Kotak Term Insurance

Kotak Term Insurance

What is Term insurance?

Term insurance is a form of life insurance offering cover for a period of time. The purpose of any term insurance is to provide financial coverage to the policyholder/beneficiary in case of any misfortune or incident. Getting term insurance in short ensures the financial help and support your family gets in your absence. Term insurance is being popular these days due to the various benefits it may offer. 

What is Kotak term insurance?

Kotak Life Insurance Company offers various term insurance plans, each having a different set of features and benefits. In this article, we will be discussing some of the popular term insurance plans being offered by Kotak with their eligibility and features.

1. Kotak e-term Plan

The Kotak e-term plan is a pure risk cover plan providing financial benefits in case of misfortunes. In this plan, the financial benefits are given to the family of the policyholder in case of his/her death. It also offers special premium rates to those men and women who don't consume tobacco. This is a convertible term plan which can be converted into any of the other plans offered by Kotak, at least 5 years prior to maturity. 

Eligibility: 

Key features: 

• Flexible premium payment options offered: There are two options for the payment of premium. First, the premium can be paid in a single mode at the starting of the term or it may be paid at regular intervals over the policy years, whichever is convenient to the customer. In the latter, there is an option of payment on a monthly, quarterly, half-yearly, or yearly basis offering a high level of flexibility.

• Plan Conversion option: This term plan can be converted into any other plan offered by Kotak, before the last 5 years to maturity.
• Critical Illness Rider: The life assured can claim for critical illness rider in case of being diagnosed any of the listed 37 illnesses.
• Step-up option: Under regular premium payment mode, one may opt for the step-up feature of Kotak e-term plan which offers additional insurance covers for some specific events.

2. Kotak Saral Suraksha

Kotak Saral Suraksha is a term insurance plan offering cover at a very low premium. This term plan provides policyholders with two policy terms, i.e. 5 years and 10 years. The policyholder can opt for any of the term-period as per the need/choice. To avail of the benefits of this term insurance, you need not undergo any medical test prior, making this policy suitable and easy for you.

Eligibility:

Key Features of Kotak Saral Suraksha:

• Premium payment: Premiums of this term insurance can be paid as a single payment in the starting or for a fixed tenure of 5 years. Modes of payment may be single, half-yearly, or yearly. A grace period of 30 days is also provided for premium payment.

• Low-cost insurance: Kotak Saral Suraksha provides cover at a minimal rate of premium. In case of death of the policyholder, the benefits payable to the family would be ‘Sum assured on death’ which will depend on the premium option chosen.
• Policy terms: This plan offers two policy term choices, i.e. 5 years or 10 years.
• Free-look period: A free-look period of 15 days is provided in this term plan where a policyholder can go through the terms and conditions of the insurance.

What are the benefits offered by Kotak Term Insurance? 

Financial Security: The term plan offers financial security and support for the family of the policyholder in form of a lump sum amount, in case of his/her death. This sum assured can be utilized for higher education or as daily expenses. 

Coverage at low premiums: These term plans offer high coverage at a minimal rate of premiums. These are one of the best options for taking care of the family in your absence in case of any unfortunate incident. With multiple plans and payment options, these plans make it a simple way to secure your loved ones efficiently. 

Long-term Insurance coverage: Kotak term plans offer long-term coverage starting from a minimum of 5 years and extending up to 57 years, offering a wide range of entry age limits and coverage benefits. 

Premium payments and flexibility:   You have flexibility in choosing the mode of premium payment at your convenience. Kotak term plan provides you with various modes and frequency of premium payment options. 

Tax Saving: Income tax deductions from the premium paid can be claimed under Section 80C. 

What documents are required to buy a Kotak term insurance plan?

• Address proof
• Age proof
• Photo ID Proof
• Income proof
• Passport-size photographs

Frequently Asked Questions:

1. What are the tax benefits of a term insurance plan?

Term insurance plans offer tax benefits under the Income Tax Act, 1961. Insurance premiums can be claimed under Section 80C and death benefits are also offered tax-free under Section 10(10D). 

2. Can one pay an insurance premium online?

Kotak offers an online payment mode for premium payments. One can opt for Net banking, Debit card/Credit card options for making payment online.

3. Can I buy multiple term plans at a time?

Yes, you can buy more than one term plan at a time.

4. What is the Kotak e-term plan?

Kotak e-Term plan is a pure risk cover term insurance plan which provides a high level of financial support in your absence. Also, this policy offers death benefits along with critical illness plus rider options. 

5. What is the maximum policy term for the Kotak e-term plan?

Kotak e-term plan offers a maximum term of 30 years, covering life assured up to 75 years of age.