Kotak e-Term Plan
Kotak e-Term Plan provides a high level of protection to your loved ones in your absence.
Kotak E-Invest Plan
Kotak e-Invest plan is a complete Unit-Linked Insurance Plan that can be customized as per your goals and needs.
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.
Kotak Lifetime Income Plan
Kotak Lifetime Income Plan gives you the security of your income continuing thru your life and in your absence throughout your spouse's lifetime!
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.
Our representative will get in touch with you at the earliest.
Buying a term insurance policy is a crucial financial decision. There are several things you must consider. You must choose the right sum assured to get sufficient coverage for the family; you must select the right insurance company to ensure the best service. Perhaps the most critical factor to consider is the term plan duration.
If you buy a long-term plan, you may probably be paying more premium than you should. If you choose a short-term plan, it may defeat the whole purpose of getting insurance cover. Most people in India believe that it is better to purchase a term plan for 10-20 years to protect the family for a more extended period. However, they don’t have any rationale behind choosing the term plan duration.
Remember, the fundamental purpose of buying a term plan is to secure your family’s financial future and give them the support they need until they become independent themselves. This means you would want to ensure that your family can carry on the usual expenses and maintain their regular lifestyle even in your absence.
Under the term plan, most insurance companies in India provide coverage until the policyholder reaches 75 years. Some plans offer coverage up to 99 years. So, depending on the age when you buy the policy, the coverage term may vary from five to 40 years.
The term insurance term you choose has a direct impact on the policy premium. Typically, the policies with longer durations tend to be more expensive. So, suppose the premium for the term insurance duration you desire seems unaffordable. It is better to adjust the coverage amount and the tenure so that the premium becomes affordable. It does not make sense to purchase a long-term plan and be able to pay the premium.
One of the most critical factors to consider while deciding the term insurance policy duration is the family profile. For example, if you have a young child and a housewife, they may entirely depend on you financially. In this case, it is better to choose a term policy for 20 years or more. This will help you provide coverage to your family until your child becomes financially independent.
However, if your family members are already financially independent, you can opt for a short-term plan. This will help you save on the premium paid, and you can use the money to invest in other instruments like mutual funds or pension schemes that can help build a corpus for the future.
Your age at the time of buying the policy is an essential factor that you must consider while deciding the term policy duration. If you are a 30-year-old individual, you may work for about 30 more years before you retire, right?
So, you can purchase a long-term plan for 25 years so that the coverage lasts till retirement. If anything happens to you during the period, the insurance pay-out will compensate for the loss of income to your family.
So, now that you are aware of the different factors to consider for choosing the term plan duration, ensure that you assess your needs well and purchase a plan that perfectly suits your needs.
- A Consumer Education Initiative series by Kotak Life
Kotak Credit Term Group Plan provides life cover to a group of borrowers of credit institutions where the life assured is the borrower and the credit ...Know more