Kotak e- term is a term insurance plan offered by the Kotak Life Insurance company.
As you search for the ideal term insurance plan which suits your family’s financial needs, it is also important to look into the insurer's past track record related to the purchase and claim settlement experience. Kotak Life Insurance holds a tremendous record in terms of its purchase and claims settlement process.
This indicates that you and your family will experience a smooth and trouble-free policy process as well as claim settlement process. Also, this product is comparatively cheaper than other term products in the market. On the flip side, however, the Kotak e-Term plan does not provide you customize your policy with features such as increasing cover, claim payout and limited pay.
Here is a list of some of the key benefits and features which are included in the Kotak e- Term plan.
What are the key benefits of Kotak e-Term?
- Life cover Benefit: This term insurance plan pays your family an assured sum of money if you pass away during the policy term. This policy does not have a maturity benefit - meaning, you won’t get anything back in case you survive the entire policy duration. You can claim tax benefits under Sec. 80C of the Income Tax Act with this term insurance policy.
- Entry age for the policy: This plan allows you to apply for the policy, when your age is at least 18 years and until you’re 65 years old.
- Increasing Cover: Though this term insurance product might fit perfectly as per your needs, there's one drawback that you should know about. This plan does not provide the increasing cover feature, which means you cannot automatically grow your existing cover with time. So, every time you need to upgrade your term cover, you will have to purchase a new plan.
- Cover Duration: Kotak e-Term provides a cover duration till the age of 75 years indicating that you can still enjoy the benefits of this term insurance plan even after you retire.
- Limited Pay Option: This option allows you to finish paying off the premiums in faster installments and get the burden off your chest quickly. However, Kotak e-term does not provide you many limited pay options.
- Claim Payout Option: The Kotak e- Term plan allows you to customize how your family will receive the claim payout. It provides you with various options such as -
- One-time lump sum: The entire claim amount will be credited to your nominee’s bank account at once. So if you have any major loans and liabilities to be settled, you can choose this option.
- Monthly income model: If you choose this option, the claim amount will be paid to your family in monthly installments for a certain period of time. If you want to provide for your family’s regular expenses this option could be beneficial.
- Lump-Sum with monthly income: This is a combination of both the options. If you want a part of your claim to go towards paying off loans, and the rest be given as a monthly income for your family’s daily expenses for a fixed amount of time, you can choose this option.
What are the riders available under Kotak e- Term?
Kotak e- Term provides the option to choose additional benefits called riders. These riders help you to boost your policy. You can buy the following riders with this policy -
- Comprehensive Critical Illness Rider: This add-on pays an additional amount of money as a lump sum, in case you get diagnosed with any of the serious illnesses listed in the policy document. This money can be used to replace the loss of income and to pay for any additional health-related expenses your family might incur, which won’t be covered by your health insurance plan.
- Accidental Death Benefit Rider: With this rider, your family will receive an additional amount of money, if you pass away in an accident. You can also use this rider to improve your overall cover in case your eligible cover amount is lower than the cover amount required for your family.
- Waiver of Premium Rider: This is one of the most helpful riders, which everyone must buy. With the waiver of premium rider, if you are diagnosed with a serious disease or a disability - you will not have to pay any further premiums. However, you can retain the cover until the end of the policy term.
Why should you consider buying from Kotak Life Insurance company?
- Speed of Claim Settlement: Kotak Life Insurance company has settled 99.68% of its claims in less than 30 days. This shows that your family might not have to wait for a longer time once they have shared the required documents for the claim settlement.
- Claims Complaints: As per research conducted by our in-house research team, we found out that Kotak Life Insurance holds a very less number of complaints related to claims, compared to other insurers.
- Online tracking of Claims: Kotak Life Insurance provides your nominee the option to track their claim online as well, instead of reaching out to the company, again and again, to learn about the claim status.
- Claim Settlement Ratio: The claim settlement ratio of Kotak Life Insurance is 96.38% and their claim amount settlement ratio is 88.21%.
What are the disadvantages of buying from Kotak Life Insurance?
As every insurer has its advantages and disadvantages, Kotak Life Insurances as well has its drawbacks -
- Length of the Claim Form: Kotak Life Insurance, has a very lengthier claim form compared to other insures. This indicates your family nominee is likely to face some hassles while filling out the claim form.
- Personal Relationship Manager for Claims: Unlike other insurance companies that provide your nominee with a personal relationship manager to assist your nominee during the claims process, this insurer does not provide a personal relationship manager.
- Home- pick up for Claims: Kotak Life Insurance does not provide the option to pick up the documents from home after you register for the claim. Meaning,your family/ nominee will have to visit the branch office to submit the documents personally.
How is the Customer Services of Kotak Life Insurance?
- Response on Toll- Free Service: When it comes to customer service, our research team found their response over the toll-free to be average.
- Response on Twitter: Their response over Twitter is found to be slow compared to other insurers.
Poor customer service could lead to problems for the claimants, your family - during the claim settlement process.
About the Insure- Kotak Life Insurance
Kotak Life is a Life Insurance company in India. It offers Term Life Insurance, Traditional Savings, and Unit Linked Insurance Plans. It was founded in 2001. The company is headquartered in Mumbai and has 232 branches in 167 cities. The MD of Kotak Life is Mr. G. Muralidhar.
A Final Verdict on Kotak e- Term Plan
On the basis of the 100+ metrics analyzed by our in-house research team and considering the product benefits, customer service, and claims experience, Kotak e-Term gets a Beshak⭐Rating of 3.9/5.