LIFE INSURANCE | KOTAK TERM/PREFERRED TERM | KOTAK MAHINDRA | ADVANTAGES | FEATURES | BENEFITS | ELIGIBILITY & EXCLUSIONS

December 4th, 2009

We all say that life is full of uncertainties and only time holds the key to unlock what is in store, but one can do something to prepare for what life is going to dish up. One can be prepared for any circumstances with the path one chooses. To achieve all the dreams one works day and night. You want to see your family secure and happy at all times. However, life is unpredictable. To protect your loved ones, should anything unfortunate happen to you and ensure that they are able to cope with their financial obligations; you need a good term insurance plan, like Kotak Life Insurance Kotak Term Plan.

Kotak Term Plan is a pure risk cover plan and truly an economical way of getting a high level of financial protection. Kotak Preferred Term Plan offers special premium rates to non-tobacco users and women, for a sum assured of Rs.25 lakhs or more.

ADVANTAGES

Term Insurance Premium

A truly low-cost plan that offers high cover at low term insurance premiums
Special rates for women and non-tobacco users
Choice of premium payments
Options – regular, single and limited premium payment option to convert to any other plan

FEATURES & BENEFITS

You may avail of the following non-participating value-adds for a nominal term insurance premium at the time of taking your policy, subject to aggregate premium on all value-adds (except Critical Illness Benefit) not exceeding 30% of the basic Kotak Term Plan premium.

Truly a low cost insurance plan

Kotak term insurance plans offer the benefit of high life cover at economical prices.

Special Premium Rates

Kotak Preferred Term Plan offers women and non-tobacco users with even lower term insurance premium rates for a sum assured of Rs. 25 lakhs and above.

Flexibility in payment of premiums

You may choose from the following premium payment terms for the term insurance — Single, Regular and Limited Premium Payment (3 and 5 years) options.

If you opt for a regular or limited premium payment option, you can pay your premiums annually, half yearly, quarterly or monthly*.

Death Benefit

In the event of death during the term, the beneficiary would receive the sum assured.

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 before cover ceases.

Value Adds of Kotak Term Plan

You may avail of the following benefits for a nominal additional premium if you have selected regular term insurance premium payment option.

Accidental Death Benefit (ADB)
Permanent Disability Benefit (PDB)
Critical Illness Benefit (CIB)

Accidental Death Benefit (ADB)*

If the Life Insured dies of an accident within 120 days from the date of accident and the beneficiary proves the same to the satisfaction of the Company, then the Accidental Death Benefit sum assured will become payable.

The maximum cover available under this benefit is equal to the basic sum assured (subject to a maximum of Rs 10 lakhs).

Permanent Disability Benefit (PDB)*

If the Life Insured becomes totally and permanently disabled due to an accident and the policyholder proves the same to the satisfaction of the Company, the Permanent Disability Benefit sum assured will be paid as five annual installments of 12% of the sum assured, starting on the date that disability is admitted by the Company, followed by a final payment at the end of the fifth year of 60% of the sum assured. The life insured should survive for at least 120 days from the date of the accident. The policyholder should write to the Company giving the details of Permanent and Total disability in the required format, within 150 days after the happening of the disability. Permanent Disability is defined as permanent and immediate inability to work or permanent loss of use of any two limbs or total and permanent loss of sight or injuries that permanently preclude following an appropriate occupation from the date of accident onwards.

The maximum cover available under this benefit is equal to the basic sum assured (subject to a maximum of Rs 10 lakhs).

Critical Illness Benefit (CIB)*

This benefit can be added to the basic life insurance plan to provide financial support in the event of medical emergencies. On the first occurrence of critical illness during the term of the plan, you would receive a portion of the sum assured to help you reduce your financial burden in this emergency.

The maximum Critical Illness Benefit that you can avail depends on the basic plan subject to a maximum of Rs 20 lakhs.

After the Critical Illness Benefit is paid, the basic sum assured and all the benefits dependent on the basic sum assured will reduce in the same proportion that the Critical Illness Benefit bears to the basic sum assured at the time of claim. The list of critical illnesses is:

Heart Attack (MI)
Cancer
Stroke
Coronary artery by-pass graft surgery (CABG)
Kidney failure
Major organ transplants
Paralysis
Loss of limbs
Aorta surgery
Major burns
Heart valve surgery
Blindness

Tax benefits of the term insurance plan

You can avail of tax benefits under Section 80C and Section 10 (10D) of the Income Tax Act, 1961. Premiums paid for Critical Illness Benefit (CIB) qualify for a deduction under Section 80D. Tax benefits are subject to change in the tax laws. You are advised to consult your tax advisor for details.

ELIGIBILITY & EXCLUSIONS

Entry Age (in years)	Min 18 years, Max 65 years
Term of Plan (in years) Single and Regular Payment Option	Min 5 years, Max 30 years
Term of Plan (in years) Limited Payment Option	Min 10 years, Max 30 years
Age at Maturity (in years)	Max 70 years
Premium rates for Half-yearly, Quarterly and Monthly modes are 51%, 26% and 8.5% of Annual rates respectively

In case the life insured commits suicide within one year of the date of issue of the plan or date of revival, the beneficiary would not receive any of the benefits outlined in the plan.

Possibly Related Posts:

Tags: KOTAK, KOTAK LIFE INSURANCE, Kotak Preferred Term Plan, Kotak Term Plan, KOTAK'S PLAN, Life Insurance, PROTECTION PLAN, PROTECTION PLANS
Posted in PROTECTION PLAN | No Comments »