Kotak Mahindra Life Insurance cuts term plan rates up to 40%

Kotak Mahindra Old Mutual Life Insurance Ltd, a joint venture between Kotak Mahindra Bank Ltd and Old Mutual Plc has announced reduction in its term plan rates up to 40%.

According to sources, the latest rate reduction is partly as a result of the reduced solvency margin requirements laid down by the Insurance Regulatory Development Authority (IRDA).

Kotak term plan is a pure risk cover plan that is truly an economical mean of providing an individual's family with a high level of financial protection while, Kotak Preferred Term Plan offers special premium rates to non-tobacco users and women, for a sum assured of Rs 25 lakhs or more.

With these reduced rates, for a 30-year-old healthy male, a cover of Rs 10 lakh for a term of 25 years, the Kotak Term Plan costs as little as Rs 235 per month (excluding service tax).

The company claims that, both plans offer life cover along with provisions for repayment of financial liabilities or debt.

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