The Kotak Loan Protection Plan of Kotak Life Insurance policy is a protection plan that helps to share and lessen the load of loan. If this plan is taken along with the loan then it will render a service like a safety guard so that the customer dos not remain worried about the family and the repayment of the loan if the policy holder dies untimely. Rather it is a reducing cover which matches with the liability with minimum paperwork.
Those planning to take a loan, this plan is perfect for them.
The chief features of Kotak Loan Protection Plan of Kotak Life Insurance are as follows:
- As the product linked to the amount of home loan this plan protect the borrower from the contingencies.
- Depending on the loan amount at the beginning of the borrowing the cover amount will be decided.
- As the customer repays the installments the principal declines and the equivalent policy cover also lessens.
- The customer can take cover of any amount less or equivalent to the actual amount of the loan which has been approved.
- The premiums can be paid regularly or as a single premium.
- The single premium assures that the customer gets the cover for the entire team that the customer wishes to.
- This plan is a non participating pure risk cover plan.
- There are no maturity benefits available.
If the policy holder dies during the term of the policy the beneficiary or the nominee will get the sum assured according to the predetermined benefit schedule.
Kotak Critical Illness benefit is offered under this plan. A certain part of the sum assured will be payable on admission of claim on the critical illness through the rider.
Section 80C, 10(10D) of Income Tax Act, 1961 is applicable. Premium paid for Kotak Critical Illness Benefit (CIB) qualify for a deduction under Section 80D. Tax Benefits are subject to changes in tax laws.