What Are the Best Term Insurance Plans for Planning Retirement?

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

Kotak Health Shield

Insurance against medical expenses related to heart, brain, liver and Cancer. Know more

What Are the Best Term Insurance Plans for Planning Retirement?

What Are the Best Term Insurance Plans for Planning Retirement?
  • 26th Nov 2021 |
  • 779

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 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


Browse our library of resources

- A Consumer Education Initiative series by Kotak Life

Similar Articles

How to Identify Term Insurance According to Your Needs?

What Is the Correct Age to Buy Term Insurance?

Insuring Against Disability With Disability Insurance Rider

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

Term Plans are Definitely Cheaper than You Think!

Why Buy Term Insurance Even at Rising Rates?

Why Buy Term Insurance Plan With a High Cover?

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

All About Term Insurance Inbuilt Coverage

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

Protection for your family

What is Critical Illness Policy?

What are incremental term insurance plans?

Is a Term Insurance Policy Portable?

How Not To Get Your Term Insurance Claim Rejected

9 Point Guide on how to File Income Tax Return Online

Endowment Plans vs Term Plans: Understanding the difference

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

What All Documents Required For Term Insurance In India?

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

10 Ways to Mentally Refresh After a Stressful Day

Advantages & Disadvantages of Term Insurance in India

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

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

Top 3 Reasons Why You Should Buy A Term Plan Now

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

Advantages of Buying Term Insurance in Your 50s

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

Difference Between Term Insurance and Endowment Plan

Ensure Protection Against Death, Disease & Disability With Life Insurance

Choosing Riders for Insurance Plans

Is Term Life Insurance Plan an Investment or Expense?

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

Can You Increase Your Term Insurance Cover?

Should You Buy a Term Plan After 40?

Eligibility Criteria for Buying Term Insurance in India

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

Term Insurance vs Life Insurance: Understand the Difference and Benefits

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

How to Compare Term Insurance Online

टर्म इंश्योरेंस क्या है? टर्म इंश्योरेंस का मतलब

What is Term Insurance? Term Plan Meaning and Definition

Is There Any Tax Benefit on Term Insurance?

6 Reasons That Make Term Insurance a Must Buy

What are the Documents Required for Term Insurance Plan?

How Much Term Life Insurance Cover Do I Need?

Tax Benefits of Term Insurance in India

Planning For Children's Future

8 Factors to consider before choosing a Critical Illness Insurance

How To Choose the Right Term Insurance Plan?

Does Term Insurance Cover Accidental Death?

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

Term Insurance Age Limit – Term Plan for All Age Groups

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

Can I Extend the Tenure of My Term Insurance Plan?

Should You Have Multiple Term Life Insurance Policies?

Cost of Term Insurance Likely to Increase Soon

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

Is Life Insurance Investment Worthy Enough

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

All about Online Income Tax Calculator

Can Senior Citizens Avail Term Insurance?

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

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

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

Term Insurance Plans and Policies for Smokers

What Happens if you Hide Facts in your Term Insurance?

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

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

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

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

How to Buy 1 Crore Life Insurance Policy Without Medical Test

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

Do You Need Term Insurance Cover After Retirement?

Which Death Type Does Your Term Plan Not Cover?

Insuring Protection Against Death With Death Insurance Rider

Know How to Invest at Every Age for Larger Returns

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

9 Most Frequently Asked Questions on Term Insurance

How Does Term Life Insurance Work? Learn the Benefits

Term Life Insurance Plan for Smokers vs Non-Smokers

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

4 Reasons Why You Need Critical Illness Cover

Can I Get Term Insurance on Behalf of My Spouse?

Different Types of Protection Plans

What is Insurance Premium - A Detailed Guide

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

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

जीवन बीमा पॉलिसी लेने की प्रक्रिया क्या है?

9 Ways to Help Family Members in Financial Trouble

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

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

How Much Cover Should I Take In A Term Plan?

Why is it important to buy term insurance plan?

Why Term Insurance Is Better Than ULIP?

4 Methods to Calculate How Much Term Insurance You Need

Why You Must Include In Your Financial Planning?

5 Term Insurance Benefits for Single Women

Different Types of Premiums in Term Insurance?

Why Married People Should Buy Term Insurance Under MWP Act?

What Should You opt for - Limited or Premium Pay?

Insuring Against Accidents with an Accidental Death Insurance Rider

Should you buy a Renewable Term Life Policy?

Insurance Policy for Housewife In India

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

Why does every working women need life insurance?

Term Insurance Calculator - Everythng You Need To Know

How Does A Term Life Insurance Work in India?

Individual Life Insurance vs. Group Term Life Insurance

5 Things To Consider While Buying Term Insurance Plan

6 Types of Death not covered in Term Insurance Plan

Why 1 Cr Term Plan Is Necessary For Family?

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

Term Insurance: Smokers vs Non-Smokers

Understanding Term Insurance Riders

10 Ways to Get Your Kids Involved in Your Healthy Lifestyle

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

भारत में जीवन बीमा कितने प्रकार के होते हैं?

8 Types of Death not covered in Term Insurance Plan

Busting Myths and Facts About Term Insurance Policies

Tips to Choose the Right Term Period for Term Insurance Plan

कोविड -19 बूस्टर खुराक के दुष्प्रभाव

How Much Term Insurance Do I Need

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

Everything About Claim Settlement Ratio for Term Insurance

Buying A Term Insurance Plan? Take These Factors into Account

Side Effects of Covid-19 Booster Doses

8 Benefits of Term Insurance You Should Know

Can Term Insurance Plans Be Purchased As A Gift?

Is ₹1 Crore Term Insurance Good Enough Cover?

What is a short term insurance policy?

Planning For Son or Daughter's Wedding

What Is a Renewable Term Insurance Policy?

Why Should New Parents Buy Term Life Insurance?

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

Is term Insurance Needed for People With No Dependents?

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

All you need to Know about Term Insurance Plans for housewives

Why Premium Amount for Term Insurance is So Low?

Term Insurance Basics You Should Know

Steps on How to Buy Term Insurance Online

5 Benefits of Early Retirement Planning

Increasing Term Insurance and Riders

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

Importance of Term Insurance at Every Stage of Your Life

4 Things To Expect From Your Term Insurance Plan in India

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

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

Term Insurance with Critical Illness

Is Group Term Life Insurance Provided By Employer Sufficient?

Make Your Online Term Plan Your Familys Monthly Payout

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

How do I Calculate My Term Insurance Premium

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

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

While Buying Term Insurance Compare Features, Not Just Premiums

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

Why should single women purchase term life insurance?

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

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

Key Differences Between Term Insurance, ULIPs, And Health Insurance

Insuring yourself against Ill Health with a Critical Illness Rider

Term Insurance With Riders In India

भारत में गृहणियों के लिए टर्म इंश्योरेंस

Should Youngsters, Working Couples Buy Term Insurance Plans?

Do Beneficiaries Pay Taxes on Term Insurance?

How To Change The Nominee in Term Insurance?

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

8 Things To Do After Buying Term Insurance

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

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

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

Comparing Term Plans – What Should You Look Out For

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

Why Should You Buy Term Insurance in 2022?

10-Year Term Life Insurance Policy - Explained in Detail

Calculating Term Insurance Premium

Term Plan with Spouse Cover