Kotak Preferred Term Plan
Kotak Preferred Term Plan is another pure term plan from Kotak Life Insurance but for elite customers only who require very high sum assured. In this plan also, like any other term plan, the nominee would get the sum assured if the life insured dies within the policy tenure and nothing is payable to him on maturity.
Key Features of Kotak Preferred Term Plan
- It is a pure Term Insurance Policy with Death Benefit only and no Maturity Benefit
- Non-smoker and Women discounts are available in this policy
- 3 additional riders are available
- Option to move to other non-term plans of Kotak Life Insurance is also available at any time except the last 5 years of the policy.
Benefits you get from Kotak Preferred Term Plan
Death Benefit – In case of death of the policy holder, the nominee would receive the sum assured under this policy.
Maturity Benefit – There are no maturity benefits under this plan.
Income Tax Benefit - Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C
Eligibility conditions and other restrictions in Kotak Preferred Term Plan
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Minimum
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Maximum
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Sum Assured (in Rs.)
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25,00,000
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No Limit
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Policy Term (in years)
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5
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30
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Premium Payment Term (in years)
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Single
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Equal to policy term
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Entry Age of Policyholder
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18
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65
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Age at Maturity
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-
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70
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Single premium (in Rs.)
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12,000
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No Limit
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Payment modes
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Single, Yearly, Half-yearly, Quarterly and Monthly
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Sample illustration of premium amount in Kotak Preferred Term Plan
The below illustration is for a healthy Male (non-tobacco user) opting for a Sum Assured = Rs. 25 lakhs and Policy Term = 25 years
Additional Features and Benefits of Kotak Preferred Term Plan
Riders – There are 3 riders available in this policy
· Kotak Accidental Death Benefit (ADB): Lump sum benefit paid on accidental death.
· Kotak Permanent Disability Benefit (PDB): Installments paid on admission of a claim on becoming disabled.
· Kotak Critical Illness Benefit (CIB): Portion of basic Sum Assured paid in advance on admission of a claim on a critical illness.
You stop paying the premium - If the policy holder stops paying the premium, then the policy would lapse and all benefits would cease to exist. You can however revive the policy within 2 years of lapsation.
You want to surrender the policy – Surrender Benefit option is available only to Single Premium policies according to the following formula:
Surrender Value = 75% x Premium Paid x (1 - 1 /Policy Term) x Outstanding Policy Term/Policy Term
You want a loan against your policy – Loan facility is not available under this policy.
Alternate similar term plans from different insurance companies
1. Max New York Life Platinum Protect
2. LIC Amulya Jeevan
3. ICICI Prudential Pure Protect Elite
Other term insurance plans from Kotak Life Insurance
1. Kotak Term Plan
2. Kotak e-Term Plan
3. Kotak e-Preferred Term Plan
4. Kotak Premium Return Term Plan
