Kotak Group Term Life Insurance provides life coverage to each member within the plan. The plan pays a lump sum benefit to the beneficiary when an unfortunate event occurs and this plan also gives the option to add voluntary coverage for life for self and spouse. A range of riders is also available, which cover a gamut of risks such as disability, dismemberment, illness and any functional impairment. All-in-all, it is a model solution for providing families of the plan members with safety and security in the face of potential hardships that may arise.
Eligibility Criteria of Kotak Group Term Life Plan
To be eligible for the Kotak Group Term Life Insurance, a group must at least contain 50 members. There is no maximum limit to the number of members in a group. As it pertains to the organizations, individual borrowers, investors, co-borrowers, co-investors of the institutions are eligible for coverage under this plan. The age limit is not predefined; instead, the minimum and the maximum age policy of the organization with regards to retirement define it.
Salient Features of Kotak Group Term Life Insurance
The Kotak Group Term Life Insurance has multiple salient features. A list of some of them follows so that a reader or a potential investor might glean some idea about how the plan works:
- The primary feature of this group term plan is that provides for the families of the members. In case of adversities like death, disability, or illness, it provides protection to the family of the member.
- Since this is a group plan, one can obtain the insurance cover at a lower cost.
- This plan comes with a great range of riders. By choosing the best riders in line with the needs of the members, or a combination of riders, the cover can become as comprehensive as required.
- The plan allows for a high degree of customization. Therefore, it is extremely flexible.
- Tax deductions are possible based on the current Income tax laws, which can change from time to time.
- The term of this policy is one year; hence one can renew the policy annually.
- There is no maximum limit to the basic sum assured per member. However, each member is assured at least 5000 INR.
TheKotak Group Term Life Insurance has many advantages. Some of them make the list below:
- The plan gives a comprehensive coverage for the members and their families. The cover extends to a range of risks, which include disability and illness. The family members of the members can get extended cover on the selection of the appropriate riders.
- This plan provides voluntary cover. This is an added benefit that each member gets. They can pay an extra premium from their pocket, irrespective of what the other members of the group pay, in order to enhance their insurance. Those members who pay an additional premium on their own can also extend the voluntary cover to their spouses.
- This plan also provides an additional benefit in that it lets a person choose their payment mode when it comes to premiums. One can pay a single premium or a regular premium. The regular premiums can be monthly, quarterly, half-yearly or annually. Premium modal factors are 8.75% of the annual premium for monthly premiums, 26% for quarterly premium and 51% for half-yearly premium.
- The final advantage is that the administration process is simple and easy. The premiums are tax-deductible as per current income tax laws, which are subject to change, insurance coverage is worldwide and the comprehensive coverage comes with simplified underwriting.
- Above all, the plan also provides tax benefits.
“Tax benefit is subject to changes in tax laws”
The Process to Purchase the Plan
The process to purchase Kotak Group Term Life Insuranceis best done online. It can also be purchased from an insurance agent. However, the online process is easier, quicker and gives the customer full control over the process. The steps are generally as follows:
Step 1: Visit the official website and locate the button to register. Once inside after clicking that button, provide the personal details.
Step 2: Once the registration is complete, the user can log in to the website and begin the process of buying the Kotak Group Term Life Insurance.
Step 3: The first detail that the website requires will be the sum assured. That is a personal choice of the user and they will have to fill it in accordingly.
Step 4: Then it will ask to select the appropriate policy and, in this case, it will be Kotak Group Term Life Insurance.
Step 5: Next up select the premium payable. At the same time, the website will ask the number of premiums payable, which will determine the regularity of premium payments.
Step 6: The next step is to add a payment method. There are generally three payment options available, which are credit card, debit card and online banking.
Step 7: Once the payment goes through successfully, the payer will receive an acknowledgement slip.
Step 8: If the provider approves the policy for the payer, they will send a soft copy of the policy document by email first. Thereafter, a company representative will also visit with the hard copy of the policy or send it by post.
When putting in the personal details, if the user is not linked to an old plan, the KYC documents need to be submitted again. The KYC documents include identity proofs, address proofs and ageproofs. PAN Card and AADHAR card are the most common identity proofs, while utility bulls and driving licenses are acceptable as address proof. A passport copy is ideal for age-proof. If proof of income is required, income tax returns can serve that function. Many a time, passport size photographs may also be required during the process.
The Kotak Group Term Life Insuranceallows the addition of many different riders onto the main policy. The list below includes some of the riders in little detail:
- Kotak Accidental Death Benefit – In this rider, if a person dies due to an accident, their beneficiary will receive a lump sum benefit. This is in addition to the basic sum assured. A member can avail of this particular benefit without any additional underwriting requirement.
- Kotak Accidental Disability Benefit – If a member suffers an accident and is permanently disabled, then this rider kicks in. The member will receive a lump sum benefit. This is again in addition to the sum assured. Availing of this benefit does not require any additional underwriting.
- Kotak Accidental Dismemberment Benefit – if a member suffers an accident that leads to severance of limb, either fully or partially or loss of vision or hearing, then that qualifies as accidental dismemberment. In such cases too, no additional underwriting is required for additional benefit. The affected person must remain alive for a period of more than 24 hours from the time of the accident for eligibility for this benefit. Benefits are payable multiple times; however, they cease once 100% of the sum assured is met.
- Kotak Accidental Death, Disability and Dismemberment Benefit – This particular rider covers death, disability and dismemberment as listed in the three riders above. As with the other three, there is no requirement for any additional underwriting.
- Kotak Critical Illness Benefit – This rider covers critical illnesses. The benefits are paid out once the provider is satisfied. The benefit ceases after payment and is deductible from the death benefit. The waiting period for benefit claim is 90 days and claims within this period are not payable. The list of acceptable illnesses are as follows:
- Heart Attack
- Aorta Surgery
- Benign Brain Tumor
- Open Chest CABG
- Major burns
- Kidney Failure
- Loss of Limbs
- Organ or Bone Marrow Transplant
- Permanent Paralysis of Limbs
- Loss of Speech
- Motor Neuron Disease
- Parkinson’s Disease
- Open Heart Replacement
- Kotak Critical Illness Plus Benefit – This is the same as the critical illness plus benefit. However, in this case, the final death benefit payout remains unaffected.
- Kotak Group Terminal Illness Benefit – On the diagnosis of a terminal illness, this benefit becomes payable. The payout is deductible from the death benefit.
- Kotak Family Income Benefit – This gives life cover to the family member and three children below the age of 18 years. Benefits stop on the death of the main member.
Terms and Conditions
The Kotak Group Term Life Insurance imposes some basic terms and conditions. They include the following:
- Proof of Age – This requires the policyholder to submit the age of every single member.
- Payment of Premiums – Under this term, the main policyholder agrees to pay the premium on behalf of all the members.
- Active Employment – A person who becomes a member must be in active employment on the effective date.
- Underwriting – Underwriting is necessary for any amount above the Free Cover Limit.
- Loans – Loans are not available under this policy.
- Renewal – Renewal must be done at the end of the term, subject to acceptance by the insurer and application thirty days prior to the lapse of the term.
These are a very generic overview of some terms and conditions in this policy. There are other terms and conditions as well, which one needs to study in detail prior to purchasing a policy.
For theKotak Group Term Life Insurance,there are exclusions that everyone must be mindful of. They are given below:
- Accidental Death – Unless covered by a rider, accidental death is not included in the policy.
- Lifestyle choices – In the case of active decisions such as smoking, which lower the life of a member, the payout on death due to smoking-related disease is excluded.
- Suicide and Self-Harm – Death or permanent disability and dismemberment cannot be covered when they arise due to suicide or self-harm.
- Criminal activities – Death due to criminal activities are not covered.
- Pre-existing medical conditions – Pre-existing medical conditions are not covered.
- Intoxication – Excessive drug or alcohol use can result in death. The provider does not cover such deaths.