Top 3 Insurance Plans From Kotak Mahindra Which Meet Your Essential Needs

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A 30 year-old man who has just got married and is now expecting a child, realizes that he needs to provide for his family, even when he is no longer around. A few years down the line, his income has increased substantially. He is now looking for a secure way to earn returns on it, while making sure that in case of an accident, the investment will be put to good use. After the age of 50, he starts looking for a supplementary source of incomethat would take some burden off after retirement.

With time, our needs keep changing. The best policy for him in each case varies according to his age and circumstances. Here we are taking a close look at the 3 best insurance plans Kotak Life Insurance offers to meet our most common needs. Kotak Mahindra is the fourth largest private bank of India, and offers more than 30 kinds of insurance plans – ranging from term plans and market linked options, to group insurance for employers.

1.  Kotak Mahindra Preferred Term plan

  • Provides high returns on low investment over the long term
  • Special rates for women and non-tobacco users
  • Only death benefit available

Suppose a non-smoking male of 35 years buys a policy with a 30-year term. To get a death benefit of Rs.1 crore, he will have to pay a premium of Rs.11,352 pa.

2.  Kotak e-Assured Savings

  • Can be bought online with minimal hassle
  • Higher premium is rewarded with a percentage increase in Basic Sum Assured (BSA)
  • Maturity benefit including BSA+Guaranteed Yearly Additions+Guaranteed Loyalty Addition or Death benefit

Apolicy of 15 years,at a premium of Rs.75,000 pa, will yield Rs.13,82,108 as death benefit or maturity benefit during the last 10 years. The insurer’s final claim will also include 10% yearly and 20% loyalty additions. Claim after insurer’s death will not include loyalty additions. 

3.   Kotak Lifetime Income Plan

  • One time premium, continuous annuity (pension) through life
  • Cash-Back option, which returns the premium amount to a nominee on the death of insurer
  • No death benefit or maturity benefit available

Suppose a healthy male pays a lumpsum of Rs.1 lakh at age 45. At the age of 45, his yearly income will be Rs.77,300; at 55 Rs.85,400; at 65 Rs.99,800. This ensures a moderate monthly income throughout his lifetime.

The Kotak Mahindra Preferred Term plan meets the most basic needs of the bread-winner of the household.However those looking for high and immediate returns should go for Kotak Life Savings Plans with ULIP options, like Kotak Single Invest Advantage or the Kotak Wealth Insurance Plan.

Kotak e-Assured Savings Plan provides lowers returns, but as it yields attractive maturity benefits, it remains an attractive offering for those in good health and a robust family medical history. However the policy holder needs to have a high level of regular income.

Kotak Lifetime Income Plan is completely different from the first two offerings, as it offers neither death nor maturity benefits. It is attractive for those looking forward to their retirement, andhaving a substantial sum for making the one-time investment. Therefore, it is more attractive to older policy-holders.

Take a look at the basic features of the three offerings by Kotak Mahindra, before making a final decision…


Kotak Mahindra Preferred Term plan

Kotak e-Assured Savings

Kotak Lifetime Income Plan

Eligibility age

18 to 65 years

3 to 60 years

45 to 99 years

Policy term

5 to 40 years

10 to 20 years



For the benefit of dependents, in case of policy-holder’s death

For the benefit of policy holder in case of survival, otherwise for his dependents

For ensuring a regular income on retirement, and payout to dependents in case of death

Additional advantages

Increase in Basic Sum Assured at the time of important events, like marriage, purchase of first house and birth or adoption of child

7 to 10% cumulative yearly additions, and 10 to 20% loyalty additions on premium.

Several options like annuity till death, annuity till the death of spouse, or annuity till death with payback of premium to nominee.