Kotak Life
Close

Buy a Life Insurance Plan in a few clicks

Close

Now you can buy life insurance plan online.

Kotak e-Term Plan

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

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. Know more

Kotak E-Invest

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

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. Know more

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! Know more

Top 6 Reasons Why You Should Get A Pension Plan

Top 6 Reasons Why You Should Get A Pension Plan
  • 25th Nov 2021 |
  • 414

There comes a time when you must hang your boots. While we all have to face this inevitability, the steps we take now can significantly impact how we live our life post-retirement. One of the ways to financially secure your future is investing in a suitable retirement plan.

What is a Retirement Plan?

A pension plan, also known as a retirement plan, is an investment plan where a decided amount is invested in return for periodic payments, lump-sum, or a combination of both post-retirements. These plans are aimed at securing your financial future post-retirement.

Why Should you Invest in a Retirement Plan?

1. Guaranteed Pension or Income

Pension plans are not market linked and provide a fixed pension after retirement for a specific period or throughout the lifetime. The annuity period could be deferred or immediate depending on the type of plan you select. A guaranteed income allows you to plan your retirement years and stay one step ahead in the financial game.

2. Security of Savings and Assets

In the absence of any concrete financial arrangement, the assets and funds remain prone to pilferage and leakage. Therefore, a pension fund helps you secure your future and provides a haven for your savings in the present.

3. Grow Your Savings

You save your hard-earned money to use the same during your later years. Pension plans can make your post-retirement years comfortable by compounding your savings over the long term. The earlier you start investing your savings in a pension corpus, the more will be the power of compounding.

4. Tax Benefits

Pension plans come with many tax benefits, such as

  • Investments up to Rs 1.5 lakhs in retirement plans are eligible for tax deduction under section 80CCC.
  • One-third of the corpus received post-retirement is tax-free, and only the rest is taxable.
  • In the union budget of 2021, section 194P has been added to provide relief to retirees above 75 years old. Under the section, if the retired individual only earns
    income from pension and interest, the bank will deduct TDS, and the individual is exempt from filing income tax returns.

5. Enhance Your Plan with Insurance Covers

Some retirement plans come with the ability to add insurance covers to your plan, which help in providing complete financial security in your retirement years. You can choose from a wide range of insurance covers, including:

  • Death benefit
  • Accidental Death Benefit
  • Permanent Disability Cover

6. Diversify Your Investments

Many pension plans allow you to choose the asset class you want to invest in based on your risk profile and financial objectives. You can select from equity, debt, or a mix of both to diversify your investments.

Live a Worry-Free Life with a Pension Plan

Different pension plans may have varying features, and you can choose the one to best suit your specific needs. As a preparation for your retirement days, invest in a suitable retirement fund that helps you meet your objectives. You certainly cannot work forever, but that should not stop you from enjoying your life once you retire.

Kotak e-Term Plan

Features

  • Nominal Cost
  • Multiple Plan Options
  • Flexible Payout Options
  • Critical Illness Rider
  • Tax Savings
  • Long term Coverage

Ref. No. KLI/22-23/E-BB/492

T&C

Browse our library of resources

- A Consumer Education Initiative series by Kotak Life

Similar Articles

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

How Does Term Life Insurance Work? Learn the Benefits

Why 1 Cr Term Plan Is Necessary For Family?

Insurance Policy for Housewife In India

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

What is Critical Illness Policy

10-Year Term Life Insurance Policy - Explained in Detail

Why Should You Buy Term Insurance in 2022?

Planning For Son or Daughter's Wedding

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

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

All About Term Insurance Inbuilt Coverage

9 Ways to Help Family Members in Financial Trouble

Why Buy Term Insurance Even at Rising Rates?

Is Life Insurance Investment Worthy Enough

Should You Buy a Term Plan After 40?

What is Insurance Premium - A Detailed Guide

Why should single women purchase term life insurance?

How to Buy 1 Crore Life Insurance Policy Without Medical Test

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

6 Reasons That Make Term Insurance a Must Buy

How Not To Get Your Term Insurance Claim Rejected

Calculating Term Insurance Premium

Insuring yourself against Ill Health with a Critical Illness Rider

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

Top 3 Reasons Why You Should Buy A Term Plan Now

What Should You opt for - Limited or Premium Pay?

How to Compare Term Insurance Online

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

What are the Documents Required for Term Insurance Plan?

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

Make Your Online Term Plan Your Familys Monthly Payout

5 Things To Consider While Buying Term Insurance Plan

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

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

Advantages of Buying Term Insurance in Your 50s

What Is a Renewable Term Insurance Policy?

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

Everything About Claim Settlement Ratio for Term Insurance

Can I Extend the Tenure of My Term Insurance Plan?

What All Documents Required For Term Insurance In India?

Planning For Children's Future

Should You Have Multiple Term Life Insurance Policies?

While Buying Term Insurance Compare Features, Not Just Premiums

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

What is a short term insurance policy?

Term Insurance – Why You Must Include In Your Financial Planning?

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

Importance of Term Insurance at Every Stage of Your Life

Term Plan with Spouse Cover

Tips to Choose the Right Term Period for Term Insurance Plan

Protection for your family

Steps on How to Buy Term Insurance Online

Best Investment Plans for Children - Secure Your Child's Future

Term Insurance with Critical Illness

How to Identify Term Insurance According to Your Needs?

How Does A Term Life Insurance Work in India?

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

Term Insurance Plans and Policies for Smokers

4 Reasons Why You Need Critical Illness Cover

What Happens if you Hide Facts in your Term Insurance?

Is a Term Insurance Policy Portable?

4 Methods to Calculate How Much Term Insurance You Need

Insuring Protection Against Death With Death Insurance Rider

Which Death Type Does Your Term Plan Not Cover?

Can You Increase Your Term Insurance Cover?

How To Change The Nominee in Term Insurance?

How To Choose the Right Term Insurance Plan?

Term Insurance Basics You Should Know

Is ₹1 Crore Term Insurance Good Enough Cover?

Term Insurance: Smokers vs Non-Smokers

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

Know How to Invest at Every Age for Larger Returns

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

What is Term Insurance - A Complete Guide

What are incremental term insurance plans?

Tax Benefits of Term Insurance in India

टर्म इंश्योरेंस क्या है? टर्म इंश्योरेंस का मतलब

8 Benefits of Term Insurance You Should Know

Choosing Riders for Insurance Plans

9 Most Frequently Asked Questions on Term Insurance

6 Types of Death not covered in Term Insurance Plan

Individual Life Insurance vs. Group Term Life Insurance

4 Things To Expect From Your Term Insurance Plan in India

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

Term Insurance With Riders In India

Insuring Against Accidents with an Accidental Death Insurance Rider

Why is it important to buy term insurance plan?

Buying A Term Insurance Plan? Take These Factors into Account

5 Term Insurance Benefits for Single Women

Advantages & Disadvantages of Term Insurance in India

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

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

What Is the Correct Age to Buy Term Insurance?

Can I Get Term Insurance on Behalf of My Spouse?

Should Youngsters, Working Couples Buy Term Insurance Plans?

All you need to Know about Term Insurance Plans for Housewives

Different Types of Premium in Term Insurance

Why Buy Term Insurance Plan With a High Cover?

Does Term Insurance Cover Accidental Death?

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

Increasing Term Insurance and Riders

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

Is There Any Tax Benefit on Term Insurance?

Is Group Term Life Insurance Provided By Employer Sufficient?

Comparing Term Plans – What Should You Look Out For

Insuring Against Disability With Disability Insurance Rider

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

Different Types of Protection Plans

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

5 Benefits of Early Retirement Planning

How Much Cover Should I Take In A Term Plan?

8 Factors to consider before choosing a Critical Illness Insurance

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

How Much Term Insurance Do I Need

Ensure Protection Against Death, Disease & Disability With Life Insurance

Difference between Term Insurance and Life Insurance

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

Understanding Term Insurance Riders

What Are the Best Term Insurance Plans for Planning Retirement?

How to Surrender Term Life Insurance When you have No Liabilities

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

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

Why Married People Should Buy Term Insurance Under MWP Act?

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

Is Term Life Insurance Plan an Investment or Expense?

Busting Myths and Facts About Term Insurance Policies

Do Beneficiaries Pay Taxes on Term Insurance?

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

Key Differences Between Term Insurance, ULIPs, And Health Insurance

Why does every working woman need life insurance?

8 Things To Do After Buying Term Insurance

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

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

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

Term Insurance Age Limit – Term Plan for All Age Groups

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

Term Insurance Calculator - Everythng You Need To Know

Cost of Term Insurance Likely to Increase Soon

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

Is term Insurance Needed for People With No Dependents?

Term Life Insurance Plan for Smokers vs Non-Smokers

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

Term Plans are Definitely Cheaper than You Think!

Why Term Insurance Is Better Than ULIP?

Why Premium Amount for Term Insurance is So Low?

Do You Need Term Insurance Cover After Retirement?

Endowment Plans vs Term Plans: Understanding the difference

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

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

Can Term Insurance Plans Be Purchased As A Gift?

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

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

Eligibility Criteria for Buying Term Insurance in India

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

Can Senior Citizens Avail Term Insurance?

Why Should New Parents Buy Term Life Insurance?