Om Kotak Cuts Return On Single-Premium Plan

OM Kotak Mahindra Life Insurance Company has scaled down the returns on its single premium policy - Kotak Insurance Bond. It has also modified the policy to cover a higher age span and higher limit on the maximum sum assured.

The revised plan, wherein a policyholder pays the premium once, which then acts as a fixed deposit, offers a return of 8.06 per cent for a 10-year policy against the earlier 8.3 per cent, Shivaji Dam, managing director, said.

The plan offers 7-year and 10-year maturity periods. In the 7-year plan, the maturity benefit is 160 per cent of the premium paid up to Rs 50,000 and 164 per cent for premium in excess of Rs 50,000. Under the 10-year policy cover, the maturity benefit is 210 per cent of the single premium paid up to Rs 50,000 and 217 per cent for premium over Rs 50,000.