Kotak Preferred e- Term Plan

What Are The Key Features Of The Kotak e-Term Plan?

Below mentioned are the key features of the Kotak e-term plan:

• Term Insurance Plan: This is the purest form of insurance where a life insurance cover offers financial protection to the family of the policyholder. The nominee receives the policy benefit (Death Benefit) on the demise of the life assured.

• Plan Options: The Kotak e-term plan offers 3 customized payout options:

  • Life Option: Nominees/beneficiaries will receive 100% of sum assured upon the death of the policyholder.

  • Life Plus Option: Here, the beneficiaries will receive the life cover as well as the accidental death benefit.

  • Life Secure Option: Under this option, benefits under the Life option will be applicable along with a waiver of premium if the policyholder becomes totally and permanently disabled.

• Payout Options: Kotak e-term plan also provides 3 payout options:

  • Immediate Payout: The full Sum Assured is paid to the nominee in a lump sum, immediately after the death of the life assured.

  • Level Recurring Payout: This option provides a regular income to the family post the demise of the life assured. The nominee receives 10% of the Sum Assured on the death of the life assured as a lump sum amount. Then, 6% of the sum assured is subsequently paid yearly for a period of 15 years.

  • Increasing Recurring Payout: This option provides 10% of the total sum assured upon the death of the policyholder and pays 6% on the first year after the death of the policyholder. After the first year, the yearly payouts increase by 10% per annum for 15 years.

• High Cover at Low Cost: The plan provides a high level of protection at a nominal cost. The minimum cover amount (Sum Assured) is Rs. 51 Lakhs, and the maximum cover limit is 15 Crores. The insurance premiums are affordable.

• Options of Step Up/Down: Here, the policyholder gets the option of increasing and decreasing his/her life cover on the basis of various stages of life.

• Waiver of Future Premiums on Total and Permanent Disability: If the life assured becomes totally and permanently disabled during the premium payment term, all his/ her future basic premiums are waived off, and the policy continues unhindered. 

• Rider: The plan offers additional protection by way of an optional rider. This can be opted for by paying a nominal extra premium. The available riders include the critical illness benefit rider, accidental death benefit, etc.

• Exit at 60 Years Age: Here, the policyholder gets the option of special exit value at age 60, after which he/she will get back the total premiums paid. 

• Inbuilt Wellness Benefit, Without Additional Premium: With Kotak’s wellness app, policyholders can avail of the below mentioned benefits:

  • Telemedicine Consultation

  • Lifestyle Management Programs

  • Personal Medical Care

  • Emergency Response

  • Pharmacy Access

  • Home Health Care

  • Free Medical Checkup Every 5 Years

What Are The Benefits Of Kotak e-Term Plan?

• Death Benefit: In the event of the passing away of the life assured during the policy term, the Death Benefit is paid to the nominee.
  The Death Benefit for regular and limited premium paying policies is higher of the following:

  • Basic Sum Assured

  • 11 times the Annualised Premium, excluding modal factors and extra premiums (if any)

  • 105% of all the premiums paid till the date of death, excluding extra premiums (if any) 

  The Death Benefit for single premium paying policies is higher of the following:

  • Basic Sum Assured

  • 1.25 times the Single Premium, excluding extra premiums (if any)

• Maturity Benefit: Since this is a term insurance plan, there is no Maturity Benefit

• Tax Benefits: Tax benefits are available under Section 80C and Section 10(10D) of the Income Tax Act, 1961

Kotak Preferred e-Term - Eligibility Conditions

Available Riders Under Kotak e-Term Plan

Here is a list of all the available riders that you can add to your base term plan for an enhanced coverage:

• Accidental Death Benefit: In case of accidental death, this cover value will be paid in addition to the life cover.

• Waiver of Premium: All your future premiums will be waived off in case of disability due to accident or illness, and Life cover will continue as usual.

• Critical Illness Benefit: Pays you an additional lumpsum amount if you are diagnosed with any of the 37 Critical Illnesses listed under the plan.

What Are The Policy Details In Kotak e-Term Plan?

Here are the policy details of the Kotak e-term plan:

• Grace Period: You get an additional 30 days to pay the premiums for yearly modes and a 15-day grace period for monthly premium payments.

• Voluntary Termination Value: There is no Voluntary Termination Value for policies that are under Regular payment mode. For the Limited payment mode, the policy may be terminated after payment of all due premiums of the premium payment term. The Surrender Value is immediately available after the receipt of the Single Premium. 

• Free Look Period: The policyholder will receive a free look period of 15 days from the date of receipt of the policy, for a policy that was sold through all channels, except electronic policies, and policies received through distance marketing, in case of which the free look period will be 30 days. If the policyholder does not agree with the T&Cs of the plan, then he/she may choose to return the policy within the chosen timeframe, i.e. 15-30 days. In order to return the policy, the policyholder may have to state the reasons for the same.

• Policy Lapse: For regular and limited premium paying policyholders, the policy will lapse if the premiums aren’t paid by the end of the grace period. 

• Policy Revival: The lapsed policy can be revived within 5 years from the date of the first unpaid premium.

1. Exclusions

   The term insurance cover is void if the life assured, whether sane or insane at the time, commits suicide within one year from the start of the policy cover or reinstatement. The company will refund 80% of the premiums paid until the date of death, to the nominee. In case the Life Assured commits suicide within a year of Minor Revival, the nominee will receive the Death Benefit. If the Life assured commits suicide within a year of Major Revival, the nominee will receive the higher of 80% of the premiums paid or Surrender Value.

2. Documents Required

   The policyholder has to fill up an online ‘Application form’ with photo identity proof (Passport, PAN Card or Driving License) and income proof in the form of a copy of the latest ITR or Form 16 or copies of the last three months salary slips.

   You may also like to read: Kotak Life Term Insurance Plan

FAQ's