Kotak e-Term Plan

term insurance
Protect your loved ones against death, disability and Illness
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Kotak E-Term plan is an economical online term insurance plan to protect your loved ones from uncertain circumstances. The plan is a full risk cover plan which provides special premium rates to the non-tobacco users and women. It protects your family from uncertain events like your sudden death, total and permanent disability. In the event where the life of the assured is lost, the beneficiary would receive death benefit as per the plan option opted by the assured at the time of policy purchase.

The plan also provides a critical illness cover for 37 terminal illnesses including cancer, kidney failure, benign brain tumour etc. Moreover, this  individual non-linked non-participating pure protection life insurance plan is available in 3 plan options to choose from. It also offers 3 payout options namely immediate payout, increasing recurring payout and level recurring payout. The plan offers a free-look period of 15 days which allows you to return the plan in case you are dissatisfied with it after stating the reasons for the return.

Features of Kotak E-Term Plan

Following are the key features of the Kotak E-Term Plan:

  • Kotak E-Term Plan is available in 3 plan options and 3 payout options. This helps you choose the right plan option based on your requirements and premium payment preference.
  • It provides a step-up option which helps in coping up with  situations like marriage, birth of a child etc.
  • The basic sum assured under the plan is 25 Lakh.
  • The life cover is provided upto 75 years in Kotak E-term plan.
  • You can customise this plan with the help of 2 additional benefit riders namely Kotak Permanent Disability Benefit rider and Critical Illness Benefit rider.
  • Surrender value is not applicable to regular premium paying policy under this plan.
  • A lapsed policy can be revived for full benefits within 5 years from the date of first unpaid premium.

 Benefits of Kotak E-Term Plan

Kotak E-Term Plan offers the below-mentioned benefits to its policyholders:

        1. Death Benefit

In case of an unfortunate event where assured loses it’s life beneficiary can get the benefit in the form of-

1. 105% of all premiums paid till the date of death or 11 times annualised premium or sum assured in the case of regular and limited premium.

2. Basic sum assured or 1.25 times of single premium paid in the case of single premium.

        2. Accidental Death Benefit

 If the assured’s life is lost accidentally,  under ‘life plus’ option 100% of basic sum assured is payable with maximum limit to 1 Crore. The benefit is payable as lump sum to the nominee irrespective of the insurance plan they opted for.

       3. Maturity Benefit 

If the policy is matured without any unfortunate event or the assured survives before maturity there is no benefit provided on the maturity of the policy. The policy will terminate from there on.

       4. Life Stage Benefit 

Aging comes with greater responsibilities, the step up options allows an individual to increase their basic sum assured without undergoing any medical examination or providing health evidence. Such circumstances are-

1. Marriage- marriage requires huge funds, the policy provides  50% of basic sum assured in case of an event i.e marriage.

2. Purchase of the First House After Policy Commencement- if the assured purchases their first house after the commencement of the policy 50% of the basic sum assured is increased.

3. Birth or a Legal Adoption of a Child- presence of a child increases the expenses of a family, the policy provides a 25% increase in basic sum assured for each child.

4. On the 1st , 3rd and 5th Anniversary of the Policy- in this case there is a 25% increase in basic sum assured. 

What is Covered?

 Kotak E-Term plan is available in 3 plan options under which a life can be assured-

  1. Kotak E-term Plan- Life Option

 Under this variant only death benefit is included.

  • Death Benefit

The life option of the plan only secures the unfortunate death of an individual. If the death of the assured occurs 100% or sum assured is payable on death. After payment of the sum assured the policy will be terminated. 

How the life option variant works-

Example-

Name of the assuredMr.  Sharma
Age 30 years
Term of the plan25 years
Premium payment termEqual to policy term
Premium amount for non smoking maleINR 7,920
Frequency of premium paymentyearly

Benefits payable-

  1. If Mr. Sharma dies during the tenure, an immediate lump sum amount of INR 25 lakh will be released to the beneficiaries in case of immediate payout.
  2. If he opts for increasing recurring payout 10% of sum assured i.e 2.5 Lakh will be payable as lump sum and 6% of sum assured on death i.e 1.5 Lakh will be payable at the end of the first year from the date of death.

Surrender Benefit- it is preferable if the assured completes the tenure of the policy. But in case you want to surrender the policy in between tenure then the surrender benefits will differ according to the plan you chose.

  1.  For Regular Premium Policies-Surrender value will not be applicable under regular premium paying policy.
  2. For Limited Premium Policies-Surrender value will be applicable under limited premium policies in cases where the assured has paid premium for a continuous period of 2 full policy years and 3 full policy years. 

For limited pay the surrender value is calculated as 60% x (Total premiums paid^ to date (incl. extra premium)) x ((policy term- PPT)/ Policy Term ) x (Outstanding Policy Term / policy term)

        3. For Single Premium Policies-Surrender value is acquired immediately under single premium policies where the premium has been already paid in full.

For single premium policy the surrender value can be determined by 60% x (single premium paid (incl. extra premium)) x ((policy term1)/Policy Term ) x (Outstanding policy term / policy term) .’

After the payment of the analysed surrender value, the policy will be terminated.

2. Kotak E-term Plan- Life Plus

This variant offers two types of coverage-

  • Death Benefit

Life plus E-term plan covers the death of an individual where 100% of the sum assured will be paid to the nominee.

  • Accidental Death Benefit

Life plus policy provides 100% of the basis sum assured to the beneficiary, moreover accidental death benefit shall be payable subject to 1 Crore maximum in case the death of the assured occurs due to an accident.

How the life plus works-

Example-

Name of the assuredMr. Sharma
Age 30 years
Term of the plan25 years
Premium payment termEqual to policy term
Premium amount for non smoking maleINR 11,006
Frequency of premium paymentyearly

Benefits payable-

  1. If Mr. Sharma dies during the tenure period due to natural causes a lump sum amount of 25 Lakh will be immediately paid to the nominee.
  2. If he dies by accident the nominee of the assured will be entitled to accidental death benefit upto 1 Crore.

Surrender Benefit

Surrender benefits are the same as life option plan.

  1. Kotak E-term Plan - Life Secure Option

Under life secure option 3 benefits are included-

  • Death Benefit

if the assured dies within the tenure 100% assured amount will be paid.

  • Accidental Death Benefit

If the assured meets with an accident during the tenure he is entitled to accidental death benefit which may count upto 1 crore.

  • Total and Permanent Disability Benefit

 If a serious injury turns the assured disable, the future premiums are waived and the death benefit policy continues till maturity.

How the life secure plan works-

Example-

Name of the assuredMr. Sharma
Age 30 years
Term of the plan25 years
Premium payment termEqual to policy term
Premium amount for non smoking maleINR 4,255
Frequency of premium paymentyearly

Benefits payable-

If Mr. Sharma dies by natural causes 100% lump sum amount is paid , if he meets an accident then accident benefit is paid and if a permanent disability occurs due to a long sickness or by accident waiver of future premiums.

Surrender benefit

Surrender benefit is the same as life cover..

 What is Not Covered?

The main exclusion in the Kotak E-term Plan is death by sucide. Sucide within 12 months from the date of the revival of the policy or the date of commencement of the risk of the policy, the nominee will be entitled to the 80% of the premiums paid upto the date of death or surrender value whichever is higher. 

Other exclusions under total and permanent disability-

  • Sickness of a disability which is resulted by a pre existing condition. If the assured does not disclose this condition, he will not be entitled to the disability benefits.
  • Intentional self-harm or sucide attempt.
  • Injuries resulting from war, invasion , act of foregin enemy, armed or unarmed truce and civil war etc. will be assured under disability benefit.
  • If the assured is under the influence of drugs, alcohol, narcotics or psychotropics  substances, he cannot claim benefits.
  • If the life Insured is committing an assault, a criminal offence, an illegal activity or any breach of law with criminal intent.
  • If he engages in any hazardous sports or hobbies like hunting, skiing, mountereeing, racing and scuba diving etc.
  • Taking part in any naval, military or air force operation during peacetime or during any police service.
  • The radio-active, explosive or hazardous nature of nuclear fuel materials or property contaminated by nuclear fuel materials or accidents arising from such nature do not include permanent disability benefit.

Kotak E-Term Eligibility

Eligibility Criteria for the different variants of A kotak E-term plan

Life Option

Life Plus Life Secure 

Minimum Age at Entry

18 years

Maximum Age at Entry

Regular and Single Pay - 65 years

Limited Pay - 50 years

Regular and Single Pay - 65 years

Limited Pay - 50 years

Regular and Single Pay - 65 years

Limited Pay - 50 years

Minimum Age at Maturity

        23 years

23 years

23 years

Maximum Age at Maturity

                                          75 years 

Minimum Policy Term

Regular pay-

 5 years

Limited pay- 10 years 

Regular pay-

 5 years

Limited pay- 10 years 

Regular pay- 

5 years

Limited pay- 10 years 

Maximum Policy Term

40  years or 75 minus age at entry


 

Premium Payment Mode

  • Single Pay- One time payment
  • Regular Pay- Same as the Policy Term
  • Limited Pay- 


 

Premium Payment Frequency

Single, Annual, Half-Yearly and Monthly

Basic Sum Assured

Minimum – INR 25 Lakh

Maximum – No limit, valid under Board Approved Underwriting Policy

However under accidental policy benefits are entitled to maximum 1 crore.

Kotak E-Term Claim Process-

 For claiming your term insurance one must be aware of all the contents of the insurance plan. The nominee needs to provide all the information regarding the death such as date of death, place of death , cause of death etc.

Documentation required for claiming the term insurance-

  1. Death certificate.
  2. Form claiming the submission of all forms.
  3. Post mortem report.
  4. Policy documents.
  5. A certificate from the last medical attendant.
  6. Deeds of assignment or re assignments.

Formalities for maturity claim-

Before 3 months from the date of the maturity the insurance company sends you a notice and a discharge voucher which tells you the lumpsum amount you will receive.

You need to sign the voucher and send it to the insurer along with the policy documents. Once the company receives the signed voucher they process and transfer it to the assigned nominee.

Kotak E-term Plan Riders

Following riders are available with Kotak E-term Plan

  1. Kotak Permanent Disability Rider- In case the assured becomes permanently disable due to any illness or accidental injury 120% of the rider sum will be paid over 5 years while the base plan stays active till maturity.  

100% of the sum assured is payable to the assured to a maximum of 5 Lakh in case the assured undergoes Angioplasty. The rider benefit will be terminated if the rider sum assured is less than or equal to 5 Lakh. In case of any of the listed 36 critical illnesses except Angioplasty, 100% of rider sum assured is payable. The life assured must survive for a period of 30 days post diagnosis of the critical illness to avail the rider benefit.

  1. Kotak Critical Illness Plus Benefit Rider- If the assured has met with a critical illness then part or whole rider sum assured is payable. A total of 120% of the rider sum is paid over the period of 5 years. The rider cannot be revived individually and can only be revived within 5 years from the due date of the first unpaid premium along with the revival of the basic policy. If the assured commits sucide between the benefit term of the rider, no benefit is payable. It also provides comprehensive protection till the end of the policy term of the base plan.

Kotak E-term Plan Review

Kotak E-term Plan is one of the most affordable term insurance plans for securing the future of yourself and your family during unforeseen events. It is a good value insurance plan with 3 variants from which you can choose the appropriate one according to your own requirements. It provides additional lump sum during critical illness and death by accident. During death or other disability the emotional hardship is tough enough, financial burden should not fall upon the family

The policy provides 30 days of grace period from the due date of payment of the premium for yearly, half yearly and quarterly mode. For monthly payments the grace period is 15 days.  During this grace period the policy remains active and the benefits are payable if an unfortunate event occurs. Kotak Mahindra has won many awards and achievements such as Lifetime Achievement Award at Magna Awards 2019 by Businessworld and many more. Kotak Life Insurance featured a claim settlement ratio of 97.40% in FY19. All in all, Kotak E-Term Plan is a great plan and can be shortlisted by individuals who are looking for a customizable and affordable term plan which offers adequate life cover along with coverage for critical illnesses.

Kotak E-term plan Frequently Asked Questions (FAQs)
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