Close
Close

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak Guaranteed Fortune Builder

A plan that offers guaranteed income for your future goals. Know more

Kotak e-Term

Protect your family's financial future. 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 life cover. Know more

Kotak e-Invest

Insurance and Investment in one plan. Know more

Kotak Lifetime Income Plan

Retirement years are the golden years of life. Know more

Close

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 Life Insurance Terms You Must Know

You may not be aware of all the life insurance terminologies. Click here to know the essentials of life insurance contract and ensure you purchase the right policy.

  • Oct 10, 2019
  • 3,507 Views

Often when you want to buy a life plan, you need to go through several technical terms. Such confusing terms are deterrent to several people who then avoid buying an insurance cover.

Even when you buy a life insurance plan, you may not be aware of all the terms. To ensure you purchase the right policy, it is crucial to understand some basics.

Important life insurance terms you must understand before making your buying decision:

1. Accident

It is an unforeseen occurrence, which results in an injury

2. Age limit

These are the minimum and maximum ages wherein the insurance company does not accept new or renewal proposals

3. Agent

He acts as the representative of the insurance company to sell its products and is an intermediary between you and the insurer

4. Application or Proposal Form

The form includes all your information; it is often by the agent or a medical examiner when medical tests are required; it must be signed by you

5. Policyholder

He proposes to buy the life insurance policy and pays the premium; he may or may not be the life assured

6. Life assured

He is the one who is covered under the policy and may or may not be the policyholder

7. Sum assured

This is the maximum amount the insurer agrees to pay in case of the demise of the life assured or on the occurrence of any insured event

8. Nominee

In case of any untoward incident, the policy benefits are paid to your legal heirs known as nominees, who may be your spouse, parents, or children

9. Policy tenure

This is the total duration, during which the life cover is available and varies depending on the type of policy

10. Maturity age

This insurance term determines the age when the policy benefits end

11. Premium

It is the amount you pay at periodic intervals to ensure that the policy remains active and you are eligible to receive the benefits under the same

12. Premium payment mode/frequency/term

The insurers offer multiple options as follows to ensure you make timely payment of the premium:

Regular premium

The premium is paid during the policy duration either monthly, quarterly, semi-annually, or annually

Limited premium

The premium is payable only for a limited pre-determined period

Single premium

Insurance companies also provide single premium plans wherein you pay a lump sum amount to avail of coverage for the entire duration

13. Death benefit

This is one of the most common insurance-related terms; it is the amount, which the insurer pays your nominees in case of an unfortunate event during the policy term

14. Maturity/survival benefit

The insurance companies pay this amount if you survive the policy duration; however, these benefits are not available with a term plan

15. Free-look period

This is one of the essentials of a life insurance contract and is the time during which, you may return the policy if you are uncomfortable with the terms and conditions

16. Grace period

It is the additional time available to pay the renewal premium if you are unable to pay it on or before its due date

17. Surrender value

One of the other important insurance terminologies is the surrender value; it is the amount, which you will receive if you discontinue the policy before its maturity

If you do not understand the terms related to insurance, it is likely you may buy incorrect coverage. Hence, you must understand these terminologies to make a wise investment decision.

Kotak e-Term

Download Brochure

Features

  • Life Cover till 85 years for Life & Life Secure Option
  • 3 Payout Options
  • Special Rates for Women
  • Option to exit the policy with premium refund at the age of 60*
  • Special Rates for Non-Tobacco Users
  • Free Medical Check Up every 5th year**

Ref. No. KLI/22-23/E-BB/2435

T&C

- A Consumer Education Initiative series by Kotak Life

Similar Articles

How often should I review my policy?

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

Life Insurance for Overweight Applicants

जीवन बीमा क्या है?

Want to surrender your life insurance policy? Here's a guide

Always keep your Nominee informed

Life Insurance Nominees: 5 Must-Know Facts for Beneficiaries

What is the process of reactivating lapsed life insurance policy?

6 Ways You Can Ensure Fast & Smooth Claim Settlement

Think About Life Insurance Sooner than Later

Types of Riders in Insurance Policy

भारत में गृहणियों के लिए टर्म इंश्योरेंस

Does Family History Affects your Term Life Insurance Rates?

क्या जीवन बीमा एक निवेश है?

All About Life Insurance and How It Works?

What Is the Difference Between Group Term and Voluntary Term Life Insurance?

Role of Life Insurance in Your Financial Portfolio

What Happens If You Stop Paying Premiums of Life Insurance?

Compare Different Life Insurance Products Offered By Kotak Life

5 Reasons Why a Women Should Buy a Life Insurance

Benefits of Term Insurance with Critical Illness Rider

What happens to joint life insurance after divorce?

Tax benefit: Is your single premium life insurance policy eligible for tax benefits?

Why You Should Never Cancel Life Insurance Policy

Know the many types of life insurance policies in India

Savings cum Protection Plans Secures Your Family from Unforeseen Events

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

How do life insurance payouts work?

Who Is A Nominee In A Life Insurance Plan?

Term Insurance Vs Life insurance: Small Details, Big Differences

How to Buy Life Insurance Policy Online?

5 Things to Keep in Mind While Buying Life Insurance Policy

Is Life Insurance For Millennials Really Needed?

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

Life Insurance vs. Death Insurance: Exploring the Key Distinction

Is It Advisable To Have Multiple Life Insurance Policies?

Key Things to Review in Your Life Insurance Policy Document

Insurance and Endowment: Everything You Need to Know!

Is It Time to Review Life Insurance Policy of Yours?

NRI Premium Payment Options

Advantages of Digitizing the Insurance Claims Process

Everything You Need to Know About Endowment Policy

Term Life Insurance vs Accidental Death Insurance

What is Insurance Premium? | Definition of Insurance Premium

Health Insurance VS Life Insurance

Life Insurance vs Mutual Funds

Loan Against Life Insurance Policy

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

Life Insurance for Millennials

What Is Insurance Rider and It’s Benefits?

What Is Investment Insurance?

6 Different Types of Insurance Policies

FAQs on Life Insurance

Kotak Life Claim Settlement Ratio

Why Life Insurance is Always a Smart Decision?

Why Do Life Insurance Agents Avoid Selling Term Plans?

Importance of Checking Claim Settlement Ratio before Buying Life Insurance

Staying Insured While Investing

Life Insurance and Millennials

Most Common Life Insurance Riders to Enhance Your Existing Policy

Different Types Of Life Insurance In India

Why Term Insurance for Women is Important?

What is Minimum Life Insurance Policy?

How Much Life Insurance Should You Have?

Why do I Need Life Insurance?

Does Life Insurance Policy Cover Covid Death?

5 Easy Steps to Buying A Policy

7 Superficial Reasons People Avoid Buying Insurance Online

Why is Medical Test Important While Buying a Term Insurance?

भारत में जीवन बीमा पॉलिसियों के प्रकार

Life Insurance Beneficiary

What are the Benefits of Endowment Policy?

How Do Term Insurance Plans Differ for Smokers?

Best Insurance Plans in India

Life Insurance with Money Back vs Without Money Back

All about Life Insurance Calculators

Guidelines for Linking Aadhar and PAN to Insurance Policies

What is Life Insurance?

How Much Term Life Insurance Cover Do I Need?

Important Terminologies of Life Insurance

Difference Between Insurance and Assurance?

How to Use Different Types of Life Insurance for Retirement Planning?

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

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

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

Can I Transfer My Term Life Insurance Policy to another Company?

What is Underinsurance & The Dangers of Being Underinsured

Why Your Family Should Know About Your Life Insurance Policy?

Benefits of Gifting Term Insurance to Your Spouse

Should You Buy Life Insurance After Getting Married?

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

All about Your Rights and Duties While Buying Life Insurance Policy

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

Life Insurance Plans for Women

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

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

Customer Awareness on Information Security

Different Types of Protection Plans

Insurance vs Investment - Know the Difference

Health Insurance VS Life Insurance

Biggest Life Insurance Myths

Do College Students Need to Buy a Life Insurance?

How Much Life Insurance Do You Need?

Whole Life Insurance Definition: How It Works, With Examples

Term Plan with Return of Premium (TROP)

Ensure Protection Against Death, Disease & Disability With Life Insurance

What is Insurance Coverage? Overview, Types, and Examples

Terminal Illness Benefit in Term Insurance

Top 5 Common Life Insurance Myths and Facts

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

Choosing Between Short-Term & Long-Term Insurance Plans

Is Life Insurance Worth It?

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

Invest in Insurance to Secure Your Future

Difference Between Money Back and Endowment Policy

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

Nominee in insurance - A Complete Guide on nomination in insurance

Why Porting Health & Life Insurance after Marriage is Important?

How to Make Death Claims on Life Insurance?

Life Insurance Vs. Mutual Funds Investment

Do Life Insurance Premiums Increase Every Year?

5 Common Life Insurance FAQs and Answers

Here's How to Choose The Tight Life Insurance

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

How to Choose the Right Term Plan as per Your Age

What is the Difference Between Insurance and Reinsurance?

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

6 Things You Didn't Know Life Insurance Could Do

Process of Filing A Claim For Life Insurance

जीवन बीमा पर ऋण

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

Backdating in Life Insurance: Should You Avoid it?

How to Choose Life Insurance for All Ages?

Beware of Phishing & Fraud Insurance Calls

भारत में सर्वश्रेष्ठ टर्म प्लान कैसे चुनें?

In India, should NRIs purchase life insurance?

How Many Insurances Should I Have?

What is Human Life Value (HLV) & How to Calculate it?

Does Life Insurance Pay for Suicidal Death?

Different Types of Insurance Policies in India

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

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

Voluntary Life Insurance vs. Basic Life Insurance

Digital Life Certificate for Pensioners Seeking Pension

Know the many types of life insurance policies in India

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

Benefits of Term Insurance for Senior Citizens in India

Details Required To Be Filled In A Life Insurance Form

Life Insurance for Overweight Applicants

Life Insurance and Retirement Planning

How Does Life Insurance Work?

Choosing a Life Insurance Beneficiary

Do Your Financial Planning with Life Insurance!

What is Group Insurance?

Choosing Riders for Insurance Plans

बीमा क्षेत्र में IRDAI की भूमिका

Adding a Child to Your Life Insurance Policy?

Role of IRDAI in the Insurance Sector

All about IRDAI

How to Customize Your Life Insurance Policy with Riders

What is KYC - Meaning, Types, and Importance

How to Choose a Life Insurance Policy

Sabse Pehle Life Insurance

What are robo-advisors in insurance?