All About Kotak Term Plan

Kotak Life Insurance has a vision of believing for a better tomorrow. The insurer is one of the leading private life insurance companies of India. The two types of term insurance plans offered under the banner of Kotak Term Insurance are Kotak Term Plan and Kotak e-Term Plan. The former is a pure risk cover plan while the latter is a pure term insurance plan. 

Benefits of Buying Kotak Term Plan

1. Cost: Kotak term insurance plans are affordable. They are pocket-friendly rates for every product under the term insurance category which makes them one of the most preferred term insurance companies in India. Their premiums are as low as Rs.6975/- per annum or sometimes even lower.

2. Flexibility: Kotak term insurance plans offer flexibility in pertaining coverage, term and the payment policies for the premiums.

3. Discounts: Offers special discounts in premiums for non-smokers and female insured's.

4. Online option: Kotak term insurance offers a huge variety of online and offline term insurance plans.

5. Customer Service: This Company has an excellent team of customer service that offers good and hassle-free pre-sales as well as post-sales services.

6. Tax benefits: Section 80C and 10(10D) under the Income Tax Act, provides tax benefits for premiums paid regularly.

Types of Kotak Term Plans

1. Kotak Income Protection Plan

This plan can be bought through the website. The features of this plan are mentioned below:

1. The minimum entry age is 18 years and maximum age is 60 years and the maturity age is 70 years
2. Offers protection cover either in monthly or lump sum income after the death of the insured
3. Offers increase at 6% p.a. in the monthly income which automatically compounds on each anniversary year
4. Offers preferred rates in premiums for non-smokers and women life insured
5. Offers monthly income for at least 5 years if the remaining term is lower than 5 years
6 Section 80C and 10(10D) under the Income Tax Act, provides tax benefits for premiums paid regularly.

Benefits for Kotak Income Protection Plan 

1. Provides protection cover in lump sum and Monthly Income thereafter
2. Monthly Income increases by 6% p.a. compounding on each policy anniversary
3. Monthly Income will be provided for at least 5 years if the balance term is less than 5 years
4. Preferred rates for female lives and non-smokers

2. Kotak Preferred eTerm Plan

This plan can be bought through the website. The features of this plan are mentioned below:

1. The minimum entry age is 18 years and maximum age is 65 and the maturity age is 75 years
2. The minimum sum assured is 25 Lakhs and the maximum sum assured is limitless.
3. Offers 2 options to pay the premiums. Under the regular pay option you can pay for the entire duration of the term plan. 4. Under the limited pay option you can pay for a limited duration or can pay lump sum under the single pay premium option
5. Offers 2 types of death benefits. 1st being the Recurring Payout option and the 2nd being the Immediate Payout option.
6. Under the recurring payout option, the nominee is paid 10% of the sum assured immediately after the insured's death and the balance amount is paid annually at 6% for 15 years. Offers flexibility to convert the annual payouts in monthly installments too.
7. Entire sum assured is paid to the nominee on the death of the insured and the plan terminates under the immediate payout option.
8. Offers life cover with inbuilt waiver of basic premiums in case of Total and Permanent Disability which is again available at a lower cost.
9. Offers preferred rates in premiums for non-smokers and women life insured
10. Section 80C and 10(10D) under the Income Tax Act, provides tax benefits for premiums paid regularly.

Benefits of Kotak Preferred e-Term Plan

1. With a premium of as less as Rs. 9 per day, term insurance is one of the most affordable policies to have. Term insurance also takes care of the future of your family in case of you being critically ill, or permanently disability or in an unfortunate event of death. With multiple plan options and multiple pay-out options, you get to choose the pay as well as select benefit options for your term insurance.

2. You can decrease your life cover basis your requirements. With Kotak Critical Illness Plus benefit rider, rider sum assured is payable in case you are diagnosed with the listed 37 critical illnesses.

3. Tax savings Under Section 80C and Section 10(10D) of Income Tax Act, 1961, you may avail of tax benefits.

3. Kotak Saral Suraksha

This plan offers premiums at a very lower rate. The features of this plan are mentioned below:

1. The minimum entry age is 18 years and maximum age is 55 and the maturity age is 65 years
2. The minimum sum assured is 5000/- and the maximum sum assured is 1 Lakh
3. You can opt for a 5 or 10 years tenure depending upon your need
4. There is no requirement of medical tests for buying this plan
5. This is an offline term insurance plan
6. Offers flexibility for premium payments. You can pay a lump sum at the beginning of the policy or you can pay for a fixed duration of 5 years.
7. On the death of the insured the nominee is paid the sum assured which is higher of the sum assured or 1.25 times the single premium or 10 times the annual premiums. However the payments are limited to 105% of the aggregate premiums paid till death.
8. Section 80C and 10(10D) under the Income Tax Act, provides tax benefits for premiums paid regularly.

Benefits of Kotak Saral Suraksha

1. Low Cost Insurance: Kotak Saral Suraksha provides significant cover at a very low premium. You choose the Sum Assured at the inception in this plan to ensure adequate financial cover for your family. The benefit payable to your family in case of unfortunate death during the policy term will be 'Sum Assured on death’ which is the basis of the Premium Payment option chosen.

2. Choice of Policy term: This plan provides you the option of two policy terms. Depending upon your need, you can opt for a policy term of 5 or 10 years. The insurance cover as explained above will be applicable for this term.

3. Convenient Premium Payment Options: Premiums can be paid over a 5-year premium payment term or as a single premium. These premium payment options are available for both the policy terms of 5 and 10 years. If you opt for premium payment over the 5-year period, you can pay your premiums annually or half-yearly depending upon your income pattern and convenience.

4. Easy Sign Up: You need not undergo medical tests to avail benefits of this plan. Minimal paperwork ensures ease in applying and issuance.

4. Kotak Preferred Term Plan

This plan can be bought through the website. The features of this plan are mentioned below:

1. The minimum entry age is 18 years and maximum age is 65 and the maturity age is 75 years
2. The minimum sum assured is 25 Lakhs and the maximum sum assured is limitless
3. Offers 2 options to pay the premiums. Under the regular pay option you can pay for the entire duration of the term plan. 4. Under the limited pay option you can pay for a limited duration or can pay lump sum under the single pay premium option
5. Offers 2 types of death benefits. 1st being the Recurring Payout option and the 2nd being the Immediate Payout option.
6. Under the recurring payout option, the nominee is paid 10% of the sum assured immediately after the insured's death and the balance amount is paid annually at 6% for 15 years. Offers flexibility to convert the annual payouts in monthly installments too.
7. Entire sum assured is paid to the nominee on the death of the insured and the plan terminates under the immediate payout option.
8. You can avail the step up option wherein you can increase the insurance cover at important stages in life at a lower cost and hassle free way. For instance, in case of marriage or purchase of your 1st new house after the issuance of the policy, an increase of 50% of the original basic sum assured is allowed. For birth or legal adoption or the 1st, 3rd, 5th policy anniversary, an increase in 25% of the original basic sum assured is allowed.
9. Offers preferred rates in premiums for non-smokers and women life insured
10. Section 80C and 10(10D) under the Income Tax Act, provides tax benefits for premiums paid regularly.

Benefits of Kotak Term Insurance

1. In case of an unfortunate event of death of the life insured during the term of the plan, Nominee will receive the Sum Assured on death (on acceptance of the death claim) as per the Plan Option chosen:

2. Recurring payout- The Sum Assured on death will be payable in the following manner: Lump sum payment of 10% of Sum Assured on death, at the time of claim settlement, and 6% of Sum Assured on death every year for 15 years; the first payment being made one year after the date of death of the life insured. However, if the payouts are required in monthly mode, it can be opted by intimating at the time of claim. The monthly payments will be 8.22% of the annual payments (i.e. 6% of Sum Assured on death). The first payment will start from one month after the date of death of the life insured. In case the beneficiary would want to get a lump sum instead of regular payouts (either annual or monthly) any time after the death of the Life Insured, a discounted value of the outstanding regular payouts (either annual or monthly) shall be paid as lump sum. The discounted value shall be calculated using a discount rate of 3.0% p.a. compounding yearly.

3. Immediate payout - The Sum Assured on death will be paid immediately and the policy terminates.

4. Tax Benefits - Tax benefits are subject to conditions specified under Section 10(10D) and Section 80C of the Income Tax Act, 1961.

5. Kotak Term Plan

This is a protection plan. The features of this plan are mentioned below:

1. The minimum entry age is 18 years and maximum age is 65 and the maturity age is 70 years
2. The minimum sum assured is 3 Lakhs and the maximum sum assured is 25 lakhs
3. This is a pure term insurance plan for protection
4. This has to be purchased offline only
5. You can pay lump sum for the premiums at the beginning of the policy or for the complete tenure of the plan
6. Offers flexibility to convert your Kotak Term Plan to any other Kotak Life Insurance plan but cannot convert to another term plan again. This can be done if there are 5 years remaining before your policy ends
7. Section 80C and 10(10D) under the Income Tax Act, provides tax benefits for premiums paid regularly

Benefits of Kotak Term Plan

1. Kotak Term Plan offers the benefit of high life cover at economical prices with further reduced premiums for women. Now you can get a life cover of Rs. 15 lakhs for a premium of Rs. 199 per month only! (This premium is applicable for a 30 year old healthy male for a term of 10 years, exclusive of Goods and Services Tax and Cess, as applicable.)

2. You may convert your Kotak Term Plan to any other plan offered by Kotak Life Insurance (except for another term plan), provided there are at least 5 years remaining before the cover ceases.

3. You have the premium payment options of single and regular pay. If you opt for a regular premium payment option, you can pay your premiums annually, half yearly, quarterly or monthly.

4. Tax benefits are subject to conditions specified under Section 10(10D) and Section 80C of the Income-tax Act, 1961.

Conclusion

Kotak Term Insurance offers wide-ranging term coverage that takes care of your overheads associated with liabilities and offers a peace of mind by making arrangements for a financially secured life for your loved ones. The variety of riders offered by the term insurance plans would enhance your insurance policies at a very minimal rate. It is one of the fastest growing insurance companies.

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Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.