What is Staggered Payment Option Under Term Insurance Policy?
Close
Close

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

What Is Staggered Payment Option Under Term Insurance Policy?

What Is Staggered Payment Option Under Term Insurance Policy?
  • 12th Nov 2019 |
  • 16,366

Term policies offer death benefit to the immediate family, but one thing that goes unnoticed is that not everyone is a pro at handling finances. When the family receives a lump sum amount as cover, the amount might be big and the family might not be good at handling finance. For such people, there is a staggered payment option.

In case you are wondering about what staggered payment is, we are here to help you understand the idea behind it and how you can opt for one.

What is Staggered Payment?

Staggered payment is an option under a term plan wherein the nominee(s) receive a portion of the sum assured as a lump sum, and the remaining money comes in form of monthly or annual payments.

The duration of the payments varies from policy to policy. This way, the nominees do not have to worry about what to do with the lump sum, and they can plan their finances accordingly. The monthly payments make it easier to take care of the household expenses without much hassle.

Different Staggered Payment Options

The staggered insurance payment option comes with two different choices:

Monthly income

Under this option, the remaining money after the lump sum payment is paid in monthly instalments. The payment amount is fixed and it is paid for a pre-determined period.

Increasing monthly income

If you are worried about inflation, this option will surely ease your mind. When you opt for the increasing monthly income option, the increases the income by a certain percentage annually. This way, you can tackle the ever-rising expenses.

Things You Must Remember While Choosing Staggered Payment Option

You must opt for the staggered payment option if:

  • You are not sure that your family can handle a huge amount of money at once. If the insurer’s family has to repay loans, the staggered payment option might not be the right choice. Taking a lump sum cover will be more helpful for your family.
  • You might not have any debts, but if you are for making sure a monthly income keeps flowing. For example, the school fees of your children require a fixed monthly income source. The staggered payment option is best for this purpose.
  • Staggered payment options are designed to keep the insurer’s family secure financially, and help them cope up with the loss. Not everyone is comfortable managing money and this might lead to a problem of overspending sometimes. In order to help family members, take care of the cover and keep them financially secure always, a staggered payment option can act as a boon in most cases.

Kotak e-Term Plan

Download Brochure

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

भारत में जीवन बीमा पॉलिसियों के प्रकार

Difference Between Insurance and Assurance?

Terms and Conditions of Term Insurance Plans

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

Term Insurance Vs Life insurance: Small Details, Big Differences

Life Insurance and Retirement Planning

Life Insurance for Overweight Applicants

Staying Insured While Investing

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

Top 5 Common Life Insurance Myths and Facts

क्या जीवन बीमा एक निवेश है?

Kotak Life Claim Settlement Ratio

Why do I Need Life Insurance?

What is Group Insurance?

Insurance Changes You Need to Make Post Marriage

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

Why is Medical Test Important While Buying a Term Insurance?

How to Customize Your Life Insurance Policy with Riders

What is Underinsurance & The Dangers of Being Underinsured

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

Sabse Pehle Life Insurance

Details Required To Be Filled In A Life Insurance Form

NRI Premium Payment Options

Is Voluntary Life Insurance the Same as Basic Life Insurance?

Guide for Buying Online Term Insurance Plans for Senior Citizens

Life Insurance with Money Back vs Without Money Back

Loan Against Life Insurance Policy

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

How Often You Must Review Your Life Insurance Policy?

Difference Between Term Insurance and Endowment Plan

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

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

Why Renewal of Term Insurance Plan is Important

Should You Buy Life Insurance After Getting Married?

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

What is Minimum Life Insurance Policy?

Do Your Financial Planning with Life Insurance!

Digital Life Certificate for Pensioners Seeking Pension

Insurance Vs Investment - A Guide to Your Financial Goals

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

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

Why You Should Never Cancel Life Insurance Policy

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

Important Features of a Term Insurance Plan

Life Insurance for Overweight Applicants

5 Easy Steps to Buying A Policy

Does Life Insurance Policy Cover Covid Death?

Health Insurance VS Life Insurance

Health Insurance VS Life Insurance

Life Insurance vs Mutual Funds

In India, should NRIs purchase life insurance?

How Many Insurances Should I Have?

Difference Between ULIP and Endowment Plan?

5 Things to Keep in Mind While Buying Life Insurance Policy

How to Find the Best Term Insurance Plan in Seven Steps

How Much Life Insurance Do You Need?

What are the Benefits of Endowment Policy?

How Much Life Insurance Cover Do I Need?

ULIPs: Suitable for all

What is an Endowment Plan?

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

Best Insurance Plans in India

Is Life Insurance For Millennials Really Needed?

5 Reasons Why a Women Should Buy a Life Insurance

भारत में सर्वश्रेष्ठ टर्म प्लान कैसे चुनें?

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

Most Common Life Insurance Riders to Enhance Your Existing Policy

Term Insurance Tips for NRIs in India

6 Things You May Not Know about Life Insurance

Important Life Insurance Terms You Must Know

Everything You Must Know About ULIP Riders

Always keep your Nominee informed

Can NRI Buy Life Insurance in India?

Do Life Insurance Premiums Increase Every Year?

All About Life Insurance and How It Works?

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

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

What Is Insurance Rider and It’s Benefits?

What is Life Insurance?

Savings cum Protection Plans Secures Your Family from Unforeseen Events

Different Types Of Life Insurance In India

Term Life Insurance vs Accidental Death Insurance

6 Different Types of Insurance Policies

Is Life Insurance an Investment?

When Should You Review Term Life Insurance of Yours?

7 Superficial Reasons People Avoid Buying Insurance Online

Types of Life Insurance Or One Investment, Many Options

What is Sum Assured in Endowment Policy?

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

Importance of Checking Claim Settlement Ratio before Buying Life Insurance

Why Buying a Term Insurance is Important for all Parents

Benefits of Buying Term Insurance Plan for Senior Citizens in India

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

How to Choose a Life Insurance Policy

Life Insurance for Millennials

Beware of Phishing & Fraud Insurance Calls

Can An Individual Buy Multiple Term Insurance Plans?

How to Make Death Claims on Life Insurance?

Voluntary Life Insurance Policy Vs Group Life Insurance

Reasons Why Term Insurance Claims Get Rejected

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

How Do Term Insurance Plans Differ for Smokers?

Is it Worth Buying Disability Rider on Term Insurance?

Life Insurance Policy Closure

Life Insurance Beneficiary

What is the Current Trend in Term Insurance?

Take 100% Responsibility of Your Family with Term Life Insurance

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

Why Online Term Insurance Plans Cheap?

5 Ways to ensure faster settlement of claims

How to Buy a Term Life Insurance Online

Why Term Insurance for Women is Important?

जीवन बीमा पर ऋण

Nominee in insurance - A Complete Guide on nomination in insurance

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

Choose the Nominee of a Term Life Insurance Plan Wisely

Why Do Life Insurance Agents Avoid Selling Term Plans?

Different Types of Insurance Policies in India

Does Life Insurance Pay for Suicidal Death?

All about Life Insurance Calculators

Various Term Insurance Premium Payment Options Available in India

What is Insurance Coverage? Overview, Types, and Examples

Is It Advisable To Have Multiple Life Insurance Policies?

How To Choose The Right Life Insurance

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

5 Smart Steps to keep in mind while buying term policies

Adding A Child to Your Life Insurance Policy?

Difference Between Money Back and Endowment Policy

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

Life Insurance and Millennials

“Life” Insurance or “Death” Insurance?

Process of Filing A Claim For Life Insurance

Why Life Insurance Is Always a Smart Decision

5 Reasons Why You Need Life Insurance in College

Customer Awareness on Information Security

Why Your Family Should Know About Your Life Insurance Policy?

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

Term Life Insurance Vs Money Back Life Insurance

Choosing a Life Insurance Beneficiary

5 Benefits of Gifting Life Insurance Cover to Your Spouse

Term Insurance Claim Process

Life Insurance Vs. Mutual Funds Investment

What Is a Whole Life Insurance Plan?

Key Things to Review in Your Life Insurance Policy Document

Role of IRDAI in the Insurance Sector

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

How Does Life Insurance Work?

What Is Investment Insurance?

How to Buy a Life Insurance Plan?

5 Things to Consider Before You Buy Life Insurance

How to Calculate Human Life Value(HLV)?

FAQs on Life Insurance

Does Life Insurance Cover Terminal Illness?

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

Guidelines for Linking Aadhar and PAN to Insurance Policies

All about IRDAI

Is It Time to Review Life Insurance Policy of Yours?

Does Family History Affects your Term Life Insurance Rates?

5 Common Life Insurance FAQs and Answers

Life Insurance Plans for Women

Choosing Between Short-Term & Long-Term Insurance Plans

Compare Different Life Insurance Products Offered By Kotak Life

All about Your Rights and Duties While Buying Life Insurance Policy

How to Choose Life Insurance for All Ages?

What are robo-advisors in insurance?

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

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

वरिष्ठ नागरिकों के लिए ऑनलाइन टर्म इंश्योरेंस प्लान खरीदने के लिए गाइड

Types of Insurance You Must Invest in for Secure Future

Think About Life Insurance Sooner than Later

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

All About Backdating in Life Insurance

Types of Life Insurance Policies in India

5 Advantages of Life Insurance Going Digital

10 Most Frequently Asked Questions - FAQs on Term Insurance

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

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

Biggest Life Insurance Myths

Term Plan with Return of Premium (TROP)

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

How to Revive the Lapsed Life Insurance Policy?

Who Is A Nominee In A Life Insurance Plan?

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

Important Terminologies of Life Insurance

Why One Must Buy Term Insurance before 25 Years

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

What Is Financial Planning?

What Happens If I Stop Paying My Life Insurance Premium?

Benefits of Term Insurance with Critical Illness Rider

जीवन बीमा क्या है?

A Term Insurance Guide for Disabled People

Role of Life Insurance in Your Financial Portfolio