Term Insurance 1622 views December 18, 2020

Kotak Mahindra Life Insurance provides customers a term insurance plan with which they can protect their loved one’s future. Under Kotak Term Insurance policy, you will have long term coverage with a high level of financial protection in case you die during the policy term. And if the policyholders want, they can customize their Kotak Term Insurance policy too. The Life Assured can also claim tax deduction under section 80C and 10(10D) of the income tax act, 1961. Let’s read this page and know about the Kotak Mahindra Term Insurance policy features and benefits.

Term Insurance

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Kotak Mahindra Life Term Insurance Plans

The following are the two Kotak Term Insurance plans that you can look forward to.

Kotak Term Plan

A pure risk cover plan is an economical option to have and get a high level of financial protection. Kotak Term Plan is a non-participating plan with no maturity benefits. The following are the key features of this Kotak Term Insurance policy:

  1. Low-cost insurance with a premium of INR 199 per month
  2. Convert your Kotak Term Plan to any of the offered Kotak Term Insurance
  3. Premium payment options of single and regular pay available
  4. You can add riders to your Kotak Term Plan

Death Benefit:– Kotak Term Plan death benefit (Sum Assured (SA) less the balance of the premium, if any) is payable to the beneficiary.

Kotak e-Term Plan

This is a online Kotak Term Insurance plan that protects your loved ones. A truly economical way of getting a high level of protection with special premium rates for non-tobacco users and women. The following are the key features of the Kotak e-Term plan:

  1. Low-Cost Insurance
  2. 3 Plan Options – Life Option, Life Plus Option & Life Secure Option
  3. 3 Payout Options – Immediate Payout, Level Recurring Payout &  Increasing Recurring Payout
  4. Enhance your cover with Kotak Term Insurance Riders
  5. Enhanced Protection – Accidental Death, Critical Illness and Total Permanent Disability
  6. Special Premium Rates if you are women or a non-tobacco user

Death Benefit:– If the Life Assured dies during the policy term, any of the following death benefits will be payable to the beneficiary as per the case.

Event of DeathLife OptionLife Plus OptionLife Secure Option
Natural100% of the Sum Assured100% of the Sum Assured100% of the Sum Assured
Accident100% of the Sum Assured100% of the Sum Assured plus Accidental Death Benefit, subject to a maximum INR 1 Crore100% of the Sum Assured
Total & Permanent Disability (TPDN/AN/AWaiver of all future Premiums till the end of the policy term
Suicide80% of the Total Paid Premiums80% of the Total Paid Premiums80% of the Total Paid Premiums

Sum Assured on Death for Regular and Limited Premium is the highest of the following – Sum Assured, 11X Annualised Premium, 105% of all paid premiums

Sum Assured on death for Single Premium Sum shall be the higher of the following – Basic Sum Assured or 1.25X the Single Pai Premium.

Payout Option for Kotak e-Term Plan Death Benefit

  1. Immediate Payout:- Sum Assured on death is payable in a lump sum
  2. Level Recurring Payout:- A lump sum of 10% of the Sum Assured on death will be paid at the time of claim settlement and 6% of that on death at the end of every year for up to 15 years, starting from the year of death.
  3. &  Increasing Recurring Payout:- Receive a lump sum of 10% of the Sum Assured on death at the time of claim settlement and get 6% of that on death at the end of the year, starting from the date of death. After that, the payout will continue to increase by 10% every year (at a simple interest) for a maximum of 15 years.

Under the Level or Increasing Recurring Payout option, the nominee can receive the death benefit in a lump sum instead of recurring payouts. After that, a discounted value of the outstanding amount is paid as a lump sum. However, the Accidental Death Benefit under the ‘Life Plus’ option shall be payable in a lump sum, irrespective of the payout option you choose. And there is an option under the Level or Increasing Recurring Payout where the nominee can receive an annual payment in a monthly mode. These monthly payments shall be 8.22% of the annual payments.

Step-Up Option

Under this Kotak Term Insurance, you can go for the Step-Up option at the time of purchasing the policy. You can increase your sum assured for different life events. Marriage (An increase of SA by upto 50%), First House Purchase (An increase of SA by upto 50%) and Birth or legal adoption of a child (An increase of SA by upto 25%).

For this option, the following fees apply to your Kotak e-Term plan

  1. 3% of the SA (if the policy term is up to 15 years)
  2. 5% of the SA (if the policy term is above 15 years)

Step-Down Option

If your responsibilities reduce in life during the Kotak e-Term plan, you can step down to a lower amount of cover. This will provide you a minimum amount of cover, and you can exercise it anytime during the policy term. And the Step-Down shall be effective from the next premium due date.

You can do the Kotak e-Term Plan Step-Down only once during the policy term, and in such a case, your premium shall be recalculated based on the revised sum assured, the age at entry and the original policy term. You need to pay INR 500 in case you choose to exercise the Step-Down Option.

Eligibility Criteria for Kotak Term Insurance

If you are interested in any of the above-mentioned term insurance plans, do check the below eligibility criteria before you proceed to it:

  1. Entry age 18-65 years
  2. Maturity age is a minimum of 23 years, and a maximum of 70 years (Kotak Term Plan) and 75 years (for Kotak e-Term Plan)
  3. Kotak Term Insurance policy tenure is for a minimum of 5 years, and a maximum of 30 years (Kotak Term Plan) and 40 years (Kotak e-Term Plan)
  4. You have Regular Pay, Limited Pay and Single Pay premium payment options in Kotak Term Insurance
  5. Single, Yearly, Half-Yearly, Quarterly and Monthly premium payment modes are available
  6. Free Look period of 15/30 days
  7. A grace period of 30 days for Yearly, Half-Yearly or Quarterly, and a 15-day grace period for monthly mode

Kotak Term Insurance Riders

You can avail of the following rider benefits if you pay an additional premium:

  1. Kotak Accidental Death Benefit – Provide a lump sum amount to the nominee on the accidental death of the Life Assured besides the Sum Assured on death.
  2. Kotak Permanent Disability Benefit – The company will pay installments if the Life Assured has become disabled due to an accident.
  3. Kotak Critical Illness Plus Benefit – A Rider Sum Assured becomes payable if a claim for any one of the 37 covered critical illnesses is filed by the Life Assured.

Factors That Impact Kotak Term Insurance Premiums

The premium of Kotak Term Insurance is based on the following factors –

Age – The age of the policyholder impacts the premium greatly; the sooner you apply for it, the lower the premium you will have and vice versa. As the premium once decided remains fixed during the entire policy term unlike other insurance products, locking a deal at the earliest saves you more.

Smoking Habits – If you are a smoker, Kotak Life Insurance Company will charge more premium than that from a non-smoker. People with smoking habits are more likely to fall ill compared to those not addicted to such stuff. This becomes a difference between the premium of smokers and non-smokers.

Existing Health Conditions – Your existing health conditions can also influence the insurer to set the premium for your term plan. In case you have had some health issues, the premium will go up. Also, be honest while disclosing your health conditions to the insurer through the application form. If you don’t furnish your health-related details correctly, the insurer might reject your insurance claim later if it finds in its medical investigation that such conditions existed before accepting a policy.

Place of Residence – It also impacts the premium that Kotak Life Insurance will charge from you. People living in posh locations can get lower premiums than those living in far-flung locations.

Let’s Talk About Kotak Term Insurance Premium Payment Modes

Kotak Term Insurance premiums can be paid on the website of the insurer.

  • Visit the official website of Kotak Life Insurance
  • Go to ‘How Do I’ section and click on ‘Pay Premium’
  • Press the ‘Pay Online’ button
  • Enter your Policy Number and Date of Birth
  • Click on ‘Continue’
  • A new page will appear with a list of payment options – Net Banking, Debit/Credit Card, UPI, etc.
  • Choose the payment option and pay the premium amount

Upon successful payment, you will receive an SMS and email confirming the same.

Payments via ECS Mandate Form

You can also fill the ECS mandate form at the bank branch and submit the same along with a cancelled cheque to the concerned official there. So on the due date, the premium amount will get debited automatically from your bank account.

Pay Kotak Term Insurance Premium Via BillDesk

You can also register Kotak Term Insurance Premium as a biller at BillDesk while using net banking of Kotak Mahindra Bank or some other. A few days before the due date, you will get an intimation about premium payment. If you have activated automatic payment at BillDesk, the payment will go through automatically. If not, you will need to pay via net banking by going to the biller section.

Surrender of Kotak Term Insurance

If there is a financial emergency, you can surrender your term plan if you have chosen a single premium payment option.

Surrender Value = 75% x (single paid premium) x ((policy term – 1)/Policy Term ) x (Outstanding policy term / policy term).

For Limited premium payment option

Surrender Value = 75% x (total paid premium) x ((policy term – PPT)/Policy Term ) x Outstanding Policy Term/policy term).

How to File Kotak Term Insurance Claim?

Filing Kotak Term Insurance Claim is easy online. Being a claimant, you need to fill in a few details and attach the required documents for Kotak Life Insurance to evaluate.

  • Mention the name of the policyholder, his/her date of birth, date of death/diagnosis of disease/accident
  • The claimant needs to mention his/her name, date of birth, email and mobile number
  • Submit all the required documents including the Death Certificate issued by the competent authority

Process of Offline Claim Intimation

If you are not comfortable claiming online, you can do so offline too. Visit the nearest branch of Kotak Life Insurance, fill the Claim Form and submit the same to the following address –

Claims Department

Kotak Mahindra Life Insurance Company

Kotak Infinity, Building No. 21, 7th Floor, Zone 2, Infinity Park,

Off Western Express Highway, General AK Vaidya Marg,

Malad (E), Mumbai – 400097

If there are multiple nominees for a single term insurance plan, all of them will need to fill the claim form separately along with the required documents. The same thing applies even when the life assured has multiple nominees under different plans.

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