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Kotak Life Term Insurance Plans

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An attractive product in the bouquet of insurance products from Kotak Life Insurance is Kotak Life Term Insurance, which is a protection plan offering pure life risk cover. In other words, Kotak Life Term Insurance Plans are designed for the future financial protection of the family, in case the policyholder, unfortunately, dies during the policy term leading to disastrous financial consequences. Every Kotak Life Term Insurance Plan provides comprehensive inbuilt features to provide cover for all possibilities and protect the family in the absence of the policyholder.

What is the Kotak Life Term Insurance Plan?

As already discussed above, Kotak Life Term Insurance is designed as an essential protection tool of financial planning, which provides a death benefit to the beneficiary in the event of the unforeseen demise of the policyholder during the policy term. The primary redeeming feature of Kotak Life term plan is the considerable sum assured at affordable premium rates to enable dependents to maintain the existing lifestyle, liquidate liabilities, meet life stage milestones related to the dreams and aspirations of the family and added flexibility to choose the mode of final payout to suit individual needs.

Why Should You Choose Kotak Life Term Insurance Plan?

The primary reason for choosing the Kotak Life Term Insurance Plan is its good conformity to the policyholder of pure risk cover protection plans. Since it has no savings component, there is no provision for profits and wealth creation factors involved. This makes it more affordable as compared to traditional life insurance products. Key points to note are:

  • High-Risk Coverage

    The foundation of any Term Plan is the high life risk coverage offered against a meagre premium. For a person at 30 years, opting for a cover of Rs.1 Crore for a 30-year term is more feasible as with a Kotak Life Term Insurance Policy.

  • Facility to Add Riders

    Base Sum Assured can be augmented with the additional coverage provided by a range of riders to suit individual preferences. Kotak Life Term Insurance offers riders that cover critical illness, accidental death as well as disability suffered in an accident.

  • Innovation

    Kotak Life Term Insurance Plans offer a range of innovations to cater to specific requirements of individuals with customization for their convenience. The host of benefits include a discounted premium for non-smokers and women, coupled with ease of buying online at an attractive price.

Types of Kotak Life Term Insurance Plans

The portfolio of Kotak Term Insurance comprises products with a wide range of flexible features. It is designed with distinctive flavours of payout to match individual requirements, so that maximum benefit is accrued to the dependent. 

Different types of Kotak Life Term Insurance Plans can be generalized in the following, which are incorporated in different options in their Term Plans:

  • Level Term Insurance Plan

    This Term Policy features a fixed premium for the base sum assured for the entire policy term.

  • Increasing Term Insurance Plan

    In this plan, the sum assured increases every policy anniversary until the agreed-upon cap is reached, though the premium remains fixed for the entire policy term.

  • Decreasing Term Insurance Plan

    In this policy, the sum assured keeps reducing every policy anniversary until the term ends. The premium for this policy is lower than others.

  • Convertible Term Plans

    It offers a unique opportunity to convert the Term Plan into other life insurance products if the policyholder so desires. The choice includes Whole Life and Endowment Plan options but not another Term Plan.

  • Term Plans with Riders

    Addition of cover for critical illnesses, disability, or accident is done through the choice of riders. The add-on facility comes with an additional premium to be paid at the point of purchase.

Kotak Life Term Insurance Plans - Five-term plan products in their portfolio with described characteristics.

  • Kotak Term Plan: It is designed to protect the financial future of the policyholder’s family in the event of his/her unfortunate demise during the policy term. The beneficiary is paid the entire sum assured as a death benefit to tide over the financial crisis
  • Kotak e-Term Plan: It is offered for online purchases and is embellished with the regular features and much more of a typical term plan. It provides a comprehensive life cover customized to the specific needs of every policyholder

  • Kotak Saral Suraksha: It is a low-cost term plan offering multiple premium payment options to choose from

  • Kotak Preferred Term Plan: The policyholder has the flexibility of payout options to choose from meeting specific individual preferences. The options are Recurring or Immediate payout as a death benefit. It also comes with a step-up or step-down option making the term plan flexible

  • Kotak Income Protection Plan: The payout in this term plan is dual – a regular income as well a lump sum as a death benefit. Furthermore, the monthly income is designed to be incremental at 6% annually

Features of Kotak Life Term Insurance Plans

Having learned about the different features and characteristics of Kotak Life term Insurance Plans, it is imperative to learn more about them in specific term plans: 

The key features of Kotak Term Plans are as follows:

  • Nominally Priced: The premiums are low with additional discount at preferential rates for female lives
  • Multiple Premium Payment Option:  One has the choice of Single or Regular / Limited Premium Payment option. For the latter, again there is flexibility for the choice of frequency

  • Conversion: The term plan comes with additional flexibility to convert it into another life insurance product barring a term plan, at least five years before the end of the policy term

  • Addition of Riders: The term plan offers the benefit of the addition of Critical Illness, Permanent Disability, and Accidental Death riders to suitably enhance the coverage against an additional premium

Other Features of Kotak Term Plan at a Glance:

Kotak Term Plan
Parameters Minimum Maximum
Policy Term Five years 30 years
Annual premium Rs 2000 Based on the sum assured
Single premium Rs 12,000 Based on the sum assured
Basic sum assured Rs 3 Lakh Rs 24,99,999
  • Kotak e-Term Plan

    It is a term plan that offers comprehensive protection to the dependents, and to top it all, it can be purchased online at preferential rates with the broadest possible options available. Some of the key features of this term plan are: 

    Features: 

    Key features of Kotak e-Term Plan are as follows:

    • High Sum Assured: It offers the highest sum assured at an affordable price
    • Multiple Options to Offer: The term plan offers three specific options to choose from:
    • Life Option: The death benefit paid to the beneficiary is full, and 100% of the sum assured
    • Life Plus Option: Subject to a limit of Rs.1 Crore, the beneficiary shall be paid 100% of the sum assured in the event of accidental death, in addition to the normal death benefit
    • Life Secure Option: Waiver of premium is applied on permanent disability suffered in an accident. Continued life cover till the end of the policy term remains unchanged
    • Multiple Payout Options: There are three options in this category to suit the needs of the family. 
    • Immediate Payout: A lump sum payment of sum assured on demise terminates the policy.
    • Level Recurring Payout: The claim is settled as a payout of 10% of the sum assured plus 6% of the sum assured to be paid annually for the next 15 years. 
    • Increasing Recurring Payout: The initial payment on claim settlement is 10% of the sum assured, followed by 6% of the sum assured at the end of the first year. After that, the beneficiary will be paid incremental 10% per annum at a simple rate for 15 years, beginning from the end of the first year.
    • Step-Up Option: It can be exercised in different life stages to suit the need of the policyholder. However, it is restricted to online purchase plans only. The different applicable rates of increase in Sum Assured of step-up are:
    • Marriage: 50% of the Basic Sum Assured
    • Purchase of House: 50% of Basic Sum Assured limited to the loan amount
    • Birth or adoption of a child: 25% of Basic Sum Assured
    • Step-Down Option: It can be exercised only once during the policy term to match the varying responsibilities.
    • Enhance Cover through Customized Riders:  The term plan offers a choice between the following three riders
    • Kotak Critical Illness Plus Benefit covering 37 illnesses
    • Kotak Permanent Disability Benefit
    • Kotak Accidental Death Benefit
    • Preferential Rates: Special rates are offered to non-smokers and women applicants
  • Other Features of Kotak e-Term Plan at a glance

    Some more features of Kotak e-term plan are as follows:

    Kotak e-Term Plan
    Parameters Minimum Maximum
    Policy Term Five years Up to 40 years or 75 years - Age at entry
    Premium Payment Option Regular, Limited, and Single pay
    Premium Payment Mode

    Single, Annual, Half-yearly, Quarterly, Monthly

    **Half-yearly and quarterly not applicable to the online channel

    Basic Sum Assured Rs 25 Lakh Subject to Underwriting

Benefits of Kotak Life Term Insurance Plans

Kotak Life Term Insurance Plans offer a host of benefits to the policyholder to make their term plans an attractive tool for financial planning. Some of the key benefits are:

  • The term plans are designed to be a reliable financial security instrument for the family in the absence of the policyholder
  • The high death benefit can help liquidate all outstanding financial liabilities

  • It assures the dependent of a means to absorb and overcome the financial trauma caused by the unfortunate demise of the policyholder

  • A suitable term plan provides the dependents of the policyholder with a respectable lifestyle and also allows them to pursue their dreams and aspirations

  • Like all life insurance products in India, Kotak Life Term Insurance Plans are also eligible for tax savings as per the provisions of the Income Tax Act, 1961

Accordingly, the total premium paid in a financial year is tax-exempt under Section 80C up to a limit of maximum Rs 1.5 Lakh. The Premium component paid for critical illness cover is exempt under Section 80D. Death benefit received by the beneficiary is exempt under Section 10(10D). All these exemptions are subject to the governing rules of the said Act.

Documents Required to Apply for Kotak Life Insurance Term Plans

The documents required by Kotak Life Insurance plans aim to ascertain and confirm the antecedents of the policyholder. The basic requirements can be listed below as standard and indicative only.

  • Proof of Identity: Any valid photo ID card like EPIC, Aadhaar, PAN, Driving License, Passport, etc. are entertained
  • Proof of Date of Birth: Any of the valid ID cards with the information about the date of birth

  • Address Proof: Any valid ID card with address or other accepted valid, current bills like Electricity, Telephone, etc.

  • Income Proof: These are determined by the status of the purchaser. For the salaried, latest Form 16, Salary Slips of the previous three months and the latest ITR may suffice.

While these documents are specific to domestic customers, Kotak Life Insurance also extends the term plan purchase facility to NRIs. The documents required for such NRI customers in addition to the ones applicable to domestic customers are:

  • Proposal form
  • Attested copy of passport

  • Documents certifying health condition

  • First premium

Inclusions and Exclusions of Kotak Life Term Insurance Plan

It is extremely important to scan through the policy documents to check for all the inclusions and exclusions so that the death benefit is not affected adversely at the time of claim settlement. While the features of the term plan adequately cover for the inclusions, it is the exclusion part that requires additional attention. Some of the critical exclusion points to consider are:

  • Suicide

    • If the policyholder commits suicide within 12 months of the commencement of risk, then the beneficiary is paid 80% of the paid premium
    • If the act occurs after 12 months, then the following conditions apply:
    • If the revival is within six months of the due date and the act is within 12 months, the exclusion will not apply, and the beneficiary will be paid the full death benefit
    • If the act is within 12 months of the revival but after six months of the due date, the beneficiary will be paid only 80% of the paid premium
    • In the case of suicide within 12 months of step-up option, the additional sum will not be entertained, and the original sum assured will be paid out
  • Accidental Death Benefit

    Exclusions will apply in the following cases under this benefit:

    • Intentional self-inflicted injury
    • Under the influence of intoxicants like alcohol, drugs, etc.
    • Indulgence in illegal activities of criminal intent
    • Activity in military operations in peacetime
    • In times of war, invasion, insurgency or similar hazards
    • Indulgence in extreme sports
    • Nuclear or biological warfare
    • Suicide will exclude this benefit
  • Permanent Disability Benefit

    • If it is considered to be pre-existing
    • Self-inflicted injury
    • Under the influence of intoxicants
    • Acts of war or hostilities
    • Indulgence in hazardous activities, including extreme sports, flying, etc.

Eligibility Criteria to Apply for Kotak Life Term Insurance Plans

The most important factor that involves meticulous planning is to look for the eligibility criteria and ascertain if it fits the bill for adequate protection. While it is essential to look for eligibility, it also makes sense to check out all the features of the term plan to make the purchase worthwhile and best suited to the needs of the dependent family.

Name of Plan Entry Age Maturity Age
Kotak Term Plan 18 to 65 years 70 years
Kotak e-Term Plan 18 to 65 years 28 to 75 years
Kotak Saral Suraksha 18 to 55 years 23 to 65 years
Kotak Income Protection Plan 18 to 60 years 70 years
Kotak Preferred Term Plan 18 to 65 years 23 to 75 years

Claim Process of Kotak Life Term Insurance Plans

An essential aspect for any insurance provider is the mechanism to handle the claim settlement process to make it a seamless experience to the beneficiary. It helps to ease the shock of the demise of the policyholder or any other event necessitating the claim. Kotak Life Insurance has achieved an impressive claim settlement ratio in the FY 2018-19 at 97.40%. The claim settlement process can be spread over a few steps in a hassle-free environment. 

Claim Intimation: It is the first step that can be done either online or offline. The latter can be at the nearest Kotak Life Insurance Branch or the Claims Department directly. 

It is essential to procure the proper claim form depending on the kind of claim to be lodged.

Submission of Documents: Once the claim is registered, the requisite documents are required to be submitted:

  • Appropriate Claim Intimation Form
  • Policy document

  • Death Certificate from the appropriate authority

  • Medical Records of the deceased certifying cause of death

  • Post-mortem report if applicable

  • KYC documents of the beneficiary

  • Bank details of the beneficiary

  • Settlement Option Form

Claim Scrutiny, Evaluation, and Approval: The genuineness of the claim is ascertained by a dedicated claims team. On evaluation, if the claim is found in order, the payout is approved.

Claim Settlement: The final stage is the payout executed electronically through NEFT.

Kotak Term Insurance Renewal Process

All Kotak Life Term Insurance Plans other than Single Pay type are liable to lapse if the premium is not paid on the due date or within the applicable grace period. A lapsed policy can be revived with the restoration of risk cover as per revival terms. The grace period in Kotak Term Plans is 15 days for monthly mode and 30 days for all higher frequency modes.

How to Buy Kotak Life Term Insurance Plan?

The best way to purchase the term plan is the online mode, which helps in comparing different plans and their options. To buy online, one needs to use the insurance calculator and wait for the quote. The process involves the following steps:

  • Step 1: Enter personal details including lifestyle parameters
  • Step 2: Based on requirement sum assured, policy term, and premium payment term can be chosen

  • Step 3: Select any of the plan options, among the three available on the website

  • Step 4: Select the appropriate payout option

  • Step 5: Choose the premium payment mode

  • Step 6: Choose the optional rider to suit the individual need

  • Step 7: Receive the quote and make payment to complete the online process

Alternatively, one can opt for the offline mode to request for an advisor or a call back by expression of interest at the following toll-free number: 1800 209 8800

Kotak Life Term Plan - FAQ

Written By: Paisawiki - Updated: 22 September 2020