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Term Insurance 1324 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.
Table of Contents
The following are the two Kotak Term Insurance plans that you can look forward to.
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:
Death Benefit:– Kotak Term Plan death benefit (Sum Assured (SA) less the balance of the premium, if any) is payable to the beneficiary.
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:
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 Death||Life Option||Life Plus Option||Life Secure Option|
|Natural||100% of the Sum Assured||100% of the Sum Assured||100% of the Sum Assured|
|Accident||100% of the Sum Assured||100% of the Sum Assured plus Accidental Death Benefit, subject to a maximum INR 1 Crore||100% of the Sum Assured|
|Total & Permanent Disability (TPD||N/A||N/A||Waiver of all future Premiums till the end of the policy term|
|Suicide||80% of the Total Paid Premiums||80% of the Total Paid Premiums||80% 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
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.
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
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.
If you are interested in any of the above-mentioned term insurance plans, do check the below eligibility criteria before you proceed to it:
You can avail of the following rider benefits if you pay an additional premium:
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.
Kotak Term Insurance premiums can be paid on the website of the insurer.
Upon successful payment, you will receive an SMS and email confirming the same.
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.
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.
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).
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.
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 –
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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