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A Permanent Disability Rider is an optional rider that you can add to your life insurance policy. It protects you financially if you become completely and permanently disabled in an accident. This rider makes sure that the insured and their family will still have money coming in even if the main earner cannot work anymore. This blog will go into more detail about Kotak Life's Permanent Disability Rider.
The Kotak Life’s Permanent Disability Rider is an extra benefit that comes with a basic life insurance policy. It pays out money if the person who is insured becomes totally and permanently disabled in an accident. It is meant to be a safety net, making sure that you and your family have money to get through this hard time. You can get more protection for your current life insurance plan at a low cost by choosing this rider.
If the policyholder becomes completely and permanently disabled because of an accident, Kotak Life’s Permanent Disability Rider will pay out a percentage of the rider sum assured over five years.
For instance, let us say a policyholder has a basic life term insurance with permanent disability rider with a sum assured of ₹10 lakhs. The rider will kick in if the policyholder gets into an accident and becomes permanently disabled. The insurance company will pay the rider 120% of the sum assured in installments. If this happened, the policyholder would get ₹1,20,000 (12% of ₹10 lakhs) every year for the first four years. They will get their last payment of ₹600,000 (60% of ₹10 lakhs) at the end of the fifth year.
This optional add-on to a life insurance policy provides additional financial support if the policyholder becomes permanently disabled due to illness or accident, along with an array of other benefits, such as:
This rider can be a very important source of replacement income if you can’t work because of a permanent disability from an accident. It can help you pay your bills and keep your family’s finances stable.
The Kotak Permanent Disability Benefit Rider pays out 120% of the rider sum assured over five years. This is done in five yearly payments. The first four are for 12% of the total amount, and the last one is for 60%. This payout structure is meant to give long-term financial help.
The base life insurance policy stays in place as planned even after the disability claim has been approved and the payout has started. This means that the nominee will still get the death benefit from the base plan even if the policyholder dies during the policy term.
You can choose from different premium payment options with the Kotak Permanent Disability Benefit Rider. These include regular pay, limited pay, and single pay.
This rider gives your family more financial protection. The rider protects your family from the financial strain that can come from losing income and having to pay more for medical care by giving them an extra payout if you become permanently disabled.
Adding a permanent disability rider to your life insurance policy is an affordable way to get more coverage. Most of the time, the premiums for this rider are low, so it is a good way to get full coverage without spending a lot of money.
To add to your life insurance covering a permanent disability benefit rider is simply an easy process that is meant to supplement your life insurance in a smooth manner. This can be included in two key ways in your financial plan; when initially obtaining a life insurance policy or as an add-on to a preexisting policy later in life.
It is more usual to take the rider when you take out your base life insurance policy. In the application process you will be able to see a list of new riders. You can choose a permanent disability rider and define an amount of coverage required, which is called the rider sum assured. This rider premium will be computed based on your age, health, profession, and the amount of sum assured that you want to take, and the reached premium will be combined with your basic policy premium. You can also avail term insurance tax benefits on the premium paid.
If you already have life insurance, many companies, including Kotak Life, let you add a rider on any policy anniversary after that. To do this, you need to get in touch with your insurance company and ask them to add the rider. The insurance company will start the underwriting process to look at the new risk. The cost of the rider will depend on your age and health when you add it, not when you first bought the policy. You can easily get the estimated cost using the term insurance calculator online
You will need to send the insurance company a number of documents in order to file a claim for the permanent disability rider. These usually include:
To prove how bad and permanent the disability is, you need a medical certificate from a qualified medical professional. The insurance company might also want a medical examiner of their choice to look over the case.
You will need to give documents that show proof of the accident, like a police report or a first information report (FIR). These papers help show that the disability was caused by an accident.
You will also need to send in proof of your identity, such as a driver’s license, passport, or Aadhaar card, to be checked.
Now, let us understand how you can easily make the claim for term plan with permanent disability rider in times of emergency:
You must tell the insurance company as soon as possible after the disability happens in order to start the claim process. Most of the time, this means filling out a claim form and sending it in with the right papers.
The insurance company will look over all the documents that were sent in to make sure the claim is real. They might also look into the accident and the disability themselves to make sure the facts are correct.
The insurance company will start paying out the claim according to the terms of the policy once it is approved. When you settle your claim, the first payment from the Kotak Permanent Disability Benefit Rider will be made.
The Kotak Permanent Disability Rider covers the following types of cases:
This rider usually covers disabilities that happen because of a car accident, whether you are a driver, passenger, or pedestrian.
This disability insurance India can help you if you work in a factory or other industrial setting and are harmed in an accident at work that leaves you permanently disabled.
The policy covers any accidental injury that leads to a total permanent disability. The disability must prevent the insured individual from earning income from any employment, vocation, or profession. It can also happen when you cannot use both hands or feet, or one hand and one foot, or both eyes.
There are some situations in which the Permanent Disability Rider will not pay out. These are known as exclusions.
This rider does not cover any disability that is the result of an injury or suicide attempt that you caused yourself.
If the policyholder breaks the law, the disability will not be covered. Disabilities that happen while the policyholder is drunk or high are also not covered.
Coverage does not cover disabilities caused by war, terrorism, invasion, or dangerous activities like mountaineering or motor racing. Injuries that happen while working for the military, paramilitary, or police are also not covered.
If you want to make sure your family is financially safe in case of an accident that leaves you unable to work, a permanent disability rider is a good choice. It adds another level of protection that can be very important when dealing with the financial effects of a permanent disability.
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To get the benefits of a permanent disability insurance rider, you have to file a claim with the insurance company and send in all the paperwork they need, such as medical proof of the disability and proof of the accident.
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The permanent disability rider is important because it gives you a way to protect your finances in case of an accident that changes your life and makes it impossible for you to work and make money.
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The life assured can get the permanent disability rider if they become completely and permanently disabled because of an accident, as the policy says. They also need to live for at least 120 days after the accident.
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If the policyholder dies, a standard life term insurance plan such as ₹1 crore term insurance pays out to the nominee. A permanent disability insurance rider, on the other hand, pays the policyholder directly if they become completely and permanently disabled in an accident.
Amit Raje is an experienced marketer who has worked in various Fintechs and leading Financial companies in India. With focused experience in Digital, Amit has pioneered multiple digital commerce in India. Now, close to two decades later, he is the vice president and head of the D2C business department. He masters the skill of strategic management, also being certified in it from IIMA. He has challenged his challenges and contributed his efforts in this journey of digital transformation.
Prasad Pimple has a decade-long experience in the Life insurance sector and as EVP, Kotak Life heads Digital Business. He is responsible for developing user friendly product journeys, creating consumer awareness and helping consumers in identifying need for life insurance solutions. He has 20+ years of experience in creating and building business verticals across Insurance, Telecom and Banking sectors
The information herein is meant only for general reading purposes and the views being expressed only constitute opinions and therefore cannot be considered as guidelines, recommendations or as a professional guide for the readers. The content has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Recipients of this information are advised to rely on their own analysis, interpretations & investigations. Readers are also advised to seek independent professional advice in order to arrive at an informed investment decision. Further customer is the advised to go through the sales brochure before conducting any sale. Above illustrations are only for understanding, it is not directly or indirectly related to the performance of any product or plans of Kotak Life.
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