Kotak eTerm Plan

About Kotak e-Term Plan

As the name suggests, the Kotak e-Term plan is an online-only pure risk cover term plan that provides financial protection to your loved ones in case of your untimely demise during the policy term. The plan offers a variety of benefits and options to choose from to enhance your policy. The nominee will receive death benefits as per the selected plan option. The plan offers rider options like accidental death and total permanent disability to enhance your cover and ensure a perfect package to fight financial uncertainties.

Let’s understand this plan in brief before getting into its details.

How Does the Plan Work?

Firstly, the individual decides the basic sum assured, premium paying term, and policy term. Then the individual decides any one of the following three plan options:

• Life Option – 100% of sum assured on death shall be payable on the policyholder’s death.
• Life Plus Option – 100% sum assured shall be payable in case of accidental death of the policyholder along with death benefit.
• Life Secure Option – All future premiums are waived in case the policyholder becomes totally and permanently disabled. The death benefit under the plan shall continue to be in force for the remaining policy term.

Lastly, the individual decides any one of the three pay-out options:

• Immediate Payout – 100% of the sum assured on death shall be payable in lump sum and the policy shall terminate.
• Level Recurring Payout – 10% of the sum assured on death shall be payable at the time of claim settlement and 6% of the sum assured shall be payable every year for a period of 15 years.
• Increasing Recurring Payout – 10% of the sum assured on death shall be payable at the time of claim settlement and 6% of the sum assured on death shall be payable at the end of the first year. Thereafter, the pay-out shall increase by 10% per annum. These installments shall be payable at the end of every year for 14 years starting from the end of the first year.

Now, let us understand some more benefits offered with this plan:

• Death Benefit – In case of the untimely demise of the policyholder during the policy term, the death benefit shall vary based on the plan options chosen.

Riders

The Kotak e-Term plan offers the following riders:

• Kotak Permanent Disability Benefit rider
• Kotak Critical Illness Plus Benefit rider

Why Should You Buy This Plan?

Along with the benefits mentioned earlier, here are some more attractive features that come with the Kotak e-Term plan:

• Tax Benefits – Premiums paid under the plan would be exempt from tax under Section 80(C). The death / maturity / survival benefit received would be tax exempt under Section 10(10D) of the Income Tax Act. These benefits are subject to change as per tax rules.
   
• Step Up – This plan comes with the option to step up the life cover by paying additional premium and without any medical underwriting. This option can be exercised one or more times when any of the following events come to pass. This is on the condition that the total revised sum assured is not more than three times the original sum assured.

• On marriage – 50% of the sum assured can be increased
• On purchasing a home – 50% of the sum assured can be increased
• Birth or legal adoption of a child – 25% of the sum assured can be increased
• On first, third, and fifth policy anniversary – 25% of the sum assured can be increased

• Step Down – The policy also allows the policyholder to step down the sum assured.
   
• Free-look Period – The individual is advised to go through the policy thoroughly. If s/he finds any objections to the terms and conditions of the policy, then s/he can cancel the policy within 15 days (the free-look period) by giving a signed written notice to the insurance company stating the reasons for objection of the policy. The individual will be entitled to a refund of the premium paid, excluding few charges like stamp duty charges.
   
• Grace Period – The plan provides a grace period of 30 days for yearly, half-yearly, and quarterly modes and 15 days for monthly mode from the due date of unpaid premium. If the premium is not paid within the grace period, the policy will get lapsed.

Who Should Buy This Plan?

The minimum entry age to buy this plan is 18 years, whereas the maximum entry age is 65 years. The Kotak e-Term plan proves to be an ideal plan because it accommodates your requirements for a comfortable today by asking for limited premiums, while securing a bright tomorrow by offering high protection cover along with additional, customizable benefits.