Close

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Invest

Insurance and Investment in one plan.

Kotak e-Term

Protect your family's financial future.

Kotak Guaranteed Fortune Builder

A plan that offers guaranteed income for your future goals.

Kotak T.U.L.I.P

A plan that works like a term plan, and Earns like ULIP Plan.

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family.

Kotak Assured Pension

A plan that offers immediate or deferred stream of income

Kotak Lifetime Income Plan

Retirement years are the golden years of life.

Kotak Guaranteed Savings Plan

A plan that offers long term savings and life cover.

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.

TERM INSURANCE

Term insurance offers financial protection for your family in case of your demise. You have to pay a premium to avail this financial coverage. Term insurance plans are one of the most affordable life insurance plans. It is the most crucial financial instrument that you must have in your portfolio.

Kotak e-Term

₹1Crlife cover

@₹15/day

Buy Now

₹1.5Crlife cover

@₹22/day

Buy Now

₹2Crlife cover

@₹30/day

Buy Now
Amit Raje
Written By:
Amit Raje

Amit Rajeis an experienced marketer who has worked in various Fintechs and leading Financial companies in India. With focused experience in Digital, Amit has pioneered multiple digital commerce in India. Now, close to two decades later, he is the vice president and head of the D2C business department. He masters the skill of strategic management, also being certified in it from IIMA. He has challenged his challenges and contributed his efforts in this journey of digital transformation.

Prasad Pimple
Reviewed By:
Prasad Pimple

Prasad Pimplehas a decade-long experience in the Life insurance sector and as EVP, Kotak Life heads Digital Business. He is responsible for developing user-friendly product journeys, creating consumer awareness and helping consumers in identifying need for life insurance solutions. He has 20+ years of experience in creating and building business verticals across Insurance, Telecom and Banking sectors

What is a Term Insurance?

Term insurance plans offer your family much-needed financial security after you, in exchange for a specified premium amount. In case of an unfortunate demise of the life insured during the policy term, the insurer provides a death benefit payout to the nominee, called as life cover, to manage their expenses.


Term insurance policy is a popular choice for individuals seeking comprehensive coverage at affordable premiums. Financial security and the protection of loved ones are paramount considerations for anyone who wants to ensure a stable future.


Find out more aboutWhat is Term Insurance?

Term Insurance Calculator

Whether you are a first-time buyer or looking to reassess your existing coverage, you need the necessary insights to effectively utilize a term insurance calculator in your insurance planning journey. To utilize an insurance calculator for term insurance, simply follow these straightforward steps:

Find a Reliable Term Insurance Calculator

Use a reliable calculator from Kotak Life Insurance to start with the calculation.

Enter Your Basic Information

Once you have selected a calculator, enter your basic information, such as age, gender, and annual income. This data assists the calculator in estimating your insurance needs and premiums.

Select the Coverage Amount and Term

Choose the desired coverage amount and term to determine the appropriate level of term insurance. The coverage amount represents the sum your family will receive in the event of your untimely passing, while the term refers to the duration of the policy.

Calculate Premium

After entering your information and selecting the coverage amount and term, the calculator will provide an estimate of the policy premium. This premium should be an indication of how much a term insurance can cost you. This is just an indication and not the final premium.

Online Insurance Plans from Kotak Life Insurance

Kotak e-Term

  • Life Cover till 85 years for Life & Life Secure Option
  • Option to exit the policy with a premium refund at the age of 60*
  • Special Rates for Women
  • 3 Payout Options
  • Special Rates for Non-Tobacco Users
  • Free Medical Check Up every 5th year**

Ref. No. KLI/22-23/E-BB/2435

T&C

Kotak Protect India

  • Provides the younger generation with a convenient and affordable life insurance option
  • Offers unlimited access to primary care physicians, specialist doctor consultations, and the Wellbeing App at no extra charge
  • Enables tax savings through Section 80C and Section 10(10D)

Offline Insurance Plans from Kotak Life Insurance

Kotak Term Plan

  1. Low cost term plan
  2. Optional rider options to enhance protection
  3. Tax benefits under Section 80C and 10 (10D)
  4. Multiple premium payment options
`

Kotak Saral Jeevan Bima

  1. Long Term Coverage
  2. Special Rates for Women
  3. Tax Benefits Under Section 80C
  4. Multiple Premium Payment modes

Benefits of Term Insurance

Term insurance is a crucial aspect of financial planning, providing individuals with peace of mind and protection against unexpected events. Term insurance offers a range of benefits, let us find out more about them here.

Affordable Premiums

One of the primary advantages of term insurance is its affordability. Term insurance policies are typically less expensive compared to other types of life insurance. By focusing solely on providing coverage for a specific term, these life insurance policies offer peace of mind and stay light on pockets.

Flexibility

Term insurance offers exceptional flexibility in terms of policy duration and coverage amounts. You can choose the term length that aligns with their needs. Plus, you get the option to adjust the coverage amount over time, ensuring that the policy remains relevant as your financial circumstances evolve.

Pure Risk Coverage

Term insurance provides a straightforward and transparent solution to protect your loved ones and provide them with financial stability and security in case of an unforeseen tragedy. Being a pure risk product, you don’t have to pay heavy premiums since the life cover is fixed for the premium you pay.

Additional Life Coverage

Term insurance serves as an additional life coverage option to complement existing life insurance policies. For individuals who already have permanent life insurance coverage, purchasing an additional term insurance policy can help bridge any gaps in coverage during critical life stages.

Future Planning

It can be used as a tool to create a stable income source, pay off estate taxes, or settle outstanding debts, ensuring that the financial burden does not fall on the shoulders of the surviving family members. By carefully strategizing the duration and coverage amount of a term insurance policy, individuals can secure a financial legacy for their loved ones.

Get a life cover of ₹1.5 Cr. @ ₹22/day only

Factors Affecting Term Insurance

When choosing the right term insurance, the policyholder must understand the factors that come into play when determining the premium andeligibility for term insurance.Understanding these factors is crucial for individuals seeking to purchase a term insurance policy that suits their needs.

Coverage Amount

Assess your financial obligations, including outstanding debts, future expenses, and income replacement needs, to determine the appropriate coverage amount. Ensure that the death benefit is sufficient to provide your beneficiaries with a comfortable financial cushion.

Term Length

Consider your financial goals, age, and specific commitments when choosing the term length. The policy should ideally cover the duration during which your family is financially dependent on you or when your obligations are most significant.

Premium Affordability

Evaluate your budget and ensure that the premium payments fit comfortably within your financial means. Although term insurance is generally affordable, it is crucial to select a policy that you can sustainably pay for over the entire term.

Claim settlement ratio^

Ensure that you check the claim settlement ratio^of the term insurance you choose. This is the ratio of claims settled vs. claims requested. For example, a 97% claim settlement ratio^indicates that out of 100 claims raised, 97 were settled. The claim settlement ratio^ of Kotak Life Insurance is 98.25%

Make your family stronger financially, after you with Kotak e-Term.

Term Insurance Plan Options

Term insurance plans are designed to offer pure life coverage for a specific duration, known as the policy term. If the insured individual passes away during this period, the nominee will receive the death benefit payout.


While traditional term insurance plans offer straightforward coverage, insurers have recognized the need for customization and flexibility to meet the diverse needs of policyholders. As a result, they have introduced a range of term insurance plan variants that offer additional features and benefits beyond basic life coverage.

Plan variantsBenefits in Brief

Basic term insurance

For a low premium, you can get a death benefit in the form of a lump sum

Monthly/annual income term insurance

Regular, consistent income for the family, as well as a death benefit

TROP (Return of Premium) Plans

This strategy involves maturity benefits, wherein the premiums paid to secure the policy are refunded if the life insured remains alive throughout the designated policy period.

Convertible Term Plan

You have the option to transform this term policy into alternate plans, such as an endowment plan or a whole-life plan in the future.

Choose the plan that works best for your family’s financial future.

Why Choose Kotak Life?

Kotak Life Insurance is a trusted and one of the fastest-developing names in the Indian life insurance industry. With a Claim Settlement Ratio^of 98.25%, Kotak Life has become one of the trusted brands in the life insurance category.


Here are some additional features that make Kotak Life the perfect option to choose from:

  • Professional Approach: Kotak Life has a team of experienced and qualified professionals who are committed to providing excellent customer service.
  • Efficient Cost Management: We are committed to efficient cost management, which allows us to offer competitive premiums.
  • Continuous Zeal for Improvement: We are constantly striving to improve our products and services for customer satisfaction.

If you are looking for top-notch customer service, a high claim settlement ratio,^and easily manageable plans, you are thinking Kotak Life.

Types of Term Insurance Plans

While term insurance is a straightforward concept, there are various types of term plans available in the market, each tailored to meet different needs and preferences. Understanding these variations will help you choose a term insurance plan that aligns with your financial goals and protects your family's well-being. So, here are four term insurance types available while opting for a pure life cover policy:

Basic Term Insurance Policy


The basic term insurance offers pure life coverage, ensuring that your beneficiary receives the death benefit in the unfortunate event of your untimely demise. There are no maturity benefits provided if you survive the policy term.

Increasing Term Insurance Plan


An increasing term plan is a dynamic policy where the sum assured amount progressively grows over the years. The death benefit may have a maximum cap on the sum assured's increasing amount. This policy, like the basic term policy, does not provide any maturity benefits but does offer life coverage.

Decreasing Term Insurance Plan


In decreasing term plans, the death benefit gradually decreases as the policy term approaches its expiration. These plans typically have lower premiums as they are primarily designed to cover specific debts or loans.

Term Policy with Return of Premium (TROP)


With a TROP plan, you are eligible to receive a refund of all the premiums paid throughout the policy term after the plan expires. In addition to providing life coverage, this policy also offers a maturity benefit by returning all your premiums if you survive the policy term.

What are the Features of a Term Plan?

When it comes to securing the financial future of your loved ones, a term plan is a reliable and affordable life insurance option. Unlike othertypes of life insurance policies,term insurance cover offers pure protection and a higher coverage amount at a lower premium. Delve into the significant features of a term plan that make it an attractive choice for many individuals.

Multiple Payment Modes

While the low premiums already make these plans lucrative, different payment methods add to the benefits and satisfy and suit a wider range of policy buyers. Depending on their convenience, they can either pay the premiums yearly, half-yearly, quarterly, monthly or as a single payment.

Policy Terms and Premiums

The premium, or the amount paid to the insurance company, is usually lower compared to otherlife insuranceproducts due to the absence of investment components. Moreover, opting for a term plan at a younger age often results in lower premiums.

Tax Benefits

Earning individuals with the responsibility of running their house, deal with tax payment concerns. However, investing in a term plan helps them by offering tax benefits under Section 80C of the Income Tax Act of 1961.

Riders and Add-Ons

Riders allow policyholders to customize their term plans according to their specific needs at an extra cost. These riders may include critical illness cover, accidental death benefit, waiver of premium, disability cover, and more.

Death Benefit

The primary purpose of a term plan is to provide financial security to the life insured’s family in the event of their untimely demise. The death benefit, or the sum assured, is the lump sum amount paid to the nominee in case of the life insured’s death during the policy term.

Why Should You Buy a Term Insurance Plan?

Life is uncertain and cannot be predicted at any point. You never know when an unfortunate incident may occur and leave your loved ones without any financial security. You should prepare your family for a such a scenario and a term insurance plan can help you do so.


While it is natural to focus on investments that provide immediate returns, neglecting theimportance of a term insurance plancan leave one's family vulnerable to financial uncertainties. You can ensure your loved ones are shielded from the financial burdens after you by taking a term plan.


A best term insurance plan is the one that can help you take care of all your commitments in one life cover. Therefore, aim at having a life cover of at least 10 times your annual income. It can be more, but not less than that.


A term life insurance plan is a vital financial tool that offers comprehensive protection and ensures the financial well-being of your family. Its affordability, flexibility, and tax benefits make it an attractive choice for individuals seeking financial security.

Who Should Buy a Term Insurance Policy?

Any individual who has financial dependents should avail of a term insurance policy. This would generally include parents, single women or men who have senior parents, professionals with debts or loans, persons that are nearing retirement, etc.


When you buy a term insurance plan, you also get tax benefits underSection 80CandSection 10(10D)of the Income Tax Act, 1961, thus reducing your taxable income. Here is a detailed version of who should buy a term plan:

Parents

As parents, your spouse, children, and your own parents are dependent on you. With the help of the sum assured payout, you can ensure the safe future of your children and also provide aid to your parents. You can be worry-free about the financial condition of your loved ones after getting a term life insurance plan.

Professionals

You may have availed of a certain education loan to go abroad and study. But if something were to happen to you, your parents shouldn’t bear the brunt of the debt. The sum assured of the term plan can be used to clear off your study loan.

Retirees

If you are going to retire soon and have dependents or debts, term insurance is the perfect way to safeguard your interests. The death benefit would be enough to pay off any debts and also provide financial assistance to the dependent members.

Taxpayers

Individuals who are looking for some tax savings that give beneficial returns can opt for term insurance. Investing in a term plan is the perfect way to get tax benefits and earn a life cover. Premiums paid for term insurance policies are deductible under Section 80C of the Income Tax Act of 1961.

Working Women

Women these days support their families not just emotionally but also financially. They can safeguard the future of their family with a term plan to ensure their family and the dreams of little ones are secured even in their absence.

Testimonials

My experience with Kotak e-Term Plan from filling the proposal form to policy issuance has been smoother. Uploading document 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

How to Choose the Best Term Insurance Plan?

When it comes to securing the financial future of your loved ones, term insurance is an invaluable tool. It provides a cost-effective way to protect your family from unforeseen circumstances. However, with numerous insurance providers and policy options available in the market, selecting the best term insurance plan can be a daunting task.


There are several factors that you need to check and compare before opting for a term insurance policy from a particular insurer. Here are some that you need to consider before buying a policy:

1

Assess Your Insurance Needs

The first step in choosing the best term insurance plan is to evaluate your insurance requirements. Consider factors such as your age, income, financial liabilities, future goals, and the number of dependents.

2

Compare Multiple Plans

To find the best term insurance plan, it is crucial to compare a variety of plans and offers. Look for reputable plans that have a track record of prompt claim settlement and other benefits.

3

Determine the Policy Tenure

Term insurance plans offer coverage for a specific duration, known as the policy tenure. Basis different factors like your age, financial responsibilities, and long-term financial goals, choose a policy tenure that adequately covers your dependents' needs, such as education expenses or mortgage payments.

4

Evaluate the Sum Assured

The sum assured is the amount that your nominees will receive in the event of your demise. It should be sufficient to cover your family's financial obligations, including outstanding debts, future expenses, and income replacement.

5

Understand the Premium Structure

Term insurance plans come with different premium payment options, such as single, quarterly, annual, semi-annual, or monthly premiums. Consider your cash flow and affordability while selecting the premium payment frequency.

6

Read the Policy Terms and Conditions

Carefully read and understand the terms and conditions of the term insurance plan before making a purchase. Pay attention to factors such as policy exclusions, waiting periods, and claim settlement procedures.

7

Check the Claim Settlement Ratio^

The claim settlement ratio^of an insurance company reflects the percentage of claims successfully resolved by the insurer out of the total number of claims received. Currently, Kotak Life Insurance boasts an impressive claim settlement ratio^ of 98.25% for FY 2022-23.

8

Assess Additional Riders

Term insurance plans often offer additional riders or add-ons that can enhance coverage. Common riders include critical illness cover, accidental death benefit, waiver of premium, and disability cover. Evaluate these riders and consider adding them to your term insurance plan for added protection.

9

Check Solvency Ratio*

The solvency ratio*is a critical factor to consider when selecting a term insurance plan. It reflects an insurance company's ability to meet its financial obligations, and indicates its financial strength and stability. For the year 2022-23, Kotak Life Insurance had a solvency ratio*of 2.83%.

Why do you need Term Insurance?

Understanding how a term insurance plan, also known as a base term insurance policy, works is essential for individuals seeking financial protection for their loved ones and the fulfilment of outstanding obligations.


Here is how a term plan works:

Determining the Coverage Amount

The coverage amount, also known as the sum assured, is the maximum benefit that will be paid out to your beneficiaries upon your demise. It should be determined based on your current and future financial obligations, such as outstanding loans, education expenses, daily living costs.

Selecting the Policy Term

Choose a policy term that aligns with your financial goals and the time during which your dependents will be most financially vulnerable.

Paying the Premium

Premiums for term insurance plans are usually lower compared to other types of life insurance policies. The premium amount is determined based on factors such as your age, health condition, lifestyle habits, policy term, and coverage amount.

How Does a Term Plan Secure Your Family’s Future?

With the uncertainties we face today, like the deadly COVID-19 pandemic, having aterm plan for a familyis even more crucial. It helps your family handle the financial difficulties that may arise if they were to lose their main source of income.


Additionally, it can assist in paying off any debts, such as car loans or home mortgages making your family free from liabilities after you.

How to Buy Term Insurance Plan Online?

In today's digital age, the convenience and accessibility of online platforms have revolutionized the way we shop for various products and services, including insurance. Buying term insurance plans online has become increasingly popular due to its simplicity and efficiency.

  • Step

    01

    Visit the Kotak Life Insurance websitehttps://www.kotaklife.com/term-insurance

  • Step

    02

    Click on the CTA - Calculate Premium! It will redirect you to the application form.

  • Step

    03

    Fill out the necessary information like name, phone number, annual income etc.

  • Step

    04

    Click on proceed to get the right term insurance plan on your registered email ID.

Why Buy a Term Plan Online?

Buying insurance policies online, particularly term plans, has become increasingly popular due to its convenience, affordability, and a plethora of other benefits.

Convenience

One of the most significant advantages of purchasing a term plan online is the convenience it offers. You can browse through various plans, features, and premiums at your own pace and from the comfort of your home.

Transparency

Buying a term plan online eliminates any ambiguity or miscommunication that may arise when dealing with agents. Online insurance platforms provide comprehensive details about the policy terms, conditions, coverage, and exclusions.

Cost-effective

When you buy a term plan online, you often eliminate the need for intermediaries, such as agents or brokers. This cuts down on administrative costs and commissions that are typically included in offline policies.

Easy Comparison

You can evaluate various factors such as coverage, premium, claim settlement ratio^, solvency ratio*, customer reviews, and ratings all in one place. This makes it easier to find a term plan that best suits your requirements and budget.
Kotak Life Insurance provides a remarkable 98.25% claim settlement ratio^and a solvency ratio*of 2.83.

Effortless Documentation

The online process of buying a term plan is hassle-free and minimizes the paperwork involved. You can fill out the application form, submit the required documents, and make the premium payment online. The entire process is streamlined and can be completed within a few minutes.

Faster Policy Issuance

Offline insurance policies typically involve a lengthy documentation and verification process, which can lead to delays in policy issuance. Once you complete the online application and the necessary verification checks are done, the policy documents are generated instantly or within a short period.

24/7 Availability of information

Another significant advantage of buying a term plan online is the round-the-clock availability of information and services. You can access insurance websites or mobile apps at any time, allowing you to research, purchase, or manage your policy at your convenience.

What is a Term Insurance Rider?

Aterm insurance rider, also known as a term life insurance rider, is an additional feature or provision that can be attached to a primary life insurance policy. It offers additional coverage for a specified period, known as the "term," in exchange for an additional premium.

Waiver of Premium Due to Permanent Disability

It keeps your life insurance coverage valid even if you are unable to pay your premiums. This policy has the effect of waiving all future premiums in the event of permanent disability, but the policy benefits continue for the duration of the policy.

Critical Illness Cover

Under this rider, you pay an additional premium to be covered if you are diagnosed with any of the critical illnesses listed in the policy document. This benefit functions similarly to an income replacement plan, can be used to cover both medical and domestic expenses.

Accidental Death Benefit

You pay an additional sum for this benefit to cover your family in the event of accidental death. When you choose accidental death benefit coverage, the insurer Will pay the nominee an additional death benefit sum assured which is over and above your basic death sum assured.

Why Do You Need Term Insurance with Rider?

When it comes to securing the financial well-being of your loved ones, having the right insurance coverage is crucial. Term insurance with a rider is an excellent choice for individuals seeking comprehensive protection that goes beyond basic coverage.


Here are three important reasons why you need term insurance:

To Protect Your Family

Your family relies on you both emotionally and financially. You may want to support your parents' retirement savings or pay for your child's college education. In our term plan with riders option, we ensure that in the unfortunate event of the policyholder's demise, the nominee will receive an additional death benefit sum assured, which is distinct from and supplementary to the basic death sum assured.

To Protect Your Assets

When we buy things using borrowed money and make monthly payments to pay off these debts, it's important to consider what happens if something unexpected happens to us during this time. If you have a term insurance plan with riders, the payout from this plan can be a vital support for your family.

To Cope with New Lifestyle Risks

Every day, we hear about the increase in diseases related to our lifestyle and the occurrence of serious illnesses like heart disease and cancer. Your term plan can provide some financial assistance if you face such a diagnosis, helping you with the costs of treatment and recovery.

When is the Right Time to Buy Term Insurance?

The sooner, the better!

The right time to buy term insurance is right now. As you get older, your risks of developing lifestyle diseases rise, as do your insurance expenses. When you get a term plan at a young age, you get an insurance policy with a low premium. As a result, it may be prudent to purchase term life insurance when you are young.

Dependents and Financial Responsibilities

The primary purpose of term insurance is to provide financial support to your dependents if something were to happen to you. Therefore, the right time to buy term insurance is typically when you have dependents or financial responsibilities.

Age and Health

Generally, the younger and healthier you are when you purchase a policy, the lower your premiums will be. Insurance companies consider age and health as risk factors, and the likelihood of developing health issues increases with age. By purchasing term insurance at a younger age, you can lock in lower premiums for the duration of the policy term.

Financial Stability and Debt

If you have substantial debts such as a mortgage, car loans, or student loans, it is wise to consider buying term insurance. In the event of your passing, these debts can become a burden on your family. Term insurance ensures that your loved ones are not burdened with financial liabilities and can continue to meet their financial obligations.

Life Milestones

Certain life milestones often trigger the need for term insurance. For example, getting married, starting a family or buying a house are significant event that increase your finacial responsibilities. These milestones often indicate a change in your life circumstances, and it's crucial to reassess your life insurance needs accordingly.

Long-Term Financial Planning

Term insurance can also be used as a tool for long-termfinancial planning.If you have a specific financial goal, such as ensuring your child's education or leaving a legacy, purchasing a term insurance policy can help you achieve those goals.

Get ₹2 Cr. life cover @₹30/day!

Payout Options in Term Life Insurance?

When it comes to securing the financial future of our loved ones, term life insurance provides valuable protection. However, understanding the various payout options available is crucial in making an informed decision. For your term insurance coverage, you can choose one of the following payout options:

One-Time Lump-Sum Payout

If you choose this option, your nominee will get the entire amount owed to them in a single payment. If the total sum assured is ₹2 Crore, for example, your nominee will receive the entire amount once their claim is accepted.

One-Time Lump-Sum Payment with Fixed Monthly /Annual Payouts

In this option, the nominee will receive a portion of the sum assured as a lump sum, and the remaining sum will be distributed in monthly/annual instalments.

How Much Term Insurance Plan Cover Do You Need?

A term plan offers a fixed coverage amount, known as the term insurance cover or term plan cover, for a specific period of time. Determining the right amount of coverage can be a daunting task.

Assess Your Financial Obligations

The first step in determining the appropriate term insurance cover is to evaluate your financial obligations. Consider your outstanding loans, such as a home loan or a car loan, and calculate the total amount that needs to be repaid.

Consider Future Expenses

Apart from immediate financial obligations and income replacement, it is important to consider future expenses. This includes your children's education, marriage, or any other major life events. Calculate the estimated costs of these expenses and include them in your term insurance coverage.

Account for Inflation

Inflation erodes the purchasing power of money over time. To counter the impact of inflation, it is recommended to consider inflation-adjusted term insurance coverage. Estimate the future value of your financial obligations and income replacement needs based on projected inflation rates.

Evaluate Existing Insurance Coverage

If you already have other life insurance policies, such as a traditional life insurance plan or employee group insurance, evaluate the coverage amount provided by these policies. Deduct the existing coverage from the total term insurance cover required to determine the additional coverage you need.

Difference Between Life Insurance and Term Insurance

Life insurance and term insurance are two common forms of insurance that provide coverage in the event of an individual's death. However, these policies differ significantly in terms of coverage duration, premiums, and potential benefits.


Understanding the dissimilarities between life insurance and term insurance is crucial when considering which option best suits your needs. It is time to explore the distinctions between these two types of insurance and explore their unique features.

Plan variantsTerm InsuranceLife Insurance

Tenure

The tenure of term insurance ranges from 5-67 years. Kotak e-Term covers a maximum of 85 years.The tenure of life insurance ranges from 10 to 50 years and can go up to 100 years of the life insured’s age in the case of whole life insurance.

Coverage

Covers the premature death of the life insured within the tenure specified in the policy document.Covers both premature death, and survival till the maturity of the policy

Premium

Premiums are low and affordable, usually considered the cheapest insurance plan in India.Since coverage is for life, the premiums are higher compared to term plans.

Death Benefit

Death benefit is payable only if the life insured passes away during the tenure of the policy.Death benefit is payable under both conditions: policyholder survives till maturity or passes away during the tenure.

Paid-Up Value

Does not acquire any paid-up or surrender value.When premiums are discontinued, a paid-up value is acquired. If the policyholder surrenders the policy, a surrender value is paid.

What Factors Can Influence Term Insurance Premiums?

One of the key considerations when purchasing term insurance is the premium, the amount paid by the policyholder to maintain coverage. Understanding the factors that can influence term insurance premiums is crucial for making informed decisions and finding the most suitable coverage at an affordable cost.

Health and Medical History

Health is a significant consideration for insurance providers when calculating premiums. Applicants with pre-existing medical conditions or a history of serious illnesses may face higher premiums.

Age and Life Expectancy

Age plays a crucial role in term insurance premiums. Younger individuals typically pay lower premiums than older individuals. This is because younger individuals are statistically less likely to develop health issues or pass away during the policy term.

Lifestyle Habits

Insurance providers often consider an individual's lifestyle habits when determining premiums. Certain habits, such as smoking, excessive alcohol consumption, or drug use, can significantly impact premiums. These habits are associated with higher health risks, leading to increased premiums.

Profession

The nature of one's profession can also affect term insurance premiums. Certain occupations may involve higher risks, such as working in hazardous environments or engaging in dangerous activities.

Underwriting and Insurer's Policies

Each insurance company has its underwriting guidelines and policies that determine premium rates. Factors such as their risk tolerance, claims experience, and business strategies can influence the premiums they offer.

Policy Duration and Coverage Amount

The longer the term, the greater the risk for the insurer, as it increases the likelihood of the life insured’s passing away during the policy's duration. Similarly, higher coverage amounts mean greater financial exposure for the insurance company, resulting in higher premiums.

What are the Payout Options in Term Life Insurance?

One of the key considerations when choosing a term life insurance policy is understanding the payout options available to beneficiaries. In the event of the life insured’s death, the payout ensures financial security for loved ones left behind.

Lump Sum Payment

The most common and straightforward payout option in term life insurance is the lump sum payment. With this option, the entire death benefit amount is paid out to the beneficiaries in one go. This provides a significant sum of money that can be used to cover immediate expenses, such as funeral costs, outstanding debts, and daily living expenses.

Instalment Payments

Some term life insurance policies offer the option of receiving the death benefit through instalment payments. Instead of a single lump sum, beneficiaries receive a predetermined amount at regular intervals, such as monthly or annually.

Family Income Benefit

Another payout option available in term life insurance is the family income benefit. Under this arrangement, instead of receiving a lump sum or instalment payments, the beneficiaries receive a regular income for a specified period.

Accidental Death Benefit

Some term life insurance policies offer an additional payout option known as an accidental death benefit. If the life insured dies due to an accident, this provision ensures an additional payment in addition to the regular death benefit.

Return of Premium

Although not a traditional payout option, some term life insurance policies include a return of premium feature. With this option, if the life insured outlives the term of the policy, they receive a refund of the premiums paid throughout the policy term.

Documents required for Term Insurance?

With any insurance policy, there are certain documents required to avail yourself of term insurance coverage. Understanding and preparing the necessary documents in advance can streamline the application process and ensure a smooth experience.

A recent picture of the policyholder

PAN duplicate

Proof of address- This can be any of the following: Aadhaar (front and back)/Driving License/Passport (front and back)

Income evidence- Keep in mind that your income proof should match your claimed annual income. Additionally, for salaried applicants: Last three months' pay stubs/form 16/last three years' ITR/last six months' bank statement where salary is credited Non-salaried applicants should: ITR for the previous three years with the income computation.

Term Insurance Terminology

While term insurance offers simplicity and affordability, navigating through the terminology associated with term insurance can sometimes be confusing for policyholders.

Sum Assured (coverage)

In technical words, 'Sum Assured' refers to the amount that the insurer agrees to pay in the case of the insured person's death or the occurrence of any other covered event.


The sum assured is the amount paid to the nominee by the life insurance company if the covered individual dies within the policy's term. The policyholder selects the sum assured at the time of purchase.

Nominee

The 'nominee' is the person (legal heir) named by the life insured to whom the life insurance company would pay the sum assured and other benefits in the event of an untimely death. The nominee could be the policyholder's wife, child, parents, or others.

Policy Tenure

The 'policy tenure' refers to the length of time that the policy offers life insurance coverage. Depending on the type of life insurance plan and its terms and circumstances, the policy tenure might range from one year to 100 years or whole life. It is frequently referred to as a policy term or policy duration.

Maturity Age

The maturity age of the life guaranteed is the age at which the policy ceases or terminates. This is similar to policy tenure, but it expresses how long the plan will be in effect in a different way. Essentially, the life insurance company declares the maximum age at which the life insured will receive life insurance coverage.

Premium

The premium is the amount you pay to keep your life insurance policy active and continue to receive coverage. If you are unable to pay the premium by the due date or even within the grace period, the insurance will be canceled.


There are several ways to pay the premium:

  • regular payments
  • limited payment terms
  • single payments

Premium Payment Term

You can pay your life insurance premium whenever convenient.

  • Regular Premium Payment- You can pay premiums on a monthly, quarterly, half-yearly, or yearly basis throughout the insurance term.
  • Premium Payment for a Limited Period- You can select to pay premiums for a set period of time. In this case, you may not until the conclusion of the policy term, but for a set number of years. For example, ten years, fifteen years, twenty years, and so on.
  • Single Premium Payment- You can also pay the premium for the entire period of the plan in one lump sum.

Riders:

Riders are paid-for extras that extend the scope of the base life insurance policy. Riders are purchased at the time of purchase or on the anniversary of the insurance. Riders of various varieties can be purchased in addition to the standard plan. However, the quantity and type of riders will vary by insurance.


Furthermore, the terms and conditions of each insurance may differ. Here is a list of some well-known riders provided by life insurance providers.

  • Accidental Death Benefit Rider
  • Accidental Total and Permanent Disability Benefit Rider
  • Critical Illness Cover
  • Premium Waiver

Lapse

A policy lapses when the policyholder fails to pay the premiums within the grace period specified in the policy. When a policy lapses, the coverage terminates, and the death benefit is no longer payable.

Grace Period

The grace period is the specified period after a premium payment is due during which the policy remains in force, even if the premium has not been paid. If the premium is not paid within the grace period, the policy may lapse.

Surrender Value

Term insurance policies typically do not have a surrender value. However, some insurers offer term policies with a return of premium (ROP) feature, where a portion or the entire premium paid is refunded if the life insured survives the term.

Underwriting

Underwriting is the process through which an insurance company assesses the risk associated with insuring an individual and determines the premium rate. It involves evaluating the applicant's health, lifestyle, occupation, and other relevant factors.

Convertible Term Insurance

Convertible term insurance gives the policyholder the option to convert their term insurance policy into a permanent life insurance policy, such as whole life or universal life insurance, without the need for a medical examination. This provides flexibility and long-term coverage options.

Beneficiary

A beneficiary is a person or entity designated by the policyholder to receive the death benefit in the event of the insured's passing. Beneficiaries can be individuals, such as family members or friends, or organizations, such as charities or trusts.

Term Length

Term length refers to the duration of the insurance coverage provided by the policy. Options may be available depending on the insurance provider.

Insured

The insured is the person whose life is covered by the term insurance policy. In the event of their death during the term, the beneficiaries will receive the death benefit.

Term Insurance Frequently Asked Questions

1

Why must you have term insurance coverage?

Term insurance provides financial security to your family in case of your untimely demise, ensuring their financial stability and fulfilling their future needs.

2

What is the age limit to buy a term insurance plan?

The age limit to buy a term insurance plan is typically from 18 to 65 years, depending on the insurance company's policy.

3

When is the right time to buy term insurance?

The right time to buy term insurance is as early as possible, ideally when you have dependents or financial responsibilities, to benefit from lower premiums and longer coverage.

4

Why is it good to invest in a term insurance plan?

Term insurance is a cost-effective way to provide substantial life coverage, protecting your loved ones financially and providing peace of mind.

5

Can natural death be covered in a term plan?

Yes, natural death is generally covered in a term plan unless specified otherwise in the policy terms and conditions.

Online Insurance Plans from Kotak Life Insurance
6

Can you have two-term insurance policies?

Yes, it is possible to have multiple term insurance policies to increase the overall coverage amount, as long as you disclose the existing policies to the insurance companies

7

How to avail tax benefits on a term plan?

Term insurance premiums are eligible for tax benefits under Section 80C of the Income Tax Act up to a certain limit. Consult a tax professional or refer to the tax regulations for specific details.

8

How to calculate the premium for term insurance?

The premium for term insurance is calculated based on factors such as age, coverage amount, policy term, and the applicant's health and lifestyle. Insurance companies provide online premium calculators for accurate estimates.

9

How to make term insurance premiums online?

Term insurance premiums can be paid online through various modes such as net banking, debit or credit cards, UPI, or digital wallets on the insurance company's website or mobile app.

10

Does a term insurance plan pay for suicidal death in India?

In most cases, term insurance plans cover suicidal death after the policy has been in force for a specified period, usually one year from the policy start date. Policy terms may vary, so refer to the policy documents for specific details.

11

Is there a term insurance plan for smokers?

Yes, some insurance companies offer term insurance plans specifically designed for smokers, taking into account the increased health risks associated with smoking.

12

Between term insurance and traditional life insurance, which plan is beneficial?

Term insurance is generally more cost-effective and provides pure life coverage, while traditional life insurance combines insurance with savings or investment components. The choice depends on your specific needs and financial goals.

13

What is a critical illness rider?

A critical illness rider is an additional benefit that can be added to a term insurance plan. It provides a lump sum payout if the life insured is diagnosed with a specified critical illness covered under the rider.

14

What are the payment options in a term insurance plan?

Payment options in a term insurance plan typically include annual, semi-annual, quarterly, or monthly premium payment modes, depending on the insurance company's offerings.

15

Should I buy a term insurance plan online or offline?

Buying a term insurance plan online is convenient, offers a wider range of options, and may have lower premiums. However, the choice between online and offline depends on your preference and comfort level.

16

Who determines the term insurance premium?

The insurance company determines the term insurance premium based on various factors such as age, coverage amount, policy term, medical history, occupation, and lifestyle habits.

17

Can I use a term plan for wealth creation?

Term insurance primarily provides financial protection in the event of the life insured’s death and does not offer wealth creation features. Consider other investment or insurance options for wealth creation.

18

How to process term insurance claims?

To process a term insurance claim, the nominee or legal beneficiary needs to inform the insurance company, submit the required documents, such as the death certificate, policy documents, and claim form, and cooperate with the insurer during the claim settlement process.

19

What happens to the term insurance policy if the life insured dies?

In the event of the life insured’s death during the policy term, the term insurance policy pays the death benefit (sum assured) to the nominee or legal beneficiary mentioned in the policy.

20

What happens to my term plan coverage when the policy term ends?

Once the policy term ends, the coverage provided by the term plan ceases, and there are no further benefits payable unless the policy includes a return of premium or survival benefit feature.

21

What happens if the life insured survives the policy term?

If the life insured survives the policy term, there are no maturity or survival benefits payable under a traditional term insurance plan unless it includes a return of premium or survival benefit feature.

22

Will I get any maturity benefit/survival benefit at the end of my policy term?

In a pure-term insurance plan, there is typically no maturity or survival benefit payable at the end of the policy term unless the policy includes a return of premium or survival benefit feature.

23

What if the appointed nominee dies during the policy term?

If the appointed nominee dies during the policy term, the policyholder should update the nomination by providing a new nominee to ensure that the death benefit is paid to the appropriate beneficiary.

24

Is it possible for a term plan claim to be rejected?

Yes, a term plan claim can be rejected if the insurance company finds that the policyholder provided incorrect information, concealed important facts, or the cause of death is excluded from the policy coverage. Providing accurate information is crucial to avoid claim rejection.

25

Does the insured's gender matter in a term insurance policy?

The insured's gender can affect the premium amount in a term insurance policy since women generally have lower mortality rates compared to men. Insurance companies factor in gender-based mortality tables while determining premiums.

26

What happens if I do not die? Will I get my money back at the end of the term insurance policy?

In a traditional term insurance plan without a return of premium feature, if the life insured does not die during the policy term, there is no maturity benefit or money refunded at the end of the term insurance policy.

27

Should I take riders with term insurance?

Taking riders with term insurance depends on your specific needs and requirements. Riders can provide additional coverage for critical illnesses, accidental death, disability, etc., but they come at an extra cost.

28

What is the premium for riders?

The premium for riders varies based on factors such as the type of rider, coverage amount, the age of the insured, and the term of the rider. Insurance companies provide specific details about rider premiums.

29

What are the benefits of purchasing a rider?

Purchasing a rider provides additional coverage beyond the basic term insurance plan, addressing specific risks or needs. It offers financial protection in case of critical illnesses, disabilities, or accidents, enhancing the overall coverage.

30

What if I become an NRI after purchasing a term plan?

If you become a Non-Resident Indian (NRI) after purchasing a term plan, you generally remain covered under the policy. However, it is essential to inform the insurance company about your change in residency status for smooth policy servicing.

31

Should you opt for limited pay or a regular pay-term insurance plan?

The choice between limited pay and regular pay-term insurance plans depends on your financial capacity and preferences. Limited pay plans require higher premium payments for a shorter duration, while regular pay plans spread the premium payments over the policy term.

32

Can a term plan be used for the repayment of financial liabilities?

Yes, a term plan can be used to cover financial liabilities such as loans, mortgages, or other debts. The sum assured can be utilized by the nominee to repay the outstanding liabilities in the event of the life insured’s death.

33

Is it necessary to buy a rider with term insurance?

Buying a rider with term insurance is not mandatory but recommended. It depends on your individual needs and preferences. Riders provide additional coverage and benefits beyond the basic term insurance policy.

34

How is term insurance different from life insurance?

Term insurance provides coverage for a specific term or duration, typically without any savings or investment component. Life insurance, on the other hand, combines insurance coverage with a savings or investment component, offering both protection and wealth accumulation features.

Tax Benefits and Disclaimers

You may avail of tax benefits under Section 80C and Section 10(10D) of Income Tax Act, 1961 subject to conditions as specified in those sections. Tax benefits are subject to change as per tax laws. Customer is advised to take an independent view from tax consultant.

Claim Settlement and Solvency ratio*disclaimer:

^Figures arrived are basis the company’s latest annual audited figures for Individual Policy Claims for 2022-23

*https://www.kotak.com/content/dam/Kotak/investor-relation/Financial-Result/QuarterlyReport/FY-2023/q4/Investor-Presentation/Q4FY23-Investor-Presentation.pdf

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. 29.58].

Get 1 Crore Life Cover @₹15/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 Crore. The per day premium is Rs.15 [Rs. 5,400 Annualized Premium / 365 days = Rs. 14.79].

Kotak e-Term:UIN:107N129V02, Form No: N104, Kotak Permanent Disability Benefit Rider UIN: 107B002V03, Form No: B002, Kotak Critical Illness Plus Benefit Rider UIN: 107B020V01, Form No: B020. This is a non-participating pure protection plan. 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 Protect India- UIN: 107N130V01, Form No: N130. This is a non-participating, pure protection, life insurance plan. For more details on risk factors, terms and conditions, please read sales brochure carefully before concluding a sale.

Kotak Term Plan:UIN:107N005V06, Form No: N005, Kotak Accidental Death Benefit Rider UIN: 107B001V03, Form No: B001, Kotak Permanent Disability Benefit Rider UIN: 107B002V03, Form No: B002, Kotak Critical Illness Plus Benefit Rider UIN: 107B020V01, Form No: B020. This is a non-unit linked, non-participating, term plan. 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:107N120V01, Form No: N120. This is a Non-Linked Non-participating Individual Pure Risk Premium Life Insurance Plan. For more details on risk factors, terms and conditions, please read sales brochure carefully before concluding a sale.

Terms and Conditions:

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.

*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% Dsicount 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

Tax benefit is applicable as per the Income Tax Act, 1961. Tax laws are subject to amendments from time to time. Customer is advised to take an independent view from tax consultant.

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 and Misstatement 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: Read more about section38_39_45_of_insurance_act_1938.

Regd. 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 (8 am to 10 pm) | Website: https://www.kotaklife.com | Email: kli.in/WECARE Ref No: KLI/23-24/E-WEB/1958

BEWARE OF SPURIOUS PHONE CALLS AND FICTITIOUS /FRAUDULENT OFFERS

IRDAI is not involved in activities like selling insurance policies, announcing bonus or investment of premiums. Public receiving such phone calls are requested to lodge a police complaint.

Trade Logo displayed above belongs to Kotak Mahindra Bank Limited and is used by Kotak Mahindra Life Insurance Company Ltd. under license.