Life Insurance
Kotak Life
Founded in 2001, Kotak Life Insurance has become the fifth largest private insurer in the country in terms of total business. Its product offering ranges from pure protection plans like term plans to endowment plans like savings, investment and retirement plans.
| Annual Business | ₹7,489 cr. |
| Claims Settled | 98.59% |
| Claims settled within 30 days | 99.97% |
Term Insurance offered by Kotak Life
Kotak e-Term Plan
A pure protection plan, this is the most basic form of term insurance policy Kotak offers with few variants and a couple of riders you can buy to enhance it.
This plan offers three variants:
- Life:
It’s the most basic plan where a lump sum amount is paid on death of the insured
- Life Plus:
Apart from a base death cover, an additional death cover equal to 100% of base sum assured ( maximum up to 1 crore) will be paid in case of accidental death.
- Life Secure:
A lump sum death cover is paid on the demise of the insured. Also, the future premiums will be waived in case of total and permanent disability.
Riders you can buy with this policy:
- Critical Illness Rider:
A lump sum amount over and above the base sum assured is paid in case you get diagnosed with any of the 37 listed illnesses
Kotak Online Term plan
This is a basic term plan where the chosen sum assured is paid to the nominee upon the death of the insured. But to enhance the plan you can buy three riders.
Riders available under the plan:
- Kotak Accidental Death Benefit rider:
An additional lump sum amount is paid over and above the base death benefit if the cause of death is an accident.
- Kotak Permanent Disability Benefit Rider:
If you get permanently disabled due to an accident, 120% of the rider sum assured is paid in installments for 5 years.
- Kotak Critical Illness Benefit Rider:
You get a lump sum amount in case you’re diagnosed with any of the listed critical illnesses up to a maximum of 50 lakhs. However, keep in mind this lump sum amount is part of your base cover itself. So your death cover gets reduced by the amount of Critical Illness benefit paid.
Kotak Life Term Insurance plan details
| Plan Name | Entry Age | Sum Assured | Policy payment options |
|---|---|---|---|
Kotak e-Term Plan | Minimum- 18 | ₹25,00,000-unlimited | Single, Yearly, |
Kotak Online Term plan | 18 to 65 years. | ₹25,00,000-unlimited | Yearly, Monthly |
ULIP Plans
Unit Linked Insurance Plans or widely known as ULIPs are part insurance, part investment plans. So the premium that you pay, some of it is allocated towards providing a death cover and the rest is invested in equity and debt funds, whichever you choose. So if something were to happen to you, your family either gets death cover or the fund value, whichever is higher at that time.
Say you’re paying a premium of 1 lakh every year for 20 years and for a death cover of 10 lakhs. You die after 15 years and your family naturally gets 10 lakhs. However if at that time the value of your invested premiums is 13 lakhs, your family gets this 13 lakhs. But if the fund doesn’t earn good returns and values at 8 lacs, then you get the death cover. So 10 lacs, i.e., your death cover is the minimum payout. But if you survive after 20 years, then you get all those invested funds back, whatever the value is at that time. That’s your maturity payout.
But there are other things to look for as well. Firstly, there is a lock-in period of 5 years, meaning you won’t be able to get back your premiums before 5 years. It’s only after 5 years that you’re allowed to withdraw some funds and even that is partial withdrawal. You can never withdraw the entire amount. Also, there are different charges that are deducted from your premium every year like premium allocation charge, policy administration charge, fund management charge, etc. So the entire 1 lakh is never invested.
Make sure you read the policy document diligently. And remember ULIPs are largely dependent on how the market is performing, both stocks and bonds.
ULIP Plans offered by Kotak Life
| Plan Name | Entry Age | No. of Funds |
|---|---|---|
| Invest Maxima | Regular Pay: Min: 0; Max: 65 years Limited Pay: For Policy Term of 10/15 years: Min: 0 years*; Max: 64 years For Policy Term of 20/25/30 years: Min: 0 years*; Max: 55 years Single Pay: Option 1: Min: 0 years*; Max: 43years Option 2: Min: 0 years*; Max: 65years | Total: 5 Equity: 3 Debt: 2 |
| Single Invest Plus | 18-55 | Total: 5 Equity: 2 Debt: 3 |
| Ace Investment | Entry Age: 0 to 65 years (60 years for limited pay) | Total: 7 Equity: 3 Debt: 4 |
| Wealth optima Plan | Min- 3 yrs Max: Other than Whole life: Regular Pay: 65 years Limited Pay: 58 years Whole Life: Limited pay: 50 years | Total: 7 Equity: 3 Debt: 4 |