Kotak Life Insurance Plan - Life Insurance Policies in India
Close
Close

Buy a life insurance plan in a few clicks

Now you can buy life insurance plans completely online right here.

  • Icon for Kotak Preferred e-Term Plan

    Kotak e-Term Plan

    Kotak e-Term Plan is a pure term plan that provides a high level of protection to your loved ones in your absence.

  • Icon for Kotak Preferred e-Term Plan

    Kotak Health Shield

    The Kotak Health Shield Plan helps secure your finances in times of sudden medical expenses related to illness such as Cardiac, Liver, Neuro and Cancer (all early and major stages of illness /conditions of Cancer); along with offering protection for Personal Accident - in case of accidental death or disability.

  • Icon for Kotak Preferred e-Term Plan

    Kotak Lifetime Income Plan

    Kotak Lifetime Income Plan gives you the assurance of your income continuing throughout your life and in your absence throughout the lifetime of your spouse!

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.

Back

Role of Life Insurance in Your Financial Portfolio

  • 4th Jan 2022
  • 300

Save Tax Now Role of Life Insurance in Your Financial Portfolio

Risks and uncertainties are part of life’s great adventure—accident, illness, theft, natural disaster - anything can happen to anyone at any time. How can you protect yourself or your loved ones in case you are affected by any of these uncertainties?

Life insurance can act as a buffer in more than one way, between the financial distress that life’s uncertainties may cause and your loved ones.

Three Important Roles of Life Insurance

Life insurance can do more than just being there as a financial blanket for your family. In this article, we are going to discuss about three major roles that life insurance policy will play in your life, which you might not be aware of.

Life insurance as an “Investment”

While most people recognise the risk hedging and tax saving potential of insurance, many are not aware of its advantages as an investment option. Insurance products yield more compared to regular investment options, and this is besides the added incentives or bonuses offered by insurers. You cannot compare an insurance product with other investment schemes for the simple reason that it offers financial protection from risks, something that is missing in non-insurance products.

In fact, the premium you pay for an insurance policy is an investment against risk. Thus, before comparing with other schemes, you must accept that a part of the total amount invested in life insurance goes towards providing for the risk cover, while the rest is used for savings.

In life insurance, you get maturity benefits on survival at the end of the term. For example, if you take a life insurance policy for 20 years and survive the term, a part of the amount invested as premium in the policy may come back to you with added returns. In the unfortunate event of death within the tenure of the policy, the family of the deceased will receive the sum assured. Thus, insurance is a unique investment avenue that delivers sound returns in addition to protection.

Life Insurance as “Risk Cover”

Insurance is about risk cover and protection. To be more precise, it acts as a financial protection to help outlast life’s unpredictable losses. Designed to safeguard against losses suffered on account of an unforeseen event like death, insurance provides you with that unique sense of security that no other form of investment provides. By investing in life insurance, you ensure peace of mind and are prepared to face any financial demand that would hit the family in case of an untimely demise.

With the entry of private sector players in insurance, you have a wide range of products and services to choose from. Many of these products can be further customised to fit individual/group specific needs. Considering the premium, you have to pay now, it’s worth buying some extra sleep. Insurance firms collect contributions from many people who face the same risk.

A loss claim is paid out of the total premium collected by the insurance companies, who act as trustees to the monies. Insurance also provides a safeguard in case of accidents or a drop in income after retirement. An insurance policy can lend timely support to the family in case of an accident etc. It also comes as a great help when you retire.

Life Insurance as “Tax Planning”

Insurance serves as an excellent tax saving mechanism too. The Government of India has offered tax benefits to life insurance policies in order to facilitate the flow of funds into productive assets. Buying a life insurance plan entitles you tax benefits on:

  • Deductions under Section 80C
  • Maturity or death claim proceeds under Section 10 (10D)

Disclaimer: Tax benefits under the policy will be as per the prevailing income tax laws and are subject to change in the tax laws. You are advised to consult your tax adviser for details.

While one may not be able to avoid getting caught in the effects of life’s workings, life insurance acts like a three-headed spear, which cuts through the financial doubt, dilemma, and distress that any untoward incident may cause you and your family.

- A Consumer Education Initiative series by Kotak Life

Tags

Also read

  • What are the tax benefits of Sukanya Samriddhi Yojana (SSY)?

    Sukanya Samriddhi Yojana (SSY) for the parents of a girl child have been initiated to encourage campaigns like ‘Beti Bachao Beti Padhao’. Click he...

    Read more
  • How to File Income Tax Return

    How to file ITR? Is one of the most common question asked. ITR filling is now very easy and can be done online. Here’s the guide on how to file ITR ...

    Read more
    • 2nd Dec 2021
    • 333

    Tax Deductions You MUST Know

    Taxes are a crucial part of the country, and as dutiful citizens, we all must pay our taxes on time. In this article, we will talk about some of these...

    Read more

Related Plans

  • Kotak e-Term Plan - Online Term Insurance

    Kotak e-Term Plan - Online Term Insurance

    Kotak e-Term Plan is a pure term insurance plan that provides a holistic life protection at affordable prices. Find out the eligibility criteria, key ...

    Know more
  • Kotak Term Life Insurance Plan

    Kotak Term Life Insurance Plan

    The Kotak Term Plan is a pure risk cover plan and an economical way of providing an adequate level of financial protection.

    Know more
  • Kotak Group Shield

    Kotak Group Shield

    Kotak Group Shield Plan covers your customers' loans and savings and protects the well-being of your customers and their family members in the event o...

    Know more
  • Kotak Assured Income Accelerator

    Kotak Assured Income Accelerator

    Kotak Assured Income Accelerator ensures that you get Guaranteed Income every year on the same amount of savings and that the Guaranteed Income increa...

    Know more