Kotak Life

Buy a Life Insurance Plan in a few clicks


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 Life Insurance Is Always a Smart Decision

Why Life Insurance Is Always a Smart Decision
  • 10th Oct 2019 |
  • 2,075

Life insurance acts as a financial security against uncertainties such as disability, death, or other untoward incidents. If you are disabled or in case something unfortunate happens with you, your family may face financial difficulties due to income loss.

It is almost impossible to put a monetary value to your life. Nonetheless, you may determine some amount based on the loss of income in the future. The sum assured in a life insurance policy is paid to your nominees in case any covered incident occurs.

A common question you may ask is why life insurance?

Here are some benefits that make life insurance a smart investment decision:

1. Replacement of income

This is the most basic objective of a life insurance policy. A simple term plan (which is a pure life cover) goes a long way in securing the financial future of your family. In case of an untoward incident, during the policy term, the insurance company pays the death benefits. These term life insurance benefits may be used for various purposes such as repaying any

outstanding debt obligations, meeting your family’s regular expenses, paying for your children’s education or any other objective. Similarly, retirement plans provide income replacement through periodic annuities during your senior years, thereby ensuring you are financially independent.

2. Tax benefits

Even when you understand the importance of life insurance, you may not purchase one due to the premium outgo. One huge benefit of life insurance is that the premium amount is eligible for tax benefits under Section 80C of the Income Tax Act, 1961. This reduces your tax liability and helps to save money while ensuring financial protection to you and your family in case of any unfortunate incident.

The need for life insurance cannot be questioned especially if you are the sole earning member of the family. It is equally important to avail of adequate coverage based on the number of dependents, current lifestyle, debt obligations, and other financial goals. It is recommended that you seek the help an experienced financial expert to understand more about life insurance and coverage.

Start Your 80C Investment Now

3. Investment benefits

Insurance companies offer different types of life insurance plan. These include pension plans, whole life policies, growth plans, and guaranteed income policies. Such plans not only offer life cover but also provide maturity benefits that ensure the financial stability of your loved ones. Whole life plans offer coverage until the age of 100 while guaranteed income policies help meet financial goals at different stages in your life. Unit-linked insurance plans (ULIPs) invest a portion of your premium in financial products like equity, debt, and government securities. These plans help you build a corpus over a longer duration of investment.

4. Loan protection

You may probably have long-term liabilities such as a home loan. In case of an unforeseen circumstance, your survivors will have to repay the loan, which may result in severe consequences. When you buy life insurance, the policy benefits become available to your nominees in your absence. This will allow them to repay the outstanding loan amount without falling into any financial distress. Additionally, you may avail of a loan against your policy after a certain number of years from the date of purchase. This helps you meet any urgent financial requirements at an affordable interest rate.

- A Consumer Education Initiative series by Kotak Life

Similar Articles

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

Everything About Claim Settlement Ratio for Term Insurance

What is Insurance Premium - A Detailed Guide

How to Identify Term Insurance According to Your Needs?

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

Can I Get Term Insurance on Behalf of My Spouse?

Term Insurance Basics You Should Know

8 Benefits of Term Insurance You Should Know

Tax Benefits of Term Insurance in India

Can Term Insurance Plans Be Purchased As A Gift?

While Buying Term Insurance Compare Features, Not Just Premiums

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

Understanding Term Insurance Riders

Why Term Insurance Is Better Than ULIP?

Do You Need Term Insurance Cover After Retirement?

Is Group Term Life Insurance Provided By Employer Sufficient?

Should Youngsters, Working Couples Buy Term Insurance Plans?

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

Why Should New Parents Buy Term Life Insurance?

Choosing Riders for Insurance Plans

5 Benefits of Early Retirement Planning

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

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

Insuring Against Accidents with an Accidental Death Insurance Rider

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

Ensure Protection Against Death, Disease & Disability With Life Insurance

Should You Buy a Term Plan After 40?

8 Factors to consider before choosing a Critical Illness Insurance

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

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

Busting Myths and Facts About Term Insurance Policies

Why is it important to buy term insurance plan?

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

4 Things To Expect From Your Term Insurance Plan in India

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

Can Senior Citizens Avail Term Insurance?

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

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

Why does every working woman need life insurance?

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

How Much Term Insurance Do I Need

Eligibility Criteria for Buying Term Insurance in India

Term Life Insurance Plan for Smokers vs Non-Smokers

Should You Have Multiple Term Life Insurance Policies?

Why 1 Cr Term Plan Is Necessary For Family?

Term Plan with Spouse Cover

Importance of Term Insurance at Every Stage of Your Life

Is ₹1 Crore Term Insurance Good Enough Cover?

Different Types of Premium in Term Insurance

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

Do Beneficiaries Pay Taxes on Term Insurance?

Term Insurance With Riders In India

Is Life Insurance Investment Worthy Enough

6 Types of Death not covered in Term Insurance Plan

How to Compare Term Insurance Online

4 Reasons Why You Need Critical Illness Cover

What are incremental term insurance plans?

Which Death Type Does Your Term Plan Not Cover?

What Is a Renewable Term Insurance Policy?

What is Term Insurance - A Complete Guide

How Does Term Life Insurance Work? Learn the Benefits

Term Insurance Calculator - Everythng You Need To Know

How to Buy 1 Crore Life Insurance Policy Without Medical Test

Top 3 Reasons Why You Should Buy A Term Plan Now

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

What All Documents Required For Term Insurance In India?

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

Why Buy Term Insurance Plan With a High Cover?

Advantages of Buying Term Insurance in Your 50s

Individual Life Insurance vs. Group Term Life Insurance

Different Types of Protection Plans

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

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

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

How Does A Term Life Insurance Work in India?

All About Term Insurance Inbuilt Coverage

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

What Is the Correct Age to Buy Term Insurance?

How Much Cover Should I Take In A Term Plan?

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

Make Your Online Term Plan Your Familys Monthly Payout

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

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

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

Why Married People Should Buy Term Insurance Under MWP Act?

Insuring Against Disability With Disability Insurance Rider

4 Methods to Calculate How Much Term Insurance You Need

Key Differences Between Term Insurance, ULIPs, And Health Insurance

How To Change The Nominee in Term Insurance?

Is Term Life Insurance Plan an Investment or Expense?

Why should single women purchase term life insurance?

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

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

Term Insurance with Critical Illness

Calculating Term Insurance Premium

6 Reasons That Make Term Insurance a Must Buy

What is Critical Illness Policy

Know How to Invest at Every Age for Larger Returns

टर्म इंश्योरेंस क्या है? टर्म इंश्योरेंस का मतलब

Term Insurance Age Limit – Term Plan for All Age Groups

Why Premium Amount for Term Insurance is So Low?

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

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

Steps on How to Buy Term Insurance Online

Why Should You Buy Term Insurance in 2022?

Insuring Protection Against Death With Death Insurance Rider

5 Things To Consider While Buying Term Insurance Plan

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

Advantages & Disadvantages of Term Insurance in India

Cost of Term Insurance Likely to Increase Soon

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

All you need to Know about Term Insurance Plans for Housewives

What Should You opt for - Limited or Premium Pay?

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

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

How To Choose the Right Term Insurance Plan?

Planning For Children's Future

What is a short term insurance policy?

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

Protection for your family

Insurance Policy for Housewife In India

Does Term Insurance Cover Accidental Death?

Term Insurance Plans and Policies for Smokers

Term Insurance: Smokers vs Non-Smokers

Comparing Term Plans – What Should You Look Out For

Is a Term Insurance Policy Portable?

How to Surrender Term Life Insurance When you have No Liabilities

Can You Increase Your Term Insurance Cover?

Tips to Choose the Right Term Period for Term Insurance Plan

Endowment Plans vs Term Plans: Understanding the difference

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

Why Buy Term Insurance Even at Rising Rates?

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

10-Year Term Life Insurance Policy - Explained in Detail

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

8 Things To Do After Buying Term Insurance

What Happens if you Hide Facts in your Term Insurance?

How Not To Get Your Term Insurance Claim Rejected

Can I Extend the Tenure of My Term Insurance Plan?

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

9 Most Frequently Asked Questions on Term Insurance

Insuring yourself against Ill Health with a Critical Illness Rider

5 Term Insurance Benefits for Single Women

What Are the Best Term Insurance Plans for Planning Retirement?

Difference between Term Insurance and Life Insurance

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

Is term Insurance Needed for People With No Dependents?

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

Buying A Term Insurance Plan? Take These Factors into Account

Term Plans are Definitely Cheaper than You Think!

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

Is There Any Tax Benefit on Term Insurance?

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

Planning For Son or Daughter's Wedding

Increasing Term Insurance and Riders

What are the Documents Required for Term Insurance Plan?

9 Ways to Help Family Members in Financial Trouble