What is Salary Protection Insurance and Why You Need to Know?
Close
Close

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

  • Icon for Kotak Preferred e-Term Plan

    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.

  • Icon for Kotak Guaranteed Savings Plan

    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.

  • Icon for Kotak Preferred e-Term Plan

    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!

  • Icon for Kotak Preferred e-Term Plan

    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.

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

What Is Salary Protection Insurance and Why You Need It

Term Insurance Quote
  • 15th Mar 2021
  • 2,501

What Is Salary Protection Insurance and Why You Need It

You work hard your entire life to ensure that your loved ones get the best of everything. Why not help them with the same, when you are not around with salary protection insurance? Salary protection insurance, also known as income protection insurance, is a financial product that safeguards your family members in your absence.

Here are a few reasons why you might need salary protection insurance.

1. Salary protection insurance secures your loved ones in your absence.

If you earn a regular income and have family members dependent on it for their living, salary protection is the perfect solution. It ensures that they do not have to look for other ways to make ends meet in your absence. It does this by providing a guaranteed payout on your demise that helps them stay afloat during turbulent times. Moreover, it aids them in fulfilling life’s milestones like:

  • paying for a child’s education or marriage
  • adding to funds for a spouse’s retirement
  • buying a new home/ setting up a business
  • paying off any debts/ loans left by you

2. Salary protection insurance helps maintain the lifestyle of your loved ones.

Apart from giving a fixed payout on your demise, salary protection insurance also gives out regular payouts that help your family maintain their usual standard of living. With it, they do not have to compromise on their spending. Moreover, these steady payouts take off the burden of managing a lump sum amount and prevent a large pool of funds from running out quickly. Small and regular income payouts help to make it easy to manage money and meet needs from time to time.

3. Salary protection insurance keeps up with the times and fights inflation.

With salary protection insurance, you do not have to worry about your invested money remaining dormant. At the end of each policy year, the payout increases by a fixed percentage with the effect of compounding. This increase is generally around 5% - 6%, depending on the insurance company. It counters inflation and gives your loved ones the benefit of receiving the present value of money.

Protect your family with Kotak Life Income Protection Plan

If you want to leave a legacy of financial security for your loved ones after you are gone, you can get Kotak Life Income Protection Plan to do so. The plan offers a range of benefits that include:

● An assured death benefit (sum assured) in a lump sum.

❏ This benefit amount is equal to 12 times the monthly income of the insured and compounded at the rate of 6% per year

❏ The total death benefit amount and increased monthly payouts are 10 times the annual premium, or;

❏ 105% of the total premiums paid until the date of the insured’s demise

➢ A monthly income payout of the remaining benefit amount/ sum assured

➢ A monthly income increase by 6% per policy year to negate inflation

➢ The option to add an accidental disability guardian benefit rider

➢ Regular and limited paying premium terms

➢ A policy term ranging between 10 – 30 years

➢ Tax benefits under section 10 (10D) and 80C of the Income Tax Act, 1961

➢ A free-look period of 15 days

With salary protection insurance, you get the necessary peace of mind knowing that your near and dear ones will not have to compromise on their financial needs. With it, you can continue to support them, even when you are not around.

- A Consumer Education Initiative series by Kotak Life

Also read

  • Tax-Savings Investments and Options in India

    Tax Savings Investment – Compare different options on how to save tax in India. Know more about tax savings schemes and options here on this article...

    Read more
  • A Complete Guide for Filing ITR 3 Form

    ITR 3 Form - Read Complete guide for filing ITR 3 here on this article. Visit Kotak Life to know more taxation

    Read more
    • 8th Feb 2022
    • 976

    When Should TDS be Deducted and Who is Liable to Deduct it?

    Tax deduction at source (TDS) is done by the employer while paying its employee (salary/wages) on taxable income; at the time of payment. This then cr...

    Read more

Related Plans

  • Kotak Sampoorn Bima Micro-Insurance Plan

    Kotak Sampoorn Bima Micro-Insurance Plan

    Kotak Sampoorn Bima Micro Insurance Plan is a single premium plan with fixed term of 5 years to cater to the needs of low-income customers.

    Know more
  • Kotak Guaranteed Savings Plan

    Kotak Guaranteed Savings Plan

    A Non-Linked Non-Participating Life Insurance plan

    Know more