Kotak Life Insurance is offering a pure vanilla term life insurance plan called e-Term and e-Preferred term plan. This is among the latest offering of term insurance plans in India which can be bought online.
Before Kotak e-Term and e-Preferred term plan was made available, ICICI Prudential life insurance and Aegon Religaire life insurance had already launched online term insurance plans.
Here is Kotak e-Preferred term plan review. We will discuss it’s feature, how to buy, the step up feature and compare it with other plans as well.
This is a pure insurance term plan among the types of life insurance policies available. So you get a cover and pay premium each year -if you survive your premiums are lost; if you die, your beneficiaries get the Sum Assured as a lump sum pay out. Reduced premiums are applicable if you are a woman or a non-tobacco user.
The features of the term plan are as below. As you can see, the minimum age of a person taking the policy can be 18 years while the maximum can be 65 years.
The term insurance policy can be issued or taken for a minimum period of 5 years and maximum 30 years.
For Kotak e-Term plan, the maximum Sum Assured is Rs 25 lakhs and minimum is Rs 3 lakhs. Sum Assured is the amount of money paid out in lump sum in case of death of the insured person.
For Kotak e-Preferred Term, the maximum Sum Assured is subject to underwriting and minimum Sum Assured is Rs 25 lakhs.
| Features | Kotak Plan |
| Entry Age (as on last birthday) | Min. 18 years, Max. 65 years |
| Policy Term | Min. 5 years, Max. 30 years |
| Maturity Age | Max. 70 years |
| Sum Assured | Kotak e-Term: Min. Rs.3,00,000, Max. 24,99,999 Kotak e-Preferred Term: Min. Rs.25,00,000, Max. Subject to underwriting |
| Other Features | Increase your Sum Assured without having to undergo any further medical examination by using the Step Up option which will be charged |
Both the term plan are plans which can be purchased online from the Kotak Life insurance website.
You will love to read this too Why Do Women Stay Away from Money & Wealth ManagementObviously, you can also buy this via the traditional method of contacting your local branch with the assistance of a life insurance agent or advisor.
Here are the steps you need to perform to buy this policy online.
STEP 1: Decide the amount of cover (Sum Assured) you require
STEP 2: Decide the term for which you want to be covered
STEP 3: Decide if you want to choose the Step Up Option
STEP 4: Logon to insurance.kotak.com, enter the above details and get your policy.
When you take the policy, you have an option of availing the step up feature offered by Kotak. The basic idea is to increase your life cover at certain stages in your future life without undergoing a medical test. So if you have a child or purchase a house, you can increase your Sum Assured to take care of the increased liability you now have.
For events like marriage or purchase of a house, the maximum increase in Sum Assured can only be 50% of the original Sum Assured.
For events like child birth or policy completion dates (1st, 3rd and 5th), only 25% of original Sum Assured will be increased.
There are two caveats to the step up option available :
First, the new Sum Assured cannot be more than 3 times the original Sum Assured and the policy holder should not have attained 45 years of age.
Second, the premium you pay for this is a percentage of the basic premium as per below
If the policy term is up to 15 years, the fees is 3% of basic premium
If the policy is above 15 years, the fees is 5% of basic premium
For a Sum Assured of 30 lakhs, below are the premiums across different entry ages and policy terms for a healthy individual.
| Age | Term | |||
| 10 years | 15 years | 20 years | 25 years | |
| 25 | 3100 | 3105 | 3120 | 3140 |
| 30 | 3195 | 3215 | 3355 | 3640 |
| 35 | 3680 | 3835 | 4245 | 4800 |
| 40 | 4895 | 5360 | 6075 | 7140 |
The premium of this term plan is comparable with the online available plans from ICICI Prudential and Aegon Religaire. As you can see below, if cost is your driving factor, then go for term plans from Kotak or ICICI Prudential.
Term of policy is 25 years, Sum Assured is 25 lakhs
If we were to compare the general features, they would look like below.
I really like the loaded features offered by Kotak and I consider it better than ICICI Prudential’s iProtect and Aegon Religaire’s iTerm. Kotak e-Term plan has a combination of the minimum age and maximum age which the others don’t. ICICI Prudential ‘s iProtect has a minimum age of 20 while Aegon Religaire’s iTerm plan has a maximum age of 60.
This term plan has a combination of the best minimum and maximum policy term (5 years and 30 years respectively) which the others don’t. ICICI Prudential’s iProtect has a minimum policy term of 10 while Aegon Religaire’s iTerm plan has a maximum age of 25.
In fact, Kotak Life insurance boasts of one of the cheapest term plans even in the offline mode.
However, since the customer is spoilt for choice and a lot of options have been made available, he will probably twiddle his thumb over what to buy.
| Features | Kotak e-Term | ICICI Pru iProtect Option 1 | Aegon Religare iTerm |
| Entry Age (as on last birthday) | Min. 18 years, Max. 65 years | 20 / 65 | Minimum – 18 years Maximum – 60 years |
| Policy Term | Min. 5 years, Max. 30 years | 10 / 15 / 20 / 25 / 30 years | Minimum – 5 years; Maximum – 25 years |
| Maturity Age | Max. 70 years | 75 years | Maximum – 65 years |
| Sum Assured | Kotak e-Term: Min. Rs.3,00,000, Max. 24,99,999 Kotak e-Preferred Term: Min. Rs.25,00,000, Max. Subject to underwriting | Maximum – No limit (subject to underwriting) | Minimum – Rs. 10,00,000 (in Multiple of Rs. 1,000) Maximum – No limit (subject to underwriting requirements) |
The premium that you pay each year can be used to avail tax benefits under Sec 80C and Section 10(10D) of the Income Tax Act, 1961.
You will love to read this too Senior Citizen Savings Scheme - Updated 2023If you take this policy and are not satisfied with it, you are free to return this back within 15 days of receipt of the policy. Your entire premium minus expenses towards stamp duty, medical examination and premium for the number of days so covered will be refunded back to you. This free look up period is offered by all life insurers and is not a feature specific to Kotak.
If the policy holder commits suicide within one year of policy insurance, no payout will be given.
For the yearly, half-yearly and quarterly mode of premium payment, there is a grace period of 30 days for the premium to be paid. For the monthly mode there is a grace period of 15 days.
Since this is a term plan, the Sum Assured will be paid out in case of death of the life insured and there is no maturity benefit attached.
You may convert your online term plans to any other plan offered by Kotak Life Insurance (except for another term plan). This benefit is available at any time during the term of the policy, but at least 5 years before cover ceases.
Most of the term plans offer similar benefits.
Aviva India offers a good term plan: Aviva i-Life which is currently the cheapest term plan in India..
Hi,
my age is 36yrs, with wife and a 4yrs kid.
Now i want to take 50Lac Term plans.
My strategy is to divide in 2 [30Lac & 20 Lac].
30 Lac cover from LIC.
20 Lac any online Term plan[Kotak,Hdfc,Religare]. Also does it make sense to take TermCover in my spouse name as well. Sharma Sir, does my strategy is sound. Which policy shoud i select in online versions. My no being 9167005534. Please suggest . Thanking You,
Swapnil
@Swapnil, Is your wife working ? Strategy looks ok, not sure why a figure of Rs 50 lakhs is OK or not.
@Radhey Sharma,
No my wife is not working. But i have rental income in her name,rent i get frommy tenant gets deposited in her account. Also would like to know how is recently launched HDFC Term plan online version as compared to Kotak. Since i m planning to take term plan of 30lac online ver,pl suggest inputs about hdfc v/s kotak. Regds
swapnil
Hi, It seems the Kotak eTerm Plans give good benefits. I have a scenario, where in if we purchase this Kotak e Term Plan for say suppose 30 Years. As there is an option to convert the plan to any of the Kotak Isurance Plans. Suppose for any policy holder, the eTerm Plan is to mature and he wants to convert this to another insurance plan. By the time the eTerm plan matures he might had alreay paid 1Lac as premiums for eTerm Plan.
Now, When he wants to convert this to any insurance plan does the already paid 1Lac Premiums be adjusted in the insurance that he takes after Maturity of eTerm Plan . Hope Ia clear on this. Can any one help me with this.
I have a basic question – can you really convert a term plan into another endowment plan. I don’t think so. You have not accumulated any money after you took the plan because the term plan was only to cover you for your mortality. No savings were done all these years.
So it cannot be converted. Let’s ask the usual suspects – Vivek and Rakesh.
@Radhey, Yes Kotak does provide that option but not sure how would that work, given the low premium on term plans. What would be the charges to transfer, nothing is mentioned. Flexibility
You may convert your online term plans to any other plan offered by Kotak Life Insurance (except for another term plan). This benefit is available at any time during the term of the policy, but at least 5 years before cover ceases. The premium rates applicable in the new plan would apply.
Rakesh, I know this feature is available with most insurers but I thought only other endowment plans could be converted.
I had a question on term plan but I think makes sense.
Let me also check at my end.
What Rakesh has written under the “Flexibility” heading is absolutely right. This is published in Kotak’s online term insurance brochure.
OK yeah, I did check and this is right. Thanks for clarifying – see , I learn from you experts as well.
Has anybody taken Kotak e-term or e-preferred online term plans? I’m having impression that Kotak service is very poor. Please let me know your opinion. THanks
Mahendra.
Why would you say that ? How did you get the impressions ? The service providers have a mixed fan following – you will get positive and negative reviews for each insurance company from many people.
So Kotak services are good in India for online term insurance plans? Can you please let me know?Comment
I wants to take terms plan of Rs 50 lacs for 20 year. My age is 40 year & 6 month.
please suggest best plan with cheap
I have bought Kotak online term plan of 1 Cr. in Feb-16, I had compared all online term plans and found Kotak the best with lowest premium and claim settlement ratio 92%+. thought it was a good choice, isn’t it ?
[…] Kotak Life Insurance’s e-Term or e-Preferred Term life … – An article discussing Kotak Life Insurance’s e-Term and e-Preferred Term life insurance plan; its features and comparison with other online term plans […]
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