Kotak Preferred e-Term Plan – Overview
Kotak Preferred e-Term Plan is an online, pure term life insurance plan that provides a high level of protection at an economical price. It helps protect the family against the uncertainties of life in the absence of the life insured. The plan secures the future of the loved ones so that they can meet their financial obligations and lead a happy life. It can be directly purchased from the website of the insurance company without any intervention of an insurance agent. A unique feature of this term plan is the inbuilt waiver of future premiums in case of total and permanent disability of the policyholder. This ensures that the family does not come under additional financial stress in such testing times.
Kotak Preferred e-Term –Benefits
Death Benefit: In the event of the passing away of the life insured during the policy term, the Death Benefit is paid to the nominee.
The Death Benefit for regular and limited premium paying policies is higher of the following:
Basic Sum Assured
10 times the Annualised Premium, excluding modal factors and extra premiums (if any)
105% of all the premiums paid till the date of death, excluding extra premiums (if any)
If the death of the life insured occurs during the grace period, the Death Benefit is paid after deducting any due unpaid premiums. Where the mode of premium payment is monthly, the outstanding premium instalments for the remainder of the policy year of death are deducted from the Death Benefit.
The Death Benefit for single premium paying policies is higher of the following:
Basic Sum Assured
1.25 times the Single Premium, excluding extra premiums (if any)
Maturity Benefit: Since this is a term insurance plan, there is no Maturity Benefit
Tax Benefits: Tax benefits are available under Section 80C and Section 10(10D) of the Income Tax Act, 1961
For Limited premium payment modes if for a PPT of ten years if premiums for the first two policy years are not paid within the Grace Period, the policy will lapse. While for a PPT of more than ten years modes if premiums for the first three policy years are not paid within the Grace Period, the policy will lapse.
The term insurance cover is void if the person insured, whether sane or insane at the time, commits suicide within one year from the start of the policy cover or reinstatement. The company will refund 80% of the premiums paid until the date of death, to the nominee. In case the Life Insured commits suicide within a year of Minor Revival, the nominee will receive the Death Benefit. If the Life Insured commits suicide within a year of Major Revival, the nominee will receive the higher of 80% of the premiums paid or Surrender Value.
The Total and Permanent Disability is not applicable if the disability was caused directly or indirectly by alcohol or drug abuse, failure to seek or follow medical advice, engaging in racing of any kind excluding athletics and swimming, any kind of war or riots, nuclear contamination, participation in hazardous pastimes, any mental or functional disorder, attempted suicide or self injury, etc.