Is Life Insurance Investment Worthy Enough

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term Plan

Protect Your family’s financial future with Kotak e-Term Plan. 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


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.

Kotak e-Term Plan

Is Life Insurance Investment Worthy Enough

It is recommended to compare life insurance investment pros and cons before making your decision. Here is a analysis for you whether life insurance is worthy enough or not.

  • Dec 19, 2018

Life is uncertain and you never know when and how your circumstances may change in an instant. A sudden illness or an accident may result in severe injuries that prevent you from pursuing your career and earning an income.

To protect yourself and your loved ones from such uncertainty, you may avail of insurance policies. You may choose a life insurance policy that offers a lump sum payout to your beneficiaries in case of an unexpected incident during the policy term. Additionally, you may choose a health insurance plan that provides the benefits in case you are diagnosed with any of the covered illnesses.

Although insurance coverage is important, many people avoid it with the objective of saving the premium amount. To overcome this limitation, insurers offer certain types of investment insurance plans.

Some experts advise that you must not avail of insurance companies with an investment objective. Others may recommend earning some returns on your insurance investment. It is recommended you compare life insurance investment pros and cons before making your decision.

Pros of life insurance

Replace lost income

The primary objective of life insurance is to provide financial security to your family in your absence. In case you are unable to earn a regular income, an insurance plan offers a replacement to ensure your loved ones are able to sustain their lifestyles without facing financial difficulties.

Cover your liabilities

It is most likely that you have multiple debt obligations, such as home loans, car loans, credit card bills, and others. In case of an unfortunate event, you do not want to financially burden your family while they deal with the emotional loss. A life investment insurance plan will help ease the financial burden on your family to meet these various outstanding liabilities.

Tax-deferred growth

The premium you pay on your life insurance policy is eligible for tax deductions under section 80C of the Income Tax Act, 1961. Additionally, the death benefits paid to the beneficiaries in case of an untoward event during the policy term are tax-free. Moreover, if you survive the policy term, the maturity benefits are also tax-exempt under section 10(10D) of the Income Tax Act, 1961.

Meet your financial goals

You may have various goals during different stages of your life. For example, you may want to buy a home, plan for your children’s higher education, and ensure financial independence after retirement. You may use life insurance policies to meet these goals through planned investments in certain types of policies.

Additional benefits

If you require some additional liquidity to meet emergency fund requirements, you may borrow against your life insurance policy. Compared to most other types of loans, borrowing against the insurance plan is more cost-efficient and affordable. However, it is recommended you check with your insurer before you make your decision of borrowing against the policy.

A term insurance plan is the most affordable way to procure higher coverage. However, most term policies do not offer any survival benefits. It is recommended that you invest the money you save through a lower premium on your term plan in other financial instruments, which will help you meet your various life goals.

When you are evaluating life insurance investment pros and cons, you will realize that there are no cons to mention. After all, insurance can only be a good thing. Therefore, it is certainly worth investing in insurance. It is recommended you consider your financial situation and personal requirements before deciding on an investment insurance plan. To maximize the benefits from your life insurance plans, it is important you remain invested for a long period of time. Insurance is not an investment product if you are looking to earn returns in the short-term.

More importantly, do not buy an insurance policy only with an investment perspective. The primary objective of life coverage is to provide financial security to your loved ones in your absence. Therefore, it is recommended you invest adequately in insurance to cover your beneficiaries before you make additional investments in other types of instruments to meet your investment goals.

Kotak e-Term Plan

Download Brochure


  • Nominal Cost
  • Multiple Plan Options
  • Flexible Payout Options
  • Critical Illness Rider
  • Tax Savings
  • Long term Coverage

Ref. No. KLI/22-23/E-BB/492


- A Consumer Education Initiative series by Kotak Life

Similar Articles

Is a Term Insurance Policy Portable?

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

Individual Life Insurance vs. Group Term Life Insurance

How Not To Get Your Term Insurance Claim Rejected

9 Ways to Help Family Members in Financial Trouble

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

Should Youngsters, Working Couples Buy Term Insurance Plans?

How Much Term Life Insurance Cover Do I Need?

Insuring Against Disability With Disability Insurance Rider

What is Insurance Premium - A Detailed Guide

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

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

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

How to Identify Term Insurance According to Your Needs?

Why Married People Should Buy Term Insurance Under MWP Act?

Can Term Insurance Plans Be Purchased As A Gift?

Term Insurance Plans and Policies for Smokers

Choosing Riders for Insurance Plans

Is Group Term Life Insurance Provided By Employer Sufficient?

Is ₹1 Crore Term Insurance Good Enough Cover?

Planning For Son or Daughter's Wedding

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

Can I Extend the Tenure of My Term Insurance Plan?

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

Why Premium Amount for Term Insurance is So Low?

Protection for your family

Advantages of Buying Term Insurance in Your 50s

What Is the Correct Age to Buy Term Insurance?

Tips to Choose the Right Term Period for Term Insurance Plan

Busting Myths and Facts About Term Insurance Policies

Term Insurance Calculator - Everything You Need To Know

While Buying Term Insurance Compare Features, Not Just Premiums

भारत में जीवन बीमा कितने प्रकार के होते हैं?

All about Online Income Tax Calculator

What are the Documents Required for Term Insurance Plan?

Understanding Term Insurance Riders

What are incremental term insurance plans?

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

5 Things To Consider While Buying Term Insurance Plan

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

Know How to Invest at Every Age for Larger Returns

Insurance Policy for Housewife In India

10-Year Term Life Insurance Policy - Explained in Detail

What Should You opt for - Limited or Premium Pay?

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

Cost of Term Insurance Likely to Increase Soon

Does Term Insurance Cover Accidental Death?

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

Why Buy Term Insurance Plan With a High Cover?

Difference Between Term Insurance and Endowment Plan

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

Is term Insurance Needed for People With No Dependents?

What is a short term insurance policy?

Should you buy a Renewable Term Life Policy?

6 Types of Death not covered in Term Insurance Plan

Endowment Plans vs Term Plans: Understanding the difference

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

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

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

10 Ways to Mentally Refresh After a Stressful Day

12 Types of Death not covered in Term Insurance Plans

What is Term Insurance? Term Plan Meaning and Definition

How to Compare Term Insurance Online

Key Differences Between Term Insurance, ULIPs, And Health Insurance

8 Factors to consider before choosing a Critical Illness Insurance

4 Reasons Why You Need Critical Illness Cover

Calculating Term Insurance Premium

Top 3 Reasons Why You Should Buy A Term Plan Now

Importance of Term Insurance at Every Stage of Your Life

Do You Need Term Insurance Cover After Retirement?

Term Insurance vs Life Insurance: Understand the Difference and Benefits

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

Why is it important to buy term insurance plan?

Why does every working women need life insurance?

How To Change The Nominee in Term Insurance?

How To Choose the Right Term Insurance Plan?

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

Increasing Term Insurance and Riders

How do I Calculate My Term Insurance Premium

How Much Term Insurance Do I Need

9 Point Guide on how to File Income Tax Return Online

Planning For Children's Future

4 Methods to Calculate How Much Term Insurance You Need

Do Beneficiaries Pay Taxes on Term Insurance?

9 Most Frequently Asked Questions on Term Insurance

कोविड -19 बूस्टर खुराक के दुष्प्रभाव

Why You Must Include In Your Financial Planning?

8 Benefits of Term Insurance You Should Know

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

Which Death Type Does Your Term Plan Not Cover?

Term Plans are Definitely Cheaper than You Think!

जीवन बीमा पॉलिसी लेने की प्रक्रिया क्या है?

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

Can I Get Term Insurance on Behalf of My Spouse?

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

Different Types of Protection Plans

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

8 Things To Do After Buying Term Insurance

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

How to Buy 1 Crore Life Insurance Policy Without Medical Test

Advantages & Disadvantages of Term Insurance in India

Term Life Insurance Plan for Smokers vs Non-Smokers

6 Reasons That Make Term Insurance a Must Buy

Should You Have Multiple Term Life Insurance Policies?

Make Your Online Term Plan Your Familys Monthly Payout

Ensure Protection Against Death, Disease & Disability With Life Insurance

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

Different Types of Premiums in Term Insurance?

Insuring Against Accidents with an Accidental Death Insurance Rider

Why 1 Cr Term Plan Is Necessary For Family?

भारत में गृहणियों के लिए टर्म इंश्योरेंस

How Does Term Life Insurance Work? Learn the Benefits

Everything About Claim Settlement Ratio for Term Insurance

What Are the Best Term Insurance Plans for Planning Retirement?

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

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

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

9 Tax Changes in Budget 2019 that may Impact Your Personal Financial Planning

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

Is Term Life Insurance Plan an Investment or Expense?

Eligibility Criteria for Buying Term Insurance in India

What is Critical Illness Policy?

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

Steps on How to Buy Term Insurance Online

What All Documents Required For Term Insurance In India?

Comparing Term Plans – What Should You Look Out For

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

What Is a Renewable Term Insurance Policy?

Term Plan with Spouse Cover

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

Form 16, Form 16A, and Form 16B?

Should You Buy a Term Plan After 40?

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

Buying A Term Insurance Plan? Take These Factors into Account

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

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

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

Term Insurance with Critical Illness

Term Insurance With Riders In India

Insuring yourself against Ill Health with a Critical Illness Rider

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

Can You Increase Your Term Insurance Cover?

Insuring Protection Against Death With Death Insurance Rider

All About Term Insurance Inbuilt Coverage

How Much Cover Should I Take In A Term Plan?

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

टर्म इंश्योरेंस क्या है? टर्म इंश्योरेंस का मतलब

Is There Any Tax Benefit on Term Insurance?

Term Insurance: Smokers vs Non-Smokers

How Does A Term Life Insurance Work in India?

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

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

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

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

10 Ways to Get Your Kids Involved in Your Healthy Lifestyle

All you need to Know about Term Insurance Plans for housewives

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

What are the Tax Benefits of Sukanya Samriddhi Yojana (SSY)?

Term Insurance Basics You Should Know

Why Term Insurance Is Better Than ULIP?

Side Effects of Covid-19 Booster Doses

Tax Benefits of Term Insurance in India

What Happens if you Hide Facts in your Term Insurance?

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

Why Buy Term Insurance Even at Rising Rates?

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

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

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

Why should single women purchase term life insurance?

Term Insurance Age Limit – Term Plan for All Age Groups

Why Should You Buy Term Insurance in 2022?

4 Things To Expect From Your Term Insurance Plan in India

Why Should New Parents Buy Term Life Insurance?

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

Can Senior Citizens Avail Term Insurance?

5 Benefits of Early Retirement Planning

5 Term Insurance Benefits for Single Women