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

How To Choose The Right Pension Plan?

How To Choose The Right Pension Plan?
  • 26th Nov 2021 |
  • 357

A pension plan is a smart way to build a retirement corpus and use it for receiving a steady income for covering your post-retirement expenses. But with so many options now available, how will you pick the right pension plan?

Here are four factors that can help you make the decision-

1. Asset Selection Flexibility

One of the most critical features a pension plan should offer is the flexibility to choose your preferred asset classes so that you can diversify your investment. For instance, if you are in your 20s-30s, you can have a more aggressive investment approach, with equity being the significant component of your portfolio.

In the 40s-50s, the stability and safety offered by the debt class can help you keep your investment protected. The plan provider should offer this option to choose and switch between asset classes to help you make the most of your investment throughout the various stages of your life.

2. Guaranteed Additions and Bonuses

Many pension plans also come with guaranteed additions to the sum assured for up to 5 years from the plan purchase date. The additions are mostly a certain percentage of the basic sum assured and are payable either on demise or vesting.

Moreover, you can also find plans that offer additional bonuses from the 6th year of the policy. Note that these additions and bonuses are generally over and above the assured plan benefit, which can be up to 105% of the basic sum assured.

3. Life Cover and Add-ons

Pension plans are available with and without life cover. It is generally recommended that one choose a plan with life cover to ensure financial security for the family. With these plans, the nominee will receive the basic sum assured, along with the additions and bonuses, on the policyholder’s unfortunate demise.

Some insurers also offer additional riders such as accidental death benefits and permanent disability benefits for extra security.

4. Entry Age and Vesting Age

Like most other types of investments, the sooner you purchase a pension plan, the higher the probability of building a large retirement corpus. All the insurers have different entry age limits. In most cases, you should be able to purchase a pension plan if you are 30 years and above. However, you’ll mostly not be allowed to buy a pension plan if your age is already 55-60 years.

The vesting age is the age after which you’d like to start receiving the pension. In most plans, the vesting period is between 45-70 years. Do check the entry age and vesting age while browsing through the options to choose one that best meets your requirements.

Ensuring Financial Stability After Retirement with a Pension Plan

While there are options like PPF and EPF for private employees, inflation will hugely impact the corpus these investments generate for your retirement. A pension plan is a smart addition to any retirement plan to boost your corpus and ensure financial stability essential for living a comfortable retirement life.

Focus on the factors discussed in this post while comparing pension plans offered by top insurers to make the right decision.

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

6 Types of Death not covered in Term Insurance Plan

Tips to Choose the Right Term Period for Term Insurance Plan

Why Buy Term Insurance Even at Rising Rates?

Insuring Against Disability With Disability Insurance Rider

Choosing Riders for Insurance Plans

What All Documents Required For Term Insurance In India?

5 Benefits of Early Retirement Planning

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

Protection for your family

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

Make Your Online Term Plan Your Familys Monthly Payout

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

Top 3 Reasons Why You Should Buy A Term Plan Now

Know How to Invest at Every Age for Larger Returns

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

Why Premium Amount for Term Insurance is So Low?

What is Term Insurance - A Complete Guide

4 Reasons Why You Need Critical Illness Cover

Why is it important to buy term insurance plan?

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

What is Critical Illness Policy

Do Beneficiaries Pay Taxes on Term Insurance?

Do You Need Term Insurance Cover After Retirement?

Is Term Life Insurance Plan an Investment or Expense?

Can You Increase Your Term Insurance Cover?

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

9 Ways to Help Family Members in Financial Trouble

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

How to Compare Term Insurance Online

8 Things To Do After Buying Term Insurance

Eligibility Criteria for Buying Term Insurance in India

Term Plans are Definitely Cheaper than You Think!

Why Buy Term Insurance Plan With a High Cover?

Why Should You Buy Term Insurance in 2022?

Term Insurance Calculator - Everythng You Need To Know

Term Insurance Age Limit – Term Plan for All Age Groups

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

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

Individual Life Insurance vs. Group Term Life Insurance

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

Why Term Insurance Is Better Than ULIP?

How Does Term Life Insurance Work? Learn the Benefits

Tax Benefits of Term Insurance in India

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

8 Benefits of Term Insurance You Should Know

Is a Term Insurance Policy Portable?

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

Is Life Insurance Investment Worthy Enough

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

How Much Term Insurance Do I Need

What Is a Renewable Term Insurance Policy?

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

Why should single women purchase term life insurance?

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

Why Married People Should Buy Term Insurance Under MWP Act?

Term Insurance Basics You Should Know

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

Why 1 Cr Term Plan Is Necessary For Family?

Term Insurance with Critical Illness

How to Identify Term Insurance According to Your Needs?

What are incremental term insurance plans?

6 Reasons That Make Term Insurance a Must Buy

Insurance Policy for Housewife In India

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

Term Insurance Plans and Policies for Smokers

Ensure Protection Against Death, Disease & Disability With Life Insurance

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

All About Term Insurance Inbuilt Coverage

All you need to Know about Term Insurance Plans for Housewives

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

Difference between Term Insurance and Life Insurance

What Are the Best Term Insurance Plans for Planning Retirement?

How Does A Term Life Insurance Work in India?

Insuring yourself against Ill Health with a Critical Illness Rider

टर्म इंश्योरेंस क्या है? टर्म इंश्योरेंस का मतलब

Planning For Son or Daughter's Wedding

Term Plan with Spouse Cover

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

Does Term Insurance Cover Accidental Death?

Can Senior Citizens Avail Term Insurance?

While Buying Term Insurance Compare Features, Not Just Premiums

How to Surrender Term Life Insurance When you have No Liabilities

Is term Insurance Needed for People With No Dependents?

What Is the Correct Age to Buy Term Insurance?

Can Term Insurance Plans Be Purchased As A Gift?

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

Comparing Term Plans – What Should You Look Out For

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

Should You Buy a Term Plan After 40?

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

Can I Extend the Tenure of My Term Insurance Plan?

Insuring Protection Against Death With Death Insurance Rider

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

Advantages of Buying Term Insurance in Your 50s

Cost of Term Insurance Likely to Increase Soon

How Much Cover Should I Take In A Term Plan?

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

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

What is Insurance Premium - A Detailed Guide

Steps on How to Buy Term Insurance Online

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

Buying A Term Insurance Plan? Take These Factors into Account

What Happens if you Hide Facts in your Term Insurance?

Importance of Term Insurance at Every Stage of Your Life

Term Insurance With Riders In India

What are the Documents Required for Term Insurance Plan?

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

Should Youngsters, Working Couples Buy Term Insurance Plans?

What is a short term insurance policy?

Term Insurance: Smokers vs Non-Smokers

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

Key Differences Between Term Insurance, ULIPs, And Health Insurance

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

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

Insuring Against Accidents with an Accidental Death Insurance Rider

5 Term Insurance Benefits for Single Women

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

4 Things To Expect From Your Term Insurance Plan in India

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

Can I Get Term Insurance on Behalf of My Spouse?

Everything About Claim Settlement Ratio for Term Insurance

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

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

How to Buy 1 Crore Life Insurance Policy Without Medical Test

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

10-Year Term Life Insurance Policy - Explained in Detail

Different Types of Protection Plans

Busting Myths and Facts About Term Insurance Policies

Is There Any Tax Benefit on Term Insurance?

Should You Have Multiple Term Life Insurance Policies?

What Should You opt for - Limited or Premium Pay?

8 Factors to consider before choosing a Critical Illness Insurance

How To Choose the Right Term Insurance Plan?

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

4 Methods to Calculate How Much Term Insurance You Need

Different Types of Premium in Term Insurance

9 Most Frequently Asked Questions on Term Insurance

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

Advantages & Disadvantages of Term Insurance in India

Endowment Plans vs Term Plans: Understanding the difference

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

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

How To Change The Nominee in Term Insurance?

Term Life Insurance Plan for Smokers vs Non-Smokers

Increasing Term Insurance and Riders

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

Calculating Term Insurance Premium

Understanding Term Insurance Riders

5 Things To Consider While Buying Term Insurance Plan

How Not To Get Your Term Insurance Claim Rejected

Is ₹1 Crore Term Insurance Good Enough Cover?

Which Death Type Does Your Term Plan Not Cover?

Planning For Children's Future

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

Why Should New Parents Buy Term Life Insurance?

Why does every working woman need life insurance?

Is Group Term Life Insurance Provided By Employer Sufficient?