Kotak Life
Close

Buy a Life Insurance Plan in a few clicks

Close

Now you can buy life insurance plan online.

Kotak e-Term Plan

Kotak e-Term Plan provides a high level of protection to your loved ones in your absence. Know more

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. Know more

Kotak E-Invest

Kotak e-Invest plan is a complete Unit-Linked Insurance Plan that can be customized as per your goals and needs. Know more

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. Know more

Kotak Lifetime Income Plan

Kotak Lifetime Income Plan gives you the security of your income continuing throughout your life and in your absence throughout your spouse's lifetime! Know more

9 Most Important Things You Must Learn About Paying Life Insurance Premium

9 Most Important Things You Must Learn About Paying Life Insurance Premium
  • 29th Sep 2019 |
  • 2,161

It is important to invest in a life insurance plan to secure the financial future of your loved ones. However, before you buy the policy, it is important to learn about the life insurance policy payment to avoid any mistakes.

What is life insurance premium?

When you purchase a life insurance plan, you are entering into an agreement with the insurance company that they will pay your nominees a particular amount of money when a claim is made. For this purpose, you need to pay them regularly until a claim is made. This payment is known as ‘the premium’.

Here are nine aspects of life insurance premiums you must know about:

1. You have to pay the premium in advance

The life insurance premium payment has to be made in advance. The insurer provides cash, check, Demand Draft (DD), and online payment options. The Insurance Regulatory and Development Authority (IRDA) has set the cash payment limit to INR 50,000.

2. You can receive a discount

Insurance providers often offer discounts on the premium. It depends on the mode of payment and the amount of the sum assured. You can get more information regarding this by contacting your insurer.

3. You can receive a rebate for a higher sum assured

If you opt for a policy with a higher sum assured, the insurer can make more profits, as they can save on service costs. This is why a higher sum assured guarantees a rebate on the premium.

4. There is a rebate for the periodicity of the premium as well

You can also get a rebate if you decide to pay your premium in longer periods. Frequent payments result in a higher cost of service charge, which results in less profit for the insurer.

5. You have to pay a higher premium depending on risk assessment

When you are buying life insurance plans, the insurers categorize you depending on the risks associated with your policy. So, if you have a serious illness or your profession exposes you to a higher risk, your premium will be extra.

6. The premium value can fluctuate

The premium amount might fluctuate depending on risks specific to you and your age. The policy documents come with clear instructions regarding this.

7. You can buy a single-premium policy

If you have some extra cash to invest then the single premium life insurance policy might be a good option for you. You have to make the payment just once.

8. What happens when you miss a payment?

If you, for some reason miss the due date, your policy lapses and the insurer does not provide any benefits. If your insurer agrees, you can revive the policy by paying an added interest.

9. You can get tax benefits in some cases

According to Section 80C of the Income Tax Act, 1961, any premium paid on behalf of yourself, your spouse, and your children come with tax benefits.

Remember these points to make sure that you do not make any mistakes that might result in the termination of your policy.

Invest in Term Insurance Now to Save Tax

Kotak e-Term Plan

Features

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

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

T&C

Browse our library of resources

- A Consumer Education Initiative series by Kotak Life

Similar Articles

Buying A Term Insurance Plan? Take These Factors into Account

Comparing Term Plans – What Should You Look Out For

Why Buy Term Insurance Even at Rising Rates?

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

Individual Life Insurance vs. Group Term Life Insurance

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

All About Term Insurance Inbuilt Coverage

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

Should Youngsters, Working Couples Buy Term Insurance Plans?

What Are the Best Term Insurance Plans for Planning Retirement?

9 Most Frequently Asked Questions on Term Insurance

Term Insurance: Smokers vs Non-Smokers

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

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

Why Should New Parents Buy Term Life Insurance?

Term Insurance Age Limit – Term Plan for All Age Groups

What is a short term insurance policy?

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

Term Life Insurance Plan for Smokers vs Non-Smokers

Term Plan with Spouse Cover

Tax Benefits of Term Insurance in India

Why Should You Buy Term Insurance in 2022?

8 Benefits of Term Insurance You Should Know

Which Death Type Does Your Term Plan Not Cover?

Why does every working woman need life insurance?

Planning For Children's Future

6 Reasons That Make Term Insurance a Must Buy

4 Things To Expect From Your Term Insurance Plan in India

Why is it important to buy term insurance plan?

Term Insurance Calculator - Everythng You Need To Know

What is Insurance Premium - A Detailed Guide

Insuring Protection Against Death With Death Insurance Rider

Increasing Term Insurance and Riders

Should You Buy a Term Plan After 40?

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

Insuring Against Accidents with an Accidental Death Insurance Rider

5 Things To Consider While Buying Term Insurance Plan

Planning For Son or Daughter's Wedding

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

Is term Insurance Needed for People With No Dependents?

Eligibility Criteria for Buying Term Insurance in India

How Much Cover Should I Take In A Term Plan?

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

Do Beneficiaries Pay Taxes on Term Insurance?

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

How to Identify Term Insurance According to Your Needs?

Key Differences Between Term Insurance, ULIPs, And Health Insurance

Make Your Online Term Plan Your Familys Monthly Payout

Is Term Life Insurance Plan an Investment or Expense?

Term Plans are Definitely Cheaper than You Think!

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

Insurance Policy for Housewife In India

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

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

Term Insurance With Riders In India

Difference Between Term Insurance vs Life Insurance

What Happens if you Hide Facts in your Term Insurance?

Choosing Riders for Insurance Plans

Is Life Insurance Investment Worthy Enough

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

Does Term Insurance Cover Accidental Death?

Why Premium Amount for Term Insurance is So Low?

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

What are the Documents Required for Term Insurance Plan?

Tips to Choose the Right Term Period for Term Insurance Plan

Can You Increase Your Term Insurance Cover?

How Much Term Insurance Do I Need

What is Critical Illness Policy

Protection for your family

Is There Any Tax Benefit on Term Insurance?

Importance of Term Insurance at Every Stage of Your Life

Why Term Insurance Is Better Than ULIP?

Can I Get Term Insurance on Behalf of My Spouse?

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

4 Methods to Calculate How Much Term Insurance You Need

Term Insurance – Why You Must Include In Your Financial Planning?

Know How to Invest at Every Age for Larger Returns

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

Why Buy Term Insurance Plan With a High Cover?

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

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

Cost of Term Insurance Likely to Increase Soon

What are incremental term insurance plans?

Why should single women purchase term life insurance?

Is ₹1 Crore Term Insurance Good Enough Cover?

9 Ways to Help Family Members in Financial Trouble

Is Group Term Life Insurance Provided By Employer Sufficient?

Calculating Term Insurance Premium

8 Factors to consider before choosing a Critical Illness Insurance

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

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

What All Documents Required For Term Insurance In India?

Advantages of Buying Term Insurance in Your 50s

What is Term Insurance - A Complete Guide

How to Surrender Term Life Insurance When you have No Liabilities

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

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

Term Insurance Basics You Should Know

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

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

Endowment Plans vs Term Plans: Understanding the difference

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

How Does A Term Life Insurance Work in India?

How to Compare Term Insurance Online

Why 1 Cr Term Plan Is Necessary For Family?

Can I Extend the Tenure of My Term Insurance Plan?

How to Buy 1 Crore Life Insurance Policy Without Medical Test

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

How To Change The Nominee in Term Insurance?

Can Senior Citizens Avail Term Insurance?

What Is a Renewable Term Insurance Policy?

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

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

8 Things To Do After Buying Term Insurance

Can Term Insurance Plans Be Purchased As A Gift?

5 Term Insurance Benefits for Single Women

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

How Not To Get Your Term Insurance Claim Rejected

Understanding Term Insurance Riders

Steps on How to Buy Term Insurance Online

Why Married People Should Buy Term Insurance Under MWP Act?

टर्म इंश्योरेंस क्या है? टर्म इंश्योरेंस का मतलब

Should You Have Multiple Term Life Insurance Policies?

Term Insurance with Critical Illness

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

Advantages & Disadvantages of Term Insurance in India

What Should You opt for - Limited or Premium Pay?

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

Do You Need Term Insurance Cover After Retirement?

Insuring yourself against Ill Health with a Critical Illness Rider

Busting Myths and Facts About Term Insurance Policies

Top 3 Reasons Why You Should Buy A Term Plan Now

Is a Term Insurance Policy Portable?

Side Effects of Covid-19 Booster Doses

5 Benefits of Early Retirement Planning

While Buying Term Insurance Compare Features, Not Just Premiums

Ensure Protection Against Death, Disease & Disability With Life Insurance

What Is the Correct Age to Buy Term Insurance?

Insuring Against Disability With Disability Insurance Rider

Different Types of Premium in Term Insurance

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

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

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

Different Types of Protection Plans

How To Choose the Right Term Insurance Plan?

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

Term Insurance Plans and Policies for Smokers

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

Everything About Claim Settlement Ratio for Term Insurance

4 Reasons Why You Need Critical Illness Cover

10-Year Term Life Insurance Policy - Explained in Detail

All you need to Know about Term Insurance Plans for Housewives

6 Types of Death not covered in Term Insurance Plan

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

How Does Term Life Insurance Work? Learn the Benefits

Best Investment Plans for Children - Secure Your Child's Future

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

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