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Kotak Term Plan

Objective

This is an offline term insurance policy that aims to help the family members tide over a financial crisis on death of an insured member.


What does it do?

This term plan pays sum assured to the nominee on unfortunate demise of the insured. Policyholder can convert this plan to another plan offered by Kotak (except term plan), provided the policy has 5 years to maturity.
Single premium policyholders can surrender their policy in case of an emergency. The surrender value is calculated as per a pre specified formula.


Pros

Women get lower premium rates. Single premium policies can be surrendered in case of an emergency.
Policyholder has an option to convert the plan.


Cons

Maximum sum insured is limited to Rs 25 lakh, which may not be sufficient for everyone.
Riders cannot be added during the policy term, but only at the time of purchase.


Suited for

This is an offline policy hence suitable for those who prefer traditional channels to buy insurance protection up to Rs 25 lakh.


Our View

A term plan provides adequate coverage at a low price. If you cannot buy a policy without agent’s assistance, you may take this policy. However, if you are comfortable with online purchases, look for online policies as they have lower premium rates.

Eligibility
Entry Age (years) 
Minimum18
Maximum65
Maximum Maturity Age (years)70
Policy Term (years) 
Minimum5
Maximum30
Sum Assured (Rs) 
Minimum300000
Maximum2499999
Minimum Premium (Rs) 
Yearly2000
Half-Yearly1020
Quarterly520
Monthly170
Single12000
Premium Payment FrequencySingle, Yearly, Half-Yearly, Quarterly, Monthly
Premium Payment TermSingle, equal 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.
Surrender ValueAllowed to Single Premium Policyholders. It is calculated as: 75% x Premium paid x (1-1/ Policy Term) x Outstanding Policy Term/ Policy Term
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
Available Rider(s)Kotak Accidental Death Benefit (ADB): covers death due to accident within 120 days of the accident.
Kotak Permanent Disability Benefit (PDB): Policyholder receives five annual installments of 12 % of sum assured as rider benefit. To claim this rider benefits, policyholder should survive at least for 120 days from date of the accident. Permanent Disability includes-
permanent and immediate inability to work
permanent loss of use of any two limbs and
total and permanent loss of sight due to an accident
Kotak Critical Illness Benefit (CIB): covers critical illnesses namely: Heart attack (MI), Cancer, Stroke, Coronary artery by-pass graft surgery, Kidney failure, Major organ transplants, Paralysis, Loss of limbs, Aorta Surgery, Major burns, Heart valve surgery, Blindness.
Rider Conditions 
Entry Age (years) 
Minimum18
Maximum60
Maximum Maturity Age (years)70
Rider Term (years) 
MaximumEqual to base policy term
Sum Assured (Rs) 
MaximumAccidental Death Benefit : equal to basic sum assured or Rs 10 lakhs whichever is lesser
Permanent Disability Benefit : equal to basic sum assured or Rs 10 lakhs whichever is lesser
Critical Illness Benefit : 50% of basic sum assured or Rs. 20 lakhs whichever is lesser
Rider Premium (Rs)Rider premiums vary for each policyholder. For instance, if a 30-year old opts for the ADB rider and Accidental Total and PDB Rider for Rs 5 lakh sum assured over a 10 year tenure; the annual ADB rider premium works to Rs 882 or Rs 1,745 in case of a single premium plan and the annual Accidental Total and Permanent Disability Benefit rider premium works to Rs 441 or Rs 1395 in case of single premium payment plan. Similarly, Critical Illness benefit of 5 lakh for a policy tenure of 5 years costs Rs2537 per annum
Annual Premium Option for Male
Policy Term (in years)Age (in years)
253035404550556065
52731292835915125779312576203933348752352
1027312928359151257793125762039333487NA
15273029963835570887961435323327NANA
2027823172427764671019816601NANANA
25286734694834744111772NANANANA
303044383254978507NANANANANA
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
52426256630834266632010003160372611441273
1024262566308342666320100031603726114NA
15242626003219465570031128018148NANA
202426271935385211803912959NANANA
2524942927393559259256NANANANA
302602318744386745NANANANANA
Figures indicate premiums on a Rs 20 lakh policy across different age over different policy tenures exclusive of service tax.

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