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Kotak Term Insurance

Kotak Mahindra Old Mutual Life Insurance Ltd is a joint venture between Kotak Mahindra Bank Ltd, which is a leading bank in India and its partners and Old Mutual, which is an international long-term savings, investment and protection group. This Company provides life insurance products at a wider range to protect your family during uncertainties.

Kotak Life Insurance has a vision of believing for a better tomorrow.

Kotak Term Insurance offers 5 plans with host of benefits and unique features through Kotak Life. Additionally, there are certain term plans that can be purchased online at just the click of the mouse. Therefore, the premiums are cheaper for these online term insurance plans. Their moto rests in value creation rather than the business size.

Benefits of Buying Kotak Term Insurance

  • Cost: Kotak term insurance plans are affordable. They are pocket-friendly rates for every product under the term insurance category which makes them one of the most preferred term insurance companies in India. Their premiums are as low as Rs.6975/- per annum or sometimes even lower.
  • Flexibility: Kotak term insurance plans offers flexibility in pertaining coverage, term and the payment policies for the premiums.
  • Discounts: Offers special discounts in premiums for non-smokers and female insured's.
  • Online option: Kotak term insurance offers huge variety of online and offline term insurance plans.
  • Customer Service: This Company has an excellent team of customer service that offers good and hassle-free pre-sales as well as post-sales services.
  • Tax benefits: Section 80C and 10(10D) under the Income Tax Act, provides tax benefits for premiums paid regularly.

Types of Kotak Term Insurance Plans

1. Kotak Income Protection Plan

This plan can be bought through the website. The features of this plan are mentioned below:

  • The minimum entry age is 18 years and maximum age is 60 years and the maturity age is 70 years
  • Offers protection cover either in monthly or lump sum income after the death of the insured
  • Offers increase @6% p.a. in the monthly income which automatically compounds on each anniversary year
  • Offers preferred rates in premiums for non-smokers and women life insured
  • Offers monthly income for at least 5 years if the remaining term is lower than 5 years
  • Section 80C and 10(10D) under the Income Tax Act, provides tax benefits for premiums paid regularly.

Benefits for Kotak Income Protection Plan

Listed below are the benefits of Kotak Income Protection Plan-

  • Provides protection cover in lump sum and Monthly Income thereafter
  • Monthly Income increases by 6% p.a. compounding on each policy anniversary
  • Monthly Income will be provided for at least 5 years if the balance term is less than 5 years
  • Preferred rates for female lives and non-smokers

Eligibility Criteria for Kotak Income Protection Plan

ParameterMinimumMinimum
Entry Age18 years60 years
Maturity AgeNA70 years
Monthly Income LevelRs. 20,000No limit, subject to the underwriter
Policy Term
Regular Pay: 10 years - 30 years
12 Pay: 17 years - 30 years
15 Pay: 20 years - 30 years
PremiumDetermined basis Monthly Income chosen, age, gender, smoking status, policy term and the Premium Payment Option chosen Max: No limit, but subject to underwriting consideration
Premium Payment Details
Premium Payment Term (PPT): Regular, Limited Pay: 12 & 15 years
Premium Payment Mode: Yearly, Half yearly, Quarterly, Monthly
Premium Payment FrequencyYearly - 100%, Half yearly - 51%, Quarterly - 26%, Monthly - 8.8%

Rider: You can opt for the Kotak's Accidental Disability Benefit Rider along with a comprehensive term plan.

2. Kotak Preferred eTerm Plan

This plan can be bought through the website. The features of this plan are mentioned below:

  • The minimum entry age is 18 years and maximum age is 65 and the maturity age is 75 years
  • The minimum sum assured is 25 Lakhs and the maximum sum assured is limitless.
  • Offers 2 options to pay the premiums. Under the regular pay option you can pay for the entire duration of the term plan. Under the limited pay option you can pay for a limited duration or can pay lump sum under the single pay premium option
  • Offers 2 types of death benefits. 1st being the Recurring Payout option and the 2nd being the Immediate Payout option.
  • Under the recurring payout option, the nominee is paid 10% of the sum assured immediately after the insured's death and the balance amount is paid annually @6% for 15 years. Offers flexibility to convert the annual payouts in monthly installments too.
  • Entire sum assured is paid to the nominee on the death of the insured and the plan terminates under the immediate payout option.
  • Offers life cover with inbuilt waiver of basic premiums in case of Total and Permanent Disability which is again available at a lower cost.
  • Offers preferred rates in premiums for non-smokers and women life insured
  • Section 80C and 10(10D) under the Income Tax Act, provides tax benefits for premiums paid regularly.

Benefits of Kotak Preferred e-Term Plan

Affordable Premium Option

With premium of as less as Rs. 9 per day, term insurance is one of the most affordable policies to have. Term insurance also takes care of future of your family in case of you being critically ill, or permanently disability or in an unfortunate event of death. With multiple plan options and multiple pay-out options, you get to choose the pay as well as select benefit options for your term insurance.

Add - on benefits You can decrease your life cover basis your requirements. With Kotak Critical Illness Plus benefit rider, rider sum assured is payable in case you are diagnosed with of the listed 37 critical illness.

Tax savings Under Section 80C and Section 10(10D) of Income Tax Act, 1961, you may avail of tax benefits.

Eligibility for Kotak Preferred e-Term Plan

ParametersMinimumMaximum
Entry Age18 years65 years
Maturity Age28 years75 years
Policy Term10 years40 years
Basic Sum AssuredRs. 25,00,000No limit, subject to the underwriter
PremiumWill be determined basis plan option, pay-out option, age, gender, smoking status, policy term, premium payment mode, premium payment frequency and Basic Sum Assured opted for the policyNo limit, but subject to underwriting consideration
Premium Payment Term
Regular Pay: Equal to Policy Term
Limited Pay: 5 / 10 pay
Single Pay: Single payment
Premium payment OptionRegular, Limited & Single Pay
Premium Payment FrequencyYearly & Monthly
Modal Factor (% of annual premium)Yearly – 100% | Monthly – 8.8%

Sample Premium Rates for Kotak e-Preferred Term Plan

Given below are premiums for sample combination of entry age and policy term (Regular pay) for a Basic Sum Assured of Rs. 1 crore:

Immediate Payout

Policy Term
Policy Term35 years (Rs.)40 years (Rs.)35 years (Rs.)40 years (Rs.)
306,9757,3757,9258,500
359,17510,00010,87511,775
3513,30014,45015,850NA
4019,67521,550NANA

Recurring Payout

Policy Term
Age (in years)35 years (Rs.)40 years (Rs.)35 years (Rs.)40 years (Rs.)
305,8506,3006,7507,275
357,8008,4756,7509,925
4011,17512,25013,350NA
4516,52518,175NANA

Rider: You can opt for Kotak eAccident Death Benefit Rider along with the comprehensive term insurance plan.

3. Kotak Saral Suraksha

This plan offers premiums at a very lower rate. The features of this plan are mentioned below:

  • The minimum entry age is 18 years and maximum age is 55 and the maturity age is 65 years
  • The minimum sum assured is 5000/- and the maximum sum assured is 1 Lakh
  • You can opt for a 5 or 10 years tenure depending upon your need
  • There is no requirement of medical tests for buying this plan
  • This is an offline term insurance plan
  • Offers flexibility for premium payments. You can pay lump sum at the beginning of the policy or you can pay for a fixed duration of 5 years.
  • On the death of the insured the nominee is paid the sum assured which is higher of the sum assured or 1.25 times the single premium or 10 times the annual premiums. However the payments are limited to 105% of the aggregate premiums paid till death.
  • Section 80C and 10(10D) under the Income Tax Act, provides tax benefits for premiums paid regularly.

Benefits of Kotak Saral Suraksha

Low Cost Insurance: Kotak Saral Suraksha provides significant cover at a very low premium. 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 Premium Payment option chosen.

Choice of 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 undergo medical tests to avail benefits of this plan. Minimal paperwork ensures ease in applying and issuance.

Eligibility for Kotak Saral Suraksha

ParametersMinimumMaximum
Entry Age18 years55 years
Maturity Age23 years65 years
Policy Term5 years & 10 years
Premium Payment Term5 years or Single Payment
Premium Payment ModeSingle, Half-yearly & Yearly
Sum AssuredRs. 5,000, Rs. 10,000, Rs. 15,000, Rs. 25,000, Rs. 50,000, Rs. 75,000 & Rs. 1 lakh

Sample Premium Rates Given below are the premium amounts (in `) applicable for a 35-year-old healthy individual for different combinations of Sum Assured, Policy Term and Premium Payment Term.

Policy Term (yrs)Payment TermSum Assured (in Rs.)
5,00010,00015,00025,00050,00075,0001,00,000
5Single6648109341,1721,7172,2342,778
55-Single287330371429571713839
10Single1,0851,3441,6112,0523,1534,2785,322
105-years3794475166289031,1791,419

4. Kotak Preferred Term Plan

This plan can be bought through the website. The features of this plan are mentioned below:

  • The minimum entry age is 18 years and maximum age is 65 and the maturity age is 75 years
  • The minimum sum assured is 25 Lakhs and the maximum sum assured is limitless
  • Offers 2 options to pay the premiums. Under the regular pay option you can pay for the entire duration of the term plan. Under the limited pay option you can pay for a limited duration or can pay lump sum under the single pay premium option
  • Offers 2 types of death benefits. 1st being the Recurring Payout option and the 2nd being the Immediate Payout option.
  • Under the recurring payout option, the nominee is paid 10% of the sum assured immediately after the insured's death and the balance amount is paid annually @6% for 15 years. Offers flexibility to convert the annual payouts in monthly installments too.
  • Entire sum assured is paid to the nominee on the death of the insured and the plan terminates under the immediate payout option.
  • You can avail the step up option wherein you can increase the insurance cover at important stages in life at a lower cost and hassle free way. For instance, in case of marriage or purchase of your 1st new house after the issuance of the policy, increase in 50% of the original basic sum assured is allowed. For birth or legal adoption or the 1st, 3rd, 5th policy anniversary, increase in 25% of the original basic sum assured is allowed.
  • Offers preferred rates in premiums for non-smokers and women life insured
  • Section 80C and 10(10D) under the Income Tax Act, provides tax benefits for premiums paid regularly.

Benefits of Kotak Term Insurance

In case of an unfortunate event of death of the life insured during the term of the plan, Nominee will receive the Sum Assured on death (on acceptance of the death claim) as per the Plan Option chosen:

Recurring payout- The Sum Assured on death will be payable in the following manner:

  • Lump sum payment of 10% of Sum Assured on death, at the time of claim settlement, and
  • 6% of Sum Assured on death every year for 15 years; the first payment being made one year after the date of death of the life insured. However, if the payouts are required in monthly mode, it can be opted by intimating at the time of claim. The monthly payments will be 8.22% of the annual payments (i.e. 6% of Sum Assured on death). The first payment will start from one month after the date of death of the life insured.

In case the beneficiary would want to get lump sum instead of regular payouts (either annual or monthly) any time after the death of the Life Insured, a discounted value of the outstanding regular payouts (either annual or monthly) shall be paid as lump sum. The discounted value shall be calculated using a discount rate of 3.0% p.a. compounding yearly.

Immediate payout - The Sum Assured on death will be paid immediately and the policy terminates.

Tax Benefits - Tax benefits are subject to conditions specified under Section 10(10D) and Section 80C of the Income Tax Act, 1961.

Eligibility for Kotak Term Insurance

ParametersMinimumMaximum
Entry Age18 years65 years
Maturity Age23 years75 years
Premium Payment TermRegular Pay: Equal to Policy Term Limited Pay: 5 pay for Policy Term 10 to 40 years 7 pay for Policy Term 12 to 40 years 10 pay for Policy Term 15 to 40 years Single Pay: Single payment
Policy Term5 years to 40 years
Premium Payment OptionRegular, Limited & Single pay
Basic Sum AssuredMin – Rs. 25,00,000 Max – No limit, subject to Underwriting
Premium Payment ModeYearly, Half-Yearly, Quarterly and Monthly
Modal Factor (% of annual premium)The following modal loadings will be used to calculate the instalment premium in case of Regular and Limited Premium Payment Options: Yearly – 100% Half-yearly – 51% Quarterly – 26% Monthly – 8.8%

Minimum Premium:

Premium Payment ModePolicy Term (years) Minimum Premium based on Rs. 25 lakhs Basic Sum Assured
Recurring Payout Option (Rs.)Recurring Payout Option (Rs.)
Regular Pay53,7004,075
Single Pay510,37511,700
Single Pay104,9255,550
7-year Limited Pay124,2254,750
10-year Limited Pay123,7754,225

Maximum Premium: No limit, but will depend on the maximum basic sum assured which is subject to underwriting.

Sample Premium Rates for Kotak Term Insurance

Recurring Payout

Entry AgePolicy Term - 25 years (Rs.)Policy Term - 30 years (Rs.)Policy Term - 35 years (Rs.)Policy Term - 40 years (Rs.)
30 years9,97511,20012,45013,900
35 years13,77515,52517,47519,550
40 years20,02522,67517,475NA
45 years29,70033,550NANA

Immediate Payout

Entry AgePolicy Term - 25 years (Rs.)Policy Term - 30 years (Rs.)Policy Term - 35 years (Rs.)Policy Term - 40 years (Rs.)
30 years11,77513,25014,85016,575
35 years16,35013,25020,95023,500
40 years23,92527,15030,650NA
45 years35,52540,300NANA

5. Kotak Term Plan

This is a protection plan. The features of this plan are mentioned below:

  • The minimum entry age is 18 years and maximum age is 65 and the maturity age is 70 years
  • The minimum sum assured is 3 Lakhs and the maximum sum assured is 25 lakhs
  • This is a pure term insurance plan for protection
  • This has to be purchased offline only
  • You can pay lump sum for the premiums at the beginning of the policy or for the complete tenure of the plan
  • Offers flexibility to convert your Kotak Term Plan to any other Kotak Life Insurance plan but cannot convert to another term plan again. This can be done if there are 5 years remaining before your policy ends
  • Section 80C and 10(10D) under the Income Tax Act, provides tax benefits for premiums paid regularly

Benefits of Kotak Term Plan

Low Cost Insurance

Kotak Term Plan offers the benefit of high life cover at economical prices with further reduced premiums for women. Now you can get a life cover of Rs. 15 lakhs for a premium of Rs. 199 per month only! (This premium is applicable for a 30 year old healthy male for a term of 10 years, exclusive of Goods and Services Tax and Cess, as applicable.)

Plan Conversion Option You may convert your Kotak Term Plan to any other plan offered by Kotak Life Insurance (except for another term plan), provided there are at least 5 years remaining before the cover ceases.

Premium Payment Options

You have the premium payment options of single and regular pay. If you opt for regular premium payment option, you can pay your premiums annually, half yearly, quarterly or monthly.

Tax Benefits

Tax benefits are subject to conditions specified under Section 10(10D) and Section 80C of the Income-tax Act, 1961.

Value Adds

You may avail of the following rider benefits for a nominal additional premium if you have selected the regular premium payment option: Kotak Accidental Death Benefit Rider: Lump sum benefit paid on accidental death. Kotak Permanent Disability Benefit Rider: Instalments paid on admission of a claim on becoming disabled due to accident. Kotak Critical Illness Benefit Rider: Portion of basic Sum Assured paid in advance on diagnosis of the covered Critical illness subject to terms and conditions.

Eligibility Criteria for Kotak Term Plan

ParametersMinimumMaximum
Entry Age18 years65 years
Maturity AgeNA70 years
Policy Term5 years30 years
Basic Sum AssuredRs. 3,00,000Rs. 24,99,999
Annual PremiumRs. 2,000Based on Sum Assured
Premium Payment Details
Premium Payment Term (PPT): Regular Pay: Equal to Policy Term | Single Pay: Single payment
Premium Payment Option: Regular and Single pay
Premium Paying Mode: Single, Yearly, Half- yearly, Quarterly, Monthly
Modal Factor (% of annual premium)Yearly – 100%, Half yearly – 51%, Quarterly – 26%, Monthly– 8.5%

Sample Premium Rates for Kotak Term Plan

Policy Term
Age (in years)10 years (Rs.)15 years (Rs.)20 years (Rs.)25 years (Rs.)
252,1962,1962,2322,292
302,3432,3912,5172,739
352,8413,0153,3423,759
404,0054,4284,9925,721

Riders: You can opt for Kotak Accidental Death Benefit Rider, Kotak Critical Illness Rider and Kotak Permanent Disability Benefit Rider along with the comprehensive term insurance plan.

Exclusions of Kotak Term Insurance

The claims would not be admitted under the below exclusions:

Suicide- If the insured commits suicide within the first year of the plan, then 80% of the premium paid till date is given to the nominee.

Claim Process of Kotak Term Insurance

The claim can be filed in a simple and hassle-free process. Mentioned are the steps for claim process:

1. Claim Registration:

The nominee of the insured needs to intimate the claim to the insurance company by filling a claim form completely. Necessary documents needs to be attached along with the claim form. They are mentioned below:

  • Terminal illness claim form
  • Critical illness claim form
  • Accidental disability form
  • Natural/Accidental death form

The nominee needs to ensure that the form is filled based on the type of claim and submitted to the Kotal Life Insurance office along with the other documents.

The insurance company registers the claim and provides an acknowledgement to the claimant with a set of other claims documents for further processing of the term claim.

2. Documents submission:

The nominee can either visit the Kotak Life Insurance head office or any of its branch to register a term insurance claim. The below documents would be required

  • Duly filled claims intimation form
  • Intimation letter
  • Original Death certificate issued by the Municipality or equivalent authority
  • KYC of the nominee
  • Bank details of the nominee
  • Medical certificate mentioning the cause of death
  • Medical records
  • Original Policy bond
  • Settlement option form

The Kotak Life Insurance claims office address is mentioned below: Kotak Mahindra Old Mutual Life Insurance Company Limited, Kotak Infiniti, Building no. 21, 7th floor – Zone 2, Infiniti Park, Off Western Express Highway, General A K Vaidya Marg, Malad East, Mumbai- 400097

3. Claim scrutiny and decision:

The insurance company communicates the claimant the other requirement. A dedicated claims team follows up and help the claimants. This team further understands the genuineness of the claims, scrutinizes the claim and further takes a decision for claim payments.

4. Fund value payment:

After scrutinizing the claim, the fund value of the plan is paid to the nominee of the policy. This process happens only during death claim.

5. Settlement payout:

The insurance company would verify the documents once received. In case of any more documentation, the verification process would be complete after receiving the same. The clauses and riders if any would also be examined. If all the documents are found right as per the requirement, then the funds would be released in the nominee’s favor.

The payment is done via NEFT (National Electronic Fund Transfer) to the nominee. The insurance company ensures complete transparency to reduce any possible frauds and financial discrepancy.

Note: Usually the claim gets settled within 30 days of the document submission.

Review of Kotak Term Insurance

Kotak Term Insurance offers wide-ranging term coverage that takes care of your overheads associated with liabilities and offers a peace of mind by making arrangements for a financially secured life for your loved ones. The variety of riders offered by the term insurance plans would enhance your insurance policies at a very minimal rate. It is one of the fastest growing insurance company.

They have around 4 million trusted policy holders so far. Kotak Life Insurance is a well-known company claims of user-friendliness and unswerving customer service. With diverse coverage plans suiting every individual, Kotak Life Insurance undeniably has a potential to be ranked as one of the best insurance companies of India. This company has a highly committed sales force with a touch of customer delight.

FAQ's on Kotak Term Insurance

What happens if I miss paying my Kotak eTerm Insurance premium?

It is important that you should pay all your term insurance premiums on time before the due date. If you miss to pay the premium within the grace period after the premium due date, your policy would be lapsed or in a notice period mode. The grace period is usually 30 days in case of quarterly, half-yearly or yearly modes of payment. In case of monthly payment mode, the grace period is 15 days from the due date of the policy premium payment date.

What are riders?

Riders are extra benefits that you can attach along with your comprehensive term insurance policy. They enhance your basic policy by offering benefits at an additional cost. Kotak Life Term Insurance offers riders at a lower cost with host of benefits. You can opt for these riders at the beginning of the policy period or during the policy period. Kotak Life Term Insurance offers various riders like Accidental death benefit riders, critical illness rider, permanent disability benefit, term benefit etc.

What are the riders offered by Kotak Term Insurance Plan?

The below mentioned riders are offered by Kotak Term Insurance Plans:

  • Accidental death benefit – Here, on the insured’s death, the nominee gets twice the sum assured
  • Critical illness benefit – Here, any future premiums are waived off in case of death or disability due to diagnosis of critical illness
  • Permanent disability benefit – Here, any future premiums are waived off in case of permanent disability of the insured
  • Term benefit – Here, the sum assured received by the nominee due to death within the policy period, can even be twice the amount of the sum assured

What if I wish to surrender or cancel my Kotak Life term insurance plan?

If you wish to surrender the term insurance plan that you had bought from Kotak Life Term Insurance Company, you need to submit the relevant documents as advised by the company along with a surrender form. You can submit these documents at any of the Kotak branches. On successful proceedings, Kotak will directly credit your bank account and your policy would terminate immediately. Kotak assures you to settle these monies within 7 business days from the date of documents submission. The head office of Kotak Term Insurance is mentioned below: Kotak Mahindra Old Mutual Life Insurance Company Limited, Kotak Infiniti, Building no. 21, 7th floor – Zone 2, Infiniti Park, Off Western Express Highway, General A K Vaidya Marg, Malad East, Mumbai- 400097

What are the general exclusions in a term insurance plan?

Like any other insurance, term insurance too has its limitations for specific circumstances. Mentioned here are some common exclusions that a term insurance would not cover.

  • Suicide- This is one of the common exclusion that most of the insurer’s would not cover. The dependents would not get any compensation if the insured commits suicide in the first year of the policy. But, suicide won’t be compensated at all in a group insurance policy.
  • Dangerous activities- Death due to race car driving, SCUBA diving, rock climbing etc. are not covered under a term plan. In simple terms, if you are involved with these dangerous activities, then your beneficiary would not get any compensation during any uncertainties.
  • Act of war- Any death occurred due to acts of war or due to natural calamities like drought, floods, earthquake etc. are not covered under a term plan.
  • Drugs abuse or alcoholism- Any death occurred due to consumption of alcohol or drugs is not covered under a term plan. The insurance company would not be liable for any compensation to the dependents.
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