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

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

Kotak Health Shield

Insurance against medical expenses related to heart, brain, liver and Cancer. Know more

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

Reasons You Need Term Insurance Plan as a Self-Employed Person
  • 11th Mar 2021 |
  • 1,463

As essential as a term insurance plan is for everyone, its importance is further amplified in the case of self-employed individuals. As a self-employed person, you may already have a number of challenges in your way. Your income may not always be steady and can fluctuate from time to time. Common employer benefits, such as a pension plan or life insurance , can elude you. And the overall hassles of running a business or looking for income opportunities can be hard. A term insurance policy can be a saviour here.

Here are some reasons why you need a term insurance plan as a self-employed person:

1. You may not have an employer-sponsored plan: People who work in the formal sector get many benefits, such as an employer sponsored pension plan or an employer provided insurance policy. But in the case of self-employment, the responsibility of securing the future of your loved ones falls on your shoulders. A term insurance plan can ensure that you create a corpus for your family for a time when you may not be around. This can help them cover their expenditure in the absence of your income.

2. You may not have a steady flow of income: Self employment may not offer you a stable income at all times. Whether you are running your business or working as a freelancer, your income can vary for different months of the year. In this case, low income months can make it hard to save. As a result, your savings can be inconsistent. However, if you invest in a term plan, you are liable to pay regular premiums to keep your insurance policy active. If you fail to pay the premiums, your policy can lapse. This acts as a deterrent and ensures that you pay your premiums, which in turn keeps your family financially protected. Moreover, since the premiums for term plans are quite affordable, you can secure a significant sum assured at very low costs even during times of low liquidity.

3. You can experience hardships in the informal sector: Being self-employed can be hard in today’s times. The informal sector is more susceptible to the fluctuations in the economy and the market. The Covid-19 pandemic is proof of how self-employed people struggle to keep their incomes consistent in the face of lockdowns. Many people were also forced to turn to loans. In the unfortunate event of your demise, the liability of settling your debt can come to your family. The sum assured from a term insurance plan can provide your loved ones with the means to repay your loans.

term insurance plans for self-employed individuals by Kotak Life

Here are some term insurance plans by Kotak Life for self-employed individuals:

Kotak e-Term Plan

- Minimum sum assured starting from ₹25,00,000.

- Higher limit for the sum assured can be decided depending on the plan.

The plan’s premiums start at ₹23 per day. This is suitable for self-employed people regardless of their income.

To sum it up

term insurance for self-employed individuals can have a wide range of advantages. It can offer your family financial stability, and at the same time give you peace of mind that your loved ones will be protected against financial hardships in your absence.

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


Browse our library of resources

- A Consumer Education Initiative series by Kotak Life

Similar Articles

Insuring Against Disability With Disability Insurance Rider

Why does every working woman need life insurance?

How To Choose the Right Term Insurance Plan?

Buying A Term Insurance Plan? Take These Factors into Account

4 Methods to Calculate How Much Term Insurance You Need

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

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

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

Do Beneficiaries Pay Taxes on Term Insurance?

What is Critical Illness Policy

8 Benefits of Term Insurance You Should Know

Why Buy Term Insurance Even at Rising Rates?

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

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

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

What Are the Best Term Insurance Plans for Planning Retirement?

Term Plan with Spouse Cover

How To Change The Nominee in Term Insurance?

Term Life Insurance Plan for Smokers vs Non-Smokers

Individual Life Insurance vs. Group Term Life Insurance

All About Term Insurance Inbuilt Coverage

Difference Between Term Insurance vs Life Insurance

Comparing Term Plans – What Should You Look Out For

Do You Need Term Insurance Cover After Retirement?

How to Buy 1 Crore Life Insurance Policy Without Medical Test

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

What All Documents Required For Term Insurance In India?

8 Factors to consider before choosing a Critical Illness Insurance

9 Ways to Help Family Members in Financial Trouble

Planning For Children's Future

Can I Extend the Tenure of My Term Insurance Plan?

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

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

Should Youngsters, Working Couples Buy Term Insurance Plans?

4 Reasons Why You Need Critical Illness Cover

Top 3 Reasons Why You Should Buy A Term Plan Now

Key Differences Between Term Insurance, ULIPs, And Health Insurance

Tips to Choose the Right Term Period for Term Insurance Plan

Planning For Son or Daughter's Wedding

Why Buy Term Insurance Plan With a High Cover?

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

6 Types of Death not covered in Term Insurance Plan

Importance of Term Insurance at Every Stage of Your Life

What Happens if you Hide Facts in your Term Insurance?

Is There Any Tax Benefit on Term Insurance?

Why 1 Cr Term Plan Is Necessary For Family?

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

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

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

Advantages & Disadvantages of Term Insurance in India

Insuring yourself against Ill Health with a Critical Illness Rider

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

Term Insurance: Smokers vs Non-Smokers

Which Death Type Does Your Term Plan Not Cover?

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

4 Things To Expect From Your Term Insurance Plan in India

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

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

Ensure Protection Against Death, Disease & Disability With Life Insurance

Can Senior Citizens Avail Term Insurance?

While Buying Term Insurance Compare Features, Not Just Premiums

Protection for your family

Why Married People Should Buy Term Insurance Under MWP Act?

Can I Get Term Insurance on Behalf of My Spouse?

Insuring Against Accidents with an Accidental Death Insurance Rider

Eligibility Criteria for Buying Term Insurance in India

Why should single women purchase term life insurance?

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

टर्म इंश्योरेंस क्या है? टर्म इंश्योरेंस का मतलब

Side Effects of Covid-19 Booster Doses

Term Insurance Calculator - Everythng You Need To Know

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

Does Term Insurance Cover Accidental Death?

8 Things To Do After Buying Term Insurance

All you need to Know about Term Insurance Plans for Housewives

Why Should New Parents Buy Term Life Insurance?

Should You Have Multiple Term Life Insurance Policies?

What Is the Correct Age to Buy Term Insurance?

What is a short term insurance policy?

How Much Cover Should I Take In A Term Plan?

Term Insurance Age Limit – Term Plan for All Age Groups

Advantages of Buying Term Insurance in Your 50s

Is Life Insurance Investment Worthy Enough

Increasing Term Insurance and Riders

How Not To Get Your Term Insurance Claim Rejected

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

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

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

Make Your Online Term Plan Your Familys Monthly Payout

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

What Should You opt for - Limited or Premium Pay?

Why is it important to buy term insurance plan?

Is term Insurance Needed for People With No Dependents?

Calculating Term Insurance Premium

Busting Myths and Facts About Term Insurance Policies

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

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

Cost of Term Insurance Likely to Increase Soon

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

10-Year Term Life Insurance Policy - Explained in Detail

How to Identify Term Insurance According to Your Needs?

How Does A Term Life Insurance Work in India?

Tax Benefits of Term Insurance in India

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

10 Ways to Get Your Kids Involved in Your Healthy Lifestyle

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

What is Term Insurance - A Complete Guide

Term Insurance Plans and Policies for Smokers

Choosing Riders for Insurance Plans

5 Benefits of Early Retirement Planning

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

Why Premium Amount for Term Insurance is So Low?

6 Reasons That Make Term Insurance a Must Buy

Term Plans are Definitely Cheaper than You Think!

Steps on How to Buy Term Insurance Online

5 Things To Consider While Buying Term Insurance Plan

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

8 Types of Death not covered in Term Insurance Plan

Why Term Insurance Is Better Than ULIP?

How to Compare Term Insurance Online

Can Term Insurance Plans Be Purchased As A Gift?

Is a Term Insurance Policy Portable?

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

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

How Much Term Insurance Do I Need

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

10 Ways to Mentally Refresh After a Stressful Day

5 Term Insurance Benefits for Single Women

Know How to Invest at Every Age for Larger Returns

Term Insurance Basics You Should Know

How Does Term Life Insurance Work? Learn the Benefits

What Is a Renewable Term Insurance Policy?

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

What is Insurance Premium - A Detailed Guide

Different Types of Protection Plans

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

Should You Buy a Term Plan After 40?

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

What are the Documents Required for Term Insurance Plan?

9 Most Frequently Asked Questions on Term Insurance

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

Endowment Plans vs Term Plans: Understanding the difference

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

Insurance Policy for Housewife In India

Different Types of Premium in Term Insurance

What are incremental term insurance plans?

Understanding Term Insurance Riders

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

Insuring Protection Against Death With Death Insurance Rider

Term Insurance with Critical Illness

Why Should You Buy Term Insurance in 2022?

Term Insurance With Riders In India

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

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

Everything About Claim Settlement Ratio for Term Insurance

कोविड -19 बूस्टर खुराक के दुष्प्रभाव

Can You Increase Your Term Insurance Cover?

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

Is Group Term Life Insurance Provided By Employer Sufficient?

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

Is ₹1 Crore Term Insurance Good Enough Cover?

Is Term Life Insurance Plan an Investment or Expense?