What does it do?
This term plan pays sum assured in case of unfortunate demise of the insured. The policy does not pay any maturity or surrender value. The plan provides a 'Step Up' option that allows to increase sum assured at special events, by paying additional premium. The choice to avail this option has to be specified at the time of purchase, and the premiums will be charged accordingly. The additional fee, for step up option, will be charged till 45 years of age or end of policy term, whichever is earlier.
Sum assured under this option can be increased only up to a maximum limit for each event. Also the total sum assured should be less than 3 times of the basic sum assured.
The maximum sum assured limit for marriage or purchase of a house is 50 per cent of base sum assured, birth or legal adoption of a child and the first, third and fifth policy anniversary offer 25 per cent of basic sum assured as additional coverage.
The cost of insurance will increase by 3 per cent (of basic premium) for policies with a term up to 15 years and 5 per cent for policies with a tenure longer than 15 years.
Alternatively, the policy also offers a 'Step Down' option to reduce the sum assured after availing step up option. Exercising this option will cost Rs 500 per request.
This policy can also be converted into any Kotak plan, without medical check up, if the policy still has 5 years to maturity.
Pros
The plan can be purchased online at convenience.The option to increase sum assured on events like marriage, purchase of house, birth of child or policy anniversary, without having to undergo any medical tests, takes care of increasing insurance needs.
Policyholder may convert this plan to any other plan offered by kotak except another term plan.
Women enjoy discount on premiums.
This policy eliminates agents from the sales process and passes the low cost benefit to policyholders.
Cons
Step up option has to be selected at the time of purchasing the policy and not during the term .
Highest sum assured is limited to Rs 24.99 lakhs which may serve everyone’s needs.
The policy does not offer any riders for additional coverage.
