Close
Close

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term

Protect Your family’s financial future with Kotak e-Term. 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 insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. 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.

Tips to Choose the Right Term Period for Term Insurance Plan

One of the common problems people face is selecting the right term period for term insurance plan so read the article and know how to solve this problem

  • Aug 27, 2021
  • 2,022 Views

A term insurance policy commonly referred to as a pure protection policy provides financial security to your family against death. In the event of your unfortunate demise during the policy period, the insurance company pays the death benefit to the nominee. However, if the policyholder survives the policy period, there is no payout.

Today, many insurance companies offer a wide variety of term insurance plans. And, with online services provided by insurers, while term insurance investment has become easier, several people find it challenging to choose the right policy. One of the common problems people faces is selecting the correct term or tenure for their policy.

If you choose a long-term plan, it can be an unnecessary expense. And, if you choose a short-term plan, it may cause financial distress to the family because of your untimely demise. Experts suggest that the ideal duration for a term plan may differ for different people; it depends on their financial situation and needs.

So, how do you choose a suitable tenure for term insurance? We list down a few vital factors that you must consider before making the decision.

Assess your liabilities

When buying a term plan, it is pivotal to take your time and assess your current financial situation and list down the liabilities you may have. This could include, home loan, personal loan, business debts, credit card bills, etc., that you are obliged to pay over a period. Once you know the exact number, you can choose the term plan duration equal to or more than this time frame.

Let us understand with an example. Suppose if you have availed of a home loan, and you still have ten years of repayment, then it is better to choose a term insurance policy for at least ten years or more. This will help your family pay off the debts even if you are not around.

The financial status of dependents

Another critical factor to consider while choosing the term plan tenure is the number of family members who are financially dependent on you. If your family members have still a few years before they can be financially independent, then it is advisable to choose a long-term plan so that they don’t face any financial hassles in your absence.

On the other hand, if your family members are already financially independent, you can opt for a short-term plan. This way, you can invest the amount in a retirement scheme or other investment plans that yield better returns and secure your post-retirement life.

Premium affordability

If you are looking to purchase long-term term insurance, you must be ready to loosen the wallet strings and pay a higher premium. But, longer policy tenure also means that your family gets protections for a longer period.

But, if you are starting your career or are involved in a profession where you don’t have a stable income and cannot spare enough cash to pay the premium, you can opt for a short-term policy. The premium for such policies is more affordable.

Final Word

Remember, the primary objective of buying term insurance is to give your family financial protection against the uncertainties of life. So, generally, it is better to purchase a long-term policy so that your family gets the protection for a maximum period.

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

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

Tax Benefits of Term Insurance in India

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

Do You Need Term Insurance Cover After Retirement?

Term Insurance Calculator - Everything You Need To Know

Insurance Policy for Housewife In India

Term Insurance Plans and Policies for Smokers

How To Choose the Right Term Insurance Plan?

Insuring Against Accidents with an Accidental Death Insurance Rider

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

What Are the Best Term Insurance Plans for Planning Retirement?

Term Insurance vs Life Insurance: Understand the Difference and Benefits

Insuring yourself against Ill Health with a Critical Illness Rider

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

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

Can An Individual Buy Multiple Term Insurance Plans?

10-Year Term Life Insurance Policy - Explained in Detail

Types of Life Insurance Policies in India

Why Spending Time with Friends is Essential for Your Mental Health?

Is Term Life Insurance Plan an Investment or Expense?

When Should You Review Term Life Insurance of Yours?

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

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

How Does BMI Affect Your Term Insurance Premium?

Planning For Children's Future

How Does Term Life Insurance Work? Learn the Benefits

4 Reasons Why You Need Critical Illness Cover

Different Types of Premiums in Term Insurance?

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

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

Protection for your family

4 Things To Expect From Your Term Insurance Plan in India

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

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

Why Married People Should Buy Term Insurance Under MWP Act?

What Is the Correct Age to Buy Term Insurance?

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

Top 3 Reasons Why You Should Buy A Term Plan Now

Term Life Insurance Vs Money Back Life Insurance

Term Insurance: Smokers vs Non-Smokers

Term Insurance With Riders In India

Is term Insurance Needed for People With No Dependents?

11 Types of Death not covered in Term Insurance Plans

Eligibility Criteria for Buying Term Insurance in India

3 Things to Consider When Buying Term Insurance, If You are Single

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

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

Why Buy Term Insurance Plan With a High Cover?

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

Is Group Term Life Insurance Provided By Employer Sufficient?

9 Point Guide on how to File Income Tax Return Online

Insuring Against Disability With Disability Insurance Rider

How to Compare Term Insurance Online

How to Identify Term Insurance According to Your Needs?

What Is a Renewable Term Insurance Policy?

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

Advantages of Buying Term Insurance in Your 50s

Endowment Plans vs Term Plans: Understanding the difference

Why Should New Parents Buy Term Life Insurance?

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

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

Insuring Protection Against Death With Death Insurance Rider

Can You Get Term Insurance Without Income Proof?

Why You Must Include In Your Financial Planning?

How to Buy 1 Crore Life Insurance Policy Without Medical Test

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

Term Plan with Spouse Cover

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

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

All About Term Insurance Inbuilt Coverage

Know How to Invest at Every Age for Larger Returns

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

5 Term Insurance Benefits for Single Women

5 Smart Steps to keep in mind while buying term policies

5 Benefits of Early Retirement Planning

How Much Term Life Insurance Cover Do I Need?

Why Should You Buy Term Insurance in 2022?

8 Benefits of Term Insurance You Should Know

Difference Between Short-Term and Long-Term Insurance

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

Individual Life Insurance vs. Group Term Life Insurance

Should Youngsters, Working Couples Buy Term Insurance Plans?

What is Term Insurance? Term Plan Meaning and Definition

9 Most Frequently Asked Questions on Term Insurance

5 Things To Consider While Buying Term Insurance Plan

Should You Have Multiple Term Life Insurance Policies?

Ensure Protection Against Death, Disease & Disability With Life Insurance

Make Your Online Term Plan Your Familys Monthly Payout

Advantages & Disadvantages of Term Insurance in India

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

Is ₹1 Crore Term Insurance Good Enough Cover?

All you need to Know about Term Insurance Plans for housewives

Term Insurance Claims – Make Sure Your Claims Are Never Rejected

What Should You opt for - Limited or Premium Pay?

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

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

How to Surrender Term Life Insurance When You Have No Liabilities?

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

जीवन बीमा पॉलिसी लेने की प्रक्रिया क्या है?

भारत में जीवन बीमा कितने प्रकार के होते हैं?

Increasing Term Insurance and Riders

Is a Term Insurance Policy Portable?

Why Premium Amount for Term Insurance is So Low?

10 Ways to Mentally Refresh After a Stressful Day

What Happens if you Hide Facts in your Term Insurance?

How To Evaluate Your Term Insurance Quote?

Why Term Insurance Is Better Than ULIP?

Why does every working women need life insurance?

Understanding Term Insurance Riders

Busting Myths and Facts About Term Insurance Policies

How Not To Get Your Term Insurance Claim Rejected

What is Critical Illness Policy?

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

Different Types of Protection Plans

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

Should you buy a Renewable Term Life Policy?

How Does Short-Term Life Insurance Work?

Cost of Term Insurance Likely to Increase Soon

How Does Term Life Insurance Work? Learn the Benefits

All about Online Income Tax Calculator

Calculating Term Insurance Premium

Why 1 Cr Term Plan Is Necessary For Family?

Key Differences Between Term Insurance, ULIPs, And Health Insurance

Planning For Son or Daughter's Wedding

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

Term Insurance Basics You Should Know

टर्म इंश्योरेंस क्या है? टर्म इंश्योरेंस का मतलब

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

While Buying Term Insurance Compare Features, Not Just Premiums

भारत में गृहणियों के लिए टर्म इंश्योरेंस

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

How Much Cover Should I Take In A Term Plan?

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

Do term insurance policy have a waiting period after buying?

Term Life Insurance Plan for Smokers vs Non-Smokers

Why is it important to buy term insurance plan?

10 Most Frequently Asked Questions - FAQs on Term Insurance

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

8 Things To Do After Buying Term Insurance

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

क्या ₹1 करोड़ का टर्म इंश्योरेंस पर्याप्त कवर है?

Difference Between Term Insurance and Endowment Plan

Difference Between Term Insurance and Endowment Plan

Is Life Insurance Investment Worthy Enough

Is There Any Tax Benefit on Term Insurance?

What are incremental term insurance plans?

Term Insurance Age Limit – Term Plan for All Age Groups

10 Ways to Get Your Kids Involved in Your Healthy Lifestyle

9 Ways to Help Family Members in Financial Trouble

What All Documents Required For Term Insurance In India?

8 Factors to consider before choosing a Critical Illness Insurance

Can I Extend the Tenure of My Term Insurance Plan?

Can I Get Term Insurance on Behalf of My Spouse?

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

How To Change The Nominee in Term Insurance?

Can You Increase Your Term Insurance Cover?

Everything About Claim Settlement Ratio for Term Insurance

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

6 Reasons That Make Term Insurance a Must Buy

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

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

What is a short term insurance policy?

What is Insurance Premium? | Definition of Insurance Premium

4 Methods to Calculate How Much Term Insurance You Need

How do I Calculate My Term Insurance Premium

Does Term Insurance Cover Accidental Death?

Can Term Insurance Plans Be Purchased As A Gift?

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

टर्म इंश्योरेंस बनाम लाइफ इंश्योरेंस: अंतर और लाभ समझें

Term Plans are Definitely Cheaper than You Think!

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

Should You Buy a Term Plan After 40?

Buying A Term Insurance Plan? Take These Factors into Account

Term Insurance with Critical Illness

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

6 Types of Death not covered in Term Insurance Plan

Benefits of Short-Term Life Insurance Policy

Steps on How to Buy Term Insurance Online

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

Can Senior Citizens Avail Term Insurance?

Side Effects of Covid-19 Booster Doses

कोविड -19 बूस्टर खुराक के दुष्प्रभाव

5 Reasons to Have a Child Education Plan

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

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

Importance of Term Insurance at Every Stage of Your Life

Why Buy Term Insurance Even at Rising Rates?

Comparing Term Plans – What Should You Look Out For

Why should single women purchase term life insurance?

Which Death Type Does Your Term Plan Not Cover?

टर्म इंश्योरेंस क्लेम प्रक्रिया

Choosing Riders for Insurance Plans

Why Short-Term Insurance Plans Deserve a Second Look?

Do Beneficiaries Pay Taxes on Term Insurance?

What are the Documents Required for Term Insurance Plan?