Close
Close

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

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

Passive income is an alternative income or secondary income that you can generate without working hard for it. Click here to know why you should use passive income to buy term plan.

  • Nov 26, 2021
  • 1,097 Views

It is the innate desire of every individual to have more than one source of income. It is vital to support the family’s financial goals and especially beneficial to families that are financially dependent on a single person. One of the best ways to generate an alternative income source for your family is passive income.

Before discussing why to use passive income to buy term insurance, let us first understand passive income.

What is passive income?

As the name suggests, a passive income is an alternative income or secondary income that you can generate without working hard for it. This means you may need not rely on your business or employment and still earn a regular income to meet your and your family’s everyday needs and future financial goals.

One of the most common ways to generate passive income is to invest in different income-generating assets like equity stocks, monthly pension plans, fixed income investments, etc. Many people believe that since they have a decent passive income, they need not save more money or buy term insurance.

Buying term insurance with passive income

You must know that the passive income or income from your investments can be highly volatile, and the income you get largely depends on the market condition and economic factors. This means that if the market is dipping, your income will also reduce, and you may have to be flexible with your budget.

One of the best ways to beat the uncertainty of passive income, give your family robust financial protection, and secure their future is to purchase a term life insurance policy. A term plan not only gives your family the financial cushion until the dependents become financially independent but also help you meet your long-term goals.

The sum assured amount of the term life insurance policy could help your family meet significant expenses later in life like children’s education, marriage, etc.

Another significant benefit of buying term insurance for your family is that they can use policy benefits to meet their regular expenses and even pay off the dues like a home loan (if any). This means your family need not dig into their savings or accumulated wealth from passive income. Your family can be financially independent even in your absence.

Additionally, the lump sum that your family receives from the term insurance company can be used for their future goals. Your family can invest it in fixed returns like fixed deposits so that your children can inherit the same in the future when they become an adult.

Considering the growing inflation, you can make the most out of your term insurance by periodically increasing the sum assured amount to keep with the increasing financial requirements at different life stages.

For example, if you purchased term insurance when you were married, you must have chosen a smaller sum assured. However, when you get married, you would have to bear additional responsibility for your spouse and children. This means you would need a higher sum assured to protect the financial needs of your spouse and children.

Final Word

Buying a term insurance policy is beneficial for all. It assures you 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

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

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

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

Term Insurance Claims – Make Sure Your Claims Are Never Rejected

Key Differences Between Term Insurance, ULIPs, And Health Insurance

Choosing Riders for Insurance Plans

Make Your Online Term Plan Your Familys Monthly Payout

Which Death Type Does Your Term Plan Not Cover?

8 Benefits of Term Insurance You Should Know

What is a short term insurance policy?

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

Insuring yourself against Ill Health with a Critical Illness Rider

Eligibility Criteria for Buying Term Insurance in India

Ensure Protection Against Death, Disease & Disability With Life Insurance

Term Insurance Claim Process

Is a Term Insurance Policy Portable?

What Is the Correct Age to Buy Term Insurance?

Should you buy a Renewable Term Life Policy?

How To Change The Nominee in Term Insurance?

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

5 Term Insurance Benefits for Single Women

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

Why should single women purchase term life insurance?

Can I Extend the Tenure of My Term Insurance Plan?

Cost of Term Insurance Likely to Increase Soon

Why Short-Term Insurance Plans Deserve a Second Look?

4 Methods to Calculate How Much Term Insurance You Need

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

Importance of Term Insurance at Every Stage of Your Life

Advantages of Buying Term Insurance in Your 50s

Calculating Term Insurance Premium

4 Things To Expect From Your Term Insurance Plan in India

5 Things To Consider While Buying Term Insurance Plan

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

Why is it important to buy term insurance plan?

When Should You Review Term Life Insurance of Yours?

Why Should You Buy Term Insurance in 2022?

9 Ways to Help Family Members in Financial Trouble

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

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

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

10-Year Term Life Insurance Policy - Explained in Detail

क्या ₹1 करोड़ का टर्म इंश्योरेंस पर्याप्त कवर है?

Term Life Insurance Plan for Smokers vs Non-Smokers

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

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

Term Insurance Age Limit – Term Plan for All Age Groups

How Not To Get Your Term Insurance Claim Rejected

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

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

Top 3 Reasons Why You Should Buy A Term Plan Now

Term Insurance Calculator - Everything You Need To Know

8 Things To Do After Buying Term Insurance

Do term insurance policy have a waiting period after buying?

भारत में गृहणियों के लिए टर्म इंश्योरेंस

What All Documents Required For Term Insurance In India?

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

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

Difference Between Term Insurance and Endowment Plan

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

How To Choose the Right Term Insurance Plan?

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

Comparing Term Plans – What Should You Look Out For

How Does Short-Term Life Insurance Work?

Individual Life Insurance vs. Group Term Life Insurance

Planning For Children's Future

Side Effects of Covid-19 Booster Doses

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

Term Life Insurance Vs Money Back Life Insurance

Why Buy Term Insurance Even at Rising Rates?

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

Is There Any Tax Benefit on Term Insurance?

Should You Have Multiple Term Life Insurance Policies?

Endowment Plans vs Term Plans: Understanding the difference

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

How to Buy 1 Crore Life Insurance Policy Without Medical Test

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

6 Reasons That Make Term Insurance a Must Buy

Term Insurance: Smokers vs Non-Smokers

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

जीवन बीमा पॉलिसी लेने की प्रक्रिया क्या है?

Why Should New Parents Buy Term Life Insurance?

What Should You opt for - Limited or Premium Pay?

कोविड -19 बूस्टर खुराक के दुष्प्रभाव

Term Plans are Definitely Cheaper than You Think!

Term Plan with Spouse Cover

Is Group Term Life Insurance Provided By Employer Sufficient?

How Much Term Life Insurance Cover Do I Need?

Insuring Against Disability With Disability Insurance Rider

Is Life Insurance Investment Worthy Enough

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

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

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

Why 1 Cr Term Plan Is Necessary For Family?

How to Compare Term Insurance Online

Term Insurance Basics You Should Know

10 Most Frequently Asked Questions - FAQs on Term Insurance

Why Married People Should Buy Term Insurance Under MWP Act?

Term Insurance vs Life Insurance: Understand the Difference and Benefits

Benefits of Short-Term Life Insurance Policy

Difference Between Term Insurance and Endowment Plan

10 Ways to Get Your Kids Involved in Your Healthy Lifestyle

5 Smart Steps to keep in mind while buying term policies

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

Types of Life Insurance Policies in India

Term Insurance With Riders In India

टर्म इंश्योरेंस क्लेम प्रक्रिया

Is ₹1 Crore Term Insurance Good Enough Cover?

How to Identify Term Insurance According to Your Needs?

Why You Must Include In Your Financial Planning?

Steps on How to Buy Term Insurance Online

All about Online Income Tax Calculator

What are incremental term insurance plans?

Do You Need Term Insurance Cover After Retirement?

टर्म इंश्योरेंस क्या है? टर्म इंश्योरेंस का मतलब

5 Reasons to Have a Child Education Plan

Know How to Invest at Every Age for Larger Returns

Does Term Insurance Cover Accidental Death?

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

Advantages & Disadvantages of Term Insurance in India

Everything About Claim Settlement Ratio for Term Insurance

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

Can I Get Term Insurance on Behalf of My Spouse?

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

How Does BMI Affect Your Term Insurance Premium?

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

Different Types of Premiums in Term Insurance?

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

What is Insurance Premium? | Definition of Insurance Premium

Tax Benefits of Term Insurance in India

Should Youngsters, Working Couples Buy Term Insurance Plans?

Insuring Protection Against Death With Death Insurance Rider

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

9 Most Frequently Asked Questions on Term Insurance

How Does Term Life Insurance Work? Learn the Benefits

How Does Term Life Insurance Work? Learn the Benefits

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

9 Point Guide on how to File Income Tax Return Online

What are the Documents Required for Term Insurance Plan?

भारत में जीवन बीमा कितने प्रकार के होते हैं?

Buying A Term Insurance Plan? Take These Factors into Account

What Happens if you Hide Facts in your Term Insurance?

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

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

Increasing Term Insurance and Riders

4 Reasons Why You Need Critical Illness Cover

Can You Get Term Insurance Without Income Proof?

Insurance Policy for Housewife In India

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

5 Benefits of Early Retirement Planning

Different Types of Protection Plans

11 Types of Death not covered in Term Insurance Plans

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

10 Ways to Mentally Refresh After a Stressful Day

All you need to Know about Term Insurance Plans for housewives

Term Insurance Plans and Policies for Smokers

Why Term Insurance Is Better Than ULIP?

Can An Individual Buy Multiple Term Insurance Plans?

Why Premium Amount for Term Insurance is So Low?

Can Senior Citizens Avail Term Insurance?

What Are the Best Term Insurance Plans for Planning Retirement?

Why does every working women need life insurance?

Term Insurance with Critical Illness

What is Term Insurance? Term Plan Meaning and Definition

How do I Calculate My Term Insurance Premium

How Much Cover Should I Take In A Term Plan?

Can You Increase Your Term Insurance Cover?

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

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

Tips to Choose the Right Term Period for Term Insurance Plan

Busting Myths and Facts About Term Insurance Policies

6 Types of Death not covered in Term Insurance Plan

टर्म इंश्योरेंस बनाम लाइफ इंश्योरेंस: अंतर और लाभ समझें

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

While Buying Term Insurance Compare Features, Not Just Premiums

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

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

How To Evaluate Your Term Insurance Quote?

Planning For Son or Daughter's Wedding

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

Insuring Against Accidents with an Accidental Death Insurance Rider

What Is a Renewable Term Insurance Policy?

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

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

8 Factors to consider before choosing a Critical Illness Insurance

Is term Insurance Needed for People With No Dependents?

What is Critical Illness Policy?

Difference Between Short-Term and Long-Term Insurance

Can Term Insurance Plans Be Purchased As A Gift?

Is Term Life Insurance Plan an Investment or Expense?

Protection for your family

Why Buy Term Insurance Plan With a High Cover?

Do Beneficiaries Pay Taxes on Term Insurance?

All About Term Insurance Inbuilt Coverage

Understanding Term Insurance Riders

Should You Buy a Term Plan After 40?