Image default
Finance

Advantages and Benefits of Kotak e-Term Plan

It is human instinct to plan the best for your loved ones. Even in your absence, you want everything to run smoothly for them. A secure future for your family ensures that they do not have to face any financial crisis in case you are not around anymore. The best way to do this, in today’s time, is by purchasing a term plan online from trusted insurance providers such as Kotak Life.

What is Kotak e-Term plan?

Kotak e-Term plan is an insurance policy that provides an extensive life cover at economical premiums. The plan aims to provide financial security to the policyholder’s nominee, in case of the demise of the insured during the policy term.  Additionally, e-Term plan by Kotak also offers multiple add-ons and riders, including critical illness, accidental death benefit, permanent disability, etc.

Moreover, standing the test of times and ensuring the policyholders have the maximum coverage possible, Kotak e-Term plan also covers COVID-19 death claims.

What are the advantages and benefits of Kotak e-Term plan?

Kotak aims to be your partner in the times of need and thus, offers the best-in-class coverage at premiums that won’t hurt your budget and features that will secure you for all times.

Here are the most significant advantages of Kotak e-Term plan:

  1. Economical and customised premium payment methods offer higher flexibility:
    Kotak offers extensive coverage for insurers at nominal rates of ₹19* per day. Moreover, the e-Term plan allows you to customise the premium payment according to your convenience. You can choose between monthly, quarterly, and annual payments, and make changes to your life cover based on the different stages of your life, income and financial needs.
  2. Comprehensive life cover with COVID-19 coverage makes the e-Term plan more reliable:
    Kotak not only provides a holistic life cover for the policy term but also includes coverage for the death of the insured due to COVID-19.
  3. Several added benefits and riders offered by the plan enhance its overall appeal:
    Kotak e-Term plan also allows you to secure your life from unforeseen events such as permanent disability, accidental death, critical illness, etc. The add-ons and riders enhance the overall value of the plan, thus, making the e-Term plan more attractive.
  4. Simple and easy documentation makes the Kotak e-Term plan more accessible:
    Kotak e-Term policy can be easily purchased online with minimal documentation. Moreover, the claim settlement process of the company is very quick.
  • Kotak Life offers multiple payout options ensuring superior financial security:
    You can choose the payout process according to your family’s needs and wants. The e-Term plan offers you 3 payout options that includes:
  • Immediate payout: The complete sum assured is paid to the beneficiaries, in the event of the policyholder’s death, and the policy ends there.
  • Recurring payout: 10% of the total amount is paid immediately on death to the beneficiary, and 6% is paid every year for a total duration of 15 years.
  • Increasing recurring payout: Under this option, 10% of the amount is paid at the time of claim settlement, and 6% of the total sum is paid at the end of the first year. After this, the remaining payout increases to 10% per year, and the sum is paid at the end of each year for a period of 15 years, starting from the end of the first year.
  • Kotak e-Term plan provides tax advantages to the policyholder and the nominee:
    Kotak e-Term plan offers tax deductions for the premium paid under Section 80C and tax exemption for payout on maturity, under Section 10(10D) of the Income Tax Act of 1961. You can claim deductions up to ₹1.5 lakhs for the premium paid towards your policy or that of your parents, spouse, or dependent children.

Conclusion

Kotak e-Term plan can act as a reliable tool for financially safeguarding your family in your absence. If you are confused about how and when to invest, a term insurance calculator can help you in making the right decision.

So, what are you waiting for? Determine your needs, calculate the cost of the premium and buy Kotak’s e-Term plan today.

*Disclaimer – The above illustration is for a 30-year-old healthy male, non-smoker who has opted for the Life Option with a 40-year policy term with regular premium payment mode, Level Recurring Payout Option and Sum Assured on Death of ₹1 Crore. The per day premium is ₹18.63 [₹6800 annual premium / 365 days = ₹18.63]. The above premium figures are exclusive of Goods and Services Tax and Cess. Goods and Services Tax and Cess thereon shall be charged as per the prevalent tax laws over and above the said premiums. The premium rates used in this illustration is for Online Channel. For sub-standard lives, extra premium may be charged based on Kotak Life Insurance underwriting policy.

Related posts

Income Tax Return India – Tax Return Definition and Slab Rates

Noemi Davin

HOW TO CALCULATE YOUR MUTUAL FUND RETURNS USING SIP CALCULATOR?

Noemi Davin

Computer Financing

Noemi Davin