Unfortunate events and untimely deaths put a lot of trauma and financial distress to those dependent on the breadwinner. Kotak Term Plan is a pure risk cover plan that ensures that adequate financial protection is provided to your family in the event anything happens to you. The life cover is paid to the beneficiary in the event of your unfortunate death. This way you will be sure that your family is financially secure even in your absence. This plan also ensures that enough provisions are made to pay out your financial liabilities in the event you are not around.
Features of Kotak Term Plan
The features of Kotak Term Plan are as follows:
- The insurance cost is low and provides you significant cover at economical prices. Women can further enjoy reduced premiums.
- The plan can be converted to any other plan that is offered by Kotak Life Insurance other than term plan provided that there are at least 5 years remaining till the plan matures.
- The premiums can be paid either one time or through regular pay. If you choose regular pay, then you can pay premiums annually, half yearly, quarterly or on a monthly basis.
- You get the option to avail riders with this plan. The rider available are:
- Kotak Accidental Death Benefit
- Kotak Permanent Disability Benefit
- Kotak Critical Illness Benefit
- The minimum sum assured is Rs.3 lakh and the maximum sum assured is Rs.24,99,999
- You get 30 days grace period to pay the premium due.
- 15 days free look period is offered and 30 days for policy solicited through distance marketing channels to return the policy if you are not happy with it.
- You can surrender the policy if you have chosen single premium payment option.
Benefits of Kotak Term Plan
The benefits of Kotak Term Plan are as follows:
- Death benefit payable is the sum assured less the balance of the premium payable in the year of death.
- You can add the riders to get lump sum benefit payable on accidental death, instalments payable if you become disabled and portion of sum assured will be paid in advance if you are diagnosed with a critical illness.
- You can avail tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, 1961.
Eligibility Criteria of Kotak Term Plan
The eligibility criteria for this plan are as follows:
- The minimum age at entry is 18 years and the maximum age at entry is 65 years.
- The maximum age at maturity is 70 years.
- Minimum annual premium is Rs.2,000 and for single premium the minimum premium allowed is Rs.12,000. The maximum premium is based on the sum assured.
Example of Kotak Term Plan
Mr. Sood is a 25 year old techie and he wants to take a Kotak Term Plan for a sum assured Rs.15 lakh. He can choose from the 4 policy term available.
If he chooses a 10 year or 15 year policy term, then his premium will be Rs.2,196. If he chooses 20 years as the policy term, his premium will be Rs.2,232 and if he chooses 25 years policy term, then his premium will be Rs.2,292. He gets death benefit with this plan. In the event he dies during the policy term, his dependent will get sum assured less the balance of the premium payable on the year of his death.
- What are the policy term offered in this plan?
The policy term offered are 5 or 30 years.
- What is the sum assured offered?
The minimum sum assured offered is Rs.3 lakh and the maximum sum assured is Rs.24,99,999.
- Is single premium plan offered with Kotak Term Plan?
Yes, single premium plan is available with this policy. The minimum amount that one can take the single premium is Rs.12,000.
- Are there riders available with this plan?
Yes, you get three riders with this plan. Kotak Accidental Death Benefit, Kotak Permanent Disability Benefit and Kotak Critical Illness Benefit.
- Can I surrender my Kotak Term Plan policy?
Yes, you can surrender the policy if you have chosen the single premium payment option.
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GST of 18% is applicable on life insurance effective from the 1st of July, 2017