Kotak Life

Buy a Life Insurance Plan in a few clicks


Now you can buy life insurance plan online.

Kotak e-Term Plan

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

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. Know more

Kotak E-Invest

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

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. Know more

Kotak Lifetime Income Plan

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

Are Annuities Great For Early Retirement?

Are Annuities Great For Early Retirement?
  • 14th Dec 2021 |
  • 481

While the modern generation of the young Indian workforce is highly ambitious about their careers, they are also more inclined to live life to its fullest. They want to retire early to experience all the good things in life rather than working till they reach 60.

A significant number of young people are more serious than ever to plan an early way out of their respective jobs to follow their dreams, hobbies, or passion. The annuity plans almost always feature prominently in any retirement planning options. Let’s find out whether they are good enough for early retirement.

What are Annuity Plans?

In simple terms, annuity plans are insurance products that provide guaranteed regular income after retirement to the insured. The payment period can be either for life or a stipulated period. 

Annuity plans do not provide life insurance cover. However, they do have an option to fully repay the principal amount to the nominee in case of the insured person’s death.

You can invest in an annuity plan either through a one-time lump sum amount or through regular monthly, quarterly, or annual investments over a period

Are Annuities Good for Early Retirement?

Not just good, annuities can be great for early retirement. Here is how

  • They can provide a stable and fixed source of income for a considerable length of time. They can even offer a guaranteed pension for a lifetime.
  • As they are non-linked, the returns are risk-free and fully insulated from the ups and downs of the stock market.
  • In immediate annuity plans, the pension amount starts right away after buying the plan. Most of the reputed plans have an entry age of 45 years. Thus, one can buy such a plan at the age of 45 and immediately start getting a regular pension and retire early

But aren’t Mutual Funds and ULIPs Better?

Mutual funds and ULIPs help build a substantial retirement corpus and beat inflation by providing a potentially higher rate of returns than the traditional deposit options like bank FDs or post-office schemes.

However, they are subjected to market risks. While there are chances of getting valuable returns on your investments, you also bear the risk of volatile exposure to stock market crashes as well.

On the contrary, annuities provide you with risk-free returns unaffected by stock market crashes or possibilities of manipulations.

Diversification is the Key to Building a Healthy Retirement Corpus

Diversifying your investments across various investment vehicles can be an excellent way to plan your retirements. A good retirement portfolio should have a fair mix of investment, savings, and insurance products to give you complete protection in your golden years

Although an insurance product, annuities give you the benefit of insurance and savings. They can act as a fail-safe option in case any other investment goes wrong or underperforms. So make sure it is a significant part of your retirement planning. At the same time, don’t forget about other vehicles, such as life insurance ,health insurance, mutual funds, and other investments.

Never Stop Earning a Regular Income with an Annuity Plan

It feels great to get regular payment even when you are not working. Annuities can be a great way to achieve this goal. Therefore, consider including annuities into your basket of investments enroute to your retirement.

Kotak e-Term Plan


  • Nominal Cost
  • Multiple Plan Options
  • Flexible Payout Options
  • Critical Illness Rider
  • Tax Savings
  • Long term Coverage

Ref. No. KLI/22-23/E-BB/492


Browse our library of resources

- A Consumer Education Initiative series by Kotak Life

Similar Articles

Choosing Riders for Insurance Plans

टर्म इंश्योरेंस क्या है? टर्म इंश्योरेंस का मतलब

Why Term Insurance Is Important in times of COVID-19?

What Is a Passive Income? Why Should You Use It to Buy a Term Plan?

Why 1 Cr Term Plan Is Necessary For Family?

4 Things To Expect From Your Term Insurance Plan in India

Term Plans are Definitely Cheaper than You Think!

Which Death Type Does Your Term Plan Not Cover?

Is There Any Tax Benefit on Term Insurance?

Can I Make Changes to My Term Insurance Policy Post Purchase?

How to Surrender Term Life Insurance When you have No Liabilities

Is Life Insurance Investment Worthy Enough

Make Your Online Term Plan Your Family's Monthly Pay Cheque

Why Should You Buy Term Insurance in 2022?

Different Types of Protection Plans

Term Vs. Whole Life Insurance: Which One You Should Buy in India?

How to Compare Term Insurance Online

What Types of Deaths Are Covered in a Term Insurance Plan?

Make Your Online Term Plan Your Familys Monthly Payout

How to Ensure That Your Term Insurance Claims Are Never Rejected?

Can I Get Term Insurance on Behalf of My Spouse?

Key Differences Between Term Insurance, ULIPs, And Health Insurance

How To Choose the Right Sum Assured Under a Term Plan?

Term Insurance: Most Common Term Insurance Myths Explained | Kotak Life

5 Things To Consider While Buying Term Insurance Plan

Planning For Son or Daughter's Wedding

Can You Increase Your Term Insurance Cover?

Busting Myths and Facts About Term Insurance Policies

What are the Documents Required for Term Insurance Plan?

Top 3 Reasons Why You Should Buy A Term Plan Now

5 Reasons to Buy Term Insurance When You are in Your 30s

Can I Extend the Tenure of My Term Insurance Plan?

What All Documents Required For Term Insurance In India?

Why Term Plan Should Be The First Step To Securing Your Future?

What Should Be The Duration Of Your Term Plan in India?

Why Buy Term Insurance Plan With a High Cover?

4 Reasons Why You Need Critical Illness Cover

Should You Buy a Term Plan After 40?

Do I Need to Give a Medical Test for Term Insurance in India?

Is it a Good Time to Buy Term Insurance During the COVID-19 Pandemic?

Why does every working woman need life insurance?

8 Benefits of Term Insurance You Should Know

Ideal Features of a Suitable Term Plan - Act Now for a Stress-free Future

Why Premium Amount for Term Insurance is So Low?

Term Insurance with Critical Illness

Term Insurance With Riders In India

Comparing Term Plans – What Should You Look Out For

Is a Term Insurance Policy Portable?

Planning For Children's Future

Are The Add-ons and Optional Features of Term Insurance Plans Actually Beneficial?

Do You Need Term Insurance Cover After Retirement?

Does Term Insurance Cover Accidental Death?

4 Methods to Calculate How Much Term Insurance You Need

How Not To Get Your Term Insurance Claim Rejected

Tips to Choose the Right Term Period for Term Insurance Plan

How Does Term Life Insurance Work? Learn the Benefits

Different Types of Premium in Term Insurance

All About Term Insurance Inbuilt Coverage

5 Term Insurance Benefits for Single Women

Can Senior Citizens Avail Term Insurance?

Why is it important to buy term insurance plan?

Difference between Term Insurance and Life Insurance

While Buying Term Insurance Compare Features, Not Just Premiums

How To Calculate The Amount Of Term Life Insurance You Need?

Online vs Offline Term Insurance: Which Is The Better Option To Buy

Why Surrendering Your Term Plan Policy In The Final Phase Maybe A Bad Idea?

Why Should New Parents Buy Term Life Insurance?

Term Insurance: Smokers vs Non-Smokers

Why Should You Add a Rider to a Term Insurance Plan?

Is It Good To Buy A Term Insurance Plan In 2022?

What Is a Renewable Term Insurance Policy?

Steps on How to Buy Term Insurance Online

Why Buy Term Insurance Even at Rising Rates?

What is the Right Term Period For Term Insurance Policy? Here's How You Should Choose!

Is Term Life Insurance Plan an Investment or Expense?

Insurance Policy for Housewife In India

Know How to Invest at Every Age for Larger Returns

8 Things To Do After Buying Term Insurance

9 Most Frequently Asked Questions on Term Insurance

What Is the Correct Age to Buy Term Insurance?

Does Your Term Insurance Plan Cover Death Due to COVID-19?

When is the Right Time to Buy Term Life Insurance Policy for Yourself?

How To Choose the Right Term Insurance Plan?

Increasing Term Insurance and Riders

Why Term Insurance Is Better Than ULIP?

How Much Term Insurance Do I Need

Reasons You Need Term Insurance Plan as a Self-Employed Person

What Happens to Term Insurance Plan With No Beneficiary - Kotak Life

Endowment Plans vs Term Plans: Understanding the difference

Understanding Term Insurance Riders

How Much Term Life Insurance Cover Do I Need in India?

What is a short term insurance policy?

Term Insurance Plans and Policies for Smokers

6 Reasons That Make Term Insurance a Must Buy

Is Group Term Life Insurance Provided By Employer Sufficient?

Best Investment Plans for Children - Secure Your Child's Future

Insuring Against Accidents with an Accidental Death Insurance Rider

Term Life Insurance Plan for Smokers vs Non-Smokers

Insuring yourself against Ill Health with a Critical Illness Rider

Tax Benefits of Term Insurance in India

Insuring Against Disability With Disability Insurance Rider

5 Benefits of Early Retirement Planning

What is Term Insurance - A Complete Guide

All you need to Know about Term Insurance Plans for Housewives

Cost of Term Insurance Likely to Increase Soon

Why Buying a Term Plan Is Smarter Than Traditional Life Insurance Products

Can Term Insurance Plans Be Purchased As A Gift?

6 Types of Death not covered in Term Insurance Plan

Term Insurance: What Happens When You Don’t Pay Your Premiums?

Buying A Term Insurance Plan? Take These Factors into Account

Protection for your family

Term Plan with Spouse Cover

Why Married People Should Buy Term Insurance Under MWP Act?

Which Term Insurance to Choose: Lump Sum or Staggered Pay-out Plan?

Should Youngsters, Working Couples Buy Term Insurance Plans?

What is Critical Illness Policy

Individual Life Insurance vs. Group Term Life Insurance

Importance of Term Insurance at Every Stage of Your Life

What Happens if you Hide Facts in your Term Insurance?

Should You Have Multiple Term Life Insurance Policies?

How to Identify Term Insurance According to Your Needs?

How Much Cover Should I Take In A Term Plan?

What Are the Best Term Insurance Plans for Planning Retirement?

Why Should You Not Take A Term Plan Without Medical Test in India?

Can Non-Resident Indians (NRIs) Buy Term Insurance In India?

What are incremental term insurance plans?

10-Year Term Life Insurance Policy - Explained in Detail

What Should You opt for - Limited or Premium Pay?

Insuring Protection Against Death With Death Insurance Rider

What is Insurance Premium - A Detailed Guide

What Are Insurance Riders and How to Choose Them in a Term Plan?

Term Insurance Calculator - Everythng You Need To Know

Do Beneficiaries Pay Taxes on Term Insurance?

How Does A Term Life Insurance Work in India?

Everything About Claim Settlement Ratio for Term Insurance

How to Buy 1 Crore Life Insurance Policy Without Medical Test

What is Form 16, Form 16 part A, Form 16 part B, Information Required and FAQs

Is ₹1 Crore Term Insurance Good Enough Cover?

8 Factors to consider before choosing a Critical Illness Insurance

How To Change The Nominee in Term Insurance?

Is term Insurance Needed for People With No Dependents?

Advantages & Disadvantages of Term Insurance in India

Term Insurance Basics You Should Know

Term Insurance Age Limit – Term Plan for All Age Groups

Ensure Protection Against Death, Disease & Disability With Life Insurance

What is a Joint Term Insurance Plan? Key Benefits of Joint Term Plan

Why should single women purchase term life insurance?

Eligibility Criteria for Buying Term Insurance in India

Can I Buy Term Insurance for a COVID-19 Patient?

Calculating Term Insurance Premium

9 Ways to Help Family Members in Financial Trouble

Advantages of Buying Term Insurance in Your 50s

Gift Your Father A Term Insurance Plan This Father's Day

Term Insurance – Why You Must Include In Your Financial Planning?

Buying A Term Insurance? Don't Ignore the Claims Settlement Ratio

Can A Housewife Buy a Term Insurance Plan - All You Need to Know

Key IRDAI Regulations That Changed Face Of Term Insurance Industry In 2020