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.

Do term insurance policy have a waiting period after buying?

Typically, there is a term period when applying for life insurance. The waiting period is the time between submitting an application for insurance and obtaining permission to begin coverage. There is a term period before coverage begins under several life

  • Jan 30, 2023
  • 3,460 Views

There is a term period before coverage begins under several life insurance policies. This is the waiting period before your plan coverage begins after enrolling. If you pass away during the coverage period, your heirs will only get a refund of the premiums you’ve paid. This knowledge is helpful as you consider the effects of life insurance on your loved ones.

You should not take life insurance lightly because it is a part of your entire estate plan, which is a crucial financial exercise. A financial planner may assist you in developing an estate plan that considers your unique situation and objectives.

    Key Takeaways

    1 Key notes about the term insurance waiting period are mentioned below.

    2 The waiting period benefits not just the policyholder but also the family members.

    3 The waiting period is of two type, one takes place during the application process.

    4 Another is the term that the closed one has to wait to use to acquire the death benefits.

Why Do We Need Life Insurance?

Life Insurance is a financial product designed to assist with the financial support of a deceased policyholder’s loved ones. You purchase a life insurance policy for a predetermined amount of coverage and choose a beneficiary or beneficiaries. Monthly or quarterly premium payments are made according to risk indicators for death, such as age and general health. The insurance company will pay the death benefit specified in your policy upon your passing.

Term Life Insurance is intended to assist in covering unforeseen costs if they arise. However, life insurance is not meant to protect you in the same way that other policies do. Instead, it benefits the people closest to you. For instance, it can be used to cover final expenses if you have a large family or to replace lost income if you were working at the time of your death and your loved ones rely on you financially.

What is the Definition of an Insurance Waiting Period?

Two primary types of waiting periods are associated with life insurance policies: the application pending and the death benefit waiting period. The end consequence is the same, your life insurance policy won’t pay out if something occurs to you during the term insurance waiting period. But, first, let’s go down to how each one operates.

Term Period While Application Is Pending

There is typically a term insurance waiting period when you apply for life insurance. The waiting period is between filling out an insurance application and receiving approval to start coverage. For an automated system, this may take as little as a few minutes, and for a human, this could take weeks. Neither your premiums nor coverage will begin after the application’s waiting time has ended. You will not leave anything to your heirs if you pass away during this period.

Duration of Waiting Period for Death Benefits

There is a waiting period for term insurance before a policyholder’s beneficiaries can receive death benefits after the insurance company has approved the policy and begun collecting premiums. Deaths occurring within the waiting period for death benefits will result in no payout to beneficiaries. Instead, most policies will pay out a percentage of the total premiums you’ve paid up to that point.

Why does Term Insurance Plan Have Waiting Period?

There is a holding time for applications, so the insurance provider may decide whether or not to offer coverage. During this period, employees are surveyed about their lifestyle habits, such as whether or not they smoke or drink heavily. In addition, a physical examination and other information that could affect your actuarial life expectancy will likely be required. The insurance firm uses this data to determine your risk level and lifespan and then calculates your rates accordingly.

Did You Know?

Most death benefit term period are included in policies as a “blanket.” This is functionally analogous to the standard language in contracts barring compensation in the event of suicide.

Conclusion

Concluding, we can say that majority of term insurance plans come with a waiting period, while few can be categorized under term life insurance with no waiting period. There are two types of waiting periods associated with insurance: application waiting periods, which occur between the time you apply and the time your coverage becomes effective, and death benefit waiting periods, which occur between the time you receive coverage and the time your death benefits become effective. Regardless of the waiting tenure, it is advisable to invest in term insurance, as the benefits are worth the wait.

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

Why should single women purchase term life insurance?

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

Difference Between Term Insurance and Endowment Plan

Why Term Insurance Is Better Than ULIP?

How To Change The Nominee in Term Insurance?

4 Things To Expect From Your Term Insurance Plan in India

₹50 Lakh Term Insurance

Individual Life Insurance vs. Group Term Life Insurance

Top 3 Reasons Why You Should Buy A Term Plan Now

8 Benefits of Term Insurance You Should Know

How to Buy a Term Life Insurance Online

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

Term Insurance vs Life Insurance: Understand the Difference and Benefits

What Are the Best Term Insurance Plans for Planning Retirement?

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

Why Buy Term Insurance Even at Rising Rates?

Does Term Insurance Cover Accidental Death?

Can I Extend the Tenure of My Term Insurance Plan?

How Much Term Life Insurance Cover Do I Need?

Surrender Term Life Insurance Policy

4 Reasons Why You Need Critical Illness Cover

Why does every working women need life insurance?

Term Insurance Comparison – What Should You Look Out for?

Should You Buy a Term Plan After 40?

What is Salary Protection Insurance and Why You Need It

1 करोड़ का टर्म इंश्योरेंस प्लान क्या है?

Online vs Offline Term Insurance - A Comparison

Types of Deaths Not Covered by Term Insurance

Should Retirees Buy Term Insurance?

How to Buy ₹1 Crore Life Insurance Policy Without Medical Test?

Term Insurance Basics You Should Know

Why Should You Buy Term Insurance in 2022?

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

Understanding Term Insurance Riders

How Much Cover Should I Take In A Term Plan?

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

Documents Required for Term Insurance

What Is Staggered Payment Option Under Term Insurance Policy?

What is Term Insurance: Definition and Benefit of Term Plan

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

Is a Term Insurance Policy Portable?

5 Things to Consider When Buying Term Insurance, if you are Single

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

Different Types of Premiums in Term Insurance?

Why Married People Should Buy Term Insurance Under MWP Act?

What All Documents Required For Term Insurance In India?

Salient features of a Term Insurance Plan

Endowment Plans vs Term Plans: Understanding the difference

Is Term Life Insurance Plan Worth?

Is Death Due to Covered by Term Insurance?

Why You Must Include In Your Financial Planning?

Reasons Why Term Insurance Claims Get Rejected

How To Choose the Right Term Insurance Plan?

Steps on How to Buy Term Insurance Online

Term Insurance Claims – Make Sure Your Claims Are Never Rejected

Is Group Term Life Insurance Provided By Employer Sufficient?

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

Can Senior Citizens Avail Term Insurance?

Age Limit for Term Life Insurance

How do I Calculate My Term Insurance Premium

टर्म इंश्योरेंस बनाम लाइफ इंश्योरेंस: अंतर और लाभ समझें

Increasing Term Insurance and Riders

Hiding vital facts while buying term insurance? Claims may be rejected

Take 100% Responsibility for Your Family with Term Life Insurance

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

What is a short term insurance policy?

How To Evaluate Your Term Insurance Quote?

6 Types of Death not covered in Term Insurance Plan

Do Beneficiaries Pay Taxes on Term Insurance?

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

What Is the Correct Age to Buy Term Insurance?

Term Insurance: Smokers vs Non-Smokers

Should you have more than one nominee in your term insurance?

Which is better limited pay or regular pay in term insurance?

Term Insurance vs. Endowment Plan: Know the Differences

Is term Insurance Needed for People With No Dependents?

Here's why Renewal of Term Plan is Important

Term Insurance for Women

Alzheimer's Disease and How It’s Covered Under Health Insurance

Cost of Term Insurance Likely to Increase Soon

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

Is it Worth Buying Disability Rider on Term Insurance?

Should Youngsters, Working Couples Buy Term Insurance Plans?

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

₹5 Crore Term Insurance

Why Premium Amount for Term Insurance is So Low?

Smart Steps to keep in mind while buying term policies

All you need to Know about Term Insurance Plans for housewives

Difference Between Short-Term and Long-Term Insurance

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

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

जीवन बीमा पॉलिसी लेने की प्रक्रिया क्या है?

Should You Have Multiple Term Life Insurance Policies?

Can You Increase Your Term Insurance Cover?

Term Life Insurance Vs Money Back Life Insurance

8 Factors to consider before choosing a Critical Illness Insurance

Guide for Buying Online Term Insurance Plans for Senior Citizens

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

4 Methods to Calculate How Much Term Insurance You Need

How Does Short-Term Life Insurance Work?

How to Identify Term Insurance According to Your Needs?

Why One Must Buy Term Insurance before 25 Years

How Does Term Life Insurance Work? Learn the Benefits

₹1.5 Crore Term Insurance

Benefits of Short-Term Life Insurance Policy

How to Find the Best Term Insurance Plan in Seven Steps

10-Year Term Life Insurance Policy - Explained in Detail

टर्म इंश्योरेंस क्या है? टर्म इंश्योरेंस का मतलब

क्रिटिकल इलनेस राइडर के साथ टर्म इंश्योरेंस के लाभ

Should you buy a Renewable Term Life Policy?

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

Key Differences Between Term Insurance, ULIPs, And Health Insurance

Why Renewal of the Life Insurance Policy is Important?

Can I Get Term Insurance on Behalf of My Spouse?

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

How Not To Get Your Term Insurance Claim Rejected

What is a term insurance plan with a return of premium, and how does it work?

Why Should You Rethink Short Term Insurance Plans

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

Is There Any Tax Benefit on Term Insurance?

5 Term Insurance Benefits for Single Women

Top 5 Features of Term Insurance

What is Critical Illness Policy?

Calculating Term Insurance Premium

Tax Benefits of Term Insurance in India

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

How to choose the right term insurance plan

Why Should New Parents Buy Term Life Insurance?

Why 1 Cr Term Plan Is Necessary For Family?

Term Insurance Tips for NRIs in India

Term Plans are Definitely Cheaper than You Think!

Term Plan with Spouse Cover

Make Your Online Term Plan Your Familys Monthly Payout

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

Term Insurance Claim Process

Everything About Claim Settlement Ratio for Term Insurance

Term Insurance Calculator - Everything You Need To Know

Advantages & Disadvantages of Term Insurance in India

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

Term Insurance With Riders In India

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

9 Most Frequently Asked Questions on Term Insurance

Term Insurance with Critical Illness

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

6 Reasons That Make Term Insurance a Must Buy

Everything about Incremental Term Life Insurance Policy

9 Questions You Should Ask Before Buying Term Insurance

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

Term life insurance: Should you opt for lump sum payout or staggered payout?

Buying A Term Insurance Plan? Take These Factors into Account

Choose the Nominee of a Term Life Insurance Plan Wisely

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

Why You Need to Know About the Critical Illness Plan?

Why Online Term Insurance Plans Cheap?

भारत में जीवन बीमा कितने प्रकार के होते हैं?

टर्म इंश्योरेंस क्लेम प्रक्रिया

Why Term Insurance Is Must For Parents

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

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

5 methods to calculate how much term insurance you need

Renewable Term Insurance

Term Insurance Trends You Must Know

Can NRI Buy Life Insurance in India?

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

Busting Myths and Facts About Term Insurance Policies

5 Things To Consider While Buying Term Insurance Plan

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

How to Compare Term Insurance Online

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

What Should be the Right Term Insurance Plan Duration?

Joint vs Individual Term Insurance: Which One Should You Choose?

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

Various Term Insurance Premium Payment Options Available in India

Family Protection Term Insurance: Safeguarding Your Loved Ones

Importance of Term Insurance at Every Stage of Your Life

Is ₹1 Crore Term Insurance Good Enough Cover?

Advantages of Buying Term Insurance in Your 50s

Insurance Policy for Housewife In India

Term Insurance Terminology

Eligibility Criteria for Buying Term Insurance in India

How Does Term Life Insurance Work? Learn the Benefits

How to Buy 1 Crore Life Insurance Policy Without Medical Test

₹75 Lakh Term Insurance

Why Buy Term Insurance Plan With a High Cover?

While Buying Term Insurance Compare Features, Not Just Premiums

Term Insurance As A Gift | Perfect gift for your Loved ones

Zero Cost Term Insurance Plan: What is & Should you buy it?

A Term Insurance Guide for Disabled People

Which Death Types are Covered by Kotak E-Term Plan?

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

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

How Does BMI Affect Your Term Insurance Premium?

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

Terms and Conditions of Term Insurance Plans

Can You Get Term Insurance Without Income Proof?

Can You Buy Multiple Term Insurance Policy?

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

₹2 crore Term Insurance

Term Insurance Plans and Policies for Smokers

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

Which Death Type Does Your Term Plan Not Cover?

Things To Do After Buying Term Insurance

Why is it important to buy term insurance plan?

Term Life Insurance Plan for Smokers vs Non-Smokers

All About Term Insurance Inbuilt Coverage

Know the many types of life insurance policies in India