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  • Kotak Term Benefit Rider

    Life Insurance
    • Premiums as low as Rs.17/day for sum assured of Rs.1 crore*
    • Claim up to Rs. 1,50,000 deduction under section 80C**
    • Choose between annual and monthly premium payment options

    The Kotak Term Benefit Rider is an additional benefit offered by Kotak Life Insurance that allows policyholders to increase their sum assured in case of their death. This is a comprehensive life cover and offers protection till the base plan’s policy term elapses. Policyholders can choose from flexible premiums and avail income tax benefits as per income tax laws.

    The purpose of the Kotak Term Benefit Rider is to enhance the existing protection offered by the base plan. It can be used to meet various financial necessities including covering debt, rent, mortgage and other payments upon the death of the policyholder.

    Eligibility – Who is the Kotak Term Benefit Rider for?

    Policyholders must meet certain eligibility requirements to apply for this additional benefit rider. The criteria to be met include:

    Parameter Eligibility
    Minimum Entry Age 18 years old
    Maximum Entry Age 60 years old
    Minimum Maturity Age 21 years old
    Maximum Maturity Age 70 years old
    Premium Total premiums for this rider cannot be more than 30% of the premium paid for the base plan of the policy.
    Premium Payment Policyholders can choose between Single Pay, Limited Pay and Regular Pay

    Sum Assured:

    The Kotak Term Benefit Rider offers policyholders a sum assured in case of their demise. The sum assured offered under this rider at any given time shall not exceed the sum assured offered under the base plan of the policy.

    Sum Assured Amount
    Minimum Sum Assured Rs.10,000
    Maximum Sum Assured Any amount up to the sum assured offered under the base plan.

    Rider Term:

    The term of the rider will vary depending on the type of premium payment chosen by the policyholder. Also, the premium payment for the rider shall not be more than the premium payment term chosen for the base plan of the policy.

    Type of Premium Payment Rider Term
    Single Pay and Regular Pay
    • Minimum – 5 years
    • Maximum – 52 years
    Limited Pay
    • Minimum – 5 years
    • Maximum – 51 years
    Type of Premium Payment Premium Payment Term
    Single Pay 1 year
    Limited Pay
    • Minimum – 5 years
    • Maximum – 51 years
    Regular Pay Same as rider term

    Payment Mode:

    Policyholders can make payments on their premiums depending on the premium type chosen by them:

    Type of Premium Payment Mode
    Regular Pay and Limited Pay
    • Monthly
    • Quarterly
    • Half-yearly
    • Yearly
    Single Pay Single payment

    Payment Frequency:

    According to the payment frequency, policyholders will make a percentage of payment on their premiums in the following manner:

    • Monthly - 8.8% of the premium
    • Quarterly - 26% of the premium
    • Half-yearly - 51% of the premium
    • Yearly - 100% of the premium

    Disclaimer: Premiums vary based on age, location, plan term and other factors.

    Plan Coverage – What the Kotak Term Benefit Rider covers?

    Death Benefit – This plan offers death benefit, wherein, in an event of the policyholder’s death, their nominees or legal heirs will receive a lump sum payout.

    The Kotak Term Benefit Rider does not offer a maturity benefit.

    Exclusions – What the Kotak Term Benefit Rider doesn’t cover?

    Suicide Exclusions:

    • In case the policyholder commits suicide within 12 months from the policy’s issue date, 80% of paid premiums will be paid.
    • In case the policyholder commits suicide within 12 months from the policy’s revival date and the revival was done within a maximum of 6 months from the first unpaid premium, Death Benefit will be paid. In this case alone the suicide exclusion will not apply.
    • In case the policyholder commits suicide within 12 months from the policy’s revival date and the revival was done after 6 months from the first unpaid premium, either the Surrender Value or 80% of the paid premiums, depending on whichever is higher, will be paid.

    Other Key Features of Kotak Term Benefit Rider:

    Policyholders must bear in mind the following key features applicable on the Kotak Term Benefit Rider:

    Other key features Details
    Grace period
    • Quarterly/half-yearly/yearly – 30 days from the premium due date.
    • Monthly – 15 days from the premium due date.
    Rider Lapse The benefit offered under the rider will lapse if the policyholder does not make the premium payment by the grace period. Upon lapse of the rider, the policyholder will not be entitled to any benefits.
    Rider Revival The rider can only be revived when the policyholder revives the base plan as well. The rider cannot be independently revived.
    Rider Alterations Riders can be purchased either with the base plan or on any of the policy anniversaries. Alterations to the policy can be made only during a policy anniversary. If the policyholder withdraws the base plan, the rider will be automatically surrendered.
    Rider availability This rider is available under certain non-unit linked policies and is available with Corporate Agents, Tied Agents, through Direct Marketing and Brokers.
    Free Look Period
    • The free look period on purchase of this rider from all channels except direct marketing is 15 days.
    • The free look period on purchase of this rider from direct marketing is 30 days.
    • The policyholder has the option to return the rider if they disagree with the terms.
    • The policyholder will receive a refund after the insurer compensates for expenses incurred on proportionate risk premium, medical examination and stamp duty.
    Rider Surrender If the policyholder chooses to surrender the rider, the surrender value will be provided in the following way:
    • Regular Pay - Not applicable
    • Limited Pay - Payment on the rider must be made for 3 whole years after which the surrender value will be offered to the policyholder.
    • Single Pay – Surrender value on the rider will be applicable starting from the end of the first policy year.
    Reduced paid-up
    • Reduced paid-up is applicable for Single Pay and Reduced Pay only.
    • If the base plan of the policy has been converted to a reduced paid-up and the policyholder has made payments on the rider premiums for 3 whole years, the rider’s sum assured will also be converted into reduced paid-up rider.

    Tax Benefits – How you can save with Kotak Term Benefit Rider?

    Policyholders are eligible for tax benefits under Section 10 (10D) and Section 80C of the Income Tax Act of 1961. Tax benefits may change according to tax laws.

    Other Benefits – How you can save with the Kotak Term Benefit Rider?

    Kotak Life Insurance offers a host of customer-centric benefits to customers. The customer base of this insurer comprises of Indians as well as NRIs. Indians and NRI customers have separate dedicated phone lines that operate between Mondays and Saturdays.

    The Kotak Life Insurance website also offers potential customers assistance using a Life Advisor. Those who are unsure of which plan is best suited for them, they can provide their details and a Life Advisor will get in touch with them to help with the decision making.

    The insurer also offers customers and policyholders various tools including an online calculator to help compute premiums on various life insurance plans and riders.

    Policyholders can also register to receive SMS Alerts which will enable them to request for specific information on their policies and riders at any given time.

    Why you should buy the Kotak Term Benefit Rider from Kotak Life Insurance?

    Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture between Kotak Mahindra and Old Mutual Inc. which is one of their affiliates. The insurer boasts a huge customer base of 4 million policyholders in India. The company focuses on customer value and understanding in delivering of their products and services, which is a combination of Protection as well as Long term Savings. Kotak Life Insurance is also one of the leaders when it comes to claim ratios and offers complete transparency in their services including asset management, fund performance declaration and more. 

    This Insurance Company has not partnered with BankBazaarInsurance.com. For more details, please visit its website/branch office. The trademarks, logos and other subject matters of intellectual property belong to their respective owners.