were 3 components making up the claim amount (that I could understand from their literature and policy wordings):
Basic death benefit : no mismatch in claimant and insurer calculations
Term Rider : no mismatch in claimant and insurer calculations
Guaranteed Yearly addition : ---calculated incorrectly---
Here the mismatch between insurer and my calculations was :
- my father passed away in April (the 10th month) of policy year 7 (policy tenure is June to June)
- Guaranteed yearly additions that the insurer is calculating is as per 'end of policy year 6' and not as per 'end of policy year 7 (since that would have ended on paying 8th premium)'
- Am i eligible to claim the end of policy year 7 amount? or the 10 month pro-rata value?
- the policy document has no clarity on the term 'end of policy year'
Kindly note: I have already received the major claim amount and only the mismatch amount is what I am trying to understand and contest.
0 Comments
ReplyThe guaranteed annual bonus is added to the policyholder's fund at the end of a policy year. In your case, I understand that your father passed away 2 months before completion of 7 policy years. If that's correct, your policy is eligible for only 6 years' annual guaranteed additions/bonus.
As requested by Mr Manoj Pandey, please share the policy inception date & date of death of your father. This would help us give you an explicit Yes/No.
My condolences on the passing away of your father.
Asad Akbar
0 Comments ReplyDear Asad and Manoj sirs, appreciate your help here. As required by you, below are the details:
Plan Name: Kotak Assured Savings Plan(UIN-107N081V01)
Date of Commencement: 20/06/2014
Policy Term: 15 years
Premium Payment Term: 10 years
Date of Death: 15 Apr 2021
0 Comments ReplyDear Karen
Condolences to the family on your father's demise.
Thanks for sharing the policy inception dates and date of death. As suggested by Mr. Asad & Mr. Manoj the guaranteed addition would be paid for every completed policy year which is 6 in this case. I believe the insurer has made the correct t calculation of claim amount.
Hope this addresses your concerns
Stay Safe
0 Comments Reply
Pl share the date of the start of the policy & the date of death of your father.