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.
Alternatively, the policy also offers a 'Step Down' option which reduces the sum assured.
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 and non-tobacco users can avail discount on premium.
This policy eliminates agents from the sales process and passes the low cost benefit to policyholders.
Premiums paid towards the policy qualify for taxation benefits.
Cons
There are no riders for additional coverage.
