Kotak Preferred Term Plan

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Kotak Preferred Term Plan is a pure term insurance policy which provides considerable life coverage at a nominal cost. In case the policyholder dies, the insurer pays out a lump sum as the death benefit to financially support his family in his absence. Special rates are available for non-tobacco users and women.

Key Features of Kotak Preferred Term Plan 

  • Kotak Preferred Term Plan, a pure term insurance plan , starts from twenty-five lakhs.
  • There is no limit to the maximum Sum Assured.
  • The insured can choose from two plan options: 1) Immediate payout option, and 2) Recurring payout option.
  • The policy offers discounted rates for female lives and non-tobacco users.
  • Both Step-up and Step-Down Options is available as per the choice of the policyholder.
  • The policyholder may opt for additional riders that give additional protection. 

Benefits of Kotak Preferred Term Plan

In case you are no longer around to support your near and dear ones financially, then your family gets a Death Benefit. The Death Benefit is the higher of:

  1. The Base Sum Assured, or
  2. Ten times the annualized premium, or
  3. 105% of all the premiums paid until the date of death.

The Basic Sum Assured refers to additional sum assured as per the Step-up Option or a reduced Sum Assured if the Step-down option is chosen.

For Single Premium plan, the death benefit is the higher of:

  1. The Base Sum Assured, or
  2. 25 times the Single Premium.

    The policyholder may choose customized payout options:

    Recurring payout - Under this option, the nominee receives 10% of the Sum Assured amount on the death of the Life Assured.

The balance amount is paid out in monthly or yearly basis for fifteen years

    Immediate payout - The nominee receives the entire Sum Assured at one go on the denmise of the Life Insured.

    A Step-up Option may be availed at the time of policy purchase, which assures an additional protection without the policyholder needing to undergo a medical examination at a later date. The Step-up Option may be availed for the inportant events in the policyholder’s life. For marriage and on the buying of the first house in India, the maximum increase in the Sum Assured amount is 50%. On the birth or legal adoption of a child and the 1st, 3rd and 5th policy anniversaries, the maximum increase in the original Basic Sum Assured is 25%. The Step-up Option is only available for Regular premium payment modes.

    The policyholder also has the option to reduce the sum assured amount by using the Step-down Option. There is a charge of Rs. 500 per Step-Down request. The Step- Down amount is available in this policy.

    Additional protection is available in the under the Critical Illness Benefit rider, that may be added to the policy by paying extra premiums.

    Tax benefits are guaranteed on the premiums and Death Benefit as per sections 80(C) and 10 (10D) of the Income Tax Act. 

Product Specification of Kotak Preferred Term Plan

 

Minimum

Maximum

Entry Age of the Life Assured (Last Birthday)

18 years

65 years

Maturity Age (Last Birthday) of the Life Assured

23 years

75 years

Policy Term (PT) in years

5  to 40 years

Premium Paying Term (PPT) in years

Equal to policy term, Single Premium and

Limited Pay – 5 years PPT for PT of 10 to 40 years

7 years PPT for Policy Term 12 to 40 years

10 years PPT for PT of 15 to 40 years

Premium Paying Frequency

Yearly, Half-yearly, Quarterly and Monthly

Annual Premium

On basis of the Plan Option chosen

No Limit

Sum Assured

Rs. 2500000

No Limit

 

Details About Premium

Details of premium for 30 year old male. Non- tobacco user

Age (Yrs)

Policy Term (Yrs)

Premium Payment Term (Yrs)

Sum assured (Rs.)

Premium amount for Immediate Payout (Rs.)

Premium amount for Recurring Payout (Rs.)

30

15

5

5000000

13500

11525

30

15

5

5000000

5045

4019

30

15

7

5000000

10200

8775

30

15

10

5000000

7900

6825

30

15

15

5000000

6575

5800

30

15

Single Premium

5000000

50200

42400

30

15

Single Premium

5000000

23171

18297

 

Policy Details of Kotak Preferred Term Plan

Grace Period: A period of 30 days is provided from the due date of the unpaid premium to pay all dues. This span is reduced to fifteen days in case of monthly mode.

Policy Termination or Surrender Benefit: No Surrender Value is available for policies that are under Regular Premium payment mode. Under Limited payment mode, the policyholder can surrender the policy after paying all the premiums of 2/3 years. The Surrender Value is available immediately after the receipt of the Single Premium.

The policy gets terminated if it is not reinstated within the revival period. Moreover, the policy also gets terminated after the Death Benefit is paid out.

Free Look Period: This policy provides the new policyholder with a period of 15 days to go through the terms and conditions set by the insurer. However, this free look period gets extended to thirty days if the user has purchased it through distance marketing. This is the deciding period for the users in which they can decide whether they wish to continue with the policy or not.

Inclusions

For Limited premium payment modes and a PPT of less than ten years, if the premiums for the first two policy years are not paid within the Grace Period,  nothing can prevent the policy from getting lapsed.

For a PPT of more than ten years, if premiums for the first three policy years are not paid before the Grace Period ends, the policy will lapse. For a Regular premium payment policy, the policy will lapse in case  the due premiums are not paid by the end of the Grace Period.

Additional Features or Riders

To revive a lapsed policy, you need to submit a request to reinstate it within a timeframe of two years that starts from the first unpaid premium. If the policyholder is unable to pay the premiums in the provided Grace Period, then the policy acquires a Reduced Paid-up value. Regular payment policies do not acquire a Paid-up Value, as they do not have a Surrender Value.

Exclusions

The term insurance cover equals to zero if the policyholder commits suicide within the first year of buying or reinstating the policy. The user gets 80% of the premiums paid until the death of the policyholder. The nominee gets to receive the Death Benefit if the policyholder commits suicide within six months of reviving the policy.

If the Life Insured commits suicide just in before reviving the policy, the nominee gets a higher of 80% of the Surrender Value or premium paid.

Documents Required for  Kotak Preferred Term Plan

Those who wish to take up the policy need to fill up an online application form along with other required documents such as Passport, Driving License or PAN Card. Apart from these, they need to submit a copy of the recent ITR or Form 16 or copies of the salary slips of the last three months. 

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