Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term

Protect Your family’s financial future with Kotak e-Term. 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.

Top 3 Reasons Why You Should Buy A Term Plan Now

Term insurance plans come with many benefits, but three of the most important reasons are discussed in this post. Read to know more.

  • Dec 16, 2021


Term insurance plans come with many benefits, but three of the most important reasons are discussed in this post. Keep reading.

Term life insurance policy comes with a single aim to provide the policyholder’s family with a death benefit in the event of their untimely death. If you are considering buying your first life insurance policy, a term plan should be the first on your list. Let’s look at three reasons that make term plans a must-have in your insurance portfolio.
Compared to other life insurance policies life insurance policies such as endowment plans or life insurance plans that come with a dual benefit of death and maturity coverage, term plans only provide the death benefit. This means the beneficiary only gets the sum assured in case of the policyholder’s death during the set term period. While you must do away with the maturity benefit, it also translates into lower premiums, making it affordable
Term plans are the purest life insurance policies as they only give the death benefit. While it means lower premiums, it also results in more advantages for the policyholder. Some of the significant benefits of pure life insurance plans are-

1.Most Affordable Way to Secure Your Family’s Future2.Pure Life Insurance

● High Cover

You can get a comparatively high cover for a low premium as the policy only provides a death benefit. Most financial experts recommend having at least one term plan in the portfolio for this reason. You can always get other life insurance plans as an add-on, but a term plan serves the true purpose of a life insurance policy -that is, to secure your family’s future. 

Easy to Understand

Being a pure life insurance plan, this policy is free from any complexities involved in other plans such as endowment or ULIPs. For instance, in a ULIP plan, you will also have to pay attention to the portion of the premium going towards investment. Since the plan comes with a single benefit, it is an excellent step for first-time insurance policy buyers.

● Tax Benefits

While all life insurance policies provide tax deductions up to Rs 1.5 lakh per year under section 80C, the term plan also offers a tax exemption on the death benefit received by the beneficiary under section 10 (10D). In a dual-benefit policy, only the death benefit is tax-exempt, whereas the maturity benefit received is taxed as per applicable laws. However, maturity benefits in a standard life insurance policy may also be tax-exempt under some circumstances. 

3.Flexible and Adjustable

While term plans are easy to understand and simple life insurance plans, they also have the flexibility to suit the insurer’s specific needs. For instance, the policyholder can add various add-on riders to enhance the coverage, including:

Critical Illness Benefit Rider: In this, a lump sum is given if the policyholder is diagnosed with a critical illness such as cardiovascular disease, kidney ailment, etc.

Permanent Disability Rider:

The policyholder receives a lump sum in case of a permanent disability.

Accidental Death: In this, the beneficiary receives the death benefit and an extra lump sum in case of the policyholder’s death due to an accident.

Apart from this, terms insurance policies also offer flexibility in terms of premium frequency (monthly or yearly) or converting your term plan into an endowment plan while keeping your sum assured the same with extra premium. Choose the right term plan based on your needs and budget and secure your family’s future. 

Kotak e-Term

Download Brochure


  • Life Cover till 85 years for Life & Life Secure Option
  • 3 Payout Options
  • Special Rates for Women
  • Option to exit the policy with premium refund at the age of 60*
  • Special Rates for Non-Tobacco Users
  • Free Medical Check Up every 5th year**

Ref. No. KLI/22-23/E-BB/2435


- A Consumer Education Initiative series by Kotak Life

Similar Articles

Why Buy Term Insurance Even at Rising Rates?

Difference Between Term Insurance and Endowment Plan

How Much Term Life Insurance Cover Do I Need?

What All Documents Required For Term Insurance In India?

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

Term Life Insurance Plan for Smokers vs Non-Smokers

Is ₹1 Crore Term Insurance Good Enough Cover?

Can You Increase Your Term Insurance Cover?

Why is it important to buy term insurance plan?

Why should single women purchase term life insurance?

How to Buy 1 Crore Life Insurance Policy Without Medical Test

Endowment Plans vs Term Plans: Understanding the difference

How To Change The Nominee in Term Insurance?

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

8 Things To Do After Buying Term Insurance

Is Life Insurance Investment Worthy Enough

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

Can Senior Citizens Avail Term Insurance?

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

Term Insurance vs Life Insurance: Understand the Difference and Benefits

Should You Buy a Term Plan After 40?

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

How Does Term Life Insurance Work? Learn the Benefits

What Are the Best Term Insurance Plans for Planning Retirement?

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

Do You Need Term Insurance Cover After Retirement?

Insuring Protection Against Death With Death Insurance Rider

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

Term Insurance Age Limit – Term Plan for All Age Groups

How Much Cover Should I Take In A Term Plan?

Should Youngsters, Working Couples Buy Term Insurance Plans?

Protection for your family

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

11 Types of Death not covered in Term Insurance Plans

टर्म इंश्योरेंस क्या है? टर्म इंश्योरेंस का मतलब

Do term insurance policy have a waiting period after buying?

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

Is Term Life Insurance Plan an Investment or Expense?

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

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

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

Calculating Term Insurance Premium

Why 1 Cr Term Plan Is Necessary For Family?

Insuring Against Accidents with an Accidental Death Insurance Rider

How To Evaluate Your Term Insurance Quote?

How to Compare Term Insurance Online

Steps on How to Buy Term Insurance Online

Comparing Term Plans – What Should You Look Out For

Is term Insurance Needed for People With No Dependents?

Cost of Term Insurance Likely to Increase Soon

भारत में गृहणियों के लिए टर्म इंश्योरेंस

Why Premium Amount for Term Insurance is So Low?

Tax Benefits of Term Insurance in India

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

Buying A Term Insurance Plan? Take These Factors into Account

Planning For Children's Future

5 Term Insurance Benefits for Single Women

10 Ways to Mentally Refresh After a Stressful Day

Term Plan with Spouse Cover

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

10 Ways to Get Your Kids Involved in Your Healthy Lifestyle

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

Choosing Riders for Insurance Plans

Can I Get Term Insurance on Behalf of My Spouse?

Why Married People Should Buy Term Insurance Under MWP Act?

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

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

4 Methods to Calculate How Much Term Insurance You Need

While Buying Term Insurance Compare Features, Not Just Premiums

How Does BMI Affect Your Term Insurance Premium?

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

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

Term Insurance Claims – Make Sure Your Claims Are Never Rejected

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

All you need to Know about Term Insurance Plans for housewives

Why You Must Include In Your Financial Planning?

4 Things To Expect From Your Term Insurance Plan in India

Term Insurance Basics You Should Know

Planning For Son or Daughter's Wedding

Why Buy Term Insurance Plan With a High Cover?

Individual Life Insurance vs. Group Term Life Insurance

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

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

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

जीवन बीमा पॉलिसी लेने की प्रक्रिया क्या है?

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

Insuring yourself against Ill Health with a Critical Illness Rider

Why Should You Buy Term Insurance in 2022?

Does Term Insurance Cover Accidental Death?

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

Do Beneficiaries Pay Taxes on Term Insurance?

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

Insuring Against Disability With Disability Insurance Rider

Understanding Term Insurance Riders

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

Tips to Choose the Right Term Period for Term Insurance Plan

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

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

Insurance Policy for Housewife In India

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

Why does every working women need life insurance?

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

8 Factors to consider before choosing a Critical Illness Insurance

What Is a Renewable Term Insurance Policy?

What Should You opt for - Limited or Premium Pay?

What Is the Correct Age to Buy Term Insurance?

Why Should New Parents Buy Term Life Insurance?

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

Is a Term Insurance Policy Portable?

क्या ₹1 करोड़ का टर्म इंश्योरेंस पर्याप्त कवर है?

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

Term Insurance With Riders In India

Term Insurance Calculator - Everything You Need To Know

Is Group Term Life Insurance Provided By Employer Sufficient?

Side Effects of Covid-19 Booster Doses

All about Online Income Tax Calculator

What Happens if you Hide Facts in your Term Insurance?

Know How to Invest at Every Age for Larger Returns

टर्म इंश्योरेंस बनाम लाइफ इंश्योरेंस: अंतर और लाभ समझें

6 Types of Death not covered in Term Insurance Plan

What are incremental term insurance plans?

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

Busting Myths and Facts About Term Insurance Policies

Term Insurance Plans and Policies for Smokers

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

10-Year Term Life Insurance Policy - Explained in Detail

भारत में जीवन बीमा कितने प्रकार के होते हैं?

Everything About Claim Settlement Ratio for Term Insurance

Different Types of Premiums in Term Insurance?

Is There Any Tax Benefit on Term Insurance?

Which Death Type Does Your Term Plan Not Cover?

How to Buy ₹1 Crore Life Insurance Policy Without Medical Test?

Advantages of Buying Term Insurance in Your 50s

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

9 Ways to Help Family Members in Financial Trouble

Different Types of Protection Plans

Term Plans are Definitely Cheaper than You Think!

Make Your Online Term Plan Your Familys Monthly Payout

What is a short term insurance policy?

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

Can Term Insurance Plans Be Purchased As A Gift?

How Does Term Life Insurance Work? Learn the Benefits

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

Increasing Term Insurance and Riders

Term Insurance: Smokers vs Non-Smokers

How Not To Get Your Term Insurance Claim Rejected

6 Reasons That Make Term Insurance a Must Buy

Ensure Protection Against Death, Disease & Disability With Life Insurance

5 Benefits of Early Retirement Planning

What is Critical Illness Policy?

Term Insurance with Critical Illness

How To Choose the Right Term Insurance Plan?

Should You Have Multiple Term Life Insurance Policies?

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

9 Most Frequently Asked Questions on Term Insurance

9 Point Guide on how to File Income Tax Return Online

5 Things To Consider While Buying Term Insurance Plan

What is Insurance Premium - A Detailed Guide

कोविड -19 बूस्टर खुराक के दुष्प्रभाव

Joint vs Individual Term Insurance: Which One Should You Choose?

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

How do I Calculate My Term Insurance Premium

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

Why Term Insurance Is Better Than ULIP?

Should you buy a Renewable Term Life Policy?

8 Benefits of Term Insurance You Should Know

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

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

5 Reasons to Have a Child Education Plan

What is Term Insurance? Term Plan Meaning and Definition

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

How to Identify Term Insurance According to Your Needs?

Importance of Term Insurance at Every Stage of Your Life

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

Advantages & Disadvantages of Term Insurance in India

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

Key Differences Between Term Insurance, ULIPs, And Health Insurance

What are the Documents Required for Term Insurance Plan?

Can I Extend the Tenure of My Term Insurance Plan?

Eligibility Criteria for Buying Term Insurance in India

4 Reasons Why You Need Critical Illness Cover

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

All About Term Insurance Inbuilt Coverage