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Kotak eTerm Plan

Objective

This online term insurance policy aims to provide financial support to the family members in case of death of the insured member. This policy offers to increase the sum assured on important events in your life.


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.


Suited for

A pure term insurance policy is a definite buy for everyone. This policy can be taken by those who can make online purchase without services of agents.


Our View

Being an online policy, this plan passes the low cost benefit to the buyers as reduced premiums. The option to increase sum assured can be availed by young buyers, yet to marry or purchase property. Non-availability of riders makes a separate health and accidental cover necessary.

Eligibility
Entry Age (years) 
Minimum18
Maximum65
Maximum Maturity Age (years)70
Policy Term (years) 
Minimum5
Maximum30
Sum Assured (Rs) 
Minimum300000
Maximum2499999
Minimum Premium (Rs) 
Yearly1800
Half-Yearly918
Quarterly468
Monthly153
Premium Payment FrequencyYearly, Half-Yearly, Quarterly, Monthly
Premium Payment TermEqual to policy term
Premium Factor (multiply with annual premium)Semi Annually: 0.51
Quarterly: 0.26
Monthly: 0.085
Policy CoverCover remains fixed throughout the policy tenure
Other Features 
Free Look CancellationIn case, you are not satisfied, you may choose to cancel the policy within 15 days of receiving the policy documents. Upon such cancellation, you will be paid back the premiums, minus the cost of stamp duty, medical reports and proportionate premium for the period for which the risk was covered.
Grace PeriodYou are allowed to pay premiums within 30 days from the due date for Yearly, Half yearly and quarterly premium payment modes and 15 days in case of monthly premium payment mode.. If a due premium is not received within the grace period of 30 days, your policy will lapse and the life insurance cover will be terminated.
Lapsed Policy ReinstatementYou can reinstate your lapsed policy any time (within 2 years from the due date of the first unpaid premium) by paying all the due premiums with interest and undergoing underwriting requirements, if any.
Tax BenefitsSection 80C, 10(10D) of the Income Tax Act, 1961 would apply.Premium paid is eligible for tax deduction as per current income tax act.
ExclusionsIn case of death by suicide during the first policy year, or within one year from the date of reinstatement, no death benefit is payable.
Customer Service 
AddressKotak Mahindra Old Mutual Life Insurance Ltd.
4th Floor, Vinay Bhavya Complex,
159 A, C.S.T. Road, Kalina,
Santacruz (East),
Mumbai - 400 098
Mail To[email protected] 
Call On1800 209 8800
SMSKLIFE to 5676788
Annual Premium Option for Male
Policy Term (in years)Age (in years)
253035404550556065
52417255430884284637110004160472673838590
1024172554308842846371100041604726738NA
15243426563343483173031172119061NANA
202485284337175491852313807NANANA
2526043081418463159933NANANANA
302740336847237257NANANANANA
Figures indicate premiums on a Rs 20 lakh policy across different age over different policy tenures exclusive of service tax.
Annual Premium Option for Female
Policy Term (in years)Age (in years)
253035404550556065
5219822982692361452137958125642072430053
102198229826923614521379581256420724NA
1522152366287940055854921214829NANA
202249248531514473676810809NANANA
2523172672346050947852NANANANA
302419287638795813NANANANANA
Figures indicate premiums on a Rs 20 lakh policy across different age over different policy tenures exclusive of service tax.
Premium for Step Up Option
In case applicant takes Step Up Option at the time of purchasing the policy, he has to pay a fees over and above the base premium. . For an instance, a 30 year old healthy male has to pay an additional premium of Rs 85 p.a for taking the Step Up option for Base Sum Assured of Rs 20 lakh and policy term of 10 years. Similarly, he has to pay Rs 157 p.a for a 20 year policy term.

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