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  • Kotak Credit Term Group Plan

    Kotak Life Insurance


    The Kotak Credit Term Group Plan is a group life insurance plan aimed at credit institutions such as banks, retail financing companies etc. to cover groups of borrowers so that institutions can offset the risk of default in the unfortunate case of a borrower’s death. The plan will also help the borrower’s family by relieving them of the financial burden of a loan. This is a cost effective plan that will help lenders to competitively price their products on the back of greater financial security. The medical examination norms are relaxed in some cases while the non-medical cover limit varies as per the loan tenure, age of borrower and loan type. The plan is offered by Kotak Life Insurance.

    Eligibility Conditions of Kotak Credit Term Group Plan

    Entry Age

    • Minimum – 18 years
    • Maximum – 64 Years

    Maturity Age

    Maximum – 65 years

    Sum Assured

    • Minimum – Up to original value of loan
    • Maximum – No limits (as per t&c of group insurance plan)

    Key Features of Kotak Credit Term Group Plan


    Group term insurance


    Death Benefit – In the unfortunate event of death during the policy term, the member shall receive Sum Assured equal to the outstanding loan amount (or original loan amount).



    Premium paying term

    1 year (renewable annually)

    Premium paying modal factor

    Yearly – 100%

    Monthly – 8.5%

    Premium payment frequency

    Yearly and Monthly


    • Premium to be paid within 7 days of due date
    • Plan can be renewed within 31 days of first unpaid premium
    • Interest shall be applicable on overdue premiums



    Policy termination

    Policy will terminate at the earliest of:

    • Full loan repayment date
    • Borrower attains maturity age as per policy contract
    • Loan expiry date
    • Contract termination date as per loan contract
    • Premium stopping date of member

    Free Look Period

    15 days free look period is offered wherein a policyholder may return the policy if he/she is not agreeable to terms and conditions of the plan. Refund of premium will be processed after adjustments for stamp duty, medical examination and proportionate risk premium for period covered.

    Advantages of Kotak Credit Term Group Plan

    Tax Benefits

    Tax benefits are available under Section 80C (tax deduction for borrowers) and Section 10 (10D) (tax free benefits for borrowers) of the Income Tax Act, 1961. The credit institution may also be eligible for tax deductions as premium paid could be considered as business expenses. Service tax shall be applicable over and above premium paid. You should consult your tax advisor for more details.


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    Benefits of Kotak Credit Term Group Plan

    For borrowers

    • Low cost product as group cover allows for pooling of risk
    • Convenient and hassle free documentation
    • Relaxed medical exam norms in some cases
    • Life cover available 24/7 around the world

    For credit institutions

    • Removes risk of default in unfortunate case of borrower’s death
    • Competitive pricing of credit products
    • Cost effective due to group pricing as well as premium recovery from the customer
    • Hassle free administrative procedure


    • Dedicated customer relationship manager
    • Comprehensive support from centralized Group Operations Team
    • Centralized customer support
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