Objective

This is an offline term insurance policy that aims to help the family members tide over a financial crisis on death of an insured member.

What does it do?

This term plan pays sum assured to the nominee on unfortunate demise of the insured. Policyholder can convert this plan to another plan offered by Kotak (except term plan), provided the policy has 5 years to maturity.
Single premium policyholders can surrender their policy in case of an emergency. The surrender value is calculated as per a pre specified formula.

Pros

Women get lower premium rates. Single premium policies can be surrendered in case of an emergency.
Policyholder has an option to convert the plan.

Cons

Maximum sum insured is limited to Rs 25 lakh, which may not be sufficient for everyone.
Riders cannot be added during the policy term, but only at the time of purchase.

Suited for

This is an offline policy hence suitable for those who prefer traditional channels to buy insurance protection up to Rs 25 lakh.

Our View

A term plan provides adequate coverage at a low price. If you cannot buy a policy without agent's assistance, you may take this policy. However, if you are comfortable with online purchases, look for online policies as they have lower premium rates.

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

2000

Half-Yearly

1020

Quarterly

520

Monthly

170

Single

12000

Premium Payment Frequency

Single, Yearly, Half-Yearly, Quarterly, Monthly

Premium Payment Term

Single, 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.

Surrender Value

Allowed to Single Premium Policyholders. It is calculated as: 75% x Premium paid x (1-1/ Policy Term) x Outstanding Policy Term/ Policy Term

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

Mail To

lifeexpert@kotak.com.

Call On

1800 209 8800

SMS

KLIFE to 5676788

Additions to the Plan

Available Rider(s)

Kotak Accidental Death Benefit (ADB): covers death due to accident within 120 days of the accident.
Kotak Permanent Disability Benefit (PDB): Policyholder receives five annual installments of 12 % of sum assured as rider benefit. To claim this rider benefits, policyholder should survive at least for 120 days from date of the accident. Permanent Disability includes-
permanent and immediate inability to work
permanent loss of use of any two limbs and
total and permanent loss of sight due to an accident
Kotak Critical Illness Benefit (CIB): covers critical illnesses namely: Heart attack (MI), Cancer, Stroke, Coronary artery by-pass graft surgery, Kidney failure, Major organ transplants, Paralysis, Loss of limbs, Aorta Surgery, Major burns, Heart valve surgery, Blindness.

Rider Conditions

Entry Age (years)

Minimum

18

Maximum

60

Maximum Maturity Age (years)

70

Rider Term (years)

Maximum

Equal to base policy term

Sum Assured (Rs)

Maximum

Accidental Death Benefit : equal to basic sum assured or Rs 10 lakhs whichever is lesser
Permanent Disability Benefit : equal to basic sum assured or Rs 10 lakhs whichever is lesser
Critical Illness Benefit : 50% of basic sum assured or Rs. 20 lakhs whichever is lesser

Rider Premium (Rs)

Rider premiums vary for each policyholder. For instance, if a 30-year old opts for the ADB rider and Accidental Total and PDB Rider for Rs 5 lakh sum assured over a 10 year tenure; the annual ADB rider premium works to Rs 882 or Rs 1,745 in case of a single premium plan and the annual Accidental Total and Permanent Disability Benefit rider premium works to Rs 441 or Rs 1395 in case of single premium payment plan. Similarly, Critical Illness benefit of 5 lakh for a policy tenure of 5 years costs Rs2537 per annum