Term Insurance Basics You Should Know

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

  • Icon for Kotak Preferred e-Term Plan

    Kotak e-Term Plan

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

  • Kotak E-Invest Plan

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

  • Icon for Kotak Guaranteed Savings Plan

    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.

  • Icon for Kotak Preferred e-Term Plan

    Kotak Lifetime Income Plan

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

  • Icon for Kotak Preferred e-Term Plan

    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.


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.


Term Insurance Basics You Should Know

Term Insurance Quote
  • 24th Sep 2021
  • 573

Term Insurance Basics You Should Know

People in India are generally not insured owing to the lack of knowledge on how term insurance functions. However, if you are the earning member of your family, it is your duty to ensure their financial security in case something were to happen to you. A Term Insurance looks after your dependents in such circumstances that are uncalled for.

Term Insurance is the most basic form of Life Insurance, and it is a risk cover plan that ensures the financial stability and security of your dependents (parents, spouse, kids, etc.) in the case of an unfortunate event

This plan provides a life cover (also known as sum assured) to the beneficiary and cushions your dependents’ monetary requirements in your absence.

There are specific eligibility criteria for buying a term insurance policy. The minimum entry age for a Term Insurance Plan is 18 years, and the maximum is 65 years. The term period varies from 5 years to 30 years depending on what you choose, with a minimum and maximum life cover ranging between 3 lakhs to almost 25 lakhs. There are options between annual and single premium, and you can choose your mode of premium payment from alternatives like regular pay (monthly and yearly basis), single pay (wherein you pay one single premium for life), or Limited pay option (pay the entire premium in 5 years or 10 years).

Sometimes, term insurance policyholders want provisions that are not covered under standard term insurance plans. These additional provisions are covered by Rider Benefits to help create a plan that best suits their needs. When you add rider benefits to your term plan, it brings about certain changes like - providing extra coverage or limiting it, amending certain terms, etc. You will also have to bear additional costs for riders you choose. There are many kinds of rider benefits such as - premium waivers, accidental disability riders, etc. with different types of insurance plan and the flexibility to choose these as per your requirement.

Basics of Term Insurance - Infographic

One might wonder why people go for Term Insurance Plans in the first place. Apart from providing financial security for you and your family, they have several benefits -

  • Flexibility

You can choose a plan that best suits the needs of you and your family. You can customise your chosen plan with rider benefits and choose your preferred premium amount and term period as well. If you get a term plan before your marriage, you can always add your spouse and kids as nominees later.

  • Affordability

Term insurance policies are some of the most pocket-friendly financial products as they provide a huge cover at relatively low premiums. The younger you are, the lesser premium you pay which ultimately ensures your family’s future and well-being with a substantial sum assured.

  • Amount and Term Period Coverage

The payout sum that these plans provide have significant value and the sum assured provides enough coverage for your family for the long haul. The minimum insurance term is 10 years, and the maximum is 30 years wherein you can avail a cover of up to Rs. 1 crore. It also differs from plan to plan and company to company.

  • Tax Benefits

Term Insurance plans come with tax benefits under Section 80C and Section 10(10)D. Under 80C, you can claim deductions up to Rs. 1.5 lakhs on an annual basis.

Term Plans are holistic and economic plans for anyone and everyone who have financial dependents and can be availed both online and offline. Once you have gained a basic understanding, you can compare features, schemes, and terms and conditions to choose a plan that offers the maximum benefits at a low premium.
With a critical purpose to serve, one should make the most of Term Insurance by gaining clarity on how they work towards securing your family’s future so that they can lead their lives with dignity in your absence. Such kind of preparation can provide unmatched peace of mind, so why not go for it? Let us secure our family’s tomorrow today!

- A Consumer Education Initiative series by Kotak Life

Also read

  • Why does every working woman need life insurance?

    Term Insurance Plan For Working Women - Find out important benefits of term insurance for working women here on this article. Visit Kotak Life to know...

    Read more
    • 22nd Dec 2021
    • 415

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

    If you are looking to buy a term insurance plan, you must consider a few vital factors for choosing the proper term insurance duration. Click here to ...

    Read more
    • 20th Oct 2021
    • 484

    Term Plan with Spouse Cover

    Term plan with spouse cover safeguard your spouse as well as yourself with a spousal term insurance plan or a joint life cover for your spouse. Read o...

    Read more

Related Plans

  • Kotak e-Term Plan

    Kotak e-Term Plan

    Get protected at less than Rs.19/day with Kotak e-Term Plan. Our term insurance plan combines best-in-class features & comprehensive coverage with...

    Know more
  • Kotak e-Term Plan

    Kotak e-Term Plan

    Kotak e-Term Plan is a pure term insurance plan that provides a holistic life protection at affordable prices. Find out the eligibility criteria, key ...

    Know more