Kotak Loan Protection Plan is a protection plan that helps share the burden of your loan. When you take this plan along with your loan, it serves like a safety net so that you are not worried about your family, and the repayment of your loan in case of untimely death. This plan provides a reducing cover that is matched to your liability with minimum paperwork.
Why an ideal plan
This plan is ideal for you if you are planning to avail of a loan.
Protects your loved ones against untimely death, which would otherwise burden them with the loan amount.
Hassle free single premium payment option
Can be surrendered* at any point in time
*Applicable only for Single Premium plan
As a term product linked to home loan amount, this plan protects the loan-taker from contingencies. The loan amount at the beginning decides the cover you receive. As you repay your installments, your outstanding principal declines and the corresponding policy cover also decreases. You can take a cover of any amount; equal to or less than the actual amount of loan that has been approved.
You may pay premiums regularly# or as a single premium. This single premium would ensure that you get the cover for the entire term that you wish to.
# The premium payment term will be 2/3rds of the policy term rounded off to the nearest integer.
In the event of death during the term, the beneficiary would be entitled to the Sum Assured as per a predetermined Benefit schedule.
Since it is a non-participating pure risk cover plan, there are no maturity benefits.
We offer Kotak Critical Illness Benefit (CIB) under this plan. A portion of Sum Assured (max 75%) is payable on admission of a claim on a critical illness, through this rider.
Section 80C, 10(10D) of Income Tax Act, 1961 would apply. Premium paid for Kotak Critical Illness Benefit (CIB) qualify for a deduction under Section 80D. Tax Benefits are subject to changes in tax laws. You are advised to consult your tax advisor for details.