"What
is Kotak Preferred Term Plan?"
The Kotak Preferred Term Plan is designed
to provide you with reduced premium
rates for a sum assured of Rs.10 lakhs
and above.
"Who is eligible for Kotak Preferred
Term Plan?"
Males over the age of 18 years, who
do not use tobacco in any form.
Females over the age of 18 years.
"What
are the advantages of this plan?"
It is a low-cost insurance plan.
You can choose between a regular premium
payment option or a single premium payment
option. In case you opt for the regular
premium payment option, you may pay
your premiums either annually, or in
half yearly or quarterly installments.
Your Kotak Term Plan can be converted
into any other plan offered by Kotak
Life Insurance (except for another Term
plan) provided there are at least 5
years before cover ceases*.
In case you forget to pay your premium
by the due date, you are entitled to
a grace period of 30 days from the date
of unpaid premiums
In case of a financial emergency, you
have the option to surrender the policy
provided you have taken the single premium
payment option*.
"What value-adds can you opt
for?"
You
may avail of the following non-participating
value-adds for a nominal premium at
the time of taking your policy, subject
to aggregate premium on all value-adds
(except Critical Illness Benefit) not
exceeding 30% of the basic Kotak Preferred
Term Plan premium.
Accidental Death Benefit: This benefit
provides an additional amount (over
and above the basic sum assured) to
the beneficiary in the event of the
accidental death of the life insured.
The maximum cover available under this
rider is equal to the basic sum assured
(subject to a maximum of Rs.10 lakhs).
Permanent Disability Benefit: This benefit
can be added to your basic life insurance
policy to provide financial support
in case of disability due to an accident.
The amount payable under this benefit
would be paid out as an annuity. The
maximum permanent disability benefit
that you can avail of is equal to the
basic sum assured (subject to a maximum
of Rs.10 lakhs).
Critical Illness Benefit: This benefit
can be added to your basic life insurance
policy to provide financial support
in the event of a medical emergency.
On the first occurrence of critical
illness during the Preferred Term of
the policy, you would receive a portion
of the sum assured to reduce your financial
burden in this emergency
"What do you receive on maturity
of the policy?"
Since this is a pure risk cover
plan, there are no maturity benefits
"What
happens in the event of death of the
life insured?"
In
the event of death during the Preferred
Term of the policy, the beneficiary
would receive the sum assured.
"Are
there any Tax Benefits?"
Section
80C, 10(10D) of Income Tax Act would
apply. Premiums paid for Critical Illness
Benefit qualify for benefits under Section
80D. These benefits are as per the currently
prevailing tax regulations and you are
advised to consult your tax advisor
for details
