Kotak e-Term Plan

Kotak e-Term Plan: An Overview

Kotak e-Term is a pure-risk term insurance plan designed to provide financial security to your loved ones. It offers high coverage at affordable premiums, with special rates for non-tobacco users and women. The plan offers three plan and payout options and an option to enhance coverage at key life stages. Additional protection is available through riders for Accidental Death, Critical Illness, and Permanent Disability. It also includes inbuilt wellness benefits at no extra cost and an option to exit at age 60.

What are the Key Features of the Kotak e-Term Plan?

Below are some of the key features of the Kotak e-Term Plan:

• The Kotak E term plan benefits offer high life cover at economical rates, ensuring financial security for your family.

• Flexibility to choose from Life, Life Plus, and Life Secure options based on your needs.

• You can opt for Lump Sum, Level Recurring Payout, or Increasing Recurring Payout.

• Increase coverage at key life milestones like marriage or childbirth with a Step-up option.

• With Kotak e-Term, one can exit at age 60 with applicable benefits.

Eligibility Criteria of Kotak e-Term Plan

Before we take a look at the Kotak E term Plan benefits, let us first see who is eligible to buy the Kotak e-Term Plan:

What are the Benefits of Kotak e-Term Plan?

Let us take a look at some of the Kotak E term plan benefits:

Multiple Plan Options in Kotak e-Term Plan

Kotak e-Term Plan offers three plan options, allowing policyholders to choose coverage based on their specific needs:

• Life Option: This is the basic plan that provides a lump sum payout of the Sum Assured to the nominee in case of the policyholder's death during the policy term.

• Life Plus Option: This includes the Kotak E term plan benefits of the Life Option and adds an Accidental Death Benefit. In case of death due to an accident, an additional sum equal to the Basic Sum Assured is paid to the nominee.

• Life Secure Option: In addition to the Life Option benefit, this plan waives all future premiums if the policyholder suffers Total and Permanent Disability. The policy remains active without any further premium payments, ensuring continued protection.

Death Benefit

In case of the unfortunate death of the policyholder, the nominee will be paid a death benefit, which is equal to the following: 

Step-Up Option

The Step-Up Option allows policyholders with Regular premium-paying policies to increase their insurance coverage for significant life events without undergoing additional medical examination. This option ensures enhanced protection in a cost-effective and hassle-free manner.

Payout Options 

Kotak e-term plan also provides three 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 after the death of the life assured. On the death of the life assured, the nominee receives 10% of the sum assured as a lump sum. Then, 6% of the sum assured is paid yearly for 15 years.

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

Rider Benefit

You can opt for additional term insurance riders by paying an extra premium to enhance your insurance coverage.

• Kotak Critical Illness Plus Benefit Rider: This rider provides a lump sum payout if the policyholder is diagnosed with any of the 37 covered critical illnesses. This financial support can help cover medical expenses, loss of income, or other unforeseen costs.

• Kotak Permanent Disability Benefit Rider: If the policyholder suffers from total and permanent disability, this rider ensures financial stability by paying 120% of the Rider Sum Assured over five years, helping to manage expenses and maintain a steady income.

Sample Premium Illustration of Kotak e-Term Plan

Now that we have understood the different Kotak E term plan benefits, let us take a look at the table below, which provides sample annual premiums for a Rs. 1 Crore Sum Assured under the Life Option for a male non-smoker policyholder purchasing through an agent. The premiums vary based on entry age, policy term, and payout variant.

Immediate Payout Variant:

Level Recurring Payout Variant

What are the Policy Details of Kotak e-Term Plan?

Here is the list of policy details of this Kotak term plan:

Grace Period: To avoid policy lapse, policyholders have 30 days to pay annual premiums and 15 days to pay monthly premiums.

Voluntary Termination Value: This value does not apply to Regular Pay Kotak term plans. It is available for Limited Pay policies after full premium payment and Single Pay policies immediately after premium receipt.

Free Look Period: Policyholders have 15 days (30 days for electronic/distance marketing policies) to review and cancel the policy if dissatisfied.

Policy Lapse: f premiums are not paid within the grace period, your Kotak Term Plan will lapse, affecting coverage.

Policy Revival: A lapsed Kotak term plan can be revived within 5 years from the first unpaid premium date by fulfilling revival conditions.

How To Buy Term Insurance from Policybazaar?

Here is how you can buy a Kotak Term Plan from the comfort of your home:

• Step 1: Go to the term insurance page of Policybazaar

• Step 2: Fill in the required details like name, gender, DOB, and contact information

• Step 3: Enter your educational qualifications, annual income, occupation type, and smoking habits

• Step 4: Select the Term Insurance plan that suits your requirements and proceed to pay

Note: Check all the best term insurance plan in India.

Note: You should also check the benefits of term life insurance if you plan to purchase the term insurance plan.