6 Things You May Not Know about Life Insurance

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term Plan

Protect Your family’s financial future with Kotak e-Term Plan. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more

Kotak Health Shield

Insurance against medical expenses related to heart, brain, liver and Cancer. Know more

6 Things You May Not Know about Life Insurance

6 Things You May Not Know about Life Insurance
  • 17th Jun 2019 |
  • 2,343

Everyone knows what life insurance is, as it is one of the most commonly bought insurance plans. In case of an unexpected demise of a life insurance policyholder during the tenure of the plan, the nominees receive a pre-decided amount of money. However, a life insurance policy has other benefits that are not known to many people.

Here are six such things you should know about.

1. The money is tax-favored

The life insurance policy come with tax benefits. So, if you buy a life insurance plan and let it build you a little fortune over a certain amount of time, it can be a source of income that is completely tax-free. This money can be used for any purpose like going on a costly vacation or pay the educational expenses of your children.

2. Consider it as invisible money for your family

Buying a life insurance policy is an investment towards building a financially secured future for your family. The premiums you pay towards the policy do not show you any cash for a while, but you know that you are building an impressive amount of fund for the future. This is why it is considered as invisible money.

3. It comes with a premium wave-off option

A life insurance plan is a long-term insurance policy. You have to pay premiums regularly over the entire tenure of your policy. However, some insurers offer a rider with the policy that allows your future premiums to be waived off in certain cases. For example, if a policyholder is permanently disabled due to an accident the rider will be in effect.

4. It can help you grow a retirement fund

The worst part of your life after retirement is worrying about money. It is understandable too, as you can never know what lies in your future. Any life event can cause you to lose most of your savings. However, the life insurance policy can put your worries to rest. You receive a good amount of money when the plan matures. The money can be used to secure your life after retirement.

5. Disability and illness covers provide financial support

A life insurance plan generally provides the benefits only when the policyholder passes away during the tenure of the policy. However, some insurers offer additional riders in insurance that pay the insured a sum assured in case of accidental permanent disability or any critical illness.

6. It can help you get a loan

If you are ever applying for a loan and are unsure about what asset to use as collateral then the life insurance plan can help you. This feature of the policy is not commonly known but it is surely one of its best benefits.

There are many things to know about life insurance that are not common knowledge. However, if you know these features, you can get the best out of your investments.

Kotak e-Term Plan

Download Brochure


  • Nominal Cost
  • Multiple Plan Options
  • Flexible Payout Options
  • Critical Illness Rider
  • Tax Savings
  • Long term Coverage

Ref. No. KLI/22-23/E-BB/492


Browse our library of resources

- A Consumer Education Initiative series by Kotak Life

Similar Articles

What Happens If I Stop Paying My Life Insurance Premium?

Life Insurance with Money Back vs Without Money Back

Life Insurance vs Mutual Funds

What are the Benefits of Endowment Policy?

Key Things to Review in Your Life Insurance Policy Document

How Much Life Insurance Cover Do I Need?

5 Easy Steps to Buying A Policy

Who Is A Nominee In A Life Insurance Plan?

Difference Between ULIP and Endowment Plan?

How to Find the Best Term Insurance Plan in Seven Steps

5 Ways to ensure faster settlement of claims

What is Human Life value and a Human Life Value Calculator?

First Job? Here’s Some Tips on How to Manage Finances

Digital Life Certificate for Pensioners Seeking Pension

Why You Should Buy Term Insurance under the MWP Act (Married Women’s Property Act)?

ULIPs: Suitable for all

Can a Term Plan be the Substitute for a Retirement Plan?

Does Life Insurance Policy Cover Covid Death?

What Is Investment Insurance?

Is Voluntary Life Insurance the Same as Basic Life Insurance?

10 Most Frequently Asked Questions - FAQs on Term Insurance

Term Insurance Vs Life insurance: Small Details, Big Differences

Can An Individual Buy Multiple Term Insurance Plans?

What Should One Consider Buying: Term Insurance or Traditional Life Insurance

What is Underinsurance & The Dangers of Being Underinsured

What is a Single Premium Term Plan and its Tax Benefit?

What is a savings plan?

NRI Premium Payment Options

Is it Possible to Make Changes in a Term Plan’s Specification Post Purchase?

5 Smart Steps to keep in mind while buying term policies

Choosing Between Short-Term & Long-Term Insurance Plans

Is It Advisable To Have Multiple Life Insurance Policies?

Customer Awareness on Information Security

Why You Should Never Cancel Life Insurance Policy

Important Terminologies of Life Insurance

How to Customize Your Life Insurance Policy with Riders

Life Insurance for Overweight Applicants

How to Buy a Term Life Insurance Online

How Many Insurances Should I Have?

Term Insurance Vs Car Insurance: A Budgetary Choice You'll Regret

How to Revive the Lapsed Life Insurance Policy?

5 Common Life Insurance FAQs and Answers

Why Life Insurance Is Always a Smart Decision

What is the Difference Between Limited and Regular Pay Insurance Plan?

Nominee in insurance - A Complete Guide on nomination in insurance

Does Life Insurance Pay for Suicidal Death?

All about Life Insurance Calculators

Does Life Insurance Cover Terminal Illness?

What is Sum Assured in Endowment Policy?

5 Reasons Why a Women Should Buy a Life Insurance

Comparing low premium term insurance Is Not the Only Factor While Buying Life Insurance

What Is a Whole Life Insurance Plan?

What Is Social Impact Investing and How Does It Benefit Society?

5 Reasons Why You Need Life Insurance in College

भारत में जीवन बीमा पॉलिसियों के प्रकार

Why Online Term Insurance Plans Cheap?

Take 100% Responsibility of Your Family with Term Life Insurance

Various Term Insurance Premium Payment Options Available in India

Why Your Family Should Know About Your Life Insurance Policy?

How Does Life Insurance Work?

Term Insurance Claim Process

Guide for Buying Online Term Insurance Plans for Senior Citizens

Does Family History Affects your Term Life Insurance Rates?

Guidelines for Linking Aadhar and PAN to Insurance Policies

Term Life Insurance vs. Accidental Death Insurance

How to Select a Perfect Life Insurance Policy in India to Protect Your Future?

What is Minimum Life Insurance Policy?

Difference Between Term Insurance and Endowment Plan

What is the Current Trend in Term Insurance?

Life Insurance Vs. Mutual Funds Investment

5 Advantages of Life Insurance Going Digital

Should you buy a Renewable Term Life Policy?

What are robo-advisors in insurance?

Types of Insurance You Must Invest in for Secure Future

Role of IRDAI in the Insurance Sector

All You Need to Know About Life Insurance - Its Benefits, Features, and Types of Life Insurance

Reasons Why Term Insurance Claims Get Rejected

How to Choose a Life Insurance Policy

Term Insurance Tips for NRIs in India

Why do I Need Life Insurance?

What Is Staggered Payment Option Under Term Insurance Policy?

Choosing the Right Life Insurance

Why do most Indians choose the wrong way to buy life insurance?

Always keep your Nominee informed

Adding A Child to Your Life Insurance Policy?

Life Insurance vs Health Insurance

How to Choose Life Insurance for All Ages?

How Much Life Insurance Do You Need?

Important Life Insurance Terms You Must Know

All about IRDAI

Details Required To Be Filled In A Life Insurance Form

Life Insurance Plans for Women

All about Your Rights and Duties While Buying Life Insurance Policy

5 Things to Keep in Mind While Buying Life Insurance Policy

Types of Life Insurance Policies in India

Is Life Insurance an Investment?

How Much Life Insurance Costs and How Much Insurance Cover You Need?

How To Use Different Types Of Life Insurance For Retirement Planning?

Is Return-of-Premium (ROP) in Life Insurance Worth It?

Is it Possible to Reduce Life Insurance Premium without Affecting Sum Assured?

Why Term Insurance for Women is Important?

Life Insurance and Retirement Planning

Life Insurance Policy Closure

Difference Between Insurance and Assurance?

FAQs on Life Insurance

What Should One Expect During the Medical Evaluation for Life Insurance?

What is Life Insurance?

Are Deaths Due To Coronavirus Covered by Kotak E-Term Plan?

Voluntary Life Insurance Policy Vs Group Life Insurance

Difference Between Money Back and Endowment Policy

When are Millennials required to take out a life insurance policy?

A Step-by-Step Guide: How To Make An Investment Plan?

How Often You Must Review Your Life Insurance Policy?

Can NRI Buy Life Insurance in India?

5 Things to Consider Before You Buy Life Insurance

Compare Different Life Insurance Products Offered By Kotak Life

Important Features of a Term Insurance Plan

How to Choose the Right Life Insurance Policy for Your Age?

Different Kind of Deaths that are Not Covered in a Term Insurance Plan

Term Insurance for Home Loan: How Term Plan Helps in Paying Off Home Loan?

Why Buying a Term Insurance is Important for all Parents

What Is the Procedure to choose a nomination in life insurance policy?

Do Life Insurance Premiums Increase Every Year?

Kotak Life Claim Settlement Ratio

Why One Must Buy Term Insurance before 25 Years

Can You Apply For A Life Insurance After Getting Heart Attack? Here is Everything You Need To Know

Choose the Nominee of a Term Life Insurance Plan Wisely

Beware of Phishing & Fraud Insurance Calls

4 Benefits of Gifting Life Insurance Cover to Your Spouse

Benefits of Term Insurance with Critical Illness Rider

What Is Insurance Rider and It’s Benefits?

Important Factors to Consider While Choosing the Right Term Period for Your Term Insurance Plan

What is an Endowment Plan?

All About Life Insurance and How It Works?

Why is Medical Test Important While Buying a Term Insurance?

Why Do Life Insurance Agents Avoid Selling Term Plans?

What Is Insurance Coverage?

Top 5 Common Life Insurance Myths and Facts

How to Calculate Human Life Value(HLV)?

Staying Insured While Investing

Life Insurance for Millennials

Loan Against Life Insurance Policy

Different Types Of Life Insurance In India

What Is The Life Insurance Penetration In India And How Does It Compare Globally?

What Is Financial Planning?

What is Group Insurance?

Choosing a Life Insurance Beneficiary

How Do Term Insurance Plans Differ for Smokers?

How to Buy a Life Insurance Plan?

Biggest Life Insurance Myths

A Term Insurance Guide for Disabled People

Why Renewal of Term Insurance Plan is Important

Savings cum Protection Plans Secures Your Family from Unforeseen Events

When Should You Review Term Life Insurance of Yours?

“Life” Insurance or “Death” Insurance?

Benefits of Buying Term Insurance Plan for Senior Citizens in India

Health Insurance VS Life Insurance

Types of Life Insurance Or One Investment, Many Options

1 CR Term Insurance Plan: How to Pick the Best 1 CR Term Plan

Insurance Vs Investment - A Guide to Your Financial Goals

Most Common Life Insurance Riders to Enhance Your Existing Policy

Insurance Changes You Need to Make Post Marriage

Term Life Insurance Vs Money Back Life Insurance

In India, should NRIs purchase life insurance?

Terms and Conditions of Term Insurance Plans

Sabse Pehle Life Insurance

What Is Surrender Value (Cash Surrender Value) in Insurance and how is it calculated?

9 Most Important Things You Must Learn About Paying Life Insurance Premium

Everything You Must Know About ULIP Riders

Process of Filing A Claim For Life Insurance

Life Insurance Beneficiary

Is it Worth Buying Disability Rider on Term Insurance?

How to Make Death Claims on Life Insurance?

Is It Time to Review Life Insurance Policy of Yours?

Is Life Insurance For Millennials Really Needed?

Different Types of Insurance Policies in India

Can You Transfer Life Insurance Policies to Another Company in India?

6 Different Types of Insurance Policies

Unit-Linked Life Insurance (ULIPs) vs. Term Insurance

All About Backdating in Life Insurance

Life Insurance for Overweight Applicants

Best Insurance Plans in India

7 Superficial Reasons People Avoid Buying Insurance Online

Life Insurance and Millennials

Importance of Checking Claim Settlement Ratio before Buying Life Insurance

Think About Life Insurance Sooner than Later

Do Your Financial Planning with Life Insurance!