Kotak Term Plan

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Kotak Term Plan is categorized as a pure risk cover plan that provides policyholders with an economical way to provide life coverage and financial protection. The nominee receives the Assured Sum as the Death Benefit; this works as a protective shield for the nominees in situations when the policyholder is no longer around to help them. Special discounted rates are available for non-tobacco users and women.

Kotak Term Plan - Key Features

  • Kotak Term Plan is a pure term insurance plan that offers high quality life coverage at economical rates. The insured has a choice of premium payment options; they may choose a single premium payment or regular premium payment.
  •  Under regular premium payment, the policyholder may pay the premiums at yearly, half-yearly, quarterly or monthly modes.
  • The policy offers further reduced rates for females and non-tobacco users.
  • The policyholder may opt for additional riders that give more protection. 

Kotak Term Plan - Benefits

  • One of the most important benefits of this policy is that it allows you to lead a stress-free life as your loved ones get the death benefits if you are not there with them to protect them. The Death Benefit payable is the Sum Assured minus the balance of the premium.
  • If the Regular payment option is chosen, the policyholder may opt for additional protection in the form of various riders, which are as follows:
      • Under the Kotak Critical Illness rider, a portion of the Basic Sum Assured is paid in advance on the admission of a critical illness claim.
      • Under the Kotak Accidental Death Benefit rider, a lump sum benefit is given to the nominee upon the accidental death of the policyholder.
      • Under the Kotak Permanent Disability Rider, payouts are made in instalments upon an admission of the claim of disability.
      • The insured gets to avail the Tax benefits according to sections 80(C) and 10 (10 D) defined under Income Tax Act. 

Kotak Term Plan - Product Details:

 

Minimum

Maximum

Entry Age of the Life Assured (Last Birthday)

18 years

65 years

Maturity Age (Last Birthday) of the Life Assured

23 years

70 years

Policy Term (PT) in years

5  years

30 years

Premium Paying Term (PPT) in years

Single Premium and Regular Pay

Premium Paying Frequency

Single, Yearly, Half-yearly, Quarterly and Monthly

Annual Premium

Rs. 2000

Based on Sum Assured

Sum Assured

Rs. 300000

Rs. 2499999

 

Details About Premium

Age (Yrs)

Policy Term (Yrs)

Premium Payment Term (Rs.)

Sum Assured (Rs.)

Annual Premium (Rs.)

30

10

Single

1800000

15057

30

10

10

1800000

2694

30

20

Single

1800000

32079

30

20

20

1800000

2910

30

30

Single

1800000

59217

30

30

30

1800000

3504

 

Kotak Term Plan - Policy Details

Grace Period: The policyholder has about 30 days to pay the unpaid premium so as to clear all the dues. This timeframe is reduced to fifteen days in case of monthly mode.

Policy Termination or Surrender Benefit: There is no Surrender Value for policies that are under Regular Premium payment mode. The Surrender Value is immediately available after the receipt of the Single Premium. The policy gets terminated if you fail to reinstate your policy within the revival period. Moreover, your policy also gets terminated if you avail the Death Benefit.

Free Look Period:

After receiving the documents of the policy, you get around 15 days to thoroughly review the policy. Moreover, this period is for about 30 days if the policy was taken through distance marketing.

The policyholder has the leverage to cancel the policy whenever they wish to. The customer gets to receive a refund of the premiums paid excluding the proportionate premium for the risk that the company bear which is inclusive of additional charges such as medical examination or stamp duty.

Inclusions

The policy gets to lapse if the policyholder does not pay all the due premiums within the Grace Period.

Riders or Add-ons

If your policy has lapsed then the policyholder submits a request for reinstatement within a timeframe of two years from the date of the first unpaid premium.

The policyholder may choose to convert the Kotak Term Plan to any other plan that is offered by the company, provided it is not a term plan, before the last five years of the policy term.

Exclusions

The term insurance cover nullifies if the insured person commits suicide just in the time span of one year of the policy or reinstatement and this does not depend on the mental condition of the insured person. The company pays back the nominee 80% of the premiums that the policyholder pays. If the policyholder commits suicide is within six months of renewal, the nominee is eligible to get the Death Benefit.

If the policyholder commits suicide within one year of reviving the policy, and if the policy was revived within 6 months from the date of first unpaid premium, the nominee gets higher of Surrender Value or 80% of the premiums paid.

Documents Required

Like every other policy, you need to have documents that are gives the insurer confirmation about your whereabouts and existence, such PAN Card, Passport or Driving License. You might also require submitting your income proof such as Form 16 or salary slips of last three months or latest ITR.

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

Frequently Asked Question

1. What are the Riders offered by the company?

This policy offers three riders for the users:

  • Kotak Accidental Death Benefit (ADB)
  • Kotak Permanent Disability Benefit (PDB)
  • Kotak Critical Illness Benefit (CIB)

2. What is Kotak Accidental Death Benefit?

Kotak Accidental Death Benefit or (ADB) is the benefit given in the case of accidental death of the policyholder.

3. What if I stop paying the premium?

The policy will eventually lapse if you will stop paying the premium and along with this you would not enjoy its benefits. However, you revive it within two years from the date of lapsing the policy.

4. What if I wish to surrender the policy?

Single Premium policies can avail the option of Surrender Benefit as per the following formula:

Surrender Value = 75% x Premium Paid x (1 - 1 /Policy Term) x Outstanding Policy Term/Policy Term

 5. What if I wish to take a loan against my policy?

No, there is no Loan facility offered by the policy.