• Kotak Credit Term Group Plan

    Life Insurance
    • Reduce taxable income by up to Rs. 1,50,000 deduction under section 80C**
    • Convenient payment options - annual, half-yearly, quarterly or monthly premium payments
    • Do more with plans that offer pure protection, retirement planning and investment options

    Kotak Credit Term Group Plan is an annually renewable non-participating plan offered to the borrowers on their outstanding loan amount. This facility is provided only to financial lending institutions such as banks, NBFCs, and other retail finance providers. Here the life assured is the borrower and the lending institution is the beneficiary. In the event of untimely death of the borrower, Kotak Life Insurance will repay the loan amount relieving the guarantor or family members from the responsibility of loan repayment.

    Eligibility -Who is the Kotak Credit Term Group Plan for?

    To be eligible for the Kotak Credit Term Group Plan, the applicant has to meet certain criteria. Refer to the below table for the same:

    Minimum Entry Age 18 years
    Maximum Entry Age 64 years or a lesser age decided by the financial lending institution
    Policy Term 1 year
    Maximum Maturity Age 65 years or a lesser age decided by the financial lending institution

    Sum Assured and Premium Range - What you get and what it costs?

    The policy pays out a fixed sum on death of the policyholder which will not exceed the amount offered as loan by the lending institution. The details of the sum assured and modes of payment are given below:

    Minimum Basic Sum Assured The protection cover will not exceed the original value of the loan amount
    Maximum Basic Sum Assured No limits on Maximum Basic Sum Assured
    Premium Payment Mode Monthly and Yearly
    Premium Modal Factor 100% for yearly payment mode 8.5% for monthly payment mode
    Extent of cover It’s available 24 x 7 anywhere in the world

    Plan Coverage - What the Kotak Credit Term Group Plan covers?

    • The plan takes care of the outstanding loan amount of the borrower, thus relieving their family members from financial burden.
    • The policy is offered at a low cost by Kotak Life Insurance as the risk cover is pooled.
    • Offers relaxation on pre-medical checkup. However, the non-requirement of a medical checkup will depend on the age, loan tenure, and the type of loan availed.
    • The credit institution availing Kotak Credit Term Group Plan must pay premiums within 7 days from the due date to avoid lapse of the cover.
    • Buying the plan involves a hassle-free documentation process and even the pre-medical examination norms are relaxed to a good extent.

    Exclusions - What the Kotak Credit Term Group Plan doesn’t cover?

    Suicide Exclusion - In the event of suicide of the life assured within one year from the start of the policy, none of the benefits shall be paid.

    Other Key Features – Freelook Period, Service Tax, Revival, etc.

    The salient features of the Kotak Credit Term Group Plan are described below:

    Free Look Period If the policyholder disagrees with any of the terms and conditions of the plan, he/she can cancel the policy within 15 days of signing the policy contract. This interval is referred to as the free-look period.
    Service Tax and Cess Service Tax and Cess will be deducted as per the existing tax laws. The charges may vary from time to time depending on the changes brought by government.
    Policy Lapse and Revival
    • To maintain the cover, the lending institution should pay the premiums within 7 days from the due date.
    • The policy can be revived within 31 days from the date of first unpaid premium and interests will be charged on overdue premiums.
    Termination of Policy Cover The policy cover will automatically terminate on the earliest of:
    • The date on which the loan is closed.
    • The date on which the policyholder attains the ceasing age mentioned in the policy contract.
    • The date of the scheduled loan expiry of the loan as per the policy contract.
    • The date on which premium payment ceases.

    Tax Benefits – How you can save with the Kotak Credit Term Group Plan?

    • The premiums paid towards the Kotak Credit Term Group Plan are eligible for tax benefits under Section 80C of the Income Tax Act.
    • The death benefit, surrender value, and maturity benefit are eligible for tax rebates under Section 10(10D) of the Income Tax Act.

    However, tax rules are liable to change in the future. So, it is advisable to consult a tax advisor before investing in the policy.

    Other Benefits – How you can save with the Kotak Credit Term Group Plan?

    You can view the details of your Kotak Credit Term Group Plan through the online customer portal of Kotak Life Insurance. The website also allows you to renew the policy by paying premiums online. Payments can be made through the following channels:

    Debit Cards MasterCard, Visa, Maestro, and RuPay cards are accepted
    Credit Cards MasterCard, Visa, Maestro, American Express, and Diners Club cards are accepted
    Bill Junction You can register at Bill Junction and authorise your premium payments online
    Net Banking You can use the Net Banking facility to make premium payments online
    e-Wallets Premiums can be paid through e-Wallets as well
    Other modes NEFT, ECS, Kotak Mahindra Bank ATM, Drop Boxes, Money Order, Branch Offices, and other immediate mobile payment services

    In addition to the above, you can initiate an online chat with a customer care representative to get clarifications to queries and for resolution of issues. The insurer also offers the SMS Support facility using which you can request for a callback from the customer service team. Alternatively, you can request for a callback through the Kotak website.

    Why you should buy the Kotak Credit Term Group Plan from Kotak Life Insurance?

    Kotak Mahindra Life Insurance is a joint venture between Kotak Mahindra Bank Ltd., its affiliates and the international investment and banking group Old Mutual plc. Kotak Life Insurance is one of the leading insurance companies in India selling a wide range of insurance plans. The company is known for its competitively priced insurance products and easy claim settlement process. Here are some of the strengths of Kotak Mahindra Life Insurance:

    • The company offers a diversified portfolio of products to meet the specific needs of customers.
    • Kotak has years of experience in asset management and has received high ratings from some of the independent rating agencies in the country.
    • Innovative products have been launched by the company from time-to-time combining protection and savings.
    • Higher transparency in all the services offered.

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