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

Why Do Life Insurance Agents Avoid Selling Term Plans?

Why Do Life Insurance Agents Avoid Selling Term Plans?
  • 26th Nov 2021 |
  • 863

When it comes to buying an insurance policy, many people in India prefer purchasing the traditional way from their insurance agent. They believe it is better to purchase through an agent as they will understand the features and benefits of different plans and help them choose the right policy.

The work of a life insurance agent is to understand your specific insurance requirements and suggest appropriate plans accordingly. Therefore, if you are a first-time insurance buyer, the agent must recommend buying a term policy. However, in most cases, the agents suggest only the plans that they believe are the ‘best in the market’ and never try to sell a term plan. You may probably believe the agent blindly and end up buying an expensive policy only to regret it later.

If you are wondering why insurance agents avoid selling term plans, here are a few critical reasons.

  • Low premium translates to a lower commission for the agents
  • Remember, an insurance agent only tries to sell a policy that could earn them a high commission. And, when it comes to affordable premiums, term insurance policies have the lowest premium compared to other life insurance policies.

    A term plan has a low premium because it is a pure protection policy and provides only death benefit; you do not get any survival benefit. When you purchase a term plan, you essentially invest in securing your family’s financial future.

    Therefore, term plans offer life cover at a nominal cost. The commission that agents receive from the insurance company is usually a percentage of the premium paid by the policyholder. And, since term plans have a low premium, they receive a lesser commission than other plans. Hence, most insurance agents do not sell term policies to customers.

  • Policy buyers’ attitude about life insurance
  • Another significant reason many insurance agents don’t sell term plans is that most Indian insurance buyers are not interested in buying a policy that does not offer any returns or maturity benefits. Many insurance buyers see insurance as an investment or buy it for tax-saving purposes rather than considering it an instrument for safeguarding a family’s future.

    One of the critical benefits of a term plan is that it offers high coverage, i.e., you can purchase a policy with a high sum assured at an affordable cost. But people tend to ignore this aspect of term insurance and hesitate to buy them.

  • Most agents lack training
  • The majority of the insurance companies in India provide little or no training to the insurance agents about their insurance products and services. Most agents have insufficient knowledge about insurance products, and although they have good marketing skills, they find it challenging to convince potential buyers to purchase the policy. The agents too hardly make any effort to learn about the different insurance products, and they focus on mainly selling a few products that fetch them a high commission.

As an insurance buyer, be more aware

Suppose you are looking to purchase a life insurance policy. In that case, you must take your time researching different types of policies available in the market before approaching an agent. When you talk to an agent, ask them for a term plan, and if they try to avoid talking about it or try to push you to purchase a specific plan, politely decline their offer and look for another agent.

Nowadays, most insurance companies offer a variety of term plans that you can either buy through the agents or purchase the same online directly from the insurance company’s website. It is better to purchase online, as you can compare the different plans and make a more informed purchase decision.

- A Consumer Education Initiative series by Kotak Life

Similar Articles

Insurance Policy for Housewife In India

What are the Documents Required for Term Insurance Plan?

9 Ways to Help Family Members in Financial Trouble

Increasing Term Insurance and Riders

टर्म इंश्योरेंस क्या है? टर्म इंश्योरेंस का मतलब

What Happens if you Hide Facts in your Term Insurance?

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

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

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

Why Buy Term Insurance Plan With a High Cover?

How Much Term Insurance Do I Need

Should You Buy a Term Plan After 40?

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

Is a Term Insurance Policy Portable?

5 Term Insurance Benefits for Single Women

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

What is Term Insurance - A Complete Guide

Insuring Against Accidents with an Accidental Death Insurance Rider

Eligibility Criteria for Buying Term Insurance in India

Different Types of Protection Plans

Insuring yourself against Ill Health with a Critical Illness Rider

Why Term Insurance Is Better Than ULIP?

Why does every working woman need life insurance?

Why Should You Buy Term Insurance in 2022?

Term Life Insurance Plan for Smokers vs Non-Smokers

Different Types of Premium in Term Insurance

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

Protection for your family

Term Insurance Basics You Should Know

How Does Term Life Insurance Work? Learn the Benefits

Ensure Protection Against Death, Disease & Disability With Life Insurance

How to Buy 1 Crore Life Insurance Policy Without Medical Test

How to Compare Term Insurance Online

Difference between Term Insurance and Life Insurance

Which Death Type Does Your Term Plan Not Cover?

Term Insurance Age Limit – Term Plan for All Age Groups

Make Your Online Term Plan Your Familys Monthly Payout

Term Insurance Plans and Policies for Smokers

What is Insurance Premium - A Detailed Guide

Can I Get Term Insurance on Behalf of My Spouse?

Term Plans are Definitely Cheaper than You Think!

How To Change The Nominee in Term Insurance?

Is term Insurance Needed for People With No Dependents?

4 Reasons Why You Need Critical Illness Cover

Why should single women purchase term life insurance?

Term Insurance: Smokers vs Non-Smokers

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

5 Things To Consider While Buying Term Insurance Plan

8 Factors to consider before choosing a Critical Illness Insurance

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

Does Term Insurance Cover Accidental Death?

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

What All Documents Required For Term Insurance In India?

6 Types of Death not covered in Term Insurance Plan

While Buying Term Insurance Compare Features, Not Just Premiums

How to Surrender Term Life Insurance When you have No Liabilities

Insuring Against Disability With Disability Insurance Rider

Tax Benefits of Term Insurance in India

4 Methods to Calculate How Much Term Insurance You Need

Why 1 Cr Term Plan Is Necessary For Family?

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

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

Is Group Term Life Insurance Provided By Employer Sufficient?

Do Beneficiaries Pay Taxes on Term Insurance?

Why Premium Amount for Term Insurance is So Low?

Buying A Term Insurance Plan? Take These Factors into Account

What Is the Correct Age to Buy Term Insurance?

Tips to Choose the Right Term Period for Term Insurance Plan

Individual Life Insurance vs. Group Term Life Insurance

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

Understanding Term Insurance Riders

Planning For Children's Future

Term Insurance with Critical Illness

Should You Have Multiple Term Life Insurance Policies?

Know How to Invest at Every Age for Larger Returns

How Not To Get Your Term Insurance Claim Rejected

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

Everything About Claim Settlement Ratio for Term Insurance

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

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

Busting Myths and Facts About Term Insurance Policies

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

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

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

Importance of Term Insurance at Every Stage of Your Life

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

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

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

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

Why Buy Term Insurance Even at Rising Rates?

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

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

10-Year Term Life Insurance Policy - Explained in Detail

Advantages & Disadvantages of Term Insurance in India

All you need to Know about Term Insurance Plans for Housewives

Term Insurance With Riders In India

What is a short term insurance policy?

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

What are incremental term insurance plans?

9 Most Frequently Asked Questions on Term Insurance

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

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

Endowment Plans vs Term Plans: Understanding the difference

Is ₹1 Crore Term Insurance Good Enough Cover?

Why Married People Should Buy Term Insurance Under MWP Act?

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

How Does A Term Life Insurance Work in India?

Top 3 Reasons Why You Should Buy A Term Plan Now

Term Plan with Spouse Cover

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

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

8 Things To Do After Buying Term Insurance

Steps on How to Buy Term Insurance Online

Is There Any Tax Benefit on Term Insurance?

Is Life Insurance Investment Worthy Enough

How Much Cover Should I Take In A Term Plan?

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

4 Things To Expect From Your Term Insurance Plan in India

What Are the Best Term Insurance Plans for Planning Retirement?

6 Reasons That Make Term Insurance a Must Buy

Can You Increase Your Term Insurance Cover?

Is Term Life Insurance Plan an Investment or Expense?

Why is it important to buy term insurance plan?

Insuring Protection Against Death With Death Insurance Rider

All About Term Insurance Inbuilt Coverage

Cost of Term Insurance Likely to Increase Soon

Can Term Insurance Plans Be Purchased As A Gift?

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

Advantages of Buying Term Insurance in Your 50s

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

Why Should New Parents Buy Term Life Insurance?

How to Identify Term Insurance According to Your Needs?

Should Youngsters, Working Couples Buy Term Insurance Plans?

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

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

What Is a Renewable Term Insurance Policy?

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

What is Critical Illness Policy

What Should You opt for - Limited or Premium Pay?

Comparing Term Plans – What Should You Look Out For

5 Benefits of Early Retirement Planning

How To Choose the Right Term Insurance Plan?

Calculating Term Insurance Premium

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

Choosing Riders for Insurance Plans

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

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

Key Differences Between Term Insurance, ULIPs, And Health Insurance

Planning For Son or Daughter's Wedding

Can I Extend the Tenure of My Term Insurance Plan?

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

Do You Need Term Insurance Cover After Retirement?

Can Senior Citizens Avail Term Insurance?

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

8 Benefits of Term Insurance You Should Know

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

Term Insurance Calculator - Everythng You Need To Know