1. It is a low-cost insurance plan.
2. In case you opt for the regular premium payment option, you may pay your premiums either annually, or in half yearly or quarterly installments.
3. 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*..
4. 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.
5. In case of a financial emergency, you have the option to surrender the policy provided you have taken the single premium payment option.

Value added to this benefits are

• Accident death benefits
• Permanent Disability.
• Critical illness Benefit.
• No maturity benefits In the event of death during the term of the policy, the beneficiary would receive the sum assured.

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).

Permanent disability is defined as permanent and immediate inability to work or permanent loss
of use of two limbs or total and permanent loss of sight.

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 term of the policy, you would receive a portion of the sum assured to reduce your financial burden in this emergency.

(Please contact our Life Advisor for the list of critical illnesses).

"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 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.

* Please consult your tax advisor for details

How does this plan work?
To explain, how his plan works….
Mr. Sanjay Gupta, a 30-year-old male, decides to buy the Kotak Term Plan for a sum assured of Rs.10,00,000 for a 10 year term. The annual premium that Mr.Gupta pays is Rs.3,747 annually. In the event of his unfortunate death during the next ten years, his family would receive Rs.10,00,000.

In the illustration, some benefits are guaranteed and some are variable. Guaranteed Returns are marked "guaranteed" as mentioned in the illustration. Two different rates are shown for variables of the assumed future returns. These assumed rates of return are not guaranteed and they are not the upper or lower limits of what you might get back .The actual return may be different depending on a number of factors including future investment performance.

Exclusion
In case the life insured commits suicide within 1 (one) year of the plan, no benefits outlined in the plan would be payable.

Exclusions for Accidental Death Benefit, Permanent Disability Benefit & Critical Illness Benefit:
The Accidental Death Benefit, Permanent Disability Benefit & Critical Illness Benefit would not be paid out in the following circumstances:

a) Self inflicted injuries, suicide, insanity, immorality, committing any breach of law or being under the influence of drugs, liquor etc
.
b) When the life insured is engaged in aviation or aeronautics other than as a passenger on a licensed commercial aircraft operating on a scheduled route.

c) Due to injuries from war (whether war is declared or not), invasion, hunting, other dangerous hobbies or activities, or having been on duty in military, para-military, security or police organization.

Additional Exclusions for Critical Illness:
a) Unreasonable failure to seek or follow medical advice.
b) Any pre-existing medical conditions not disclosed at inception.
c) Infection with Human Immunodeficiency Virus (HIV) or conditions due to acquired Immune Deficiency Syndrome (AIDS).
In addition, no benefit would be paid in respect of the exclusions specific to each critical illness.

Prohibition of Rebates
Section 41 of the Insurance Act, 1938 states: -
(1) No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take out or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any person taking out or renewing or continuing a policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectuses or tables of the insurer.

(2) Any person making default in complying with the provision of this section shall be punishable with fine, which may extend to five hundred rupees.

The product leaflet gives only the salient features of the plan. The policy document is the conclusive document, and provides in detail all the conditions relating to the Kotak Term Plan.