Why Term Plans are so Cheaper?

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

Term Plans are Definitely Cheaper than You Think!

Term Insurance in 2020 – Find out the why you should buy term insurance in 2020 here on this article. Know more about term insurance at Kotak Life

  • Oct 05, 2020

A frequent misconception about life insurance is that the products are expensive. However, the fact is that term insurance has the unmatched advantage of being the most affordable form of life insurance. The low premiums allow you to get extensive coverage at reasonable premium amounts. If you are wondering how term plans are so inexpensive, here is a brief explanation of how such plans work. The associated benefits that further increase your savings with term insurance are also listed here.

Why are term plan premiums so low?

Term plans are pure risk protection schemes with no investment component, unlike endowment plans. With endowment insurance, your insurer pays you a lump sum maturity benefit if you survive the policy tenure. This benefit fund accrues over the years as the insurer invests a part of your premium and shares the revenues with you. Another part of the premium covers the cost of your life insurance. A third part goes towards the administrative charges of the insurance company. But a term plan has no return feature, and thus, you do not have to pay any extra amount for investments. Your entire premium, apart from nominal operational fees deductions, covers the cost of your life insurance. Moreover, since the mortality rates of healthy individuals are usually low, the insurance provider’s risk is small as well. The providers pass on the benefit by charging minimal premiums for term plans and making term insurance cheaper than you can imagine.

How much premium do you have to pay?

While deciding the premiums, the insurance company assesses the risk of insuring your life based on factors like your age, gender, health conditions, and lifestyle habits. Your sum assured, policy term, premium payment term and mode, and the chosen payout scheme also determine the premium amount. Among all the parameters, age is a major decisive factor. As you age, the chances of chronic diseases and mortality risk increase, and your term plan becomes costlier. Thus, you can save on your total premium outgo if you buy term plans early in life.

Benefits of term plans that lead to additional savings

1 . Tax Savings: Premiums you pay towards your term plan are eligible for
deductions up to ₹1.5 lakhs under Section 80C of the Income Tax Act (ITA),1961. Moreover, if you are below the age of 60 and opt for health-related riders with your term insurance, you can avail of deductions up to ₹25000 under Section 80D. Thus, if you fall under the highest tax bracket of 31.2%, you can save close to ₹54600 in taxes.

2 . Perks of buying online: Online term plans usually cost less. Thus buying an e-Term policy can help you save.

3 . Savings on paying premium upfront or annually: If you opt for a single premium or limited-pay term plan, or choose the annual premium payment mode, your premium amount will be lower than the monthly or quarterly payment mode.

Kotak Life Term Plans are suitable for every budget.

  • Affordable premium rates
  • Special rates for females and non-smokers
  • Provision to buy a term plan online at affordable prices
  • Single pay, limited pay, and regular pay options
  • Annual, half-yearly, monthly, and quarterly premium paying frequencies under the regular pay scheme of the offline plan
  • Single and limited premium options cost less
  • With the annual payment mode, save over 5%
  • Three payout options offered - lump sum, steady income, and increasing payout
  • The regular payout mode provides yearly earnings and offers lower premiums
  • A facility in the e-Term plan to step down life coverage with changing circumstances leads to reduced premiums
    Thus, if your family members depend upon your earnings, you can safeguard their financial well being with a cost-effective term plan from Kotak Life. After all, the peace of mind arising from the assurance of your loved ones’ security is invaluable.



IRDAI is not involved in activities like selling insurance policies, announcing bonus or investment of premiums. Public receiving such phone calls are requested to lodge a police complaint.

Kotak e-Term Plan: UIN:107N104V02, Form No: N104. This is a Non-Participating pure protection plan. For sub-standard lives, extra premium may be charged based on Kotak Life Insurance underwriting policy. For more details on risk factors, terms and conditions, please read sales brochure carefully before concluding a sale.

Kotak Mahindra Life Insurance Company Ltd.Regn. No.: 107,CIN: U66030MH2000PLC128503, Regd. Office: 2nd Floor, Plot # C-12, G-Block, BKC, Bandra(E), Mumbai-400 051. Website: www.insurance.kotak.com|Email: clientservicedesk@kotak.com| Toll Free No.: 1800 209 8800 | Ref. No.: KLI/21-22/E-WEB/505

Trade Logo displayed above belongs to Kotak Mahindra Bank Limited and is used by Kotak Mahindra Life Insurance Company Ltd. Under license.

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

How to Compare Term Insurance Online

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

What are incremental term insurance plans?

4 Methods to Calculate How Much Term Insurance You Need

How To Change The Nominee in Term Insurance?

What are the Documents Required for Term Insurance Plan?

Side Effects of Covid-19 Booster Doses

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

Top 3 Reasons Why You Should Buy A Term Plan Now

What Are the Best Term Insurance Plans for Planning Retirement?

Insuring Against Disability With Disability Insurance Rider

What Should You opt for - Limited or Premium Pay?

What is a short term insurance policy?

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

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

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

Comparing Term Plans – What Should You Look Out For

While Buying Term Insurance Compare Features, Not Just Premiums

What Happens if you Hide Facts in your Term Insurance?

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

Term Insurance Age Limit – Term Plan for All Age Groups

Tax Benefits of Term Insurance in India

Tips to Choose the Right Term Period for Term Insurance Plan

टर्म इंश्योरेंस क्या है? टर्म इंश्योरेंस का मतलब

Why Married People Should Buy Term Insurance Under MWP Act?

Is term Insurance Needed for People With No Dependents?

How to Buy 1 Crore Life Insurance Policy Without Medical Test

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

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

How Not To Get Your Term Insurance Claim Rejected

Protection for your family

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

What Is the Correct Age to Buy Term Insurance?

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

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

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

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

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

Insuring Against Accidents with an Accidental Death Insurance Rider

कोविड -19 बूस्टर खुराक के दुष्प्रभाव

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

Different Types of Premiums in Term Insurance?

Advantages of Buying Term Insurance in Your 50s

4 Reasons Why You Need Critical Illness Cover

Term Insurance vs Life Insurance: Understand the Difference and Benefits

9 Ways to Help Family Members in Financial Trouble

6 Reasons That Make Term Insurance a Must Buy

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

10-Year Term Life Insurance Policy - Explained in Detail

Insuring yourself against Ill Health with a Critical Illness Rider

Term Insurance: Smokers vs Non-Smokers

How To Choose the Right Term Insurance Plan?

Term Insurance Plans and Policies for Smokers

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

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

Different Types of Protection Plans

Should You Buy a Term Plan After 40?

What All Documents Required For Term Insurance In India?

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

Importance of Term Insurance at Every Stage of Your Life

Term Insurance with Critical Illness

Insurance Policy for Housewife In India

9 Most Frequently Asked Questions on Term Insurance

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

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

Eligibility Criteria for Buying Term Insurance in India

Do Beneficiaries Pay Taxes on Term Insurance?

Is Life Insurance Investment Worthy Enough

Why does every working women need life insurance?

Can Term Insurance Plans Be Purchased As A Gift?

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

Know How to Invest at Every Age for Larger Returns

5 Term Insurance Benefits for Single Women

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

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

6 Types of Death not covered in Term Insurance Plan

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

Everything About Claim Settlement Ratio for Term Insurance

Insuring Protection Against Death With Death Insurance Rider

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

10 Ways to Mentally Refresh After a Stressful Day

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

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

Can I Extend the Tenure of My Term Insurance Plan?

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

Why Premium Amount for Term Insurance is So Low?

All About Term Insurance Inbuilt Coverage

9 Point Guide on how to File Income Tax Return Online

Should Youngsters, Working Couples Buy Term Insurance Plans?

Is Group Term Life Insurance Provided By Employer Sufficient?

8 Benefits of Term Insurance You Should Know

Why should single women purchase term life insurance?

How Does Term Life Insurance Work? Learn the Benefits

Is ₹1 Crore Term Insurance Good Enough Cover?

Difference Between Term Insurance and Endowment Plan

Can I Get Term Insurance on Behalf of My Spouse?

Why Term Insurance Is Better Than ULIP?

Planning For Children's Future

Endowment Plans vs Term Plans: Understanding the difference

How Much Term Insurance Do I Need

How to Identify Term Insurance According to Your Needs?

Key Differences Between Term Insurance, ULIPs, And Health Insurance

Can Senior Citizens Avail Term Insurance?

Should you buy a Renewable Term Life Policy?

What is Insurance Premium - A Detailed Guide

All you need to Know about Term Insurance Plans for housewives

Choosing Riders for Insurance Plans

Which Death Type Does Your Term Plan Not Cover?

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

Why Buy Term Insurance Even at Rising Rates?

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

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

How do I Calculate My Term Insurance Premium

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

भारत में जीवन बीमा कितने प्रकार के होते हैं?

Why Buy Term Insurance Plan With a High Cover?

What Is a Renewable Term Insurance Policy?

Make Your Online Term Plan Your Familys Monthly Payout

Is There Any Tax Benefit on Term Insurance?

10 Ways to Get Your Kids Involved in Your Healthy Lifestyle

Do You Need Term Insurance Cover After Retirement?

All about Online Income Tax Calculator

8 Factors to consider before choosing a Critical Illness Insurance

Increasing Term Insurance and Riders

जीवन बीमा पॉलिसी लेने की प्रक्रिया क्या है?

Cost of Term Insurance Likely to Increase Soon

Term Plan with Spouse Cover

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

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

How Does A Term Life Insurance Work in India?

Term Insurance Basics You Should Know

Term Insurance With Riders In India

भारत में गृहणियों के लिए टर्म इंश्योरेंस

8 Things To Do After Buying Term Insurance

Why Should New Parents Buy Term Life Insurance?

Why You Must Include In Your Financial Planning?

Is Term Life Insurance Plan an Investment or Expense?

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

Ensure Protection Against Death, Disease & Disability With Life Insurance

Does Term Insurance Cover Accidental Death?

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

Can You Increase Your Term Insurance Cover?

Busting Myths and Facts About Term Insurance Policies

Is a Term Insurance Policy Portable?

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

12 Types of Death not covered in Term Insurance Plans

Should You Have Multiple Term Life Insurance Policies?

Planning For Son or Daughter's Wedding

Individual Life Insurance vs. Group Term Life Insurance

Why 1 Cr Term Plan Is Necessary For Family?

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

5 Things To Consider While Buying Term Insurance Plan

Why Should You Buy Term Insurance in 2022?

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

Term Life Insurance Plan for Smokers vs Non-Smokers

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

What is Term Insurance? Term Plan Meaning and Definition

How Much Cover Should I Take In A Term Plan?

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

Why is it important to buy term insurance plan?

5 Benefits of Early Retirement Planning

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

Understanding Term Insurance Riders

Steps on How to Buy Term Insurance Online

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

Calculating Term Insurance Premium

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

How Much Term Life Insurance Cover Do I Need?

Buying A Term Insurance Plan? Take These Factors into Account

What is Critical Illness Policy?

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

4 Things To Expect From Your Term Insurance Plan in India

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

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

Term Insurance Calculator - Everything You Need To Know

Advantages & Disadvantages of Term Insurance in India

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