Kotak e-Term Plan is a pure risk cover term plan. It is truly an affordable means of providing the insurance holder’s family with a certain level of financial protection. The plan also offers special premium rates to women as well as non-tobacco users. In the event of death of the insured during the policy tenure, her/his nominee will receive the death benefit as per plan option selected by the insured at the time of buying the policy.
Kotak e-Term Plan also offers the option to the insurance holders to enhance their coverage against total and permanent disability, accidental death, etc. Furthermore, there is also an option to choose additional cover through Kotak Critical Illness Plus Benefit Rider and Kotak Permanent Disability Benefit Rider by paying additional premiums at a nominal rate.
Kotak e-Term Plan – Overview
Kotak E-Term Plan is a pure term plan offered by Kotak Life Insurance Company available on its online portal. It means that this policy can be bought without any agent intervention and therefore, has low and affordable premiums.
In this plan, the beneficiary gets the sum assured as death benefit in the case of sudden/early demise of the insurance holder within the policy tenure. However, nothing would be paid to the insured if s/he survives the policy tenure.
Eligibility Criteria for Kotak e-Term Plan:
|Entry Age||18 years||65 years|
|Maturity Age||23 years||75 years|
|Policy Term||5 years||40 years|
|Premium (in INR)||Varies depending on different factors like age, gender & lifestyle (Tobacco / Non-Tobacco consumption) of the insurance seeker||No Limit (proportional to basic sum assured)|
|Sum Assured (in INR)||Rs 25,00,000||No Limit|
|Premium Payment Options||Single, Yearly and Monthly (Half-yearly and quarterly mode is only available for offline policy purchase)|
Benefits & Features of Kotak e-Term Plan:
- Plan Options
There are 3 different Plan Options to choose from under this plan. One can choose any one of the three plan options at the time of inception of the policy. Here, it’s important to understand that once the plan option is chosen, it cannot be changed later on.
- Life Option: Under this plan option, the beneficiary will receive sum assured in case of sudden death of the life insured during the policy tenure.
- Life Plus Option: Under this plan option offered by Kotak e-Term plan, the beneficiary will receive sum assured plus Accidental Death Benefit in case of sudden death of the life insured during the policy tenure.
- Life Secure Option: Under this plan option offered by Kotak e-term plan, the beneficiary will receive sum assured plus Waiver of Premium on Total and Permanent Disability in case of sudden death of the life insured during the policy tenure.
|Life||Life Plus||Life Secure|
|Natural Death||100% of sum assured paid as the death benefit||100% of sum assured paid as the death benefit||100% of sum assured paid as the death benefit|
|Accidental Death||100% of sum assured paid as the death benefit + Accidental Death Benefit (subject to maximum of Rs 1 crore)|
|Total & Permanent Disability (TPD)||Not Applicable||Waiver of Premium on Total and Permanent Disability (TPD)|
- Death Benefit :
In case of a sudden or early demise of the life insured during the policy tenure, the benefit payout will vary depending upon the plan option chosen by the policyholder as mentioned above. Additionally, the nominee will receive the sum assured as listed in the below table:
|For Regular & Limited Premium||For Single Premium|
|Sum assured on death will be higher of the following:|
|Sum Assured||Basic Sum Assured|
|11 X Annual Premium||1.25 X single premium paid|
|105% of all the premiums paid till date of the death of the insured||NA|
- Step-Up Option:
Under the regular premium-paying option, one can go for Step-Up option at the time of inception of the policy. With this option, the insured gets an access to additional insurance cover at specific life events.
This option allows the policyholders to increase their basic sum assured amount without any need to undergo further medical examinations. The below-enlisted table consists of important life events where the insurance holders can exercise the step-up option and the related increase limits in basic sum assured:
|Life Events||Limits of Increase in the Basic Sum Assured|
|Marriage||50% of Basic Sum Assured|
|Buying the first house||50% of Basic Sum Assured|
|Birth/Legal Adoption of a child||25% of Basic Sum Assured|
|On the completion of 1st, 3rd and 5th policy anniversary|
- Step-Down Option
Under the regular premium paying options, the insurance holders can step down to a lower cover provided the new chosen cover is the minimum amount of cover available in the plan and they are able to fulfil the below terms & conditions:
- Step-down option can be put into effect at any point of time during the policy tenure. However, it will only be effective from the next premium payment date. Please note that this option can only be exercised only once and the new premium amount will be recalculated based on the revised sum assured.
- A fee of Rs 500 will be applicable for choosing step-down option.
- Step-Down Option can only be put into effect if:
- It has not been opted under the plan or
- It has been opted under the plan but it hasn’t been exercised yet.
- If the new sum assured amount is less than the rider sum assured due to exercising the step-down option, the Rider Sum Assured will be automatically lowered as per Rider terms and conditions, to the extent of revised Sum Assured.
- Riders: Get Additional Protection
a) Kotak Critical Illness Plus Benefit Rider (UIN: 107B020V01):
The rider sum assured will be paid on diagnosis of any one of the 37 critical illness listed in the policy document.
b) Kotak Permanent Disability Benefit Rider (UIN: 107B002V03):
Under this rider, the life insured will receive 120% of the Rider Sum Assured over a period of 5 years. This rider is not available for ‘Life Secure’ Option and online channel purchase mode.
- Tax Benefit:
Kota e-Term plan offers tax rebate us/s 80C & Section 10(10D) of Income Tax Act, 1961. Here, it’s important to realize that tax benefits are subject to change as per prevalent tax laws at the time of buying the policy.
FAQs of Kotak e-Term Plan:
Q1) What are the different options available for premium payment with Kotak e-Term Plan?
Kotak e-Term plan simplifies your premium payment process by providing the most convenient payment options, viz.:
- National Electronic Fund Transfer (NEFT)
- Electronic Clearing Services (ECS)
- Standing Instruction
- Direct Debit
- Credit Card
- Debit Card
- Online Payment through Internet Banking
- Mobile – Immediate Payment Service (IMPS)
- Bill Desk
- Electronic Bill Payment
- Kotak Mahindra Bank ATM Drop Boxes
- Payment at Branch Offices
- Postal money order
- Bank Guarantee
Please note that Postal money order & Bank Guarantee options are currently in progress and are not available yet for the customers.
Q2) How to register a service request with Kotak e-Term Plan?
You can perform minor changes on the online portal of the company like the name change, address, fund switches requests, etc.; whereas major changes request need to be submitted at physical branches of the company.
Q3) Where to contact about submitting a death claim for Kotak e-Term plan?
You can directly contact the company at 022-66057280 (from 8:00 am to 10:00pm) for your claim queries.