United India Travel Insurance
Kotak Preferred Term Plan is a pure term insurance policy which provides considerable life coverage at a nominal cost. In case the policyholder dies, the insurer pays out a lump sum as the death benefit to financially support his family in his absence. Special rates are available for non-tobacco users and women.
Benefits of Kotak Preferred Term Plan
In case you are no longer around to support your near and dear ones financially, then your family gets a Death Benefit. The Death Benefit is the higher of:
The Base Sum Assured, or
Ten times the annualized premium, or
105% of all the premiums paid until the date of death.
The Basic Sum Assured refers to additional sum assured as per the Step-up Option or a reduced Sum Assured if the Step-down option is chosen.
For Single Premium plan, the death benefit is the higher of:
The Base Sum Assured, or
25 times the Single Premium.
The policyholder may choose customized payout options:
Recurring payout – Under this option, the nominee receives 10% of the Sum Assured amount on the death of the Life Assured.
The balance amount is paid out in monthly or yearly basis for fifteen years
Immediate payout – The nominee receives the entire Sum Assured at one go on the denmise of the Life Insured.
A Step-up Option may be availed at the time of policy purchase, which assures an additional protection without the policyholder needing to undergo a medical examination at a later date. The Step-up Option may be availed for the inportant events in the policyholders life. For marriage and on the buying of the first house in India, the maximum increase in the Sum Assured amount is 50%. On the birth or legal adoption of a child and the 1st, 3rd and 5th policy anniversaries, the maximum increase in the original Basic Sum Assured is 25%. The Step-up Option is only available for Regular premium payment modes.
The policyholder also has the option to reduce the sum assured amount by using the Step-down Option. There is a charge of Rs. 500 per Step-Down request. The Step- Down amount is available in this policy.
Additional protection is available in the under the Critical Illness Benefit rider, that may be added to the policy by paying extra premiums.
Tax benefits are guaranteed on the premiums and Death Benefit as per sections 80(C) and 10 (10D) of the Income Tax Act.
Additional Features or Riders
To revive a lapsed policy, you need to submit a request to reinstate it within a timeframe of two years that starts from the first unpaid premium. If the policyholder is unable to pay the premiums in the provided Grace Period, then the policy acquires a Reduced Paid-up value. Regular payment policies do not acquire a Paid-up Value, as they do not have a Surrender Value.
The term insurance cover equals to zero if the policyholder commits suicide within the first year of buying or reinstating the policy. The user gets 80% of the premiums paid until the death of the policyholder. The nominee gets to receive the Death Benefit if the policyholder commits suicide within six months of reviving the policy.
If the Life Insured commits suicide just in before reviving the policy, the nominee gets a higher of 80% of the Surrender Value or premium paid.