• Term Life
  • Investment

Kotak Saral Suraksha Term Plan

Every person wants to ensure that his/her family always has continued the source of income to ensure their comfort and well-being. However, there is no prediction of the future and the absence of the breadwinner of the family can result in grave financial crises in addition to emotional trauma. Kotak life insurance offers a solution to this problem with Kotak Saral Suraksha plan which can be the ideal support to the family in the time of need. It is an affordable term plan specially designed to provide financial protection to the family in the time of crises like the demise of the breadwinner of the family. In case of an eventuality during the active policy term, the beneficiaries of the plan will be paid the death benefit sum assured ensuring their financial security.

Features of Kotak Saral Suraksha Term Plan

Low-Cost Insurance

Kotak Saral Suraksha provides comprehensive life cover at an affordable low premium amount. You choose the Sum Assured at the inception in this plan to ensure adequate financial cover for your family. The benefit payable to your family in case of unfortunate death during the policy term will be 'Sum Assured on death’, which is basis the sum assured chosen at inception.

Choice of a policy term

This plan provides you the option of two policy terms. Depending upon your need, you can opt for a policy term of 5 or 10 years. The insurance cover as explained above will be applicable for this term.

Convenient premium payment options

Premiums can be paid over a 5-year premium payment term or as a single premium. These premium payment options are available for both the policy terms of 5 and 10 years. If you opt for premium payment over the 5-year period, you can pay your premiums annually or half-yearly depending upon your income pattern and convenience.

Easy Sign-up

You need not to undergo medical tests to avail benefits of this plan Minimal paperwork ensures ease in applying and issuance.

Benefits of Kotak Saral Suraksha Term Plan

Death Benefit

The death benefit payable would be the 'Sum Assured on death', which is defined as follows:

For Single Premium Plan

Sum Assured on death is higher of 1.25 times of Single Premium OR Sum Assured chosen at inception.

For 5 Year Premium Payment Plan

Sum Assured on death is higher of 10 times of Annual Premium Or Sum Assured chosen at inception Or 105% of the total premium paid till the date of death.

Please note: For policies with non-annual premium paying modes, the balance of the premium for that policy year will be deducted from the Sum Assured on Death. Death benefit proceeds will be payable to the nominee / legal heir as applicable.

Maturity Benefit

This is a non-participating term plan wherein no maturity benefit is payable at the end of the policy if the policyholder survives the term.

Tax Benefit

Tax benefits are as per the Income-tax law specified under Section 10(10D) and Section 80C. Tax laws are subject to revisions from time to time. Policyholders are advised to take an independent view from a tax advisor. Goods and Services Tax and Cess, as applicable shall be charged over and above the policy premium amount as per applicable Income Tax laws.

Eligibility Criteria

Particular Criteria
Minimum entry age18 years
Maximum entry age55 years
Minimum maturity age23 years
Maximum maturity age65 years

Product details

Terms Premium In thousands (INR)
Sum assured5, 10, 15,25, 50,75, 100
Policy Term 5 years and 10 years

Premium detail

PremiumPremium Mode
Premium payment termSingle payment or 5 years
Premium payment modeSingle, yearly or half yearly
Premium modal factor for 5 year premium payment Half yearly 51% and yearly 100%

Given below is an example of the premium amounts in INR applicable for a 35-year-old healthy individual for different combinations of sum assured, policy term and premium payment term.

Sum assured
Policy term Payment term50001000015000250005000075000100000
5 yearsOne-time (Single)6648109341172171722342778
5 yearsFive years287330371429571713839
10 yearsOne-time (Single)1085134416112052315342785322
10 yearsFive years37944751662890311791419

Note: The above premium figures do not include Goods and Services Tax (GST) and Cess. Goods and Services Tax and Cess thereon, shall be charged as per the prevalent tax laws over and above the said premiums

Other Details of plan of Kotak Saral Suraksha Term Plan

Grace Period

The Kotak Saral Suraksha Term Plan allows a grace period of 30 days from the due date for payment of premium. The plan will remain active during this period and if there is a claim during this period, then it will be paid as per the terms and conditions of the policy. If the policyholder fails to pay the premium amount within the 30 days grace period, then the policy will lapse and no benefits in the plan will be payable on a lapsed policy.

Policy Lapses

For Regular Pay Plan If during the premium payment period any premium is not paid within the Grace Period, then the policy shall lapse from the due date of the unpaid premium and no benefits will be payable. For Limited Pay Plan If premiums for the first two policy years are not paid within the grace period, the policy will lapse from the due date of the unpaid premium.

Surrender

For a Single Premium Plan The policy will acquire Surrender Value from the end of the first policy year. The Surrender Value for Single Premium Plan will be calculated as - [75% x Single Premium x [1 – (1 / Policy Term)] x (Balance Policy Term / Policy Term)] For a 5 Pay Limited Premium Plan with policy term of 10 years The policy will acquire Surrender Value after Premiums for the first 2 consecutive policy years have been paid in full. The Surrender Value for 5 pay Limited Premium Plan will be calculated as - [75% x Total Premiums Paid x [1 – (Premium Payment Term/Policy term)] x (Balance Policy Term / Policy Term)]

Reduced Paid-Up:

Applicable only for 5 year limited premium payment term policies with policy duration of 10 years. After the policy obtains a surrender value and the policyholder does not pay the succeeding premiums within the grace period of 30 days, the policy will be converted into a reduced paid-up policy by default.

On death of the life insured during the policy term after being reduced paid-Up, the benefit payable will be the reduced paid-up sum assured on death, will be equal to - Sum Assured on death × [(Total Premiums paid /Total premiums payable over the Policy Term)] Once the reduced paid-up is made, the policy may be revived (for the original benefits) within 2 years from the date of first premium due.

Please note: Reduced Paid-Up is not applicable on regular premium paying policies. Single premium paying policies will be treated as fully paid-Up.

Policy Revivals

A lapsed / reduced paid-up policy can be revived within two years from the date of the first unpaid premium. The revival can be done without the requirement of medical test by the policyholder and it can be done simply by payment of the outstanding premiums with handling charges (currently 9% p.a. of unpaid premiums), if the payment is done within 6 months. Thereafter, to revive the policy, the policyholder will have to undertake a medical test and pay the premiums due with handling charges (currently 9% p.a. of unpaid premiums). If lapsed policy, which has not acquired reduced paid-up status and if is not revived during the revival period by the policyholder, the policy will be cancelled by the insurer and no benefit will be payable. If the policy is in reduced paid-up mode and it is not revived by the policyholder during the revival period, it will continue in that mode until maturity of the term.

Nomination

Nomination will be allowed under the policy as per the provisions mentioned in the Section 39 of the Insurance Act, 1938 which gets revised from time to time.

Assignment Assignment will be allowed in the plan as per the provisions mentioned in the Section 38 of the Insurance Act, 1938 which gets revised from time to time.

Free Look Period

The policyholder is offered 15 days of free look period for a policy sold through all channels (excluding for Distance Marketing* Channel which will give 30 Days of free look period) from the date of start of the policy term. The policyholder has the option to return the policy within 15 days / 30 days of receipt, if she/he does not agree with any of the terms and conditions of the plan. If the policyholder decides to return the policy, he/she will be allowed a refund of the premium paid after adjustment for the expenses of medical test, stamp duty and risk premium for the days of coverage.

Distance Marketing contains the following modes of selling a policy:

  • Telephone calling
  • Mobile phone Text Messaging (SMS)
  • E-mail and interactive television (DTH)
  • Physical mail, newspaper and magazine brochure inserts
  • Any means of communication other than in person or via agent.

Documents required for Kotak Saral Suraksha Term Plan

The list of documents required for purchasing the Kotak Saral Suraksha Term Plan is as follows -

  • Proof of the age of the applicant of the policy: Voter’s ID, Passport, Pan Card, Driving License, Birth Certificate, School/ College Certificate.
  • Address Proof of the applicant of policy:, Ration Card, Electricity Bill, Bank A/C Statement, Utility Bill, Passport, Voter’s ID, Telephone bill, Letter from Recognized Public Authority.
  • Photo Identity proof of the applicant of the policy: PAN Card, Driving License, Voter’s ID Card, Passport, Letter from Recognised Public Authority or Public Servant with Photograph verifying the identity and residence, Aadhaar Card.
  • Latest passport size photograph of the applicant of the policy
  • Income Proof of the applicant of the policy: ITR, Salary Slip, Form 16
  • Medical Reports of the applicant of the policy – In case required from the insurance companies end.

If the applicant is planning to purchase the policy online, he or she may have the option to upload the self-attested true copies of the above-mentioned documents on the official website of the life insurer.

Exclusions - Kotak Saral Suraksha Term Plan

General Exclusion

In the case of the policyholder committing suicide within one year of the date of commencement of the policy, then only 80% of the premiums paid will be payable to the nominee. In case of suicide by the policyholder within one year of the date of revival of the policy, when the revival is done within 6 months from the date of first unpaid premium, Suicide Exclusion shall not be applicable and the Death Benefit under the product will be payable. However, in case of suicide within 1 year of the date of revival, when the revival is done after more than 6 months from the date of first unpaid premium, the benefit shall be higher of 80% of the premiums paid or surrender Value (if applicable) at the time of claim settlement.

Review of Kotak Saral Suraksha Term Plan

Kotak Saral Suraksha is a simple pure term insurance plan from Kotak Life Insurance Company. The plan is designed to offer affordable financial security for the family members of the life insured. The plan offers flexible premium paying term of single premium or over a 5-year term. It gives the customers options to choose the policy term of 5 years or 10 years. The best part of the plan is that it is easy to enrol in the plan and it does not require any medical test or lengthy paperwork hassle from the life insured. The premiums paid in the plan can be used for tax benefit and the proceeds from the plan are also free from tax liability as per the prevailing Income Tax Laws.

The death benefit payable in the plan will give the family financial comfort to deal with the emotional trauma and ensure financial stability in the family. The sum assured of the plan is best for low-income groups and the premium payable works out cheaper to sustain the plan for the required policy paying term. The plan gives surrender benefit on single premium and on a 5-year premium paying term after completing 2 years of continuous premium paying term. The Kotak Life Insurance is one of the safest life insurance companies to invest in and it offers guaranteed pay-out of the death benefit in case of an eventuality.

FAQs on Kotak Saral Suraksha Term Plan

Is loan facility available against Kotak Saral Suraksha term plan?

Kotak Saral Suraksha term plan is a pure life risk and non-participating term plan. The entire premium paid in the plan gets allocated to life risk fund. Therefore, no loan facility is available in this plan.

What are the riders available in this plan?

Kotak Saral Suraksha term plan does not offer any riders which can be attached to the base plan.

What is the policy term offered in Kotak Saral Suraksha term plan?

The policy term offered in Kotak Saral Suraksha term plan is 5 years and 10 years.

What is the sum assured offered in Kotak Saral Suraksha term plan?

Sum assured offered in Kotak Saral Suraksha term plan is INR.5,000, INR.10,000, INR.15,000, INR.25,000, INR.50,000, INR.75,000 and INR.1,00,000.

What are the death benefits offered with Kotak Saral Suraksha term plan?

The Death benefit offered is the sum assured on death as per the terms and conditions (refer exclusion list for death benefit exclusions). For the single premium plan, the sum assured on death is higher of 1.25 times than the single premium or sum assured chosen by the policyholder at the time of buying the policy.

Is it possible to surrender the Kotak Saral Suraksha term plan?

Yes, the policyholder can surrender the Kotak Saral Suraksha term plan after completing one year for a single premium plan and for the 5-year limited premium plan with a policy term of 10 years, the policy can be surrendered after paying premiums for the first 2 years.

Can I convert the Kotak Saral Suraksha term plan to reduced paid-up plan?

Yes, it is possible to convert Kotak Saral Suraksha term plan to the reduced paid-up plan. The 5 years limited premium plan with plan term of 10 years can be converted to reduced paid-up plan.

Why should I buy a term plan from Kotak Life Insurance?

Kotak life insurance is a part of Kotak Mahindra Group and is one of the most trusted and fastest growing insurance companies in India. Kotak Life Insurance offers word class life insurance solutions to its customers with excellent customer service. The Kotak Life Insurance plans are comprehensively designed and they offer the required support to the policyholder and their families in times of crises. Kotak life insurance has one of the best claim settlement ratios in the life insurance industry. The latest figures are 92.73% as of 2017-18 and it continues to improve over the years. If anyone is looking to buy a term plan then they should definitely have a look at Kotak Life Insurance plans and compare with term plans of other companies online.

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