Now you can buy life insurance plans completely online right here.
Kotak e-Term Plan is a pure term plan that provides a high level of protection to your loved ones in your absence.
The Kotak Health Shield Plan helps secure your finances in times of sudden medical expenses related to illness such as Cardiac, Liver, Neuro and Cancer (all early and major stages of illness /conditions of Cancer); along with offering protection for Personal Accident - in case of accidental death or disability.
Kotak e-Invest is a comprehensive Unit Linked Life Insurance Plan that can be customized as per your goals and needs - be it protection; investment; financial security for child or retirement planning.
Kotak Lifetime Income Plan gives you the assurance of your income continuing throughout your life and in your absence throughout the lifetime of your spouse!
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In urban India, only three out of ten people buy term plans. Such low figures are mostly due to misconceptions about this pure-protection plan.
However, term plans are crucial to shield your loved ones against any shortage of funds in case of an unfortunate event. New-age term plans provide many other benefits too. Read on for explanations on some common myths around term insurance and make an informed decision.
Myth 1: Term plans are not useful because these do not provide maturity benefit
If your loved ones depend on you financially, term insurance is vital for you. Since term plans involve no investment component, they provide extensive coverage at pocket-friendly premiums. The payouts can help your family to:
Further, return-of-premium term plans (TROP) refund the entire premium paid after the policy period expires. Also, some insurers allow converting a term plan to another policy type before maturity and get maturity benefits.
Myth 2: Term plans are useful only after the policyholder’s death
Apart from buying a TROP, you can also add riders at a minimal price. Such add-ons provide the following benefits:
Thus, term plans cover you against various unfortunate circumstances.
Another significant advantage is the tax deduction up to ₹ 1.5 lakhs available on the term insurance premiums under Section 80C of the Income Tax Act 1961,
Myth 2: Term insurance is not for single individuals
You may have educational loans, car loans, credit card dues, or home mortgages. Also, your earnings might be your family’s principal source of income. A term plan will help your family avoid any financial burden and meet their expenses in case of an unforeseen event.
Moreover, some term plans allow you to increase your coverage in future. Thus, you can start with a low sum assured and increase the amount when your liabilities grow.
Myth 3: A young and healthy individual does not need a term plan
Like all life insurance plans, the sooner you buy a term plan, the lesser it costs. Hence, by buying at a young age, you can secure sizable coverage at an affordable price.
Moreover, life is unpredictable. India accounted for almost 11% of accident-related deaths worldwide in 2019. Hence, regardless of age, a term plan is essential to secure your loved ones against financial challenges.
Myth 4: ₹ 1 crore term plan is enough
Inflation can eat away this amount purchasing power over time. Your life cover should be adequate to meet your family’s expenses. You need to consider the following factors before buying:
Myth 5: Buying term insurance is a hassle
New-age term plans are available online, allowing hassle-free, paperless purchases. Kotak e-Term plan is an online policy you can buy just by visiting the website. You can estimate the payable premium as per your chosen sum assured, fill the application form online, and pay digitally.
Term plans are cost effective financial tools that help you secure your family’s well being in your absence. Do not let baseless fallacies dissuade you from buying the coverage your loved ones need.
- A Consumer Education Initiative series by Kotak Life
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