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

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

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

Why Term Plan Should Be The First Step To Securing Your Future?
  • 27th Aug 2021 |
  • 639

You may often hear from your parents, colleagues, and well-wishers to purchase a life insurance policy to safeguard your future. Also, financial advisors and online advertisements may recommend you various insurance policies to secure the financial future. And, if you are looking for the best insurance, it is advisable to purchase a term plan.

Why term insurance must be your first step towards securing your future?

A part of your income goes towards meeting your regular expenses such as EMIs, children school fees, utility bills, groceries, etc. What is left after meeting the basic needs, you may save the same for future expenses like children’s higher education, marriage, retirement. Now imagine a situation where your family loses the income due to your sudden demise. How will they meet their expenses? In such a situation, the only option they may have is to dig into the savings. And, if you don’t have enough savings, they may face financial distress and struggle to make ends meet.

You can easily avoid such unwanted situations befalling your family by purchasing a term policy online with high coverage. A term plan secures your family’s financial future by offering a death benefit equal to the sum assured of the policy in the event of your demise during the policy period. The family can use the payout to meet their expenses and pay off the debts (if any). Since the sum assured amount is high, it can last for several years and help your family be financially independent even in your absence.

This benefit is particularly significant for newly married couples or those who have become a parent recently and for business people who have a considerable amount of liabilities. As a policyholder, you have the flexibility to determine the payout terms; you can either opt for a lump sum payout where the insurer will pay the total amount immediately after demise, oryou can choose staggered payment. In such a situation, the insurer will pay the amount in smaller installments at fixed intervals.

Being a pure protection plan, a term policy, covers only death, and the policy duration can vary from five years to 40 years; you have the flexibility to choose the tenure based on your specific needs. Also, since these plans do not offer maturity benefits, the premiums are affordable.

Apart from having an affordable premium, one of the significant reasons why many people prefer buying a term policy over other life insurance policies to secure their future is that it gives them the flexibility to change the degree of coverage over the policy tenure.

You can opt for a decreasing sum assured plan. Under this policy, the coverage amount decreases by a specific amount over the period. As you repay the debts slowly, you may not need higher coverage, and as the coverage amount reduces, the premium also becomes more affordable.

You also get the flexibility to extend the scope of your policy coverage by purchasing a rider for an additional premium. You can buy additional coverage options like critical illness rider or accidental death benefit rider by paying a small amount. These riders allow you to get coverage against risks that are not covered under the primary policy. And, in the event of your death due to chronic illness or accident, the family member will get an additional compensation apart from the death benefit guaranteed under the policy.

Final Word

Thus, with so many benefits, a term plan is vital to secure your family’s future. The high coverage amounts and affordable premium makes it a suitable insurance cover for all.

Kotak e-Term Plan

Features

  • Nominal Cost
  • Multiple Plan Options
  • Flexible Payout Options
  • Critical Illness Rider
  • Tax Savings
  • Long term Coverage

Ref. No. KLI/22-23/E-BB/492

T&C

Browse our library of resources

- A Consumer Education Initiative series by Kotak Life

Similar Articles

How Much Term Insurance Do I Need

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

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

5 Term Insurance Benefits for Single Women

How to Compare Term Insurance Online

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

Term Insurance Plans and Policies for Smokers

5 Benefits of Early Retirement Planning

Can I Extend the Tenure of My Term Insurance Plan?

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

Why should single women purchase term life insurance?

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

Term Insurance with Critical Illness

Insuring yourself against Ill Health with a Critical Illness Rider

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

What Is the Correct Age to Buy Term Insurance?

How To Choose the Right Term Insurance Plan?

Can You Increase Your Term Insurance Cover?

Term Insurance Calculator - Everythng You Need To Know

Understanding Term Insurance Riders

What Is a Renewable Term Insurance Policy?

Do Beneficiaries Pay Taxes on Term Insurance?

Why does every working woman need life insurance?

Buying A Term Insurance Plan? Take These Factors into Account

How to Surrender Term Life Insurance When you have No Liabilities

Why Premium Amount for Term Insurance is So Low?

While Buying Term Insurance Compare Features, Not Just Premiums

How Much Cover Should I Take In A Term Plan?

Term Life Insurance Plan for Smokers vs Non-Smokers

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

Is Term Life Insurance Plan an Investment or Expense?

Should You Buy a Term Plan After 40?

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

Why Buy Term Insurance Even at Rising Rates?

10 Ways to Mentally Refresh After a Stressful Day

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

Steps on How to Buy Term Insurance Online

Can Term Insurance Plans Be Purchased As A Gift?

Choosing Riders for Insurance Plans

4 Things To Expect From Your Term Insurance Plan in India

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

Why 1 Cr Term Plan Is Necessary For Family?

What are the Documents Required for Term Insurance Plan?

Know How to Invest at Every Age for Larger Returns

Top 3 Reasons Why You Should Buy A Term Plan Now

Make Your Online Term Plan Your Familys Monthly Payout

Is There Any Tax Benefit on Term Insurance?

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

Different Types of Premium in Term Insurance

Why Married People Should Buy Term Insurance Under MWP Act?

Why Term Insurance Is Better Than ULIP?

Importance of Term Insurance at Every Stage of Your Life

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

Planning For Son or Daughter's Wedding

Insurance Policy for Housewife In India

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

Why Should You Buy Term Insurance in 2022?

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

What are incremental term insurance plans?

Different Types of Protection Plans

Term Insurance Basics You Should Know

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

8 Things To Do After Buying Term Insurance

Is Life Insurance Investment Worthy Enough

10-Year Term Life Insurance Policy - Explained in Detail

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

Tax Benefits of Term Insurance in India

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

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

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

Eligibility Criteria for Buying Term Insurance in India

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

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

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

6 Types of Death not covered in Term Insurance Plan

8 Factors to consider before choosing a Critical Illness Insurance

Side Effects of Covid-19 Booster Doses

What is a short term insurance policy?

Why Should New Parents Buy Term Life Insurance?

Insuring Against Accidents with an Accidental Death Insurance Rider

Should Youngsters, Working Couples Buy Term Insurance Plans?

Advantages & Disadvantages of Term Insurance in India

Can I Get Term Insurance on Behalf of My Spouse?

Calculating Term Insurance Premium

What Happens if you Hide Facts in your Term Insurance?

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

Insuring Protection Against Death With Death Insurance Rider

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

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

Can Senior Citizens Avail Term Insurance?

Term Insurance: Smokers vs Non-Smokers

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

All you need to Know about Term Insurance Plans for Housewives

What All Documents Required For Term Insurance In India?

8 Benefits of Term Insurance You Should Know

What is Critical Illness Policy

How Not To Get Your Term Insurance Claim Rejected

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

Ensure Protection Against Death, Disease & Disability With Life Insurance

टर्म इंश्योरेंस क्या है? टर्म इंश्योरेंस का मतलब

Protection for your family

What is Insurance Premium - A Detailed Guide

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

Planning For Children's Future

9 Ways to Help Family Members in Financial Trouble

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

4 Methods to Calculate How Much Term Insurance You Need

Is term Insurance Needed for People With No Dependents?

Why Buy Term Insurance Plan With a High Cover?

How To Change The Nominee in Term Insurance?

What Are the Best Term Insurance Plans for Planning Retirement?

All About Term Insurance Inbuilt Coverage

Should You Have Multiple Term Life Insurance Policies?

How to Identify Term Insurance According to Your Needs?

Everything About Claim Settlement Ratio for Term Insurance

कोविड -19 बूस्टर खुराक के दुष्प्रभाव

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

What Should You opt for - Limited or Premium Pay?

6 Reasons That Make Term Insurance a Must Buy

Is ₹1 Crore Term Insurance Good Enough Cover?

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

Is a Term Insurance Policy Portable?

9 Most Frequently Asked Questions on Term Insurance

4 Reasons Why You Need Critical Illness Cover

How Does A Term Life Insurance Work in India?

Endowment Plans vs Term Plans: Understanding the difference

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

Cost of Term Insurance Likely to Increase Soon

5 Things To Consider While Buying Term Insurance Plan

Does Term Insurance Cover Accidental Death?

Tips to Choose the Right Term Period for Term Insurance Plan

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

How Does Term Life Insurance Work? Learn the Benefits

Comparing Term Plans – What Should You Look Out For

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

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

How to Buy 1 Crore Life Insurance Policy Without Medical Test

Term Plans are Definitely Cheaper than You Think!

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

What is Term Insurance - A Complete Guide

Term Plan with Spouse Cover

Busting Myths and Facts About Term Insurance Policies

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

Difference Between Term Insurance vs Life Insurance

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

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

Individual Life Insurance vs. Group Term Life Insurance

Why is it important to buy term insurance plan?

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

10 Ways to Get Your Kids Involved in Your Healthy Lifestyle

Key Differences Between Term Insurance, ULIPs, And Health Insurance

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

Advantages of Buying Term Insurance in Your 50s

Do You Need Term Insurance Cover After Retirement?

Insuring Against Disability With Disability Insurance Rider

Is Group Term Life Insurance Provided By Employer Sufficient?

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

Which Death Type Does Your Term Plan Not Cover?

Term Insurance With Riders In India

Term Insurance Age Limit – Term Plan for All Age Groups

Increasing Term Insurance and Riders