Close
Close

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak Guaranteed Fortune Builder

A plan that offers guaranteed income for your future goals. Know more

Kotak e-Term

Protect your family's financial future. 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 life cover. Know more

Kotak e-Invest

Insurance and Investment in one plan. Know more

Kotak Lifetime Income Plan

Retirement years are the golden years of life. Know more

Close

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.

What Are the Best Term Insurance Plans for Planning Retirement?

Read this article to know about the different retirement plans and choose the best term insurance plan that offers monthly income for your retirement days.

  • Nov 26, 2021
  • 1,789 Views

Term Insurance is one of the most uncomplicated life insurance policies available in the market. In term insurance, you pay the premium periodically to the insurance company. In return, the insurer promises to pay the death benefit (equal to the sum assured) to the policyholder’s family member (nominee) if the policyholder passes away during the policy period.

Apart from securing your family financial future against the uncertainties, term insurance also serves other purposes. It can help you avail of tax benefits and reduce your annual tax liability. You can get a tax benefit up to Rs. 1.5 lakhs in a financial year on the premium paid towards the policy.

Also, a term insurance policy can be an excellent tool for retirement planning. Generally, term insurance policies provide coverage for a long term; the coverage continues even after you retire. Besides, term insurance is one of the best life insurance policies that offer high coverage at an affordable premium. You can purchase a policy with a sum assured up to Rs. 1 crore. It is a significant amount that can help you cover your family’s expenses for a long time.

There are different types of term plans that you can use for retirement planning.

Level Term Plan

It is generally advised to purchase term insurance at a young age to buy a plan at a lower premium. However, if you fail to purchase term insurance due to other financial commitments, it is never too late to purchase term life insurance.

If you are in your 40’s or early 50’s you can consider buying level term insurance as a retirement planning tool. Although the premium may be slightly higher at this age, with a level term plan, the premium will remain the same for the entire policy duration, i.e., for at least 10-20 years.

This means even when you are old, you can leave a legacy behind for your children in the form of term insurance sum assured, which they can inherit in the event of your demise.

Increasing term insurance

Retirement planning is not just about accumulating a corpus that you can use post-retirement. It is also about ensuring your family members have enough financial resources to care for their needs even in your absence. Buying increasing term insurance can help you in this regard.

In an increasing term plan, the death benefit increases periodically by a specific percentage as per the policy terms and conditions, even as the premium remains the same. As the sum assured increases, you can be assured that your family will have sufficient funds to meet their regular expenses. The increasing sum assured will also negate the inflation effect.

Term insurance with return of premium

Typically, you do not get any survival benefit in term insurance as it does not have any cash value. However, if you purchase a return of the premium term plan, the insurer will repay the premium paid on the policy’s maturity. However, this applies only if you outlive the policy term.

The premium you get back from the insurance company can provide additional funds to your family to take care of their needs.

Final Word

Buying term insurance is an excellent way to secure your family’s financial needs. Make sure that you choose the right plan to suit your specific needs, and rest assured you can have peace of mind knowing that your family will never face any financial hassles.

Kotak e-Term

Download Brochure

Features

  • 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

T&C

- A Consumer Education Initiative series by Kotak Life

Similar Articles

Age Limit for Term Life Insurance

Is ₹1 Crore Term Insurance Good Enough Cover?

Family Protection Term Insurance: Safeguarding Your Loved Ones

How to Find the Best Term Insurance Plan in Seven Steps

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

Various Term Insurance Premium Payment Options Available in India

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

Different Types of Premiums in Term Insurance?

Why is it important to buy term insurance plan?

6 Types of Death not covered in Term Insurance Plan

Should You Have Multiple Term Life Insurance Policies?

Do Beneficiaries Pay Taxes on Term Insurance?

Should You Buy a Term Plan After 40?

Why Should You Rethink Short Term Insurance Plans

Tax Benefits of Term Insurance in India

What Should be the Right Term Insurance Plan Duration?

₹2 crore Term Insurance

Why You Need to Know About the Critical Illness Plan?

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

Why Online Term Insurance Plans Cheap?

How Much Term Life Insurance Cover Do I Need?

Term life insurance: Should you opt for lump sum payout or staggered payout?

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

How Does BMI Affect Your Term Insurance Premium?

How to choose the right term insurance plan

Term Insurance with Critical Illness

Busting Myths and Facts About Term Insurance Policies

Why Married People Should Buy Term Insurance Under MWP Act?

How Does Term Life Insurance Work? Learn the Benefits

₹50 Lakh Term Insurance

Which is better limited pay or regular pay in term insurance?

Cost of Term Insurance Likely to Increase Soon

Is Group Term Life Insurance Provided By Employer Sufficient?

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

Should Retirees Buy Term Insurance?

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

Term Insurance Calculator - Everything You Need To Know

Key Differences Between Term Insurance, ULIPs, And Health Insurance

Difference Between Term Insurance and Endowment Plan

Benefits of Short-Term Life Insurance Policy

Is term Insurance Needed for People With No Dependents?

Term Life Insurance Vs Money Back Life Insurance

Term Insurance As A Gift | Perfect gift for your Loved ones

What Is Staggered Payment Option Under Term Insurance Policy?

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

Everything about Incremental Term Life Insurance Policy

All About Term Insurance Inbuilt Coverage

Can NRI Buy Life Insurance in India?

Eligibility Criteria for Buying Term Insurance in India

While Buying Term Insurance Compare Features, Not Just Premiums

Term Insurance Tips for NRIs in India

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

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

Can I Extend the Tenure of My Term Insurance Plan?

Term Insurance Claim Process

Why Term Insurance Is Better Than ULIP?

Can You Increase Your Term Insurance Cover?

Why Buy Term Insurance Even at Rising Rates?

Advantages of Buying Term Insurance in Your 50s

How to Buy a Term Life Insurance Online

Renewable Term Insurance

भारत में जीवन बीमा कितने प्रकार के होते हैं?

Things To Do After Buying Term Insurance

Here's why Renewal of Term Plan is Important

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

Should Youngsters, Working Couples Buy Term Insurance Plans?

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

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

Is There Any Tax Benefit on Term Insurance?

Everything About Claim Settlement Ratio for Term Insurance

9 Most Frequently Asked Questions on Term Insurance

5 methods to calculate how much term insurance you need

Term Insurance vs. Endowment Plan: Know the Differences

Can You Buy Multiple Term Insurance Policy?

How do I Calculate My Term Insurance Premium

Top 3 Reasons Why You Should Buy A Term Plan Now

Types of Deaths Not Covered by Term Insurance

Term Insurance Terminology

Term Life Insurance Plan for Smokers vs Non-Smokers

टर्म इंश्योरेंस बनाम लाइफ इंश्योरेंस: अंतर और लाभ समझें

Difference Between Short-Term and Long-Term Insurance

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

Is a Term Insurance Policy Portable?

How To Change The Nominee in Term Insurance?

Insurance Policy for Housewife In India

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

Term Insurance for Home Loan: How Term Plan Helps in Paying Off Home Loan?

Why Premium Amount for Term Insurance is So Low?

Is it Worth Buying Disability Rider on Term Insurance?

Guide for Buying Online Term Insurance Plans for Senior Citizens

Term Insurance for Women

Reasons Why Term Insurance Claims Get Rejected

Documents Required for Term Insurance

How Not To Get Your Term Insurance Claim Rejected

वरिष्ठ नागरिकों के लिए ऑनलाइन टर्म इंश्योरेंस प्लान खरीदने के लिए गाइड

5 Term Insurance Benefits for Single Women

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

Why Should You Buy Term Insurance in 2022?

Advantages & Disadvantages of Term Insurance in India

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

क्रिटिकल इलनेस राइडर के साथ टर्म इंश्योरेंस के लाभ

What All Documents Required For Term Insurance In India?

Is Death Due to Covered by Term Insurance?

1 करोड़ का टर्म इंश्योरेंस प्लान क्या है?

Terms and Conditions of Term Insurance Plans

Should you buy a Renewable Term Life Policy?

Make Your Online Term Plan Your Familys Monthly Payout

How to Buy 1 Crore Life Insurance Policy Without Medical Test

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

Can You Get Term Insurance Without Income Proof?

Salient features of a Term Insurance Plan

What Is the Correct Age to Buy Term Insurance?

Why Should You Buy Term Insurance under the MWP Act (Married Women’s Property Act)?

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

Which Death Types are Covered by Kotak E-Term Plan?

टर्म इंश्योरेंस क्या है? टर्म इंश्योरेंस का मतलब

Can Senior Citizens Avail Term Insurance?

Does Term Insurance Cover Accidental Death?

5 Things To Consider While Buying Term Insurance Plan

Term Insurance vs Life Insurance: Understand the Difference and Benefits

How To Evaluate Your Term Insurance Quote?

Do term insurance policy have a waiting period after buying?

4 Things To Expect From Your Term Insurance Plan in India

8 Factors to consider before choosing a Critical Illness Insurance

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

How Much Cover Should I Take In A Term Plan?

Know the many types of life insurance policies in India

Term Plan with Spouse Cover

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

How To Choose the Right Term Insurance Plan?

Alzheimer's Disease and How It’s Covered Under Health Insurance

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

टर्म इंश्योरेंस क्लेम प्रक्रिया

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

Why does every working women need life insurance?

How to Compare Term Insurance Online

Term Plans are Definitely Cheaper than You Think!

A Term Insurance Guide for Disabled People

4 Methods to Calculate How Much Term Insurance You Need

Is Term Life Insurance Plan Worth?

₹1.5 Crore Term Insurance

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

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

Choose the Nominee of a Term Life Insurance Plan Wisely

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

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

Why 1 Cr Term Plan Is Necessary For Family?

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

Online vs Offline Term Insurance - A Comparison

Term Insurance: Smokers vs Non-Smokers

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!

Term Insurance Plans and Policies for Smokers

Can I Get Term Insurance on Behalf of My Spouse?

Take 100% Responsibility for Your Family with Term Life Insurance

Why You Must Include In Your Financial Planning?

Calculating Term Insurance Premium

Top 5 Features of Term Insurance

₹5 Crore Term Insurance

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

What is a short term insurance policy?

Surrender Term Life Insurance Policy

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

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

Term Insurance Vs Car Insurance: A Budgetary Choice You'll Regret

Term Insurance Comparison – What Should You Look Out for?

Term Insurance Claims – Make Sure Your Claims Are Never Rejected

How Does Short-Term Life Insurance Work?

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

4 Reasons Why You Need Critical Illness Cover

What is Critical Illness Policy?

9 Questions You Should Ask Before Buying Term Insurance

Which Death Type Does Your Term Plan Not Cover?

Term Insurance Basics You Should Know

Why One Must Buy Term Insurance before 25 Years

8 Benefits of Term Insurance You Should Know

Individual Life Insurance vs. Group Term Life Insurance

Increasing Term Insurance and Riders

जीवन बीमा पॉलिसी लेने की प्रक्रिया क्या है?

All you need to Know about Term Insurance Plans for housewives

10-Year Term Life Insurance Policy - Explained in Detail

Understanding Term Insurance Riders

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

6 Reasons That Make Term Insurance a Must Buy

Term Insurance Trends You Must Know

What is Term Insurance: Definition and Benefit of Term Plan

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

Hiding vital facts while buying term insurance? Claims may be rejected

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

How Does Term Life Insurance Work? Learn the Benefits

Steps on How to Buy Term Insurance Online

Why Renewal of the Life Insurance Policy is Important?

Why Buy Term Insurance Plan With a High Cover?

Want to surrender your term insurance policy? Here's a guide

Why Should New Parents Buy Term Life Insurance?

What is Salary Protection Insurance and Why You Need It

5 Things to Consider When Buying Term Insurance, if you are Single

₹75 Lakh Term Insurance

Why should single women purchase term life insurance?

Smart Steps to keep in mind while buying term policies

Importance of Term Insurance at Every Stage of Your Life

Why Term Insurance Is Must For Parents

Buying A Term Insurance Plan? Take These Factors into Account

Term Insurance With Riders In India

Endowment Plans vs Term Plans: Understanding the difference

How to Identify Term Insurance According to Your Needs?