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.

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.

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.

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.

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

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.