Kotak e-Term Plan
Kotak e-Term Plan provides a high level of protection to your loved ones in your absence.
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.
Kotak E-Invest
Kotak e-Invest plan is a complete Unit-Linked Insurance Plan that can be customized as per your goals and needs.
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.
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!
We all think about buying our own house at some point in our lives. This dream comes to a step closer when we start earning. We think of everything starting from the size of the house, to the color, the decor, and the number of rooms it will have. The multiple responsibilities and financial burdens that come with adulthood make it difficult to fulfill this long-awaited dream. However, home loans become the facilitator that helps us achieve these goals.
When we invest in a home, or a property for the same and opt for a home loan, we are required to pay a certain amount every month to the company from where we have availed the loan. This is a long-term process that requires thorough planning and stretches out to 20-30 years or sometimes even more. While we may have visions and goals for ourselves, we cannot tell what life has to offer in our journey. Hence, it is advisable to opt for term insurance for home loans, which can help pay off the home loan debt so that the family can continue to keep the home that has been bought for them.
When you ask the question “what is a term plan?”, the answer is quite simple. Term insurance meaning is a measure of safeguarding oneself from a financial burden that may fall upon us in case of an unforeseen event. A term plan requires us to pay a certain pre-decided amount as a premium to the insurer for the maintenance of the policy.
We can pair a home loan with a term life insurance policy or get a term plan for a home loan. This implies that if in the duration of the payment of the loan, anything happens to the borrower because of which they are unable to work - this is specific to an accident, disability, demise, illness, and not the loss of job due to other reasons - the insurance will help their family, pay off the loan and secure them from a potential debt.
The amount invested in the term life insurance for home loans can be used by the family to complete the payment of the loan, therefore promising a secure future for your family when there is no steady flow of income.
Now that we have answered, ‘what are term plans’ and ‘how can they assist home loans?’, let us look at why should we choose them in combination:
Term life insurance policies ensure the greatest financial security for us and our loved ones, so choosing a suitable one becomes important to make our dreams of having the ideal home come true.
So, now you know what is term plan and what its significance is for home loans. Whenever you are investing in home loan term insurance, you can secure the home loan by correctly calculating the amount of the sum assured that may be needed. To ensure this, it is recommended to opt for a term insurance plan with a coverage at least 10-15 times their annual income and add to it the amount of the home loan.
Ref. No. KLI/22-23/E-BB/492
