Kotak Life Insurance T&Cs

Following are the terms and conditions of Kotak Life Insurance plans:

1. Death Benefit: The death benefit payable under the Kotak Life insurance policy would be the balance of premium deducted from the sum assured payable in the year of the death.

2. Grace Period: Kotak Life Insurance plans offer the policyholder a grace period of 30 days from the due date for the payment of premium on the basis of quarterly, half-yearly, and yearly mode. A grace period of 15 days is available for the monthly mode of premium payout.

3. Policy Lapse: If during the policy tenure, premiums are not paid within the grace period, the policy together with the additional benefits (if any) will lapse from the date of the first unpaid premium, and the policy cover will cease.

4. Policy Revival: Kotak Life Term Insurance lapsed policy can be revived within 2 years from the date of first unpaid premium else the contract will be terminated. To revive the existing policy, proof of good health is also required.

5. Surrender of Policy: If you want to surrender your policy because of financial reasons then surrender value for single premium payment option is 75% x Premium Paid x (1 - 1/Policy Term) x (Outstanding Policy Term/Policy Term).

6. Free Look Period: The policyholder has a free look period of 15 days from the date of receipt of the policy (Distance marketing/Online channel have 30 days). The policyholder has the option to return the policy within 15/30 days if he/she is not satisfied with the terms and conditions of the policy.

7. General Exclusions: Following are the exclusion conditions of Kotak Life Term Insurance plans:

• Death Due To Substance Abuse

The Kotak Life term insurance states that any death due to intoxication is an exclusion. If the policyholder consumes an excessive amount of alcohol or drugs and if this habit results in the policyholder's demise, then Kotak Life Insurance company is not liable to pay the cover.

• Pre-existing Medical Conditions

Kotak Life insurance has a waiting period clause in case of pre-existing medical conditions. Hence, if the policyholder has a pre-existing disease, he/she has to wait for a certain period fixed by the insurance company before the health condition can be included in the proposal cover. In the case of critical illnesses, the waiting period can be from a few months to a few years.

• Accidental Death

Accidental death is covered under the Kotak Life term plan, but it does not mean the claim made under such cases will always be accepted. In case of accidental deaths, the insurance companies always scrutinize the circumstances of such an incident. The process of such an investigation might vary from company to company, but the findings have to be acceptable for the claim to be accepted.

• Conditions Related to Lifestyle

All the Kotak Life term insurance policies exclude death caused by lifestyle choices. For example, the Kotak Life insurance confirms before if the policyholder is a smoker. Smoking is hazardous for health and those who have this habit are more prone to risk. Therefore, they are considered to be high-risk policyholders. Hence, if a policyholder does not announce the smoking habit while buying the term policy, the insurance company might reject the claim in cases where the death is related to smoking or hazardous substance.

• Death Due To Suicide

Kotak Life term insurance plans always exclude any death related to suicide or self-harm. However, some insurance companies provide to return the premium if the insured commits suicide within a year from buying the term policy. There are some deductions of certain fees from the cover plan. Death due to participation in hazardous or dangerous activities are excluded from the policy.

• Death from Participating in Criminal Activities

Kotak Life term insurance policy is designed to provide financial help to the policyholder’s loved ones in case of unfortunate events. Therefore, if the policyholder gets involved in any activity that comes with a higher risk of life, insurance companies are entitled to reject the claim. For example-death due to participating in riots, illegal acts, or any other criminal activity, claims won’t be paid in these conditions.