How Many Insurances Should I Have?
Close

Buy a Life Insurance Plan in a few clicks

Close

Now you can buy life insurance plan online.

Kotak e-Term Plan

Kotak e-Term Plan provides a high level of protection to your loved ones in your absence. Know more

Kotak Guaranteed Savings Plan

Kotak Guaranteed Savings Plan is a savings and protection plan that helps you achieve long-term financial goals and provides an insurance cover against any eventuality. Know more

Kotak E-Invest

Kotak e-Invest plan is a complete Unit-Linked Insurance Plan that can be customized as per your goals and needs. Know more

Kotak Health Shield

Kotak Health Shield Plan helps secure your finances in sudden medical expenses such as Cardiac, Liver, Neuro, and Cancer (all early and significant illness stages/conditions of cancer), along with offering protection for personal accidents - in case of accidental death or disability. Know more

Kotak Lifetime Income Plan

Kotak Lifetime Income Plan gives you the security of your income continuing throughout your life and in your absence throughout your spouse's lifetime! Know more

How Many Insurances Should I Have?

How Many Insurances Should I Have?
  • 6th Jul 2022 |
  • 2,544

We all know one reality of life is that it is limited and entirely uncertain. But to ensure that your loved one remain financially secure and stable during the uncertainties of life, you should do financial planning. Life insurance plans can assist you in securing your family’s finance.

It is a great way to ensure their protection in case of your unfortunate demise. Moreover, it helps manage the finances and ensures that providing for day-to-day expenses and other mandatory costs like education and health care is demanding and worrisome for those left behind.

This article will cover answers to basic life insurance-related questions like how much term insurance do I need to ensure a stable financial future for my loved ones?

How Much Term Insurance Do I Need?

The central part of choosing life insurance depends on your financial goals, the number of dependents, and determining what the dependents will need in your absence to have a financially stable life.

The face value (the amount you receive from your policy in case of your death) of your policy depends on some factors. For example, the minimum amount to sustain a financially-stable life in your case may be lesser than those who maintain an expensive lifestyle. Although, life insurance experts suggest that an individual should have a minimum life insurance coverage of 10 to 15 times their annual income.

So, if you are earning ₹10 lacs per annum, you must have a term insurance cover as much as ₹1 crore, ideally. However, depending upon your monetary status, the amount may be higher or lower. To further understand the how much premium you will be paying for a 1 crore term insurance policy; it is advisable to check the term insurance quote.

How Many Insurance Policies Should I Have?

Since the answer to “how much term insurance do I need?” is now known to you, let’s shift our focus to understanding how many life insurance policies you need.

Selection of life insurance policies must be made after thorough research and analysis. Also, an individual must look through all aspects of their life and, after proper financial planning and evaluation of their current financial condition, opt for life insurance policies. The market is packed with multiple types of life insurance policies designed to serve the investors’ different financial needs. Also, some life insurance policies are purely for life insurance and have no investment angle linked to them, like the term insurance policy, which only pays out in case of your death during the policy term.

Here are a few essential types of life insurance that you must have:

1. ULIPs for Wealth Creation

ULIPs are among the most popular life insurance plans in the market currently. An individual should opt for a ULIP plan for wealth creation purposes. ULIP plans come with dual benefits of life cover and market-linked investment opportunities. This means that you have a security of life insurance, and at the same time, you are invested in the market-linked securities, which can earn a decent profit if wisely managed.

2. Guaranteed Savings Plan for Savings

A savings plan is essential to fulfilling your mandatory mid-term and long-term goals like your child’s higher education or a savings corpus for futuristic purposes like marriage, home, business, etc.

When you opt for a guaranteed savings plan, you earn a guarantee of a decent payout, either in case of the plan’s maturity or the unfortunate demise of the policyholder. Therefore, guaranteed savings plans’ returns are better than other savings plans. You can also opt for traditional long-term plans like Public Provident Funds, but they don’t offer life insurance coverage like the guaranteed savings plan.

3. Annuity Plan - Retirement corpus

This plan serves as the best retirement fund for you. Once you retire, other financial resources start depleting due to various factors like health and liabilities to maintain a good living standard. However, when you invest in an annuity plan, you ensure that you will have a regular source of income, and even after your death, your wife will receive a steady income up to a certain age. This plan reduces your dependability on your family and gives you a sense of independence in your old age.

4. Health Plans- Health is Wealth

We all know that healthcare is a costly part and parcel of our life. Therefore, it is imperative to have health insurance once you turn 18 years - 20 years old. This way, you can build a good corpus at a low premium to pay for your health issues before you turn 25. Generally, insurance companies demand higher premiums as you grow older due to increased health vulnerabilities. Investing in health insurance with critical illness cover early in life can help you build a large corpus to cover your health-related issues as you grow old. Ignoring health insurance can cost heavily in your pocket and may even derail your financial stability.

Conclusion

Overall, you must analyze and understand the financial requirements and uncertainties of life and plan your finances accordingly. Having life insurance ensures that your financial burden decreases and that you can enjoy your life while saving and building a decent wealth for yourself and your family.

Kotak e-Term Plan

Features

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

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

T&C

Browse our library of resources

- A Consumer Education Initiative series by Kotak Life

Similar Articles

How to Revive the Lapsed Life Insurance Policy?

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

5 Easy Steps to Buying A Policy

Term Life Insurance vs. Accidental Death Insurance

Can An Individual Buy Multiple Term Insurance Plans?

“Life” Insurance or “Death” Insurance?

Is Life Insurance For Millennials Really Needed?

Choosing Between Short-Term & Long-Term Insurance Plans

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

Why Renewal of Term Insurance Plan is Important

What is Minimum Life Insurance Policy?

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

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

What is an Endowment Plan?

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

Should you buy a Renewable Term Life Policy?

What Is Financial Planning?

Is It Time to Review Life Insurance Policy of Yours?

Is Life Insurance an Investment?

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

Does Family History Affects your Term Life Insurance Rates?

How to Find the Best Term Insurance Plan in Seven Steps

Important Life Insurance Terms You Must Know

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

Do Your Financial Planning with Life Insurance!

Do Life Insurance Premiums Increase Every Year?

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

5 Ways to ensure faster settlement of claims

Digital Life Certificate for Pensioners Seeking Pension

Why You Should Never Cancel Life Insurance Policy

What is Life Insurance?

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

Choosing the Right Life Insurance

Top 5 Common Life Insurance Myths and Facts

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

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

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

How Often You Must Review Your Life Insurance Policy?

Why Do Life Insurance Agents Avoid Selling Term Plans?

What is the Current Trend in Term Insurance?

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

Adding A Child to Your Life Insurance Policy?

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

Terms and Conditions of Term Insurance Plans

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

Types of Insurance You Must Invest in for Secure Future

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

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

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

ULIPs: Suitable for all

Why Your Family Should Know About Your Life Insurance Policy?

How Do Term Insurance Plans Differ for Smokers?

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

Term Life Insurance for Home Loans: The Maximum Security

Customer Awareness on Information Security

How to Customize Your Life Insurance Policy with Riders

A Term Insurance Guide for Disabled People

Difference Between ULIP and Endowment Plan?

Types of Life Insurance policies in India

5 Smart Steps to keep in mind while buying term policies

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

Insurance Changes You Need to Make Post Marriage

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

Why Life Insurance Is Always a Smart Decision

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

What Happens If I Stop Paying My Life Insurance Premium?

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

How to Buy a Term Life Insurance Online

Best Insurance Plans in India

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

All about Life Insurance Calculators

What Is Investment Insurance?

What is the Difference Between Insurance and Assurance?

Why is Medical Test Important While Buying a Term Insurance?

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

Why One Must Buy Term Insurance before 25 Years

All about Your Rights and Duties While Buying Life Insurance Policy

Life Insurance for Overweight Applicants

Choose the Nominee of a Term Life Insurance Plan Wisely

How to Choose a Life Insurance Policy

6 Different Types of Insurance Policies

Take 100% Responsibility of Your Family with Term Life Insurance

Sabse Pehle Life Insurance

Importance of Checking Claim Settlement Ratio before Buying Life Insurance

Benefits of Buying Term Insurance Plan for Senior Citizens in India

Kotak Life Claim Settlement Ratio

Life Insurance for Millennials

Difference Between Term Insurance and Endowment Plan

Compare Different Life Insurance Products Offered By Kotak Life

Various Term Insurance Premium Payment Options Available in India

Biggest Life Insurance Myths

Voluntary Life Insurance Policy Vs Group Life Insurance

Why Term Insurance for Women is Important?

Difference Between Money Back and Endowment Policy

FAQs on Life Insurance

Life Insurance vs Health Insurance

What is Group Insurance?

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

Process of Filing A Claim For Life Insurance

Why do I Need Life Insurance?

Benefits of Term Insurance with Critical Illness Rider

How Does Life Insurance Work?

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

What Is Insurance Coverage?

Can NRI Buy Term Insurance in India?

Term Insurance Claim Process

When Should You Review Term Life Insurance of Yours?

Always keep your Nominee informed

Savings cum Protection Plans Secures Your Family from Unforeseen Events

In India, should NRIs purchase life insurance?

Does Life Insurance Cover Terminal Illness?

4 Benefits of Gifting Life Insurance Cover to Your Spouse

Different Types of Insurance Policies in India

Guide for Buying Online Term Insurance Plans for Senior Citizens

Think About Life Insurance Sooner than Later

Choosing a Life Insurance Beneficiary

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

Types of Life Insurance Or One Investment, Many Options

Life Insurance Policy Closure

5 Reasons Why You Need Life Insurance in College

Reasons Why Term Insurance Claims Get Rejected

What Is a Whole Life Insurance Plan?

How to Buy a Life Insurance Plan?

How Much Life Insurance Cover Do I Need?

5 Advantages of Life Insurance Going Digital

Does Life Insurance Policy Cover Covid Death?

All about IRDAI

7 Superficial Reasons People Avoid Buying Insurance Online

What is a savings plan?

Most Common Life Insurance Riders to Enhance Your Existing Policy

Is It Advisable To Have Multiple Life Insurance Policies?

Why Buying a Term Insurance is Important for all Parents

Different Types Of Life Insurance In India

Term Life Insurance Vs Money back Life Insurance

5 Things to Consider Before You Buy Life Insurance

Life Insurance Beneficiary

Why Online Term Insurance Plans Cheap?

Does Life Insurance Pay for Suicidal Death?

Health Insurance VS Life Insurance

Is Voluntary Life Insurance the Same as Basic Life Insurance?

Role of IRDAI in the Insurance Sector

How to Calculate Human Life Value(HLV)?

5 Reasons Why a Women Should Buy a Life Insurance

All About Life Insurance and How It Works?

Important Features of a Term Insurance Plan

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

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

Life Insurance with Money Back vs Without Money Back

Term Insurance Tips for NRIs in India

How to Choose Life Insurance for All Ages?

What is Underinsurance & The Dangers of Being Underinsured

Staying Insured While Investing

Term Insurance Vs Life insurance: Small Details, Big Differences

Is it Worth Buying Disability Rider on Term Insurance?

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

What is Sum Assured in Endowment Policy?

How to Make Death Claims on Life Insurance?

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

Details Required To Be Filled In A Life Insurance Form

6 Things You May Not Know about Life Insurance

10 Most Frequently Asked Questions - FAQs on Term Insurance

NRI Premium Payment Options

All About Backdating in Life Insurance

Who Is A Nominee In A Life Insurance Plan?

Beware of Phishing & Fraud Insurance Calls

Insurance Vs Investment - A Guide to Your Financial Goals

What are robo-advisors in insurance?

Life Insurance Vs. Mutual Funds Investment

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

Life Insurance and Retirement Planning

What Is Staggered Payment Option Under Term Insurance Policy?

What are the Benefits of Endowment Policy?

Important Terminologies of Life Insurance

Life Insurance vs Mutual Funds

How Much Life Insurance Do You Need?

5 Common Life Insurance FAQs and Answers

Nominee in insurance - A Complete Guide on nomination in insurance

Guidelines for Linking Aadhar and PAN to Insurance Policies

What Is Insurance Rider and It’s Benefits?

Everything You Must Know About ULIP Riders

Key Things to Review in Your Life Insurance Policy Document

Life Insurance and Millennials

Life Insurance for Overweight Applicants

Life Insurance Plans for Women

Loan Against Life Insurance Policy

5 Things to Keep in Mind While Buying Life Insurance Policy