Kotak E-Term Plan

What is the Plan all About?

Kotak e-Term Plan is a pure risk cover plan that offers financial protection to your loved ones, when you are not around. In the event of your death during the term of the policy, the death benefit is payable to the beneficiary as per the chosen payout option. You also have the option to enhance coverage against Accidental Death and Total and Permanent Disability.

What are the Key Features?

High level of protection at minimal cost
Multiple plan options to choose from
Flexible payout options
Flexibility to increase or decrease the cover
Convenient premium payment term & modes
Option to boost protection through riders
Special premium rates for female lives
Attractive premium rates for non-tobacco users
Tax benefits as per prevailing tax laws

What are the Plan Benefits?

Death Benefit

In the event of death of the life insured during the policy term, the death benefit will be payable as per the plan option chosen.

1. Death Benefit Option 1: Life Option

On the natural/accidental death of the life insured, 100% of the sum assured on death shall be payable.

2. Death Benefit Option 2: Life Plus Option

In case of natural death of the life insured, 100% of Sum Assured on death shall be payable. On the accidental death of the life insured, 100% of Sum Assured on death shall be payable. In the event of accidental death, the death benefit shall be payable up to a maximum of Rs 1 Crore.

3. Death Benefit Option 3: Life Secure Option

In the event of natural/accidental death of the life insured, 100% of the sum assured on death shall be payable. On Total & Permanent Disability (TPD) to the life insured, all the future premiums are waived off and the Policy continues till end of policy term.

Differential Payout Options

The policyholder can choose from different payout options at the inception of the policy and the benefit amount will be payable, as per the payout option chosen.

1. Immediate payout

Sum Assured on death shall be paid in lump sum immediately and the policy shall terminate thereafter.

2. Level recurring payout

Lump sum payment of 10% of sum Assured on death shall be paid at the time of settlement of claims. 6% of Sum Assured on death shall be payable at the end of every year for 15 years. The first payment being made one year after the date of death of the life insured.

3. Increasing Recurring Payout

Lump sum payment of 10% of sum Assured on death shall be paid at the time of settlement of claims. 6% of Sum Assured on death shall be payable at the end of the first year from the date of death, thereafter the payout shall continue to increase by 10% every year (simple). These instalments shall be payable at the end of every year for 15 years, starting from one year after the date of death.

For level recurring/increasing recurring payout option, the nominee can receive this annual payment in monthly mode. Monthly payments shall be 8.22% of the Annual Payments. The first payment shall start from one month after the date of death of the life insured.

Step-up Option

Step-up option guarantees you additional insurance cover at specific important stages in your life in a cost effective manner.

Event	Increase in Basic Sum Assured
Marriage	Up to 50% of Basic Sum Assured
Purchase of first house after commencement of the policy	50% of Basic Sum Assured, to a maximum of loan amount
Birth or legal adoption of a child	25% of Basic Sum Assured
On the 1st, 3rd and 5th policy anniversary	25% of Basic Sum Assured

Step-up option is not applicable for policies purchased online. This option is available up to the age of 45 years.

Step-down Option

This feature helps to opt for a lower amount of cover subject to the minimum amount of cover available under the plan.

Maturity Benefit

This policy is a pure protection plan which does not offer any maturity benefits.

Surrender Value

Under Regular Premium Paying policy No Surrender Value shall be applicable.

Under Limited Premium policies, Surrender Value shall be acquired, in case the policyholder has paid premium for a continuous period of 2 full policy years (for premium payment term of less than 10 years) and 3 full policy years (for premium payment term of 10 years or more)

Under Single Premium policies, Surrender Value shall be acquired once the premium has been received.

Who can Buy the Plan?

Factor	Minimum	Maximum
Age (as on last birthday)	18 Years	65 Years
Age at Maturity	23 Years	75 Years
Policy Tenure	5 Years	Up To 40 Years Or 75 Years Minus Age At Entry
Premium Paying Term	Regular, Single Or Limited Pay (5/10 Years)	-
Premium Paying Mode	Single, Annually & Monthly	-
Basic Sum Assured	Rs 25 Lacs	No Limit (subject To Underwriting). Accidental Death Benefit Is Payable Up To Rs 1 Crore
Free Look Period	15 Days (30 Days When Policies Bought Through Distance Marketing)	-
Grace Period	30 Days (15 Days For Monthly Mode)	-
Plan Type	Online/Offline	-

Is any Rider Available with this Plan?

Kotak Critical Illness Plus Benefit Rider: Rider Sum Assured shall be payable on admission of a claim on any one of the 37 covered critical illness, subject to the terms and conditions specified.

How the Plan works?

Mr. Rohit buys a Kotak e-Term Plan (life option) with a basic sum assured of Rs 1 crore. He opts for regular pay premium paying term with a policy term of 40 years.

The Death Benefit payable will be as per payout option chosen.

Immediate Payout:

Level Recurring Payout:

Increasing Recurring Payout:

Is the Plan, eligible for Tax Benefit?

Kotak e-Term Plan is eligible for Tax benefits as stated:

Premiums paid qualify for tax benefits as per Section 80C of the Income Tax Act, 1961.
Death benefit(s) are entitled for tax benefits as per Section 10 (10D) of the Income Tax Act.
Premiums paid for the Critical Illness benefit qualify for tax benefits as per Section 80D of the Income Tax Act, 1961.

(Subject to the provision stated therein.)

Why Comparepolicy.com