Kotak Life
e-Term
The Kotak e-Term Plan is a pure term insurance policy designed to provide affordable life cover with robust personalisation. With three plan variants—Life, Life Plus, and Life Secure—it caters to a broad spectrum of needs, from basic coverage to benefits for accidental death and permanent disability. You also get three flexible payout options, premium discounts for non-tobacco users and women, and the ability to enhance cover through Step-Up and Rider options. It's a well-balanced plan offering customisation without complexity.
Good Claim Settlement Ratio
Kotak Life settles 98.54% of claims of the total number of claims it receives as compared to the industry average of 97%. A pretty good number overall.
Good Complaints Ratio
Kotak Life receives 6.79 complaints (per 10,000 claims registered) as opposed to the industry median of 17 complaints. Pretty good figure overall.
Good Amount Settlement Ratio
Some insurers pay out the smaller claims while declining to pay out the few higher-value claims in a bid to improve the claim settlement ratio. So you will need to look at the total amount settled as a percentage of the total amount claimed. Kotak Life meanwhile has an amount settlement ratio of 94.7% as opposed to the industry average of 87%. Pretty good figure overall.
The aforementioned ratios have been averaged over three years for every insurer and the industry as a whole.
What's good here?
Zero Cost Option Available
Some insurers will return all your premiums if you forego your policy before maturity, during a period specified by the insurer. Meaning you get all your premiums back, while also being protected under the term plan during this time. And e-Term extends this option.
Premiums waived after permanent disability (due to accident) or critical illnesses
Some policies waive all future premium payments if you are ever disabled (due to accident) or diagnosed with a critical illness. And e-Term extends the waiver-of-premium option in both cases.
What's okay here?
Decent Critical Illness Benefit
If you're ever diagnosed with a debilitating illness, you would want your insurance policy to pay a fixed sum so that you can deal with any monetary obligations you may have. e-Term extends critical illness benefit without too many restrictions and pays up to Subject to Underwriting so long as you are diagnosed with 37 illnesses listed in the policy brochure.
Delayed Payouts:
Payouts for critical illnesses may not be made immediately. Instead, insurers expect you to survive for a certain duration before they make the payment. And e-Term will pay out the benefit 30 days after the diagnosis is confirmed.
Payout on top only:
Some policies will pay out the critical illness (CI) benefit from the total term cover available, i.e. Accelerated payout, while also offering you the option to avail it on top of the total term cover available. e-Term however doesn't offer the accelerated option and pays out the benefit on top.
Short waiting period:
Most policies impose a waiting period before they make the Critical Illness Benefit available. And e-Term imposes a 90 days waiting period before they can process any claim related to critical illnesses. This is shorter than the industry average.
Top-Up Option available (As Life Stage Benefit)
Some policies extend the option of increasing your total term cover even after you buy the policy. And while e-Term doesn't offer you a blanket option to increase your cover, it does extend the provision to increase your cover during significant life events i.e. when you get married, when you have kids etc. The feature is called life stage benefit.
What's lacking here?
No Terminal Illness Benefit
Certain policies will disburse the entire cover amount the moment you are diagnosed with a terminal illness. So even in the absence of death, you can still get the money and use it any way you wish. Unfortunately e-Term does not extend the terminal illness benefit.
No option to increase your cover with inflation
Some policies automatically increase your cover by a certain amount (usually inflation) to always provide you with the necessary protection. Unfortunately e-Term doesn't extend this option.
You can't recover your premiums after policy matures
Some policies return your premium after the policy matures if you don't make a claim. And even though e-Term doesn't extend this option, it shouldn't worry you too much since we don't recommend this option actively considering it can be expensive.
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