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Kotak Preferred Term Plan

Objective

This is an offline term insurance policy that aims to help family members avoid a financial crisis which could hit the family on death of the breadwinner.


What does it do?

This term plan pays sum assured to the nominee on unfortunate demise of the insured. Policyholder can convert the policy into another plan offered by Kotak (except another term plan), provided the policy has 5 years to maturity.
Single premium policies can be surrendered in case of an emergency. The surrender value will be calculated on the basis of a pre specified formula.


Pros

Women and non-tobacco users can avail reduced premium rates.
Policyholder has an option to convert the plan.


Cons

Riders can be added only at the time of purchasing the policy.


Suited for

This is an offline policy hence is more useful for those who prefer to buy through traditional channels like agents.


Our View

Term plans are the best kind of life insurance available. 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.
Although there is a single premium option available in the plan, which also comes with surrender value, we would recommend you to avoid it. Single premium plan may prove to be expensive as compared to regular premium payment option as you lock-in a large amount for a fixed cover. The reason we say this is because in case something goes wrong in early years of the policy, you have already paid a huge chunk of amount as premium to the insurance company.

Eligibility
Entry Age (years) 
Minimum18
Maximum65
Maximum Maturity Age (years)70
Policy Term (years) 
Minimum5
Maximum30
Sum Assured (Rs) 
Minimum2500000
MaximumNo limit
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): Death due to accident within 120 days of the accident.
Kotak Permanent Disability Benefit (PDB): Rider benefit is paid if life assured becomes permanently disabled due to an accident. Policyholder receives five annual installments of 12 % of sum assured. 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
total and permanent loss of sight due to an accident
Kotak Critical Illness Benefit (CIB): It 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
544054565536573401055516170259604320063700
10440545655365734010555161702596043200NA
154405463557158135120701910031255NANA
2044204930641093651439523145NANANA
254595543573451106017305NANANANA
3049406075858513155NANANANANA
Figures indicate premiums on a Rs 40 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
53845395045656110851512755201603321549125
1038453950456561108515127552016033215NA
15384539804780662595751487024065NANA
2038454155525074951126017930NANANA
25394045155930874013515NANANANA
3041654995685010365NANANANANA
Figures indicate premiums on a Rs 40 lakh policy across different age over different policy tenures exclusive of service tax.

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