Choosing The Right Term Period For Your Life Term Insurance Plan

Buy a Life Insurance Plan in a few clicks


Now you can buy life insurance plan online.

  • Icon for Kotak Preferred e-Term Plan

    Kotak e-Term Plan

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

  • Kotak E-Invest Plan

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

  • Icon for Kotak Guaranteed Savings Plan

    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.

  • Icon for Kotak Preferred e-Term Plan

    Kotak Lifetime Income Plan

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

  • Icon for Kotak Preferred e-Term Plan

    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.


Get a Call

Enter your contact details below and we will get in touch with you at the earliest.

  • Select your Query

Thank you

Our representative will get in touch with you at the earliest.


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

Term Insurance Quote
  • 9th Jul 2019
  • 1,972

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

The importance of a term insurance plan can never be exaggerated enough. If you want to ensure the financial protection and security of your loved ones, it is time to invest in a term insurance plan. Primarily, you need to understand term insurance meaning. A term insurance plan is a pure life insurance cover, which gives you an opportunity to grow the corpus for a specific period. If the policyholder dies during the term of the plan, the beneficiaries will receive the death benefit. However, if the policyholder survives the term plan, there will be no maturity benefit.

Once you have decided that you want to buy online term insurance, you need to make the decision keeping certain factors in mind. The term period in your plan is very crucial. The policy period should be as long as you can give your family the freedom to become financially independent.

What are the important factors that affect your term insurance premiums?

Listed below are the factors you need to consider when buying a term plan.

1. Age

The lower your age, the lower will be the premium amount. Hence, buy a term plan at the earliest to make the most of low premiums.

2. Gender

Women tend to get numerous discounts and offers from insurance companies. This is because they have a lower risk of death associated with their policy as compared to men.

3. Sum assured

The premium amount will be higher if the sum assured is higher because the coverage will be more than what is expected.

4. Lifestyle

If you are a non-smoker and maintain a healthy lifestyle, you will get a discount on your premium amount.

5. Payouts

The amount of premium will differ based on the payout. If you choose an increasing sum assured, the premium will increase over a period of time.

6. Term

If you opt for a longer tenure, the premium amount will be high and this is the key factor in determining the amount of insurance premium. The term will depend on how long you wish to provide for your family in case of an unfortunate incident. Many companies offer a policy term between five years to 40 years.

It is advisable for every individual to opt for a longer policy term. You also need to consider your retirement age when choosing the term period. When you choose a longer period, you can enjoy fixed premium rates. Hence, you will have to pay the same amount of premium throughout the term of the insurance policy. Moreover, if you buy a policy at a young age and opt for a longer tenure, you will be able to enjoy lower premiums throughout the term. You will get a cover for life at a low premium amount. Lastly, you will remain insured throughout the policy term.

When you choose the term period for your plan, you need to consider your liabilities. You need to assess that until what period will these liabilities exist. In addition, you need to estimate that your children will become independent at what age. Additionally, you need to analyze that up to what age you will be able to continue working. Majority plans mature at the age of 65 and you can decide the term period of your plan accordingly. Most investors opt for term insurance for a longer term period because it gives a life cover at an affordable cost.

- A Consumer Education Initiative series by Kotak Life

Also read

  • Why One Must Buy Term Insurance before 25 Years

    Term insurance plan is one of the policies that you need right away. It is a great investment to help you cope with the uncertainties of life. Click h...

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

    A term insurance plan is one of the most popular insurance policies in India.

    Read more
  • How to Choose a Life Insurance Policy

    Before purchasing life insurance policy, determine your requirement, understand the type of plan needed, and then decide. Click here to know types of ...

    Read more

Related Plans

  • Kotak Term Plan

    Kotak Term Plan

    The Kotak Term Plan is a pure risk cover plan and an economical way of providing an adequate level of financial protection.

    Know more
  • Kotak e-Term Plan

    Kotak e-Term Plan

    Get protected at less than Rs.19/day with Kotak e-Term Plan. Our term insurance plan combines best-in-class features & comprehensive coverage with...

    Know more
  • Kotak e-Term Plan

    Kotak e-Term Plan

    Kotak e-Term Plan is a pure term insurance plan that provides a holistic life protection at affordable prices. Find out the eligibility criteria, key ...

    Know more