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  • Kotak Preferred Term Plan

    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 Preferred Term Plan from Kotak Mahindra Old Mutual Life Insurance Ltd. is designed in a manner such that it offers protection to the family of the policyholder. This pure protection life insurance plan is one of the best economical means through which individuals can ensure that they receive a high level of protection. Special premium rates can be availed by women and non-tobacco users. In case of the untimely demise of the life assured over the course of the policy term, the nominees / beneficiaries will be eligible for the death benefit based on the option chosen in the plan.

    The Kotak Preferred Term Plan is ideal for individuals who wish to cover their life and ensure that their family is also financially protected in times of adversity. It is also the perfect protection solution from Kotak for those who wish to make provisions to repay their debt or financial liability in case of their untimely and unfortunate demise.

    The Kotak Preferred Term Plan offers two plan options based on suitability, viz. Recurring Payout and Immediate Payout. It also offers a Step-Up Option which guarantees the additional insurance cover at certain crucial life stages in a hassle free and cost effective manner. The basic sum assured of your policy can be increased without the need to undergo any more medical examinations. The increase in sum assured can be requested in events such as marriage, on the birth or legal adoption of a child, on the purchase of your first house within India following the commencement of the policy, or on the first, third and fifth policy anniversary.

    Eligibility – Who is the Kotak Preferred Term Plan for?

    To be eligible to purchase the Kotak Preferred Term Plan, the individuals must be of a minimum age, and the maximum entry age and the age at maturity must be adhered to. Following are the eligibility criteria to purchase a Kotak Preferred Term Plan:

    Parameter Details
    Plan Type Pure Protection Life Insurance Plan
    Minimum Entry Age 18 years
    Maximum Entry Age 65 years
    Minimum Age at Maturity 23 years
    Maximum Age at Maturity 75 years
    Policy Term 5 years to 40 years

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

    When purchasing the Kotak Preferred Term Plan, individuals have an option to choose from regular pay policies, single pay policies, and limited pay policies which offers three sub-options, viz. 5 pay policies, 7 pay policies, and 10 pay policies. The premium payments towards a Kotak Preferred Term Plan can be made on a monthly / quarterly / semi-annual or annual basis. Following are the sum assured and premium details of the Kotak Preferred Term Plan:

    Parameter Details
    Sum Assured Minimum: Rs.25,00,000 Maximum: No limit, subject to underwriting
    Premium Range Minimum annual premiums (if Basic Sum Assured is Rs.25 lakhs): In case of Regular Pay policies with a five year policy term, the minimum premium will be Rs.3,700 in case the Recurring Payout Option is selected, and Rs.4,075 in case the Immediate Payout Option is chosen. In case of Single Pay policies with a five year policy term, the minimum premium will be Rs.10,375 in case the Recurring Payout Option is selected, and Rs.11,700 in case the Immediate Payout Option is chosen. In case of 5 year Limited Pay policies with a 10 year policy term, the minimum premium will be Rs.4,925 in case the Recurring Payout Option is selected, and Rs.5,550 in case the Immediate Payout Option is chosen. In case of 7 year Limited Pay policies with a 12 year policy term, the minimum premium will be Rs.4,225 in case the Recurring Payout Option is selected, and Rs.4,750 in case the Immediate Payout Option is chosen. In case of 10 year Limited Pay policies with a 15 year policy term, the minimum premium will be Rs.3,775 in case the Recurring Payout Option is selected, and Rs.4,225 in case the Immediate Payout Option is chosen. There is no limit on the maximum premium, but the same will depend on the maximum basic sum assured which is subject to underwriting.
    Premium Payment Term In case of Regular Pay policies, the premium payment term will be equal to the policy term. In case of Single Pay policies, only a single premium payment will have to be made. In case of Limited Pay policies, the premium payment term will be 5 pay for policy terms ranging from 10 years to 40 years, 7 pay for policy terms ranging from 12 years to 40 years, and 10 pay for policy terms ranging from 15 years to 40 years.
    Premium Payment Option Single Pay, Limited, and Regular
    Premium Payment Mode Monthly / Quarterly / Semi-Annual / Annual
    Modal Factor In case of Limited and Regular premium payment options, the instalment premiums will be calculated using the following modal loadings: Monthly – 8.8% Quarterly – 26% Semi-Annual – 51% Annual – 100%

    *Premiums vary based on age, location, plan term and other factors

    Plan Coverage – What the Kotak Preferred Term Plan Covers?

    Following are the benefits offered by the Kotak Preferred Term Plan:

    Death Benefit In case of Limited and Regular Premium Paying policies, the death benefit payable will be the higher of the basic sum assured, or 105% of all premiums paid till the date on which the life assured dies including step-up option fee, if any, but not including extra premium, if any, or 10 x Annualised Premium not including extra premiums and modal factors, if any. In case of Single Premium Paying policies, the death benefit will be the higher of the basic sum assured or 1.25 x the single premium, not including extra premium, if any.
    Maturity Benefit The Kotak Preferred Term Plan does not offer any maturity benefits upon the completion of the policy term.

    Riders / Add-On Plans – Additional Coverage under the Kotak Preferred Term Plan:

    The Kotak Preferred Term Plan offers three additional riders that can increase the value of the policy. These are the Kotak Accidental Death Benefit Rider, the Kotak Permanent Disability Benefit Rider, and the Kotak Critical Illness Benefit Rider. Following are the features of each of these riders:

    Kotak Accidental Death Benefit Rider:

    The Kotak Accidental Death Benefit Rider is an additional feature that can be added to your Kotak Preferred Term Plan to enhance the value of the policy and thereby increase the existing protection offered to you under the base plan. The rider offers flexibility to pay premiums based on the convenience of the individual, i.e. Regular Pay, Limited Pay and Single Pay options. The rider offers comprehensive protection until the policy term of the base plan ends, and can be purchased at an affordable rate. Customers can add this rider to their base plan either at the inception of the policy or at any policy anniversary.

    In case of the demise of the life assured as a result of an accident, the death benefit under this rider will be paid within 120 days from the date on which the accident occurred. Following are some of the important details regarding the Kotak Accidental Death

    Parameter Details
    Minimum Entry Age 18 years
    Maximum Entry Age 60 years or maximum entry age of base plan, whichever is lower
    Minimum Age at Maturity 23 years
    Maximum Age at Maturity 70 years or maximum maturity age of the base plan, whichever is lower
    Minimum Rider Sum Assured Rs.50,000
    Maximum Rider Sum Assured Rs.50 lakhs (combining all policies of the Life Insured under Accidental Death Benefit with Kotak)
    Premium Dependent on Rider Sum Assured, Benefit Term of the Rider and Premium Payment Term
    Premium Payment Options Single Pay, Limited Pay and Regular Pay
    Minimum Rider Benefit Term 5 years in case of Regular Pay and Single Pay policies and 6 years in case of Limited Pay policies
    Maximum Rider Benefit Term 40 years
    Minimum Rider Premium Payment Term Equal to rider term in case of Regular Pay policies; 5 years in case of Limited Pay policies; and Single premium for Single Pay policies
    Maximum Rider Premium Payment Term Equal to rider term in case of Regular Pay policies, Single premium in case of Single Pay policies and 39 years in case of Limited Pay policies
    Premium Payment Mode Single for Single Pay policies and Monthly, Quarterly, Semi-Annual and Annual in case of Regular and Limited Pay policies

    Kotak Permanent Disability Benefit Rider:

    The Kotak Permanent Disability Benefit Rider is designed in a manner such that it offers support to the life assured and his/her family if there are unforeseen situations caused as a result of total and permanent disability due to accident. The addition of this rider to your base plan will increase the value of your policy and also increase the existing protection offered to you under the base plan.

    The Kotak Permanent Disability Benefit Rider offers customers the flexibility to pay premiums based on their convenience and the options offered include Regular Pay, Single Pay and Limited Pay. The rider provides comprehensive protection until the base plan’s policy term ends, and 120% of the rider sum assured will be paid to the policyholder over a period of five years. Customers can choose to purchase the rider either at the inception of the policy or on any policy anniversary. Following are some of the key details regarding the Kotak Permanent Disability Benefit Rider:

    Parameter Details
    Minimum Entry Age 18 years
    Maximum Entry Age 60 years or maximum entry age of base plan, whichever is lower
    Minimum Age at Maturity 23 years
    Maximum Age at Maturity 70 years or maximum maturity age of the base plan, whichever is lower
    Minimum Rider Sum Assured Rs.50,000
    Maximum Rider Sum Assured Rs.50 lakhs (combining all policies of the Life Insured under Accidental Death Benefit with Kotak)
    Premium Dependent on Rider Sum Assured, Benefit Term of the Rider and Premium Payment Term
    Premium Payment Options Single Pay, Limited Pay and Regular Pay
    Minimum Rider Benefit Term 5 years in case of Regular Pay and Single Pay policies and 6 years in case of Limited Pay policies
    Maximum Rider Benefit Term 40 years
    Minimum Rider Premium Payment Term Equal to rider term in case of Regular Pay policies; 5 years in case of Limited Pay policies; and Single premium for Single Pay policies
    Maximum Rider Premium Payment Term Equal to rider term in case of Regular Pay policies, Single premium in case of Single Pay policies and 39 years in case of Limited Pay policies
    Premium Payment Mode Single for Single Pay policies and Monthly, Quarterly, Semi-Annual and Annual in case of Regular and Limited Pay policies

    Kotak Critical Illness Benefit Rider:

    The Kotak Critical Illness Benefit Rider can be purchased along with the Kotak Preferred Term Plan to avail extra protection during unforeseen situations. In case the life assured suffers from a critical illness covered by this rider, the company will pay out the Critical Illness Benefit Rider to the individual. The conditions covered by the Kotak Critical Illness Benefit Rider include cancer, heart attack, open chest CABG, open heart repair or replacement of heart valves, kidney failure, stroke, bone marrow / major organ transplant, permanent paralysis of limbs, loss of limbs, aorta surgery, major burns and blindness. However, there are a lot of terms and conditions regarding the payment of the benefit upon the diagnosis due to the aforementioned conditions, so make sure you read the fine print carefully before purchasing this rider.

    Other Key Features of Kotak Preferred Term Plan:

    Following are some of the other key features of the Kotak Preferred Term Plan:

    Surrender Value The Kotak Preferred Term Plan does not have a surrender value and neither does it offer a surrender benefit in case of Regular Pay policies. In case of Limited Pay policies, the surrender benefit will be the surrender value available after the payment of two or three full years’ premium for less than 10 years premium payment term or 10 years premium payment terms and onwards respectively. The surrender value of Limited Pay policies will be 75% x (Total premium paid till date) x ((Policy term – Premium Payment Term) x (Outstanding Policy Term / Policy Term) In case of Single Pay policies, the surrender benefit will be the surrender value available immediately following the receipt of single premium. The surrender value for Single Pay policies will be 75% x (Single Premium Paid) x ((Policy Term – 1) / Policy Term) x (Outstanding Policy Term / Policy Term)
    Grace Period The Kotak Preferred Term Plan has a grace period of 30 days from the due date for premium payment in case of quarterly, semi-annual and annual modes. In case of the monthly mode, the grace period will be 15 days.
    Lapse In case of Limited Premium paying policies, if the premium payment term is less than 10 years, and the premiums for the first two policy years remain unpaid within the grace period and for premium payment terms of 10 years or more, if the premiums for the first three policy years remain unpaid within the grace period, the policy will lapse from the due date of the first unpaid premiums and the customer will not be eligible for any benefits. In case of Regular Premium paying policies, the policy will lapse in case the due premium is not paid within the completion of the grace period.
    Revival / Renewal A lapsed policy can be reinstated for full benefits by reviving it within two years from the date of the first unpaid premium.
    Free Look Period Customers who purchase this policy have the option to return it within 15 days if they are not satisfied with the terms and conditions of the same. In case the policy is issued under the provisions of the IRDAI Guidelines on Distance Marketing, the free look period will extend to 30 days from the date on which the policy was purchased.
    Assignment Assignment under the Kotak Preferred Term Plan should comply with provisions of Section 38 of the Insurance Act, 1938.
    Nomination Nomination under the Kotak Preferred Term Plan should comply with the provisions of Section 39 of the Insurance Act, 1938.

    Exclusions – What is excluded from the Kotak Preferred Term Plan?

    In case the life assured commits suicide within one year from the date on which the policy was issued, 80% of the premiums will be payable to the beneficiary. In case the life assured commits suicide within one year of the date on which the policy was revived, and the revival happens within six months from the date of the first unpaid premium, the beneficiary will receive the death benefit under the policy. However, if the policyholder commits suicide within one year of the date on which the policy was revived, and the revival is done after six month from the date of the first unpaid premium, the beneficiary will be eligible for higher of the surrender value as on the date of claim event or 80% of the premiums paid.

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

    The Kotak Preferred Term Plan offers tax benefits under Section 10(10D) and Section 80C of the Income Tax Act, 1961.

    Why you should choose the Kotak Preferred Term Plan?

    A joint venture between Kotak Mahindra Bank Ltd., its affiliates and Old Mutual plc, Kotak Mahindra Old Mutual Life Insurance Ltd. has grown into one of India’s biggest and best insurance providers. The company offers a multitude of products that have been designed keeping in mind the extensive requirements of a diverse customer base. Apart from the fact that the company offers products that are sure to meet your financial requirements, you can also be assured that its customer service, which operates round the clock, will help in resolving any issues you may face or concerns you may have regarding their products.

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