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Kotak eTerm Plan

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Kotak eTerm Plan

Objective

This online term insurance policy aims to provide financial support to the family members in case of death of the insured member. This policy offers to increase the sum assured on important events in your life.

What does it do?

This term plan pays sum assured in case of unfortunate demise of the insured. The policy does not pay any maturity or surrender value. The plan provides a 'Step Up' option that allows to increase sum assured at special events, by paying additional premium. The choice to avail this option has to be specified at the time of purchase, and the premiums will be charged accordingly. The additional fee, for step up option, will be charged till 45 years of age or end of policy term, whichever is earlier.
Sum assured under this option can be increased only up to a maximum limit for each event. Also the total sum assured should be less than 3 times of the basic sum assured.
The maximum sum assured limit for marriage or purchase of a house is 50 per cent of base sum assured, birth or legal adoption of a child and the first, third and fifth policy anniversary offer 25 per cent of basic sum assured as additional coverage.
The cost of insurance will increase by 3 per cent (of basic premium) for policies with a term up to 15 years and 5 per cent for policies with a tenure longer than 15 years.
Alternatively, the policy also offers a 'Step Down' option to reduce the sum assured after availing step up option. Exercising this option will cost Rs 500 per request.
This policy can also be converted into any Kotak plan, without medical check up, if the policy still has 5 years to maturity.

Pros

The plan can be purchased online at convenience.The option to increase sum assured on events like marriage, purchase of house, birth of child or policy anniversary, without having to undergo any medical tests, takes care of increasing insurance needs.
Policyholder may convert this plan to any other plan offered by kotak except another term plan.
Women enjoy discount on premiums.
This policy eliminates agents from the sales process and passes the low cost benefit to policyholders.

Cons

Step up option has to be selected at the time of purchasing the policy and not during the term .
Highest sum assured is limited to Rs 24.99 lakhs which may serve everyone's needs.
The policy does not offer any riders for additional coverage.

Suited for

A pure term insurance policy is a definite buy for everyone. This policy can be taken by those who can make online purchase without services of agents.

Our View

Being an online policy, this plan passes the low cost benefit to the buyers as reduced premiums. The option to increase sum assured can be availed by young buyers, yet to marry or purchase property. Non-availability of riders makes a separate health and accidental cover necessary.

Eligibility

Entry Age (years)

Minimum

18

Maximum

65

Maximum Maturity Age (years)

70

Policy Term (years)

Minimum

5

Maximum

30

Sum Assured (Rs)

Minimum

300000

Maximum

2499999

Minimum Premium (Rs)

Yearly

1800

Half-Yearly

918

Quarterly

468

Monthly

153

Premium Payment Frequency

Yearly, Half-Yearly, Quarterly, Monthly

Premium Payment Term

Equal to policy term

Premium Factor (multiply with annual premium)

Semi Annually: 0.51
Quarterly: 0.26
Monthly: 0.085

Policy Cover

Cover remains fixed throughout the policy tenure

Other Features

Free Look Cancellation

In case, you are not satisfied, you may choose to cancel the policy within 15 days of receiving the policy documents. Upon such cancellation, you will be paid back the premiums, minus the cost of stamp duty, medical reports and proportionate premium for the period for which the risk was covered.

Grace Period

You are allowed to pay premiums within 30 days from the due date for Yearly, Half yearly and quarterly premium payment modes and 15 days in case of monthly premium payment mode.. If a due premium is not received within the grace period of 30 days, your policy will lapse and the life insurance cover will be terminated.

Lapsed Policy Reinstatement

You can reinstate your lapsed policy any time (within 2 years from the due date of the first unpaid premium) by paying all the due premiums with interest and undergoing underwriting requirements, if any.

Tax Benefits

Section 80C, 10(10D) of the Income Tax Act, 1961 would apply.Premium paid is eligible for tax deduction as per current income tax act.

Exclusions

In case of death by suicide during the first policy year, or within one year from the date of reinstatement, no death benefit is payable.

Customer Service

Address

Kotak Mahindra Old Mutual Life Insurance Ltd.
4th Floor, Vinay Bhavya Complex,
159 A, C.S.T. Road, Kalina,
Santacruz (East),
Mumbai - 400 098

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

Leave your comment with mail ID and we will answer them

OR

You can write back to us at PrajnaCapital [at] Gmail [dot] Com

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