Kotak e-Term Plan
Kotak e-Term Plan provides a high level of protection to your loved ones in your absence.
Kotak E-Invest Plan
Kotak e-Invest plan is a complete Unit-Linked Insurance Plan that can be customized as per your goals and needs.
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.
Kotak Lifetime Income Plan
Kotak Lifetime Income Plan gives you the security of your income continuing thru your life and in your absence throughout your spouse's lifetime!
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.
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A term insurance plan is an excellent tool to ensure that your family’s financial future is secured. However, deciding to get term insurance is one thing, but choosing the right one is equally important. If you buy a term plan that is not aligned with your needs, then it might not serve its intended purpose.
Let us understand how to choose the right term insurance plan.
The world today is highly competitive, and one always looks at their peers to ascertain their progress. A friend or colleague may have bought a particular term plan, but that does not mean the same plan will be a good fit for you.
You must undergo the due process of analysing and calculating your family’s future needs and your budget for the premiums. So don’t give in to peer pressure and focus on your own needs.
In today’s digital world, everything can be done with the click of a few buttons. Buying term plans online is more affordable since insurers save up on overhead costs. There are also no intermediaries, and you can compare different policies and make up your mind. The risk of the COVID-19 pandemic also means that the less contact you have with different people. When you buy term plans online, the process is completely contactless and paperless.
As much as choosing the right life cover of a term plan is important, tenure is also critical. Ideally, you would want your term plan to cover your life for as long as you’re earning. Hence, a good tenure is always the number of earning years you have left in your career. For example, if you’re 30 years old now and plan to retire at 60, then you’ll work for 30 years more, so your term plan should have a tenure of 30 years.
Inflation will play a massive role in your family’s future expenses. If you choose a specific term plan with, say, Rs. 60 lakh assured sum today; after 20 years, the same amount will have a lower value. The sum assured may turn out to be insufficient for their future expenses due to inflation.
Prices will keep rising, so you must consider inflation when deciding on the term plan assured sum. Insurers also offer plans that increase assured sum by 5 or 10%. You could look into those to beat inflation.
An insurer’s claim settlement ratio gives you an idea of how many insurance claims were settled and how many were rejected. When buying term plans, make sure that your insurer has a good claim settlement ratio. If the insurer has a low ratio, this means their claims are not approved often, and all your hard work would go in vain if your family’s claim is not approved.
Using the above points, you can make sure that you choose the right term plan for you and your family’s needs.
- A Consumer Education Initiative series by Kotak Life
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