Kotak Life e-Term Plan 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. As per our research, Kotak Life Insurance Company has received fewer claim settlement and policy purchase complaints, and they also have a good track record of settling claims faster. This indicates that you and your family will experience a smooth and trouble-free policy process as well as a claim settlement process.
Also, this product is comparatively cheaper than other term products in the market. It allows you to customize how your family receives the claim amount. On the flip side, however, the Kotak e Term plan does not provide important customizations such as increasing cover, many limited pay options and comprehensive critical illness coverage.
Let’s take a quick look at the Kotak e Term plan review.
What are the key benefits of Kotak Life e-Term Plan?
- 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 Section 80C of the Income Tax Act with this term insurance policy.
- Entry age for the policy: The Kotak Life e Term plan allows you to apply for the policy, when your age is at least 18 years and until you’re 65 years old.
- Cover duration: Kotak Life e-Term policy 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.
- 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.
- Limited pay options: This option allows you to finish paying off the premiums in faster installments and get the burden off your chest quickly. However, the Kotak e Term plan does not provide you with many limited pay options. You can either choose to pay your premiums in 5 years or 10 years with this product.
- Claim payout options: The Kotak Life 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: 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 the above two options. If you want a part of your claim to go towards paying off loans, and the rest to 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 Life e- Term Policy?
The Kotak e- Term plan 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 -
- 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 as a result of the illness.
- 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 due to accidental disability rider: This is one of the most helpful riders, which you must consider buying. With the waiver of premium rider, if you get permanently disabled because of an accident - you will not have to pay any further premiums under your term insurance policy. However, you can retain the cover until the end of the policy period.
Why should you consider buying from Kotak Life Insurance company?
- Speed of claim settlement: Kotak Life Insurance company has settled 99.99% 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 has received a very less number of complaints related to claim settlement, compared to other insurance companies.
- 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: If you are thinking of buying the Kotak Life eTerm plan, you should be aware that the company’s claim settlement ratio is 98.50% and the claim amount settlement ratio is 95.47%.
What are the disadvantages of buying from Kotak Life Insurance?
- Length of the claim form: Kotak Life Insurance, has a very lengthier claim form compared to other insurers. This indicates your family nominee is likely to face some hassles while filling out the claim form.
- 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 Service of Kotak Life Insurance Company?
- Response on Toll-free: When it comes to customer service, our research team found their response over the toll-free to be slow.
- Response on Twitter: Their response over Twitter was found to be slow as well compared to other insurance companies.
Poor customer service could lead to problems for the claimants, i.e., your family during the claim settlement process.
About the Insurer - Kotak Life Insurance Company
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.
Final review of Kotak Life 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, the Kotak Life e-Term plan gets a Beshak⭐Rating of 3.5/5.