Term Plan Insurance: LIC Amulya Jeevan vis-à-vis Kotak Preferred Term Plan

Term Plan Insurance: LIC Amulya Jeevan vis-à-vis Kotak Preferred Term Plan

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A term insurance plan is a pure life cover which pays lump sum amount (Sum Assured) on the death of life insured.

Amulya Jeevan is the term insurance plan of Life Insurance Corporation of India.

Preferred term plan is the term insurance plan of Kotak Life.

Age Eligibility:

For LIC Amulya Jeevan, person aged between 18 years to 60 years can buy the term insurance plan. Amulya Jeevan plan maximum maturity age is 70 years.

For Kotak Preferred term insurance, person aged between 18 years to 65 years can buy the term insurance plan. Preferred term plan maximum maturity age is 70 years.

Life Cover:

The minimum life cover that can be opted with both LIC Amulya Jeevan and Kotak Preferred term plan is Rs 25 lacs. The maximum cover LIC Amulya Jeevan and Kotak Preferred term plan is very high and can be opted as long as it is approved by insurer’s underwriter. The underwriter decides life cover on basis of age, annual salary, medical condition etc.

Policy Term:

The policy term for Amulya Jeevan is from 5 years to 35 years. The policy term for Kotak Preferred term plan is from 5 years to 30 years.

Riders:

There are no riders available with LIC Amulya Jeevan.

Kotak Preferred term plan has accidental death, permanent disability rider and critical illness rider.

Premium Comparison:

The premium comparison for few samples is given below:

Term Insurance Plan	Age	Sum Assured	Policy Term	Premium* (in Rs)
LIC Amulya Jeevan	30	Rs 50 lacs	20	14438/-
	40	Rs  40 lacs	10	15416/-

Term Insurance Plan	Age	Sum Assured	Policy Term	Premium* (in Rs)
Kotak Preferred term plan	30	Rs 50 lacs	20	6685/-
	40	Rs  40 lacs	10	8247/-

*kindly verify the premium for any changes.

Reinstatement:

On policy lapse, LIC Amulya Jeevan can be reinstated within 5 years and Kotak Preferred term within 2 years from the date of unpaid premium. All the due premiums have to be paid and medical tests might be taken again.

Claim Settlement Ratio:

CSR is the claim settlement ratio. Claim settlement data has been taken for all the death claims made with the insurer and not for a particular policy. Claim settlement ratio is calculated by the formula- claim settled/total claims.

For the period Q2, 2011, the claim settlement ratio of Life Insurance Corporation of India is 77% whereas for Kotak Life, claim settlement ratio is 83% (H1, 2011).

End Note:

LIC Amulya Jeevan is a good plan which has minimum life cover of Rs 25 lacs and has long policy terms available. However there are no riders available with LIC Amulya Jeevan.

Kotak Preferred term plan is a flexible term plan with multiple premium options- single and regular. It also has riders available with it. Also there is unique conversion option with Kotak in which you can convert to any other Kotak life insurance plan (except term plan).