Is Term Life Insurance Plan an Investment or Expense?

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 Term Life Insurance Plan an Investment or Expense?

Term insurance plans are pure protection plans. However, they aren’t just a financial liability, they are in investment in your family’s security. Visit now to know more!

  • Mar 12, 2021

When it comes to investing your money, the first question you ask is ‘What is the return?’. And while some investments might offer generous returns, others might not give significant monetary returns but offer many other unparallel benefits, necessitating their purchase. One such investment is a term insurance plan. Some might think of a term plan as an expense since it is pure insurance cover with no investment returns. However, when you look at the other side of the coin, it is a comprehensive insurance shield that exclusively protects your precious life.

What is term insurance?

term insurance plan offers life cover for a specific tenure, in return for premiums paid for the policy. In case, the policyholder dies within this policy period, the nominee or the family of the policyholder receives the death benefit.

Term policies only offer protection against uncertainties and do not provide any return on investment or a cash-value benefit since they are pure protection plans. For example, if you take a term plan for 15 years at the age of 20 with a sum assured of ₹ 30 lakhs. You would be paying regular premiums for 15 years, and if unfortunately, you die at the age of 35 or before, your family will get financial security in the form of ₹ 30 lakhs. This will help them manage their expenses and maintain their standard of living in your absence.

But if you outlive the term of the insurance, there is no cash-value offered. This raises several questions, such as:

  • What is the use of such a plan when there is no return?
  • Is it better to safeguard the money in a fixed deposit (FD) than get a term plan?
  • What if I outlive the plan; then the money is lost?

However, all questions are answered by term plan benefits.

What are the benefits of a term plan?

Term plans offer:

  • Reliable security for the family during tough times: You cannot use monetary parameters to calculate the worth of all investments. Some investments, by nature, are for you and your loved ones security. When you pay premiums of your term plan, you are buying financial assurance for your family that will be safe if there was an unfortunate event in the future, causing your absence. Your term plan is your peace of mind.
  • High sum assured at low premiums, offsets the gap between cost and potential returns: Term plans are the most economical insurance policies. You pay minimal premiums (at your convenience) and get a high sum assured for your family. Hence, this policy does not cause you a monetary loss. Instead, you get tax benefits for term plan premiums and death benefits. Also, you can always renew your plan to ensure lifelong coverage.
  • Potentially higher benefits to beat FD advantages: FDs keep your money safe and give you a minimal return in exchange. However, there is no life cover. But a term plan has minimal premiums and allows a large sum assured coverage, securing your family more wisely than an FD.
  • Financial independence for your loved ones in your absence: Term plans do not list any rules money.regarding usage of death benefits. Families are independent to choose how they wish to use the

The future is unpredictable. You might not want to think of death, accident, disability, a major illness, etc., but you must plan for the security of your family in your absence. Trust Kotak Life Term Insurance Plans to stand with your loved ones during tough times. These plans offer long term financial security at affordable and flexible premiums to safeguard your loved ones future.

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

Advantages of Buying Term Insurance in Your 50s

Planning For Children's Future

10 Ways to Mentally Refresh After a Stressful Day

Is term Insurance Needed for People With No Dependents?

12 Types of Death not covered in Term Insurance Plans

Term Insurance with Critical Illness

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

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

Why Buy Term Insurance Plan With a High Cover?

Difference Between Term Insurance and Endowment Plan

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

8 Benefits of Term Insurance You Should Know

Why Married People Should Buy Term Insurance Under MWP Act?

How to Identify Term Insurance According to Your Needs?

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

Protection for your family

What is Critical Illness Policy?

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

Do Beneficiaries Pay Taxes on Term Insurance?

Endowment Plans vs Term Plans: Understanding the difference

Why does every working women need life insurance?

What is a short term insurance policy?

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

Different Types of Protection Plans

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

Should You Buy a Term Plan After 40?

टर्म इंश्योरेंस क्या है? टर्म इंश्योरेंस का मतलब

4 Reasons Why You Need Critical Illness Cover

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

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

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

Ensure Protection Against Death, Disease & Disability With Life Insurance

How Not To Get Your Term Insurance Claim Rejected

5 Things To Consider While Buying Term Insurance Plan

Term Insurance With Riders In India

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

Should You Have Multiple Term Life Insurance Policies?

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

Why Term Insurance Is Better Than ULIP?

Why Should You Buy Term Insurance in 2022?

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

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

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

Know How to Invest at Every Age for Larger Returns

Advantages & Disadvantages of Term Insurance in India

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

Increasing Term Insurance and Riders

All about Online Income Tax Calculator

What Happens if you Hide Facts in your Term Insurance?

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

Side Effects of Covid-19 Booster Doses

6 Types of Death not covered in Term Insurance Plan

Term Plan with Spouse Cover

How To Choose the Right Term Insurance Plan?

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

Term Insurance vs Life Insurance: Understand the Difference and Benefits

Does Term Insurance Cover Accidental Death?

How to Buy 1 Crore Life Insurance Policy Without Medical Test

What are the Documents Required for Term Insurance Plan?

Is There Any Tax Benefit on Term Insurance?

Everything About Claim Settlement Ratio for Term Insurance

Why Buy Term Insurance Even at Rising Rates?

Cost of Term Insurance Likely to Increase Soon

Can I Get Term Insurance on Behalf of My Spouse?

What Is a Renewable Term Insurance Policy?

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

Individual Life Insurance vs. Group Term Life Insurance

9 Most Frequently Asked Questions on Term Insurance

Is Group Term Life Insurance Provided By Employer Sufficient?

Can You Increase Your Term Insurance Cover?

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

भारत में जीवन बीमा कितने प्रकार के होते हैं?

How Much Term Life Insurance Cover Do I Need?

Comparing Term Plans – What Should You Look Out For

What is Insurance Premium - A Detailed Guide

Insuring Against Disability With Disability Insurance Rider

Importance of Term Insurance at Every Stage of Your Life

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

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

How Does A Term Life Insurance Work in India?

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

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

Calculating Term Insurance Premium

How to Compare Term Insurance Online

Term Insurance Basics You Should Know

10 Ways to Get Your Kids Involved in Your Healthy Lifestyle

Top 3 Reasons Why You Should Buy A Term Plan Now

Insuring Against Accidents with an Accidental Death Insurance Rider

कोविड -19 बूस्टर खुराक के दुष्प्रभाव

4 Methods to Calculate How Much Term Insurance You Need

9 Point Guide on how to File Income Tax Return Online

9 Ways to Help Family Members in Financial Trouble

Is Life Insurance Investment Worthy Enough

Make Your Online Term Plan Your Familys Monthly Payout

4 Things To Expect From Your Term Insurance Plan in India

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

How do I Calculate My Term Insurance Premium

Choosing Riders for Insurance Plans

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

What is Term Insurance? Term Plan Meaning and Definition

While Buying Term Insurance Compare Features, Not Just Premiums

Tax Benefits of Term Insurance in India

What Is the Correct Age to Buy Term Insurance?

Do You Need Term Insurance Cover After Retirement?

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

10-Year Term Life Insurance Policy - Explained in Detail

Why 1 Cr Term Plan Is Necessary For Family?

Can I Extend the Tenure of My Term Insurance Plan?

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

How Much Term Insurance Do I Need

Why should single women purchase term life insurance?

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

Eligibility Criteria for Buying Term Insurance in India

What Are the Best Term Insurance Plans for Planning Retirement?

Understanding Term Insurance Riders

Tips to Choose the Right Term Period for Term Insurance Plan

Can Term Insurance Plans Be Purchased As A Gift?

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

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

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

5 Benefits of Early Retirement Planning

Insuring yourself against Ill Health with a Critical Illness Rider

Different Types of Premiums in Term Insurance?

Term Life Insurance Plan for Smokers vs Non-Smokers

How To Change The Nominee in Term Insurance?

6 Reasons That Make Term Insurance a Must Buy

Can Senior Citizens Avail Term Insurance?

What are incremental term insurance plans?

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

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

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

Why is it important to buy term insurance plan?

Term Insurance Calculator - Everything You Need To Know

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

Term Insurance: Smokers vs Non-Smokers

Steps on How to Buy Term Insurance Online

Why Should New Parents Buy Term Life Insurance?

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

8 Things To Do After Buying Term Insurance

Term Insurance Plans and Policies for Smokers

Buying A Term Insurance Plan? Take These Factors into Account

भारत में गृहणियों के लिए टर्म इंश्योरेंस

Key Differences Between Term Insurance, ULIPs, And Health Insurance

5 Term Insurance Benefits for Single Women

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

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

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

Which Death Type Does Your Term Plan Not Cover?

Why Premium Amount for Term Insurance is So Low?

Is a Term Insurance Policy Portable?

Should Youngsters, Working Couples Buy Term Insurance Plans?

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

Is ₹1 Crore Term Insurance Good Enough Cover?

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

What Should You opt for - Limited or Premium Pay?

Planning For Son or Daughter's Wedding

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

All About Term Insurance Inbuilt Coverage

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

जीवन बीमा पॉलिसी लेने की प्रक्रिया क्या है?

What All Documents Required For Term Insurance In India?

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

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

Should you buy a Renewable Term Life Policy?

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

How Does Term Life Insurance Work? Learn the Benefits

All you need to Know about Term Insurance Plans for housewives

Term Insurance Age Limit – Term Plan for All Age Groups

Why You Must Include In Your Financial Planning?

Insuring Protection Against Death With Death Insurance Rider

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

Busting Myths and Facts About Term Insurance Policies

Insurance Policy for Housewife In India

8 Factors to consider before choosing a Critical Illness Insurance

How Much Cover Should I Take In A Term Plan?

Term Plans are Definitely Cheaper than You Think!

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