Reasons Why You Should Buy Kotak e-Term?

Kotak e-Term is a thoughtfully crafted insurance plan exclusively designed to offer pure risk coverage, safeguarding your loved ones. It stands out as a cost-effective solution that provides a high level of protection. Kotak e-term plan presents specially discounted premium rates for its customers. It also provides special rates for non-tobacco users & women.

In the unfortunate event of the life insured’s demise during the policy term, the chosen Plan Option determines the Death Benefit payable to the beneficiary. Additionally, this plan allows you to augment your coverage by opting for protection against accidental death and total & permanent disability. Furthermore, you have the flexibility to select supplementary coverage through Kotak Critical Illness Plus Benefit Rider by paying extra premiums. This comprehensive approach ensures a thorough safeguard against unforeseen circumstances.

Benefits of Buying Kotak e-Term

Along with offering the benefits that a term plan should provide, Kotak e-term plan has a lot more to offer. Let us take a look at the list of advantages this plan provides:

Low-cost Insurance with High Cover

Kotak’s e-Term is designed to provide a high level of coverage at affordable prices. This means that life insured can enjoy the security of substantial financial protection for their loved ones without incurring exorbitant costs. The emphasis on cost-effectiveness ensures that individuals can secure their family’s future without straining their financial resources.

Three Plan Options

You have the flexibility to choose any of the three plan options offered at the beginning of this plan, according to your needs. Once you have selected a plan option, it remains fixed throughout the policy term and cannot be altered. These plan options include the following:

• Life Option: Sum Assured on Death
• Life Plus Option: Benefit under Life Option + Accidental Death Benefit
• Life Secure Option: Benefit under Life Option + Waiver of Future Outstanding Premium on Total and Permanent Disability.

Three Payout Options

Kotak e-term Plan provides policyholders with three different Payout Options. These options include:

• Immediate payout
• Level recurring payout
• Increasing recurring payout

The flexibility in payout options allows individuals to choose the most suitable method for their beneficiaries to receive the death benefit. This customization ensures that the payout aligns with the financial needs and goals of the family left behind.

Enhanced Protection

Kotak e-Term not only covers death but also provides enhanced protection against specific adversities. This includes coverage against Accidental Death, Critical Illness, and Total Permanent Disability. This ensures a comprehensive safety net, addressing a variety of potential life-altering events.

Special Rates for Non-Tobacco Users & Women

Non-tobacco users and women are offered special premium rates. This recognizes and rewards healthier lifestyle choices and gender considerations. The discounted rates make the plan even more accessible and cost-effective for these demographic groups.

Special Exit Value Option

The plan offers the flexibility to exit at the age of 60. This option recognizes that financial needs and priorities may change as individual’s approach retirement age. Exiting at age 60 provides a structured way for you to reassess your financial plans and potentially utilize the benefits.

A Special Exit Value shall be payable to you, where the total premiums paid plus underwriting extra premiums paid plus loadings for modal premiums, if any shall be returned if you terminate the policy. You shall have a period of one year to avail this benefit and it can be availed as per the below mentioned conditions:

For Policy Term 40 years

25th Policy Year or during the policy year when the attained Age of the Life Insured is 60 years (age last birthday), whichever is earlier.

For Policy Term greater than 40 years

30th Policy Year or during the policy year when the attained Age of the Life Insured is 60 years (age last birthday), whichever is earlier

Tax Benefits

You have the opportunity to benefit from tax advantages under the Income Tax Act, of 1961, subject to the specified conditions outlined in those sections. It is recommended that you seek guidance from your Tax Advisor for detailed information.

Flexible Premium Payments

You can have the flexibility of paying premiums as per the Kotak e-term plan. Let us take a quick look:

How Does this Plan Work?

Like other term plans, the Kotak e-term plan also works in the same way. You have to follow certain steps to avail of the benefits of this plan:

Step 1

Select your basic sum assured, policy term, and premium payment term based on your requirements.

Step 2

For next step, you have to select any one of the 3 Plan Options offered by the plan:

• Life
• Life Plus
• Life Secure

Step 3

Now this is time for premium payment. Kotak e-Term offers three payout options to choose from:

• Immediate Payout
• Level Recurring Payout
• Increasing Recurring Payout

Step 4

Choose the premium paying mode as per your requirement.

Step 5 (Optional)

Kotak e-Term provides additional cover through the below rider:

• Kotak Critical Illness Plus Benefit Rider

This rider help cover any additional expense due to unfortunate events that might not be covered under the regular term plan.

Final Thoughts

Kotak e-Term stands out for its cost-effectiveness, offering a high level of coverage at economical prices, but it also introduces several features that enhance its value. The three distinct Plan Options, combined with the three Payout Options, grant policyholders unparalleled flexibility to tailor their coverage according to their specific needs and circumstances.