Close
Close

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term

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

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.

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

Things to know before buying life insurance and how Indians should keep them in mind before buying Life Insurance so that they don’t buy it the wrong way. Read more here!

  • Nov 21, 2019
  • 2,344 Views

People buy home insurance or car insurance to protect themselves against the risks that can cause financial losses. However, who can put a value on human life? Who will make sure that your family’s financial goals are not hampered, if something happens to you? This is when a life insurance policy can help. It offers death benefits to the nominees of a policyholder in case of his or her untimely demise.However, buying a life insurance cover is not enough. You need to purchase one correctly. Here is a guide to help you.

How much life insurance cover do you need?

The first thing you need to do is to decide how much cover you need. An insufficient cover does not help anyone. To determine how much cover you need, it is important to consider certain factors like your current financial state, your liabilities, the income of your family, and your income. Once you have an idea about these details, it will be easier for you to understand how much money your family will need in your absence to maintain their current lifestyle. Buy the life insurance cover accordingly to ensure that the sum assured does not fall short.

The example of Priyanka can help you understand how to plan when purchasing a life insurance plan. She never does any financial planning without studying every aspect of it from all the angles. When she decided to buy a life insurance policy, the first thing she did was to list down all her assets, which include the value of her properties, bank balance, investments, and other existing policies. Then she took count of her debts, medical emergency fund, current household expenses,and retirement fund. This way, she could easily determine how much money her family will need in case of her untimely death. Priyanka then subtracted the value of her assets from the family’s total financial requirements. She opted for a life insurance cover that equals the difference.

Apart from the aforementioned, you need to keep various other aspects while buying a life insurance plan. First, your age is a factor that determines how much premium you need to pay. With age, your premium increases. So, make sure that you choose a cover that is not too costly. Along with age, you also need to consider the inflation rate. After ten years,your family will need more money to maintain their current lifestyle. Hence, decide the cover value accordingly.

Knowing the basic principle of buying life insurance

The basic principle of buying a life insurance plan is to make sure that the financial needs of your loved ones are taken care of in your absence. Do not treat it as an investment. A life policy cover should primarily offer the best possible death benefits. A term insurance policy, for instance, can provide a sum insured of up to INR 1 crore for a very affordable premium.

These are the things to know before buying life insurance to make sure that your policy can cover your needs without creating a hole in your pocket.

Calculate Term Insurance Premium

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

क्या जीवन बीमा एक निवेश है?

Most Common Life Insurance Riders to Enhance Your Existing Policy

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

What is Sum Assured in Endowment Policy?

Top 5 Common Life Insurance Myths and Facts

What is the Difference Between Insurance and Reinsurance?

5 Reasons Why You Need Life Insurance in College

A Term Insurance Guide for Disabled People

All about Life Insurance Calculators

Is It Time to Review Life Insurance Policy of Yours?

How to Calculate Human Life Value(HLV)?

Why Buying a Term Insurance is Important for all Parents

How Much Life Insurance Do You Need?

Why Do Life Insurance Agents Avoid Selling Term Plans?

Life Insurance Plans for Women

“Life” Insurance or “Death” Insurance?

Life Insurance vs Mutual Funds

5 Benefits of Gifting Life Insurance Cover to Your Spouse

Importance of Checking Claim Settlement Ratio before Buying Life Insurance

Term Life Insurance Vs Money Back Life Insurance

ULIPs: Suitable for all

जीवन बीमा क्या है?

What is Group Insurance?

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

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

5 Ways to ensure faster settlement of claims

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

जीवन बीमा पर ऋण

Life Insurance with Money Back vs Without Money Back

Difference Between ULIP and Endowment Plan?

5 Reasons Why a Women Should Buy a Life Insurance

How do life insurance payouts work?

NRI Premium Payment Options

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

Life Insurance for Overweight Applicants

What is the Current Trend in Term Insurance?

Important Terminologies of Life Insurance

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

Various Term Insurance Premium Payment Options Available in India

All About Backdating in Life Insurance

Best Insurance Plans in India

Beware of Phishing & Fraud Insurance Calls

Different Types Of Life Insurance In India

Guide for Buying Online Term Insurance Plans for Senior Citizens

When Should You Review Term Life Insurance of Yours?

7 Superficial Reasons People Avoid Buying Insurance Online

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

Voluntary Life Insurance Policy Vs Group Life Insurance

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

How Does Life Insurance Work?

Always keep your Nominee informed

Life Insurance Policy Closure

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

What is Minimum Life Insurance Policy?

Difference Between Insurance and Assurance?

Different Types of Insurance Policies in India

Process of Filing A Claim For Life Insurance

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

Life Insurance for Overweight Applicants

Savings cum Protection Plans Secures Your Family from Unforeseen Events

Choosing Between Short-Term & Long-Term Insurance Plans

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

How Often You Must Review Your Life Insurance Policy?

What is Life Insurance?

What Is Insurance Rider and It’s Benefits?

Is It Advisable To Have Multiple Life Insurance Policies?

5 Easy Steps to Buying A Policy

Does Life Insurance Policy Cover Covid Death?

Term Insurance Vs Life insurance: Small Details, Big Differences

भारत में जीवन बीमा पॉलिसियों के प्रकार

Is it Worth Buying Disability Rider on Term Insurance?

Is Voluntary Life Insurance the Same as Basic Life Insurance?

What is Underinsurance & The Dangers of Being Underinsured

Life Insurance and Retirement Planning

Choose the Nominee of a Term Life Insurance Plan Wisely

Digital Life Certificate for Pensioners Seeking Pension

How to Choose Life Insurance for All Ages?

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

Term Insurance Tips for NRIs in India

Life Insurance for Millennials

Benefits of Term Insurance with Critical Illness Rider

Details Required To Be Filled In A Life Insurance Form

Staying Insured While Investing

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

Insurance Vs Investment - A Guide to Your Financial Goals

5 Smart Steps to keep in mind while buying term policies

Reasons Why Term Insurance Claims Get Rejected

Sabse Pehle Life Insurance

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

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

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

Why Term Insurance for Women is Important?

Why You Should Never Cancel Life Insurance Policy

Is Life Insurance an Investment?

What are robo-advisors in insurance?

Who Is A Nominee In A Life Insurance Plan?

What Is Investment Insurance?

Insurance Changes You Need to Make Post Marriage

Everything You Must Know About ULIP Riders

How to Buy a Term Life Insurance Online

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

6 Different Types of Insurance Policies

How To Choose The Right Life Insurance

Term Plan with Return of Premium (TROP)

Terms and Conditions of Term Insurance Plans

Why Life Insurance Is Always a Smart Decision

How to Choose a Life Insurance Policy

Does Life Insurance Cover Terminal Illness?

Types of Life Insurance Policies in India

10 Most Frequently Asked Questions - FAQs on Term Insurance

Take 100% Responsibility of Your Family with Term Life Insurance

Why do I Need Life Insurance?

5 Things to Consider Before You Buy Life Insurance

Role of IRDAI in the Insurance Sector

Important Features of a Term Insurance Plan

Difference Between Term Insurance and Endowment Plan

Does Life Insurance Pay for Suicidal Death?

Is Life Insurance For Millennials Really Needed?

Term Insurance Claim Process

Why Online Term Insurance Plans Cheap?

What is an Endowment Plan?

What Is Financial Planning?

How Many Insurances Should I Have?

Kotak Life Claim Settlement Ratio

Difference Between Money Back and Endowment Policy

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

Life Insurance and Millennials

Guidelines for Linking Aadhar and PAN to Insurance Policies

Nominee in insurance - A Complete Guide on nomination in insurance

Choosing a Life Insurance Beneficiary

Can NRI Buy Life Insurance in India?

Health Insurance VS Life Insurance

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

क्रिटिकल इलनेस राइडर के साथ टर्म इंश्योरेंस के लाभ

How to Find the Best Term Insurance Plan in Seven Steps

What happens to joint life insurance after divorce?

भारत में सर्वश्रेष्ठ टर्म प्लान कैसे चुनें?

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

Biggest Life Insurance Myths

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

5 Common Life Insurance FAQs and Answers

Adding A Child to Your Life Insurance Policy?

Think About Life Insurance Sooner than Later

How to Make Death Claims on Life Insurance?

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

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

Customer Awareness on Information Security

5 Advantages of Life Insurance Going Digital

Why Renewal of Term Insurance Plan is Important

Types of Life Insurance Or One Investment, Many Options

Role of Life Insurance in Your Financial Portfolio

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

FAQs on Life Insurance

How to Revive the Lapsed Life Insurance Policy?

Life Insurance Vs. Mutual Funds Investment

What Happens If I Stop Paying My Life Insurance Premium?

Loan Against Life Insurance Policy

Do Life Insurance Premiums Increase Every Year?

Types of Insurance You Must Invest in for Secure Future

How to Buy a Life Insurance Plan?

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

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

Do Your Financial Planning with Life Insurance!

Health Insurance VS Life Insurance

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

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

Benefits of Buying Term Insurance Plan for Senior Citizens in India

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

What are the Benefits of Endowment Policy?

Why is Medical Test Important While Buying a Term Insurance?

5 Things to Keep in Mind While Buying Life Insurance Policy

What Is a Whole Life Insurance Plan?

Life Insurance Beneficiary

Why Your Family Should Know About Your Life Insurance Policy?

Does Family History Affects your Term Life Insurance Rates?

What is Insurance Coverage? Overview, Types, and Examples

Key Things to Review in Your Life Insurance Policy Document

How Do Term Insurance Plans Differ for Smokers?

All About Life Insurance and How It Works?

Why One Must Buy Term Insurance before 25 Years

All about Your Rights and Duties While Buying Life Insurance Policy

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

Life Insurance Nominees: 5 Must-Know Facts for Beneficiaries

All about IRDAI

Term Life Insurance vs Accidental Death Insurance

Can An Individual Buy Multiple Term Insurance Plans?

In India, should NRIs purchase life insurance?

Should You Buy Life Insurance After Getting Married?

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

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

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

How to Customize Your Life Insurance Policy with Riders

What Is Staggered Payment Option Under Term Insurance Policy?

6 Things You May Not Know about Life Insurance

Compare Different Life Insurance Products Offered By Kotak Life

Important Life Insurance Terms You Must Know

How Much Life Insurance Cover Do I Need?