"What
is Kotak Term Plan?"
Kotak Term Plan is a pure risk product
that aims to cover your life at a nominal cost.
You may want to take this plan to cover your outstanding
debts like a mortgage, a home loan etc. Since this
is a pure risk cover product, there are no maturity
benefits payable on survival. This is a non-participating
plan.
"Who
can avail of this plan?"
| How old do you have to
be to avail of this plan? |
Minimum age - 18 years
Maximum age - 60 years |
 |
| For what term can I avail of
this plan? |
10 - 30 years for regular
premium
5 - 30 years for single premium |
|
| What is the minimum premium that
I need to pay and at what intervals can I
pay them? |
| Mode |
Amount |
| Quarterly |
Rs.540 |
| Half Yearly |
Rs.1055 |
| Annually |
Rs.2000 |
| Single Premium |
Rs.10000 |
|
|
| What is the maximum age that
the plan can cover you till? |
70 years |
|
"What are the
advantages of this plan?"
- It is a low-cost insurance plan.
- You can choose between a regular premium
payment option or a single premium payment option.
In case you opt for the regular premium payment
option, you may pay your premiums either annually,
or in half yearly or quarterly installments.
- Your Kotak Term Plan can be converted into
any other plan offered by Kotak Life Insurance (except for another
Term plan) provided there are at least 5 years
before cover ceases*.
- In case you forget to pay your premium by
the due date, you are entitled to a grace period
of 30 days from the date of unpaid premiums.
- In case of a financial emergency, you
have the option to surrender the policy provided
you have taken the single premium payment option*.
* Please refer to the policy document for further
details.
"What value-adds can you opt for?"
You may avail of the following non-participating
value-adds for a nominal 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.
Accidental Death Benefit:
This benefit provides an additional amount (over
and above the basic sum assured) to the beneficiary
in the event of the accidental death of the life
insured. The maximum cover available under this
rider is equal to the basic sum assured (subject
to a maximum of Rs.10 lakhs).
Permanent
Disability Benefit: This benefit can be added
to your basic life insurance policy to provide financial
support in case of disability due to an accident.
The amount payable under this benefit would be paid
out as an annuity. The maximum permanent disability
benefit that you can avail of is equal to the basic
sum assured (subject to a maximum of Rs.10 lakhs).
Permanent disability is defined as permanent
and immediate inability to work or permanent loss
of use of two limbs or total and permanent loss
of sight.
Critical Illness Benefit:
This benefit can be added to your basic life insurance
policy to provide financial support in the event
of a medical emergency. On the first occurrence
of critical illness during the term of the policy,
you would receive a portion of the sum assured to
reduce your financial burden in this emergency.
(Please contact our Life Advisor for the list
of critical illnesses).
"What do you receive on maturity of the policy?"
Since this is a pure risk cover plan, there are
no maturity benefits.
"What
happens in the event of death of the life insured?"
In the event of death during the term
of the policy, the beneficiary would receive the
sum assured.
"Are
there any Tax Benefits?"
Section 80C, 10(10D) of Income Tax Act
would apply. Premiums paid for Critical Illness
Benefit qualify for benefits under Section 80D.
These benefits are as per the currently prevailing
tax regulations and you are advised to consult your
tax advisor for details.
* Please
consult your tax advisor for details
"How does this plan
work?"
To explain, how his plan works….
Mr. Sanjay Gupta, a 30-year-old male, decides
to buy the Kotak Term Plan for a sum assured of
Rs.10,00,000 for a 10 year term. The annual premium
that Mr.Gupta pays is Rs.3,747 annually. In the
event of his unfortunate death during the next
ten years, his family would receive Rs.10,00,000.
In the illustration,
some benefits are guaranteed and some are variable.
Guaranteed Returns are marked "guaranteed" in
the illustration. Variable returns are shown at
two different rates of assumed future returns.
These assumed rates of return are not guaranteed
and they are not the upper or lower limits of
what you might get back .The actual return may
be different depending on a number of factors
including future investment performance.
"What do you do next?"
To find out more about this plan, you
can call us at any Kotak
Life Insurance Branch Offices or send us an
e-mail at lifeexpert@kotak.com.
"Exclusions"
In case the life insured commits suicide within
1 (one) year of the plan, no benefits outlined
in the plan would be payable.
Exclusions for Accidental
Death Benefit, Permanent Disability Benefit &
Critical Illness Benefit:
The Accidental Death Benefit, Permanent Disability
Benefit & Critical Illness Benefit would not
be paid out in the following circumstances:
a) Self inflicted injuries, suicide, insanity,
immorality, committing any breach of law or being
under the influence of drugs, liquor etc.
b) When the life insured is engaged in
aviation or aeronautics other than as a passenger
on a licensed commercial aircraft operating on
a scheduled route.
c) Due to injuries from war (whether war
is declared or not), invasion, hunting, other
dangerous hobbies or activities, or having been
on duty in military, para-military, security or
police organization.
Additional Exclusions for Critical Illness:
a) Unreasonable failure to seek or follow
medical advice.
b) Any pre-existing medical conditions
not disclosed at inception.
c) Infection with Human Immunodeficiency
Virus (HIV) or conditions due to acquired Immune
Deficiency Syndrome (AIDS).
In addition, no benefit would be paid in respect
of the exclusions specific to each critical illness.
"Prohibition of Rebates"
Section 41 of the Insurance Act, 1938 states:
-
(1) No person shall allow or offer to allow, either
directly or indirectly, as an inducement to any
person to take out or renew or continue an insurance
in respect of any kind of risk relating to lives
or property in India, any rebate of the whole
or part of the commission payable or any rebate
of the premium shown on the policy, nor shall
any person taking out or renewing or continuing
a policy accept any rebate, except such rebate
as may be allowed in accordance with the published
prospectuses or tables of the insurer.
(2) Any person making default in complying with
the provision of this section shall be punishable
with fine, which may extend to five hundred rupees.
The product leaflet gives only the salient features
of the plan. The policy document is the conclusive
document, and provides in detail all the conditions
relating to the Kotak Term Plan.
Form no.: KTP 01
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