A term plan basically provides financial security to the beneficiary of the policyholder in a situation of policyholder’s death during the tenure of the plan. The Kotak Mahindra Life Insurance Company offers 5 term insurance plans with a wide range of inclusions, benefits, and special features. Most of the Kotak term plans can be bought online within few clicks of the mouse. Therefore, one does not have to pay much premium as compared to offline Kotak Life Insurance term plans.
Kotak Mahindra Life Insurance Company Limited
Kotak Mahindra Life Insurance Company Limited was formerly known as Kotak Mahindra Old Mutual Life Insurance Limited. It is a leading private life insurance provider of India, which was founded in the year 2001. The company has approximately 232 branches across India with 15 million customers. With its five-term insurance plans, the company ensures a policyholder to protect his/her family during various uncertainties of life. The main motto of this company is to create value than increasing the size of the business.
Types of Kotak Mahindra Term Insurance Plan
Kotak Mahindra Life Insurance Company currently offers five type of term insurance plans, a brief table of eligibility of these plans with small description thereafter is provided below:
|Plan||Policy Term||Entry Age (Minimum-Maximum)||Maturity Age||Sum Assured (Minimum-Maximum)|
|Kotak Income Protection Policy||10 years – 30 years||18 – 60 years||70 years||Assured benefit equal to 12 times the increased monthly income of the policyholder in the policy year.|
|Kotak Preferred e-Term Plan||10 years – 40 years
|18 – 65 years||28 years and 75 years||Rs.25 Lakhs – No Limit|
|Kotak Preferred Term Policy||5 years – 40 years||18 – 65 years||23 years and 75 years||Rs.25 Lakhs – No Limit|
|Kotak Saral Suraksha||5 years – 10 years||18 – 55 years||23 years and 65 years||Rs.5, 000 – Rs.1 Lakh|
|Kotak Term Plan||5 years – 30 years||18 – 65 years||70 years||Rs.3 Lakhs – Rs.25 Lakhs|
Kotak Income Protection Policy
This Kotak term plan is one of the traditional plans offered by the company. Under this plan, the nominee (family) of the policyholder gets regular monthly pay after the demise of the policyholder. Some of the most useful characteristics of this policy are:
- According to policyholder’s discretion, one can select wither select regular payment or limited payment option offered by this plan.
- The death benefit provided by this plan is equal to 12 times the monthly salary increased @6% compounded on a yearly basis is payable. After paying this benefit, a regular increase in the per month salary of the policyholder at the rate of 6% every year compounded yearly is given for the remaining tenure of the plan at least for a minimum of 5 years and depending on the policy.
- To get comprehensive coverage, one can avail the accidental disability guardian benefit rider.
Kotak Preferred e-Term Plan
An online Kotak Life Insurance term plan that offers the following benefits to its users:
- The plan offers two types of death benefit options from which an individual can choose one. These options are – Immediate Payout and Recurring Payout.
- One can pay premiums of the plan either for the whole duration under Regular Pay or under Limited Pay for the limited tenure or under Single pay option in one lump sum amount.
- If a policyholder selects a recurring payment option, in the situation of death, 10 percent of the sum assured is given instantly and the remaining amount is given in installments at the rate of 6% in 15 years. One can also avail the annual payout in the form of monthly installments.
- The non-smokers and females get preferential premium rates.
- The whole sum assured is given upon demise of the policyholder under instant payout option and the policy gets terminated after that.
- For comprehensive coverage, e-Accidental Death Benefit add-on is provided.
- The inbuilt premium waiver rider option is also available in this policy which helps an insured in the situation of permanent and total disability during the tenure of the plan. Consequently, the premiums for the future are waived off and upon the demise of the insured; the sum assured is provided according to the chosen payout option.
- Tax benefits under Section 80C and Section 10D are provided to the policyholder.
Kotak Preferred Term Policy
This is a term insurance plan of Kotak Life Insurance Company that can be purchased offline. The plan has many similarities with Kotak Preferred e-Term Plan. The main reason for the popularity of the plan is its high coverage amount in low rates of premium. The benefits and characteristics of the plan are:
- Premiums can be paid either for the complete term of the plan as per Regular Payment option, or for a specific period of time through Limited Payment, or at the commencement of this policy one can pay the premium in one lump sum amount.
- The two death benefit payout options offered by this plan are –Immediate and Recurring Payout.
- One can enhance or reduce the sum assured by using the Step Up or Step Down feature respectively of this policy. A policyholder can enhance the sum assured for up to 50% if he/she gets married or purchases the first house in India. The sum assured can be enhanced up to 25% on the birth or adoption of a child.
- The critical illness rider can be used to enhance protection.
- If the insured has selected instant payout option, then upon the demise of the insured, the policy terminated immediately and the entire sum assured is given to the nominee.
- If the policyholder has selected Recurring Payment option, then in a situation of his/her death, 10 percent of the sum assured is given instantly and the rest of the money is paid as annual installments at the rate of 6% for the next 15 years.
- The preferential rates are given to the females and non-smokers.
Kotak Saral Suraksha
This is one of the most affordable term insurance plans out of various Kotak term insurance plans. This policy is specifically designed for people who fall under the low-income group. There are two policy terms provided by this plan with a convenient term of premium payment. Some of the worth noticing characteristics of this policy are:
- An insured can pay the premiums of this plan for the tenure of five years or can give it as one lump-sum amount at the stating of the policy.
- In the situation of the demise of the policyholder, the sum assured is given to his/her nominee. The amount of sum assured is higher of sum assured or 1.25 X of the single premium or annual premium X 10 but to a minimum of 105% of the aggregate premiums that are paid until the demise of the policyholder.
Kotak Term Plan
It is a term insurance policy that is there for the protection purpose of the policyholder. This plan has multiple rider add-on options and gives the opportunity to convert a plan into other insurance plans offered by Kotak Life InsuranceCompany. The basic benefits and features of this plan are:
- An insured can pay the premium for the entire tenure of the plan or as one payment in lump-sum at the commencement of the plan.
- In the situation of the demise of the policyholder during the policy term, Sum Assured is given.
- An insured can easily convert this policy to any insurance plan except term insurance plan at least five years before the maturity.
- This Kotak Term Insurance plan offers three rider benefits – Kotak Accidental Death Benefit, Kotak Permanent Disability Benefit, and Kotak Critical Illness Benefit.
Kotak Term Insurance Plans – Exclusions
The claims of Kotak Term Insurance plans are not accepted in the following cases:
- Suicide: In the situation of the suicide of the policyholder within the 1st year of the commencement of the policy, then only 80 percent of the premiums that are paid till the demise of the insured are offered to the beneficiary.
Kotak Term Life Insurance – Claim Process
The claim process of Kotak term plans is simple and easy. Follow the below-mentioned steps for claiming the term insurance:
- Claim Registration: The beneficiary of the policyholder is required to intimate to the provider of the insurance about the claim by duly filling the claim form. All the required documents should be attached to this form of the claim. There are different claim forms provided by the Kotak Life Insurance Company, these forms are:
- Claim form for critical illness
- Claim form for terminal illness
- Accidental/ Natural death form
- Accidental disability form
The nominee of the insurance policyholder must file an appropriate form and should submit it to the Kotak Life Insurance Company’s office with other needed documents.
The claim is then registered by the Kotak Life Insurance Company and the company then provides the acknowledgment to the person who is claiming with some other claim related documents for other actions for the claim.
- Submission of the Documents: The next step in order to get successful claim approval is the submission of documents. The nominee of the policyholder can either go to any of the branches of Kotak Life Insurance Company or to company’s head office for registering the claim. The list of required documents is:
- Intimation letter
- Completely filled and duly signed claim intimation from
- Actual death certificate of the insured given by equivalent authority as the Municipality or the Municipality only
- Nominee’s bank details
- KYC of the beneficiary
- A medical certificate that contains the actual reason for death
- Policy’s original bond
- Record of the medical history of the insured
- Form for settlement option
Note: The claim settlement office of Kotak Life Insurance Company is –Kotak Mahindra Old Mutual Life Insurance Company Limited, Kotak Infiniti, Building No.21, 7th floor – Zone 2 Infiniti Park, Off Western Express Highway, General A K Vaidya Marg, Malad East, Mumbai– 400097.
- Scrutiny of the Claim and Decision Making: If there are other requirements to process the claim, then the insurance provider communicates the same to the claimant. A dedicated claim settlement team follows up and helps the claimant. This team basically tries to understand the claim’s genuineness and for the same, it scrutinizes the entire case of claim before taking any further decision or making any claim payments.
- Payment of Fund Value:After successful scrutiny of the claim, the nominee of the policyholder gets the policy’s fund value. This process occurs only in the situation of death claims.
- Payout Settlement: The insurance provider verifies all the documents of the claim as soon as they receive them. The claim verification process is completed only after receiving all the required documents. The riders of the plan and any other clauses attached to it are examined. If all the received documents are found correct according to the requirement, then the nominee gets the fund. Most of the times, the fund is provided through NEFT (National Electronic Find Transfer) to the beneficiary. Kotak Life Insurance Company ensures to be transparent in order to reduce any kind of fraud or financial issues.
Note:Most of the times, the Kotak term plan gets its claim settled within 30 days of the submission of the document.
Read more: 1 Crore Term Insurance Plans in India
Kotak Term Insurance – FAQs
Q1: What does happen if I miss paying the premium of my Kotak e-Term Insurance policy?
For all the Kotak Term Plans it is essential to pay the premiums on or before its due date. However, if one misses paying a premium within the grace period of the policy, then the policy may go to notice period mode or can be lapsed. The grace period provided by Kotak Life Insurance Company is one 30 days/ one month in a situation of yearly, half-yearly, or quarterly payment mode. In case the mode is a monthly payment, then the grace period is 15 days only from the due date of the policy premium payment.
Q2: Specify general exclusions of a term insurance plan?
Just like any other insurance plans, the term insurance policy also has some limitations or exclusions for different circumstances. Mentioned below are some common exclusion of various plans of Kotak Life Insurance Company:
- Dangerous Activities: Death due to the driving of the racing car, rock climbing, SCUBA diving, etc. are not considered in term insurance plans.
- Suicide: If the policyholder commits suicide, then the insurance provider does not cover death. There will not be any kind of compensation if the policyholder commits suicide within the first year of the policy.
- Drug Abuse and Alcoholism:Death incurred due to consumption of drugs or alcohol is not included in the term plan.
- The act of War:Death incurred due to some act of war or some natural calamities such as flood, drought, earthquake, etc. is not covered in the term insurance plan.
Q3: Can rebate be given on premiums?
All the Kotak Term Plans offer preferential premium rates for females and non-smokers.
Q4: What should I do, if I want to cancel or surrender my Kotak Term Insurance Plan?
If one wishes to surrender his/her Kotak Term Insurance Plan, then he/she has to provide relevant documents as suggested by a company with duly filled and signed surrender form. These documents can be submitted at any of the branches of Kotak. Upon successful proceedings of these documents, Kotak directly credits the bank account of the policyholder and the policy gets terminated immediately. Kotak ensures its policyholders to settle this money within 7 working days from the date when complete documents are submitted. The address of communication or Kotak Term Insurance’s head office address is –Kotak Mahindra Old Mutual Life Insurance Company Limited, Kotak Infiniti, Building No. 21, Seventh Floor – Zone II, Infiniti Park, Off Western Express Highway, General A.K. Vaidya Marg, Malad East, Mumbai – 400097.
Q5: Explain the riders offered in Kotak Term Insurance Plans?
The rider benefits offered by Kotak Term Insurance Company are:
- Critical Illness Cover: Under this rider benefit, all the future premiums are waived off if the insured encounters disability or in the situation of death due to the diagnosis of critical illness.
- Accidental Death Benefit: On the demise of the policyholder due to accidental, his/her nominee gets twice the sum assured as death benefits.
- Permanent Disability Advantage: The future premiums are waived off in the situation of permanent disability of the policyholder.