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
  • 2,000 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

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

Should you buy a Renewable Term Life Policy?

Why Buy Term Insurance Even at Rising Rates?

10 Ways to Get Your Kids Involved in Your Healthy Lifestyle

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

4 Reasons Why You Need Critical Illness Cover

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

Ensure Protection Against Death, Disease & Disability With Life Insurance

Advantages of Buying Term Insurance in Your 50s

Can Senior Citizens Avail Term Insurance?

Individual Life Insurance vs. Group Term Life Insurance

Term Insurance: Smokers vs Non-Smokers

Eligibility Criteria for Buying Term Insurance in India

Side Effects of Covid-19 Booster Doses

टर्म इंश्योरेंस क्या है? टर्म इंश्योरेंस का मतलब

Is Term Life Insurance Plan an Investment or Expense?

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

How Not To Get Your Term Insurance Claim Rejected

What is Term Insurance? Term Plan Meaning and Definition

Steps on How to Buy Term Insurance Online

Can You Increase Your Term Insurance Cover?

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

Why should single women purchase term life insurance?

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

Difference between Section 80C and 80CCC of the Income Tax Act, 1961

Term Insurance vs Life Insurance: Understand the Difference and Benefits

टर्म इंश्योरेंस बनाम लाइफ इंश्योरेंस: अंतर और लाभ समझें

What Are the Best Term Insurance Plans for Planning Retirement?

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

Do You Need Term Insurance Cover After Retirement?

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

Protection for your family

Calculating Term Insurance Premium

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

Why Short-Term Insurance Plans Deserve a Second Look?

Know How to Invest at Every Age for Larger Returns

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

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

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

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

Importance of Term Insurance at Every Stage of Your Life

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

Insuring Against Disability With Disability Insurance Rider

Planning For Children's Future

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

What are the Documents Required for Term Insurance Plan?

Can I Get Term Insurance on Behalf of My Spouse?

Difference Between Term Insurance and Endowment Plan

Insurance Policy for Housewife In India

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

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

What is Insurance Premium? | Definition of Insurance Premium

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

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

Can Term Insurance Plans Be Purchased As A Gift?

Insuring yourself against Ill Health with a Critical Illness Rider

Difference Between Term Insurance and Endowment Plan

How Much Cover Should I Take In A Term Plan?

Is Group Term Life Insurance Provided By Employer Sufficient?

How to Compare Term Insurance Online

Key Differences Between Term Insurance, ULIPs, And Health Insurance

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

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

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

Is ₹1 Crore Term Insurance Good Enough Cover?

Can I Extend the Tenure of My Term Insurance Plan?

All About Term Insurance Inbuilt Coverage

Why You Must Include In Your Financial Planning?

Why Should New Parents Buy Term Life Insurance?

Why Buy Term Insurance Plan With a High Cover?

Why Married People Should Buy Term Insurance Under MWP Act?

Term Insurance Basics You Should Know

Why 1 Cr Term Plan Is Necessary For Family?

All you need to Know about Term Insurance Plans for housewives

Term Insurance Age Limit – Term Plan for All Age Groups

10 Most Frequently Asked Questions - FAQs on Term Insurance

Busting Myths and Facts About Term Insurance Policies

10-Year Term Life Insurance Policy - Explained in Detail

5 Benefits of Early Retirement Planning

How Does BMI Affect Your Term Insurance Premium?

Why Premium Amount for Term Insurance is So Low?

Why Should You Buy Term Insurance in 2022?

Cost of Term Insurance Likely to Increase Soon

Difference Between Short-Term and Long-Term Insurance

How to Buy 1 Crore Life Insurance Policy Without Medical Test

5 Things To Consider While Buying Term Insurance Plan

5 Term Insurance Benefits for Single Women

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

Which Death Type Does Your Term Plan Not Cover?

Tax Benefits of Term Insurance in India

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

Increasing Term Insurance and Riders

Is Life Insurance Investment Worthy Enough

How Does Term Life Insurance Work? Learn the Benefits

While Buying Term Insurance Compare Features, Not Just Premiums

Choosing Riders for Insurance Plans

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

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

Top 3 Reasons Why You Should Buy A Term Plan Now

Term Plans are Definitely Cheaper than You Think!

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

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

Insuring Against Accidents with an Accidental Death Insurance Rider

Different Types of Premiums in Term Insurance?

How To Change The Nominee in Term Insurance?

Why is it important to buy term insurance plan?

Endowment Plans vs Term Plans: Understanding the difference

Do Beneficiaries Pay Taxes on Term Insurance?

भारत में गृहणियों के लिए टर्म इंश्योरेंस

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

9 Point Guide on how to File Income Tax Return Online

Do term insurance policy have a waiting period after buying?

Insuring Protection Against Death With Death Insurance Rider

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

10 Ways to Mentally Refresh After a Stressful Day

Advantages & Disadvantages of Term Insurance in India

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

8 Factors to consider before choosing a Critical Illness Insurance

How Does Term Life Insurance Work? Learn the Benefits

Understanding Term Insurance Riders

How do I Calculate My Term Insurance Premium

Planning For Son or Daughter's Wedding

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

Term Life Insurance Plan for Smokers vs Non-Smokers

How to Identify Term Insurance According to Your Needs?

What are incremental term insurance plans?

What is Critical Illness Policy?

What All Documents Required For Term Insurance In India?

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

Term Plan with Spouse Cover

Why does every working women need life insurance?

11 Types of Death not covered in Term Insurance Plans

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

6 Reasons That Make Term Insurance a Must Buy

Everything About Claim Settlement Ratio for Term Insurance

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

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

कोविड -19 बूस्टर खुराक के दुष्प्रभाव

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

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

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

टर्म इंश्योरेंस क्लेम प्रक्रिया

Why Term Insurance Is Better Than ULIP?

8 Benefits of Term Insurance You Should Know

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

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

Make Your Online Term Plan Your Familys Monthly Payout

How Much Term Life Insurance Cover Do I Need?

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

Term Insurance Claims – Make Sure Your Claims Are Never Rejected

Term Insurance Plans and Policies for Smokers

Should You Have Multiple Term Life Insurance Policies?

Term Insurance with Critical Illness

Different Types of Protection Plans

Should You Buy a Term Plan After 40?

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

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

What Happens if you Hide Facts in your Term Insurance?

जीवन बीमा पॉलिसी लेने की प्रक्रिया क्या है?

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

Is term Insurance Needed for People With No Dependents?

What Should You opt for - Limited or Premium Pay?

Can You Get Term Insurance Without Income Proof?

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

What is a short term insurance policy?

9 Most Frequently Asked Questions on Term Insurance

Buying A Term Insurance Plan? Take These Factors into Account

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

All about Online Income Tax Calculator

भारत में जीवन बीमा कितने प्रकार के होते हैं?

Term Insurance With Riders In India

Term Life Insurance Vs Money Back Life Insurance

Benefits of Short-Term Life Insurance Policy

Types of Life Insurance Policies in India

8 Things To Do After Buying Term Insurance

Comparing Term Plans – What Should You Look Out For

4 Methods to Calculate How Much Term Insurance You Need

Is There Any Tax Benefit on Term Insurance?

What Is a Renewable Term Insurance Policy?

Is a Term Insurance Policy Portable?

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

Term Insurance Calculator - Everything You Need To Know

How To Evaluate Your Term Insurance Quote?

9 Ways to Help Family Members in Financial Trouble

How Does Short-Term Life Insurance Work?

Does Term Insurance Cover Accidental Death?

क्या ₹1 करोड़ का टर्म इंश्योरेंस पर्याप्त कवर है?

5 Reasons to Have a Child Education Plan

6 Types of Death not covered in Term Insurance Plan

What Is the Correct Age to Buy Term Insurance?

4 Things To Expect From Your Term Insurance Plan in India

How To Choose the Right Term Insurance Plan?

Should Youngsters, Working Couples Buy Term Insurance Plans?