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Term insurance is a straightforward and cost-effective form of life insurance that offers financial coverage for a specific period. In exchange for regular premium payments, it ensures that your loved ones receive a lump sum amount (death benefit) if something unfortunate happens to you during the policy tenure.
This benefit can help your family manage essential expenses like household needs, education, and healthcare in your absence. ... Read more
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A term plan is a life insurance policy that ensures your family’s financial security in case of your untimely demise during the policy tenure. The death benefit can help them manage household expenses, repay debts, or fulfil future goals in your absence.
These plans offer pure protection for a fixed duration, making it possible to get high coverage at relatively affordable premiums. Policyholders can also choose to pay premiums either as a lump sum or in regular intervals (monthly, quarterly, or yearly), adding flexibility to suit different budgets. For instance, a ₹1 crore term insurance plan can cost as little as ₹15 per day, offering extensive protection at minimal cost.
Their affordability, simplicity, and flexibility make term plans a preferred option for anyone looking to secure their loved ones’ future. Discover more aboutwhat is term insurance and how it can add value to your financial planning.
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Buying a term insurance plan ensures financial security and peace of mind for your loved ones when it matters most. Here are some meaningful reasons why you should consider purchasing a term insurance plan:
If you are the primary earning member, your family depends on you for their everyday needs and future goals. With term insurance, you can provide them with a financial safety net that ensures their life stays on track, even in your absence. It helps cover essentials like household expenses, children's education, and more.
Loans taken for a home, car, or education can become a heavy burden for your loved ones if something unexpected happens to you. A term life insurance plan offers a lump sum payout that your family can use to clear these debts, allowing them to retain the assets you worked hard to acquire.
With rising instances of lifestyle diseases, health risks have become a reality for many. Term insurance provides your family with crucial financial support during tough times, ensuring that the financial impact of critical illnesses or sudden loss does not disrupt their standard of living.
Life is unpredictable. As seen during unforeseen events like the COVID-19 pandemic, having a contingency plan like a COVID-19 term insurance is essential. This plan ensures that your loved ones have the funds they need to manage emergencies and continue with their lives comfortably.
Lifestyle diseases can lead to unexpected health complications, making financial planning essential. A term plan ensures your family remains financially secure in case of such unforeseen events, helping them manage expenses and maintain stability even during difficult times.
You can tailor your term insurance plan to match your unique needs by adding riders like critical illness cover, accidental death benefit, or waiver of premium. This flexibility allows you to enhance your protection without having to purchase separate policies.
Apart from protecting your family's future, term insurance offers financial security along with term insurance tax benefits. Premiums paid are eligible for deductions under Section 80C of the Income Tax Act, 1961, and the death benefit received is generally tax-free under Section 10(10D), subject to conditions.
When you buy term insurance plans, the insurer pays a death benefit to your nominees if you pass away during the policy term, helping your family maintain financial stability. An income replacement term plan ensures steady financial support in your absence.
Your term insurance journey begins with a formal agreement between you and the insurance provider. By agreeing to pay regular premiums, you receive financial coverage for a fixed term. In this contract, the person whose life is insured is referred to as the ‘life assured,’ while the insurer promises to pay a defined sum to the nominee in case of the life assured's demise during the policy term.
The proposal form is a vital part of the process where you submit essential personal and financial information such as age, income, lifestyle habits, occupation, and medical history. Accurate and honest disclosure ensures smooth underwriting and reduces the chances of future claim rejection.
Before finalizing the plan, evaluate your family’s financial responsibilities, such as loan repayments, children’s education, and regular living expenses. Based on this, you can determine the appropriate coverage amount, policy tenure, premium payment mode, and whether to add any optional riders for enhanced protection. If your long-term obligations are significant, opting for a ₹ 1.5 crore term insurance plan may offer the financial security your family needs in your absence.
Once the insurer reviews your proposal and approves the application, your premium is calculated. The policy is activated upon payment of the first premium. You can choose from flexible payment options (monthly, quarterly, or annually) based on your financial convenience.
Appointing a nominee is a crucial step to ensure the financial benefit reaches the intended beneficiary. The nominee will receive the sum assured in case of the life assured’s passing, making it important to choose someone trustworthy and update the nominee’s details after any major life events.
Let’s take a look at who should buy a term insurance plan: anyone with financial dependents such as parents, single individuals with senior parents, professionals with debts, or those nearing retirement.
Age significantly influences term insurance premiums. As you get older, premiums increase due to a higher risk of health issues. Younger individuals are typically healthier, which means lower risk for insurers. To make the most of affordable coverage, it is advisable to purchase term insurance early in life. By doing so, you not only lock in lower premium rates but also secure long-term financial protection for your family without overburdening yourself later.
Health risks such as Hypertension, Diabetes, or heart conditions raise your insurer's risk, leading to higher premiums. These conditions become more common with age, which is why early policy purchase often results in better pricing.
Insurers use mortality risk to estimate life expectancy. A higher age typically equates to increased mortality risk, directly influencing the premium you pay for term insurance coverage.
Delaying your term insurance purchase can significantly increase your premium over time. By investing early, you benefit from lower rates and extended protection when it's most needed.
Life Cover till
85
years for Life & Life Secure OptionSpecial Rates
for
WomenSpecial Rates
for
Non-Tobacco Users3 Payout Options
Option to exit
the
policy with a premium refund at the age of 60*Free Medical
Check
Up every 5th year**High Insurance Cover at economical priceSpecial Discount for Female LifeInstant Payout on claim intimation of ₹2 LakhLonger Life Coverage up to Age 85 YearsInbuilt Health & Wellbeing BenefitsAdditional Discount for Salaried Customers100% Return of
Premium on survivalLife ROP and
Legacy
ROP plan optionsCover 2
generations
under 1 planAdditional 5%
life
cover for female livesEnhanced
Protection
with RidersTax Benefits u/s
80C
and 10(10d)Kotak Term Plan
Kotak Saral Jeevan Bima
Health Maximiser
Kotak Life offers a range of term insurance benefits designed to strengthen your financial security and ensure your family's well-being. With comprehensive coverage and flexible features, these plans help you prepare for uncertainties while securing long-term peace of mind:
Term insurance plans generally have affordable premiums, allowing you to opt for high coverage without straining your finances. The earlier you buy, the lower your premium, and rates stay fixed for the duration of the policy, helping you lock in cost-effective protection.
Many term plans ensure a guaranteed payout to the nominee upon the policyholder's death within the term. This assurance gives your family financial certainty during difficult times and helps them manage essential expenses without delay.
You can choose how the death benefit is paid to your nominee, whether as a lump sum, a regular monthly income, or a combination of both. This ensures your family receives financial support in a way that best meets their needs.
Some term plans come with a return of premium option, which refunds all the premiums paid if you survive the policy term. It combines the security of insurance with a savings element, so your investment is never entirely lost.
Term insurance gives the flexibility to customize how long your policy lasts and its coverage. You can pick a term that suits your needs and tweak the amount whenever you want. You can go for a ₹5 lakh term insurance or ₹10 lakh term insurance if you have limited needs or a ₹3 crore term insurance for more comprehensive protection.
You can use term insurance to create a steady income source, pay off estate taxes, or clear outstanding debts. With an extensive term life insurance plan like a ₹ 2 crore term insurance, you can secure your loved ones’ future.
Many term insurance plans let you addcritical illness riders. These add-ons pay out a lump sum amount if you get diseases like cancer, have a heart attack, or suffer a stroke. This can help you with hospital bills, which keeps your family's money safe.
If you end up with a lifelong disability from an accident, disability insurance riders can offer financial support. When you buy such a term plan, the insurer can help pay for your daily needs and medical care during recovery.
If the insured person passes away during the policy period, term insurance provides a lump sum payment to the beneficiaries. This money helps your family maintain their living standard, pay off any debts, and ensure they're okay in the future.
Buying term insurance is wise, but knowing how to avoid claim rejection is crucial. Here’s how you can prevent common mistakes and ensure a smooth claim process.
Disclose all relevant details, including your age, income, occupation, health history, and habits like smoking or alcohol consumption. Any misrepresentation or omission can result in claim denial later. Ensure your medical history is shared in full, including surgeries or ongoing treatments.
Your term plan stays active only when premiums are paid on time. Delayed or missed payments can lead to a policy lapse. Set up automatic payments or reminders and ensure your bank account has sufficient funds to avoid unintentional lapses.
Your nominee is the person who will receive the claim benefit. Add correct nominee details such as name, relation, and contact, and update them after life events like marriage, divorce, or the nominee's demise. Always inform your nominee about the policy and claim process.
Before buying a term plan, read the policy brochure and fine print carefully. Understand what is included and excluded. Know the terms for riders, premium payment options, claim settlement timelines, and survival benefits, if any. This avoids unpleasant surprises later.
If there’s a change in your address, phone number, or health status, notify your insurer immediately. Delays in updating details can create issues during the claim process. Prompt communication helps maintain transparency and ensures timely assistance during emergencies.
Double-check every detail in the application form. Don’t leave fields blank or guess any answer. Use official documents for data entry and avoid relying on memory. Incorrect or incomplete forms can raise red flags during underwriting and claim approval.
If you don’t understand any aspect of your term plan, especially any specific terms or jargon, take time to familiarise yourself with common term insurance terminology. Speak to an insurance advisor or customer service representative for clarity. Avoid making assumptions, and for unresolved concerns, use the insurer’s grievance redressal system or escalate the issue to the IRDAI.
A term insurance policy comes with important features that provide affordable and reliable financial protection for you and your loved ones.
While the low premiums make these plans lucrative, different payment methods add to the benefits and suit a wider range of policy buyers. They may pay the premiums yearly, half-yearly, quarterly, or monthly, depending upon their convenience, and even as a single premium term insurance.
Term insurance offers massive coverage against liabilities such as home loans, personal loans, and other debts due. In the case of the untimely demise of the policyholder, this death benefit shall be used to help pay pending debts and hence save the surviving family members from the financial burden.
Most of the term insurance plans extend coverage up to a considerably high maturity age of 75 or even 100 years. This ensures long-term financial protection, peace of mind, and financial security for your loved ones, irrespective of when the event of death may occur.
Aterm plan with return of premiumfeature pays back all the premiums if the policyholder survives the policy term. This provides a financial cushion and a certain savings element that was lacking in pure protection given by term insurance. This is an example of zero cost term insurance, where the policyholder benefits from risk coverage and savings.
Since term insurance policy premiums usually do not have any investment components, the premium you pay for buying a term policy is normally less, unlike other life insurance products. Again, when one purchases a term plan while young, it usually results in cheaper premiums.
Other than Section 80C, the premium paid for any rider that covers health-related expenses, such as critical illness riders, is allowed as a deduction under Section 80D. This provides additional tax savings and makes a term insurance investment tax-efficient.
These plans provide a term policy that offers a lump sum payout on the occurrence of any of the critical illnesses specified in the policy document. Such a payout can be availed to compensate for loss of income, medical expenses, and other financial expenses throughout the recovery period. That is to say, one gets comprehensive financial support during times of health crisis
Accidental death and disability cover riders provide extra benefits in the event of death or disability due to an accident. The accidental death rider provides an additional payout, while an accidental disability rider allows one to seek financial support in cases of permanent or temporary disability through the coverage of treatment expenses and loss of income.
Term insurance plans come in various forms to suit different needs, life stages, and financial goals. Be it simple life coverage, added health benefits, or enhanced protection through riders, there's a term plan customized just for your requirements. Below are the different types of term insurance plans you can consider:
Basic term insurance offers your beneficiary the death benefit in the event of any untimely death during the policy term. Whether you buy a 5 year term insurance , a 10 years term insurance , or a 15 year term insurance, the insurer will offer a payout if you pass away during this term. Otherwise, no proceeds will be given out at the end of the term.
An increasing term plan is a type of dynamic policy, where the sum assured amount grows progressively over the years. The death benefit can have an upper cap on the sum assured's growing amount. This policy, just like the basic term policy, does not give any maturity benefits but does have life coverage.
In decreasing term policies, the death benefit amount goes on declining gradually as the policy term is about to end. Such policies usually have affordable premiums because their core purpose is to cover some specific debt or loans.
In a TROP plan, you can get back all the premiums paid throughout the policy term after the plan expires. All the premiums are returned to you under this arrangement. TROP plans also provide a maturity benefit, apart from life coverage being provided if you survive the policy term.
Term insurance with critical illness cover has a rider under which the policyholder or the beneficiary is given a lump sum in case a person gets diagnosed with a critical illness such as cancer, heart attack or stroke. This can help cover the heavy costs of medical treatment for critical illnesses.
This type of term insurance may have an added feature of accidental death rider wherein the policyholder receives an additional payout if the cause of death is an accident. The accidental death benefit is usually a multiple of the basic sum assured and, therefore, gives additional financial protection to the policyholder's family in the case of an accidental death.
A convertible term plan gives you the flexibility to switch to a permanent life insurance plan (like whole life or endowment) during the policy term. This conversion typically requires no additional medical exams, making it ideal if your financial responsibilities or protection needs evolve over time.
Joint life plans insure two people under one policy, often spouses or partners. The death benefit is usually paid on the first policyholder’s death, with some plans continuing coverage for the survivor. It offers an economical way to ensure shared financial responsibilities are protected in case of unexpected loss.
Term plans with riders provide added protection beyond basic coverage. Riders such as accidental death, critical illness, or premium waiver help address specific life risks. These customizations allow you to strengthen your policy’s effectiveness without purchasing multiple insurance products, all at an affordable additional premium.
When you invest in a term insurance policy, it is important to choose an insurer known for its reliability in settling claims. A high Claim Settlement Ratio (CSR) is a strong indicator of an insurer’s commitment to honoring its promises to policyholders and their families. Kotak Life Insurance has consistently maintained an impressive claim settlement track record, offering reassurance that your loved ones’ claims will be processed smoothly during difficult times.
As per the IRDAI’s Annual Report 2024, Kotak Life Insurance recorded an individual Claim Settlement Ratioof 98.61% and a group Claim Settlement Ratio of 99.63%. Here is a look at the claim settlement performance of Kotak Life Insurance over the past few years:
| Year | Claim Settlement Ratio |
|---|---|
| 2024-2025 | 98.61% |
| 2023-2024 | 98.29% |
| 2022-2023 | 98.25% |
| 2021-2022 | 98.82% |
| 2020-2021 | 98.50% |
| 2019-2020 | 96.20% |
| Parameters |  Kotak
e-Term |
Traditional Plans |
|---|---|---|
| Plan Options | 3 Plan Options | Majorly 1 or 2 plan options |
| Affordability | Premiums start at just ₹15/day* | Differs from ₹20-25/day |
| Cost Savings | Up to 62%* with 5-Year Limited Pay Option on total premium | Variable as per term |
| Discounts | Online discounts of up to 7.5% | Online discounts from 5-8% |
| Option to Exit the Plan | Yes | Allowed |
Several factors determine the premium you pay for term insurance. Here’s a breakdown of what affects the cost:
The younger you are when buying a term policy, the lower your premiums will be. Younger individuals are considered healthier and have a longer life expectancy, making them less risky to insure.
Habits like smoking or excessive drinking can raise your premiums. These lifestyle choices are linked to higher health risks, so insurers charge more to cover potential claims.
Sum assured is the amount of coverage provided in case of your untimely demise. The higher the coverage amount you choose, the higher your premium will be.
Your profession can also influence premiums. Jobs with higher risks, such as those in construction, mining, or aviation, may lead to higher premiums than desk jobs.
Statistically, women have a longer life expectancy than men. As a result, women often pay slightly lower premiums for the same coverage.
If you have pre-existing medical conditions or a history of serious illnesses, your premium may be higher to account for the increased risk.
Policy term refers to the duration of coverage you select. A longer policy term generally results in higher premiums.
Rider benefits are additional features added to the policy, such as critical illness or accidental death benefits. These increase your premium.
Engaging in adventurous activities like skydiving, scuba diving, or mountaineering can increase premiums. These hobbies are considered risky, and insurers factor in the additional danger.
Certain life events make it ideal to buy a term life insurance policy. You should consider getting insured under the following circumstances:
You should try to buy a health plan while you are relatively healthy, as it can help you secure lower premiums. If you are susceptible to any diseases or have a family history of illnesses, it is wise to get term insurance as early as possible.
When you are getting married or planning to start a family, it is essential to think about your loved ones’ financial security. A term policy ensures your partner and future children are protected in case something happens to you.
If you have taken a home loan, car loan, or any significant financial liability, term insurance can help. It ensures that your family won’t have to worry about repaying debts in your absence.
Welcoming a child into your life brings immense joy but also financial responsibility. Term insurance gives your growing family a safety net to meet expenses like education, healthcare, and daily needs.
Are you switching jobs but worried about losing employer-provided life insurance benefits? An individual term life policy can avoid such concerns, as it provides consistent coverage, no matter where you work.
If you are considering leaving an inheritance or ensuring that your assets are passed on smoothly to your loved ones, term insurance is a smart choice. It can provide the funds needed for estate taxes or other expenses.
If it has been a few years since you purchased life insurance, reviewing your coverage is a good idea. Changes in your income, family size, or financial responsibilities might mean you need more comprehensive protection.
I recently bought a Kotak Life Term Insurance plan online and received a special discount. The premium lowers from second year onwards, making their 1Cr E-Term plan very affordable. The whole process was fast and seamless, which made buying the plan really easy.
- Sameer Mere
I always thought term insurance wasn’t useful, but Kotak Life helped me realize that it’s about protecting the people I care about. One thing I specifically liked about the plan is the special exit option because if nothing happens by the time I’m 60, I’ll get back all the premiums I paid for. That made me feel secure.
- Pankaj Kumar
I bought a Kotak Life term insurance plan and received a special discount for women, along with access to the wellness app, Happy You. The app offers free doctor consultations and health tasks that earn redeemable points. This unique benefit is truly valuable, as I couldn’t find anything like it offered by any other company.
- Unmani Joshi
My experience with Kotak e-Term Plan from filling the proposal form to policy issuance has been smoother. Uploading documents is generally challenging, but it was quite easier with Kotak Life. Their portal is responsive and intuitive. Keep up the good work.
- Mukund Solanke
Buying a term plan was long due for me. I found Kotak Life, logged in on their website and I got a call from their agent. I checked my eligibility through their portal, got a quote for the premium and I was in. My family's financial security was now in my hands. Now my life is stress-free.
- Rahul Gupta
Buying a term plan online sounded like a challenge as I am not used to buying critical insurance plans online. I came across Kotak Life when someone at work recommended to buy their Kotak e-Term plan. The plan is very simple, offered me plan options and I knew exactly that this was the right plan for me.
- Pranjal Gusain
I have a good financial portfolio but there was one thing missing, a term plan. I wanted to buy term plan was to ensure my spouse's financial future and keep her ready for any financial liabilities in my absence. After considering different plans, I finalized Kotak e-Term plan since it aligned perfectly with what I was looking for.
- Shehzan Merchant
Be it my family's financial future or my little one's happiness, Kotak e-Term plan helped me secure all of it in one insurance plan. They have affordable premiums, good life cover and some rider options that helped me manage many things at once. I strongly recommend you to buy a Kotak e-Term plan asap.
- Apurva Amod Gadikar
I was looking for a term plan when I came across Kotak e-Term plan and used their portal to calculate premium. They have a simple portal where you enter the information and get a quote. Beyond that, I just enjoyed the fact that their journey is easy to follow and their call centre team assists if you are stuck somewhere.
- Anil Kumar G
Kotak e-Term plan was one of the recommended term plan while I was researching about the same. The service by the call centre agents was good. Also, their online portal is perfect. The Kotak e-Term plan helped me to become stress-free about any financial liability that might fall on my family, after me.
- Apurva Amod Gadikar
Kotak e-Term plan was a term plan I came across in an ad while surfing social media. I could not find a better term plan. It is affordable and they have good service centre agents who help you with everything kindly and patiently. Buy a term plan if you want to live a stress-free life, save taxes and ensure your family's finance is in good hands.
- Rajaganesh Rj
A term plan is one of the insurance policies everyone should have, as per me. I bought Kotak e-Term plan and paying premiums for a year or more. The best part is it offered me flexible premium payment options that aligned with my financial commitments. Plus, they have different plan options that makes it easier for choosing the right cover as per your needs.
- Jayant Mohanrao Gaikwad
Buying a term plan online offers convenience, quick processing, and easy access to the best term insurance plans available.
Purchasing a Kotak Life Term Insurance plan online is a straightforward process. Follow these three simple steps to get started:
Start by estimating how much coverage you need. Consider your age, income, existing liabilities (like loans), number of dependents, and future goals such as your children’s education or marriage.
Use Kotak Life’s online calculator to determine an appropriate sum assured that will sufficiently protect your family's financial future.
Next, customize your policy by choosing your preferred plan type (e.g., Life, Life Plus, or Life Secure), policy term, premium payment term, and payout option (lump sum, recurring, or combination).
You can also add useful term insurance riders like critical illness or accidental death benefits for enhanced coverage. Once your preferences are set, click on “Get a Quote” to view your premium estimate.
Provide your personal and financial information, such as name, age, contact details, income, and health status. Ensure all data is accurate to avoid issues during claim settlement.
After reviewing your customized plan, proceed to make the payment online. Your policy documents will be issued digitally once the payment is successful.
Kotak Life Insurance offers several riders that can enhance the benefits of a term policy. Here are the top 3 riders to consider for better coverage:
This rider waives future premiums if the policyholder suffers permanent disability due to an accident or illness. The term policy remains active, and the sum assured is paid as planned. It offers financial relief and ensures continued coverage even if the insured can no longer earn an income.
The Accidental Death Benefit rider offers an extra payout to the nominee if the policyholder dies in an accident. This amount is in addition to the base sum assured, providing added financial support to the family during difficult times and enhancing protection against unexpected events.
Kotak Life’s Critical Illness Rider is an add-on to a life insurance policy that provides financial protection if the policyholder is diagnosed with a specified critical illness like cancer, heart attack, or stroke. It offers a lump sum payout upon diagnosis, helping cover medical expenses, loss of income, and other financial burdens during recovery.
List of Covered Critical Illnesses:
Term insurance premiums can vary based on several factors, such as age, health condition, lifestyle habits, and policy features. With thoughtful choices and timely actions, you can significantly lower your premium without compromising on coverage. Below are some effective ways to reduce your term insurance premium:
Purchasing a term insurance plan at a young age not only gives you access to lower premiums but also ensures longer coverage. Since younger individuals are perceived to be at lower risk, insurers offer better rates. For instance, a healthy 25-year-old male can get ₹1 crore sum assured for just ₹9,500 annually, while a 35-year-old might pay ₹15,000 for the same.
Your habits and medical history directly impact your premium. Avoiding smoking and alcohol, and staying fit can reduce your insurance costs significantly. For example, a smoker may end up paying double the premium of a non-smoker. Also, managing conditions like diabetes or hypertension can help you get more affordable premiums during underwriting.
Select a sum assured that matches your financial obligations, such as loans, child’s education, and monthly expenses. Tools like term insurance premium calculators help you estimate this accurately. A ₹1.2 crore plan may cost approximately ₹23/day, whereas a ₹2.5 crore plan might cost around ₹39/day, depending on your age and health status.
This showcases how a well-calculated, higher sum assured can still be economical, especially when you buy early and select the right tenure. Additionally, selecting a tenure aligned with your retirement age and a longer premium payment term can help keep the premium amount affordable.
Online plans eliminate intermediaries, reducing operational costs for insurers. These savings are often passed on to policyholders through lower premiums. Many insurers also offer exclusive online discounts on first-year premiums, making it a smart financial move.
If you’re looking for simplified processes and affordability, term insurance without medical test options is also available online. These plans cater to individuals who prefer quick issuance without medical formalities, though they may come with certain conditions and lower coverage limits.
Premiums, riders, and terms vary across insurers. Use trusted comparison tools to evaluate options side-by-side. Comparing helps you find policies that offer maximum benefits at minimum cost without compromising on essential features.
While term insurance riders like critical illness or accidental death benefits provide added coverage, they also increase your premium. Select only the riders that fit your lifestyle and risk profile. For instance, if you frequently travel by road, an accidental death rider may be justified; otherwise, it can be skipped to save on costs.
Opting for annual payments instead of monthly or quarterly modes often comes with built-in discounts. Over the years, these savings add up. For instance, if your monthly premium is ₹850, you would pay ₹10,200 over a year. But with an annual payment mode, the premium might be reduced to ₹9,600, resulting in a yearly saving of ₹600, or nearly 6%.
Many believe term insurance for family is a waste of money because it doesn't provide cash value. However, its primary purpose is to offer financial protection to your family through a death benefit.
People often think health insurance covers all needs. While it pays for medical expenses, it doesn't provide financial support to your family if you pass away. Term insurance specifically secures your family’s financial future.
Insurance companies offerterm insurance for smokersas well as for those who have existing health issues. However, such individuals should disclose all information while buying the plans and may be required to undergo additional medical tests.hhk
There’s a common belief that term insurance premiums are high. In reality, term insurance is one of the most affordable life insurance options, especially for younger individuals in good health.
Some delay purchasing term insurance, thinking they can buy it later. However, premiums increase with age, and health issues may arise, making it more difficult or expensive to get coverage later.
Many assume only the primary income earner needs insurance. In reality, anyone contributing to the household, whether financially or through caregiving, should have coverage to protect their family’s standard of living.
Choosing the right term insurance policy period depends on your age and financial goals. Here’s how to decide the ideal duration.
When it comes to protection regarding the financial future of our loved ones, term life insurance offers indispensable security. You would need to understand different available payout options, such as an income replacement term plan, in order to arrive at a suitable decision. You can choose one of the following payout options for your term insurance cover:
If you choose this option, your nominee shall receive the outstanding amount in one installment. If you have chosen ₹ 75 lakh term insurance, for example, the entire amount of ₹75 lakhs will be paid to your nominee once their claim has been processed.
This option combines a one-time lump-sum payment and consistent income. For example, in ₹ 25 lakh term insurance, ₹10 lakhs could be paid upfront as a lump sum, while the remaining ₹15 lakhs are distributed in fixed monthly or annual installments over a specified period.
A part of the death benefit is provided to the beneficiaries as a lump sum, accompanied by regular monthly payments, which increase with time. Such plans provide a higher payout in the later years, thus catering to inflation and increased living costs.
Having the right documents ready is key to a smooth term life insurance claim process. Here’s what you need to prepare.
The official death certificate is a mandatory document to confirm the policyholder's demise. It’s issued by the municipal or local authority and serves as the primary proof for initiating the claim process.
The original term life insurance policy document must be submitted. This document contains all the details of the policy, including the terms, sum assured, and nominee information.
You will need the identification proof of the deceased policyholder, such as an Aadhaar card, PAN card, or passport, to verify their identity.
If the death was due to illness, the medical records and treatment history of the policyholder will be required to validate the claim. These records provide details of the illness and its progression.
In case of accidental death or unnatural causes, a police report or FIR (First Information Report) must be submitted. This helps verify the circumstances surrounding the death.
The nominee or beneficiary must provide their identification proof, such as an Aadhaar card or voter ID, to establish their identity and claim rights.
You must submit the nominee’s bank account details, including a canceled cheque or a copy of the passbook. This helps process the claim payout and ensures the funds are transferred directly.
A document proving the relationship between the policyholder and the nominee, such as a marriage certificate, birth certificate, or other legal papers, may be required.
Depending on the insurer’s requirements, additional documents like a post-mortem report or employer’s certificate may be requested for specific cases.
Choosing the right term insurance plan involves more than just comparing premiums. It is about aligning your policy with your life stage, income, and long-term responsibilities. A well-suited plan can secure your family's future by offering adequate coverage for the right duration. Below are three important ways to choose a term insurance plan tailored to your unique profile and financial circumstances.
Selecting the right policy term ensures your family remains financially protected throughout key phases of life. Choose a duration that covers you until major obligations like children’s education, home loan repayment, or retirement are fulfilled. Here are common term durations to consider:
Your age significantly influences the premium cost and policy options. The younger you are, the more economical and flexible your insurance plan will be. Below are typical term plans categorized by age:
Your salary helps determine the right sum assured to maintain your family’s lifestyle. It’s recommended to choose a coverage amount that’s 10–15 times your annual income. This ensures your family can meet future expenses comfortably, even in your absence. Below are sample categories based on income:
Here are some of the most common exclusions that may apply to term life insurance policies:
Most term insurance policies do not cover suicide in the first 12 months (or as specified in the policy). If the policyholder dies by suicide within this period, the insurance company may not pay the death benefit. After the exclusion period, suicide may be covered, but it depends on the insurer’s terms.
Example:
If a policyholder dies by suicide within the first year of purchasing the policy, the nominee may not receive the death benefit.
Death resulting from the consumption of drugs, alcohol, or other controlled substances is generally excluded in term insurance policies. If the policyholder’s death is caused by an overdose or alcohol-related accidents, the claim could be denied.
Example:
If a policyholder dies in an accident after consuming alcohol beyond the legal limit, the insurance company may reject the claim.
Insurance companies may not cover death or disability caused by pre-existing medical conditions. If the policyholder has a medical condition before purchasing the policy (and it is not disclosed to the insurer), the insurance company could refuse to pay the claim
Example:
If the policyholder had a heart condition prior to purchasing the policy and dies due to heart failure, the insurer may deny the claim if the condition was not disclosed at the time of purchase.
Death resulting from involvement in illegal activities such as criminal acts or acts of terrorism may not be covered under most term insurance policies. If the policyholder's death is due to engaging in unlawful activities, the insurer may refuse to pay the death benefit.
Example:
If a policyholder dies while committing a robbery, the insurance company will likely exclude the claim due to the illegal nature of the activity.
Term insurance policies generally exclude coverage for self-inflicted injuries. If the policyholder intentionally harms themselves, the death benefit may not be paid out.
Example:
If the policyholder dies due to injuries they inflicted on themselves, the insurance claim will typically be denied.
Insurance policies generally require the nominee to file a claim within a specified time after the policyholder’s death (usually within 90 days). If the claim is not filed within this period, the insurance company may reject the claim.
Example:
If the nominee fails to submit the required documents or claim form within the stipulated timeframe, the insurer may not approve the claim.
The number of years you need to pay for term insurance, known as the premium payment term, depends on the policy. It can range from a limited period (e.g., 10 or 15 years) to the entire policy tenure, which is typically up to the age of 60–75 years or as chosen by you.
The tenure of a term insurance policy can vary, with options typically ranging from 10 to 40 years. The length of the policy tenure is chosen by the policyholder based on their financial needs and goals.
If the life assured passes away within the policy tenure, the term insurance policy will pay back the death benefit, or the sum assured, to the nominee or legal beneficiary as chosen by the policyholder.
Once the policy term is over, the coverage provided under the term plan ceases and there are no further benefits payable under the term life plan unless specially mentioned in the policy through return of premium or survival benefit feature.
If on survival the policyholder lives or sees the age of the cover end, in a pure term insurance plan there would be no benefits payable for maturity or survival except the return of premium provided on survival of the term.
In a pure-term insurance plan, usually, no amount of benefit would be payable on maturity or survival at the end of the policy term unless specifically included under the return of premium/survival benefit feature in a policy.
If the nominated person dies while holding the policy during the period the policy term is running, then the policyholder shall make a fresh nomination in favor of another person to ensure that the sum assured in case of death is paid to the appropriate beneficiary.
Yes, the term plan claim can be rejected in case the insurance company finds that the policyholder has given any wrong information or hidden some important facts, or the cause of death is under their exclusion in the policy coverage. The key to avoiding the rejection of the claim is making a disclosure of facts at the time of buying the policy.
To file a term insurance claim, the nominee must inform the insurer about the policyholder’s death and submit documents like the death certificate, claim form, and policy papers. After reviewing the claim and documents, the insurer processes and approves the claim as per the policy’s terms and conditions.
Yes, you can change your nominee at any time during the policy term by submitting a written request to the insurance company. Ensure that the nominee update is reflected in the policy records to avoid any confusion at the time of claim settlement.
Most term insurance plans will have suicidal death covered under a policy after a certain period from the inception date of the policy, which is usually one year from the date of commencement of the policy. The policy terms can vary. Check your policy document for the specific details.
The process of claiming the term insurance will need the nominee or legal beneficiary to inform the insurance company, submit all documents that prove the incidence of death through a death certificate, policy documents, and a duly completed claim form to the insurer, and completion of assessment or investigation processes and settlement of the claim dues.
While term insurance is generally more cost-effective and provides pure life coverage, traditional life insurance plans combine insurance with savings or investing in some products. In many cases, it will depend on your needs and financial goals.
Based on age, gender, sum assured, policy term, smoking status, and health profile. Use online calculators.
Through insurer websites, mobile apps, wallets, net banking, UPI, credit/debit cards, etc.
Regular pay, limited pay (fixed years), or single premium.
Insurers decide based on underwriting, mortality rates, and risk profile.
Limited pay suits those who want to finish payments early. Regular pay spreads costs over time.
Under Section 80C (premium) and 10(10D) (maturity/death benefit) of the Income Tax Act.
There is a grace period (15–30 days). If missed, the policy may lapse but can be revived within a certain time.
A rider that pays a lump sum on diagnosis of listed critical illnesses, irrespective of actual treatment cost.
Yes, if you want enhanced protection at low additional cost.
It varies based on the rider, age, sum assured, and insurer. It’s added to the base premium.
Additional financial protection for events like disability, accidents, or illnesses.
No, but they’re recommended for added benefits. Optional based on personal needs.
Yes, through an Accidental Death Benefit rider that offers extra payout in case of death due to accident.
Not by default. You need a separate Critical Illness Rider.
Not directly. You must opt for a Disability or Waiver of Premium Rider.
Some plans allow increasing/decreasing cover at life milestones. Otherwise, you may need a new policy.
Yes, during the free-look period (usually 15–30 days) or by surrendering it later (refund not guaranteed).
Yes, but premiums are higher due to elevated health risks.
BEWARE OF SPURIOUS PHONE CALLS AND FICTITIOUS / FRAUDULENT OFFERS
IRDAI or its officials do not involve in activities like selling insurance policies, announcing bonus or investment of premiums. Public receiving such phone calls are requested to lodge a police complaint.
Tax Benefits and Disclaimers
Tax benefits are subject to conditions specified under the Income-tax Act, 1961. Tax benefits are subject to change as per tax laws. Tax laws are subject to amendments from time to time. Customer is advised to take an independent view from tax consultant.
The example is for a non-smoker healthy male aged 25 year old; Plan: Life; Payout Options: Immediate Payout; PPT: 35 years (pay till age 60); PT: 50 years (cover till age 75); Salaried or non-salaried: Non-salaried
Claim Settlement and Solvency ratio*disclaimer:
^Figures arrived are basis the company’s latest annual audited figures for Individual Policy Claims for 2023-24
*https://www.kotak.com/content/dam/Kotak/investor-relation/Financial-Result/QuarterlyReport/FY-2024/q4/investor-presentation/Q4FY24%20Investor-Presentation.pdfGet 1 Crore Life Cover @₹15/day*Disclaimer:
≈The above illustration is for a 18-year-old healthy male, non-smoker who has opted for the Life Option with a 40-year policy term with regular premium payment mode, Level Recurring Payout Option and Sum Assured on Death of Rs.1 Crore. The per day premium is Rs.15 [Rs. 5,400 Annualized Premium / 365 days = Rs. 14.79].
Get 1.5 Crore Life Cover @₹22day*Disclaimer:
≈The above illustration is for an 18-year-old healthy male, non-smoker who has opted for the Life Option with a 40-year policy term with regular premium payment mode, Level Recurring Payout Option and Sum Assured on Death of Rs.1.5 Crore. The per day premium is Rs.22 [Rs. 8,100 Annualized Premium / 365 days = Rs. 22.19].
Get 2 Crore Life Cover @₹30/day*Disclaimer:
≈The above illustration is for an 18-year-old healthy male, non-smoker who has opted for the Life Option with a 40-year policy term with regular premium payment mode, Level Recurring Payout Option and Sum Assured on Death of Rs.2 Crore. The per day premium is Rs.30 [Rs. 10,800 Annualized Premium / 365 days = Rs. 29.59].
Get 5 Crore Life Cover @₹67/day*Disclaimer:
≈The above illustration is for an 18-year-old healthy male, non-smoker who has opted for the Life Option with a 40-year policy term with regular premium payment mode, Level Recurring Payout Option and Sum Assured on Death of Rs.1.5 Crore. The per day premium is Rs.67 [Rs. 24,500 Annualized Premium / 365 days = Rs. 67.12].
Get 75 Lakh Life Cover @₹16/day*Disclaimer:
≈The above illustration is for an 18-year-old healthy male, non-smoker who has opted for the Life Option with a 40-year policy term with regular premium payment mode, Level Recurring Payout Option and Sum Assured on Death of Rs.1.5 Crore. The per day premium is Rs.16 [Rs. 5,775 Annualized Premium / 365 days = Rs. 15.82].
Get 51 Lakh Life Cover @₹11/day*Disclaimer:
≈The above illustration is for an 18-year-old healthy male, non-smoker who has opted for the Life Option with a 40-year policy term with regular premium payment mode, Level Recurring Payout Option and Sum Assured on Death of Rs.1.5 Crore. The per day premium is Rs.11 [Rs. 3,927 Annualized Premium / 365 days = Rs. 10.75].
The Above premium figures are exclusive of Goods and Services Tax and cess. Goods and Services Tax and Cess thereon, shall be charged as per the prevalent tax laws over and above the said premiums. The channel selected is Online.
You may avail of tax benefits as per the Income Tax Act, 1961 subject to conditions as specified in those sections. Tax benefits are subject to change as per tax laws. You are advised to consult your Tax Advisor for details. Goods and Services Tax and Cess, as applicable shall be levied over and above premium amount shown here as per applicable tax laws.
Kotak Gen2Gen Protect UIN: 107N132V02, Kotak Permanent Disability Benefit Rider - UIN: 107B002V03, Kotak Critical Illness Plus Benefit Rider - 107B020V02, Kotak Accidental Death Benefit Rider - UIN: 107B001V04. This is a non-participating non-linked life insurance individual savings product. For more details on risk factors, terms and conditions, please read sales brochure carefully before concluding a sale. For more details on riders please read the Rider Brochure.
Kotak e-Term: UIN No.: 107N129V03, Kotak Critical Illness Plus Benefit Rider UIN No.: 107B020V02, Kotak Permanent Disability Benefit Rider UIN No.: 107B002V03. This is a non-participating non-linked life insurance individual pure risk product. For more details on risk factors, terms and conditions, please read sales brochure carefully before concluding a sale. For more details on riders, please read the Rider Brochure.
Kotak Signature Term Plan - UIN: 107N139V01.Kotak Permanent Disability Benefit Rider - UIN: 107B002V03,Kotak Critical Illness Plus Benefit Rider - UIN: 107B020V02,Kotak Accidental Death Benefit Rider – UIN: 107B001V04. This is a Non-Participating Non-Linked Life Insurance Individual Pure Risk Product. For more details on risk factors, terms and conditions please read sales brochure carefully before concluding a sale. For more details on riders please read the Rider Brochure.
Kotak Term Plan UIN No.: 107N005V06, Kotak Accidental Death Benefit Rider - UIN: 107B001V04, Kotak Permanent Disability Benefit Rider - UIN: 107B002V03, Kotak Critical Illness Plus Benefit Rider UIN: 107B020V02. This is a non-participating non-linked life insurance individual pure risk product. For more details on risk factors, terms and conditions, please read sales brochure carefully before concluding a sale. For more details on riders please read the Rider Brochure.
Kotak Saral Jeevan Bima UIN No.: 107N120V01. This is a Non-Participating Non-Linked Life Insurance Individual Pure Risk Product. For more details on risk factors, terms and conditions, please read sales brochure carefully before concluding a sale.
Health MaximiseUIN No.: ZUKHLIP24026V022324 is a Combi Product with both protection & health benefits, where protection benefits are being offered by Kotak Mahindra Life Insurance Company Ltd. under Kotak Term Plan - UIN 107N005V06 and health benefits are being offered by Zurich Kotak General Insurance Company (India) Limited under Health Premier – UIN ZUKHLIP23109V052223. For more details on risk factors, terms and conditions, please read sales brochure carefully before concluding a sale.
This website content only gives the salient features of the plan.
*Get your premiums back through Special Exit Value, under your policy, if your policy term is:
40 years: Earlier of 25th policy year OR during the policy year, when you attain 60 years
> 40 years: Earlier of 30th policy year OR during the policy year, when you attain 60 years
5% Discount on Salary Infographic Disclaimer:
The 5% discount is only on the first year of the policy.
**Free Medical Checkup every 5th year starting from 5th policy year onwards
Section 41-
Extract of Section 41 of the Insurance Act, 1938 as amended from time to time states: (1) No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any person taking out or renewing or continuing a policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectuses or tables of the insurer. (2) Any person making default in complying with the provisions of this section shall be liable for a penalty which may extend to ten lakhs rupees.
Section 45-
Fraud, Misstatement and Forfeiture would be dealt with in accordance with provisions of Section 45 of the Insurance Act, 1938 as amended from time to time. Please visit our website for more details: https://www.kotaklife.com/assets/images/uploads/why_kotak/section38_39_45_of_insurance_act_1938.pdf
https://www.kotaklife.com/assets/images/uploads/why_kotak/section38_39_45_of_insurance_act_1938.pdfRegd. Office:
Kotak Mahindra Life Insurance Company Ltd. Reg No. 107 | CIN: U66030MH2000PLC1285038th Floor, Plot # C- 12, G- Block, BKC, Bandra (E), Mumbai – 400051 | Toll Free: 1800 209 8800 | Website: https://www.kotaklife.com | Email: kli.in/WECARE ARN No: KLI/25-26/E-WEB/946
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Get ₹1 Cr. Life cover at ₹15/day*
98.25% Claim Settlement Ratio*
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