Kotak Assured Savings Plan
A plan that offer guaranteed returns and financial protection for your family.
Kotak Guaranteed Savings Plan
A plan that offers long term savings and insurance in one premium.
Kotak Lifetime Income Plan
Retirement years are the golden years of life.
Our representative will get in touch with you at the earliest.
Ref. No. KLI/22-23/E-BB/492
Deciding the desired coverage, selecting the premium frequency, determining the payout option, choosing additional riders, and choosing a suitable insurance company should be considered while buying term insurance.
A term plan is a simple, easy to understand life insurance plan offering a death benefit to the policyholder’s family. However, buying the right one can still be confusing. Check this post to know what you need to consider when purchasing a term plan.
Life doesn’t always pan out as we wish. So, we must be prepared for untimely and unfortunate circumstances. We all want the best for our families, and that’s what a term insurance plan helps us do. It provides a financial shield to our families, protecting them from the uncertainties we may face.
Instead of a meaningless hunt, clarity with your goals will help you find the right term plan. Below mentioned are five factors that you must consider before you decide:
First and foremost, decide the amount you want to cover. Here is a list of factors you should consider:
You can use Human Life Value (HLV) calculators online to figure out the right coverage amount you will need.
Your income will impact the premium amount you can spare. Some prefer monthly and annual premiums, while others like to pay the entire amount at once. Your term insurance plan is rather to relieve you from any financial distress in the future than burden you for the rest of your life. Consider your income and feasibility to decide the payment method.
Different plans have different payout options, which can broadly be classified as:
The insurer pays 100% of the insured amount in lump sum immediately after the policyholder’s death to the beneficiary.
The insurer pays a certain percentage during claim settlement and then an assured sum for a pre-determined number of years.
The insurer pays a certain percentage during claim settlement and then an assured sum, which increases annually for a pre-determined number of years. Select term plan that fits the needs of your family.
Check whether the term plan offers add-ons or riders. Even if they might not fit your current requirements, you should consider them and secure yourself completely for unfortunate circumstances. Some of the common riders people buy, include -
Lastly, choose a company that you can trust to provide compensation to the beneficiaries in case of an unfortunate happening. While you can choose from any of the 24 IRDAI-approved insurance companies, delve a little deeper into their past financial records before buying the plan. Here are two main factors you should consider-
This is the ratio of the claims settled by the company against the claims filed. A high CSR indicates ease of filing and settling claims with the company.
It indicates a company’s financial standing and its ability to meet its liabilities. IRDA mandates all insurance companies to maintain a solvency ratio of at least 1.5 but look for a company that has a higher solvency ratio to ensure complete protection.
A term plan is not to stress you out but to help you out. So, assess your needs, budgets, and requirements to find the plan that best fits your needs so that you can leave your family financially independent.
Ref. No. KLI/22-23/E-BB/2435
