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Term insurance is one of the most important and simplest types of life insurance. It offers your family financial protection and safety in case of your unfortunate demise. It is the most crucial financial instrument that you must have.
You pay the insurer a specific amount of premium to ensure the financial cover (known as sum assured) that goes to your family (or nominee) if you pass away during the policy term.
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 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
Last updated onDec 11,2024
Term insurance is one of the many types of life insurance that offers you coverage for a certain number of years or months, which can also be called a term. This type of life insurance provides your family with much-needed financial security in case of an unfortunate event in exchange for a certain premium amount. In case the life insured's unfortunate death occurs during the policy term, the insurer provides the death benefit payout to the nominee, also called a life cover, which helps manage their expenses.
A term insurance policy is a very popular choice for people seeking all-around coverage at affordable premiums. These plans can be very useful if the financial security & the protection of your loved ones are your utmost consideration.
For example, a healthy 25-year-old non-smoker healthy male has to pay Rs.1,350 (inc tax) per month over 35 years for 1 crore term insurance.
Find out more aboutWhat is Term Insurance?
When you are buying term insurance for the first time or trying to evaluate your existing coverage, you need the necessary insights to use theterm insurance calculatoreffectively as part of your insurance planning. For using an insurance calculator to calculate your term insurance coverage, you can follow these simple steps:
Start with the coverage calculation by using a reliable calculator from Kotak Life Insurance.
After selecting a calculator, enter your basic details such as age, gender, and annual income. This helps the calculator estimate how much life coverage you will need and consequently how much premium you should pay.
Determine the right amount of term insurance by choosing the coverage amount and term that suits it best. The coverage amount is basically the sum payable to one’s family upon his or her demise while the term represents the duration of the plan.
On entering your personal details together with adjusting the coverage amount and term selected, the policy premium estimated by the calculator will be displayed. This premium must give an idea on how much is term insurance going to cost you. This is just an estimation and it does not signify the final rate of premium.
Term insurance plays a crucial role in financial planning giving you peace of mind and safeguarding against unexpected events. Let's dive into thebenefits of term insuranceand how it can boost your financial security.
A standout benefit of term insurance is its cost-effectiveness. It costs less than other life insurance options. Because it aims to cover you for a specific period of time, also known as a term, it offers the security you need without breaking the bank.
Term insurance gives you a lot of flexibility to customize both how long your policy lasts and how much it covers. You can pick a term that suits your needs and tweak the coverage amount whenever you want. This means your policy can keep up with your changing financial situation.
Term insurance offers a simple way to safeguard your family & provide them with financial stability. As a pure-risk product, it comes with lower premiums because the life cover stays fixed based on what you pay.
If you've got existing life insurance already, term insurance can act as additional coverage to complement your existing policy. Purchasing additional term insurance can help cover any gaps in your coverage during important life stages giving you more peace of mind.
You can use term insurance to create a steady income source, pay off estate taxes, or clear outstanding debts. This makes sure your family doesn't struggle if something happens to you. With smart planning, you can leave a financial legacy for your loved ones. For example, you have a home loan of ₹60 lakh, a personal loan of ₹10 lakh, and want to pay for your children's higher education, which would cost you another ₹30 lakh. By buying a ₹1.5 croreterm plan for your family, you can ensure that if something happens to you, your family can immediately pay off the ₹70 lakh of debt. The remaining ₹80 lakh can cover your children’s education and provide a financial cushion for living expenses. This way, your family doesn’t have to worry about losing their home or their future dreams, maintaining their financial stability.
Many term insurance plans let you add extra protection for major health issues. These add-ons pay out money if you get diseases like cancer, have a heart attack, or suffer a stroke. You can get a lump sum amount to help you with hospital bills, which keeps your family's money safe.
Some term insurance policies come with extra riders that provide you benefits if an accident leaves you unable to work. If you end up with a lifelong disability from an accident, these add-on riders often includedisability insurancewhich offers financial support to 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 to maintain their standard of living, pay off any existing debts, and make sure they're okay in the future.
The money you pay for term insurance can lower your taxes under Section 80C of the Income Tax Act. Plus, the money your family gets if you die isn't taxed under Section 10(10D). These tax breaks make term insurance even more helpful. Thesetax benefits of a term insurancemake it an even more valuable option for securing your family’s financial future.
Term insurance's primary benefit is the death benefit. If you die during the term, your beneficiaries get a lump sum payment. This money can help your family handle money issues and secure their future.
Although traditional term insurance policies don't pay out if you live longer than the policy, some plans do. These policies come with a "return of premium" choice, which pays you back all the money you paid in premiums if you outlive the policy term. This adds a way to save money and also have basic coverage. Suppose you buy a1 crore term insuranceand you have opted for thereturn of premium. You pay ₹30,000 annually for 30 years. If something happens to you during the term, your family will get the ₹ 1 crore payout. However, if you survive beyond the 30-year term, the insurer will repay the entire ₹9 lakh that you had paid in premiums over the last 30 years. This way, you get the dual benefit of life coverage and a full refund of your investment, helping you plan for the future without losing any money if you outlive the policy.
You can stretch some term insurance plans to cover you until you're 99 or 100 years of age, making them work likewhole life insurance. This gives you lifelong protection so you know your beneficiaries will get the death benefit no matter when you pass away.
You can customize term insurance policies with different riders and add-ons to suit your specific needs. Some common riders include accidental death benefit, waiver of premium, and income benefit rider. These extra riders add more layers of protection making sure you are fully covered for any situation. Let's assume that you buy a₹1.5 crore term insurance policy. To add strength to your plan, you add an accidental death benefit rider. This means in case of your untimely death due to an accident, your family will receive ₹50 lakh in addition to ₹1.5 crore sum assured. You can also attach a waiver of premium rider such that in case you end up being permanently disabled, you will not have to pay for future premiums, but your policy will still be active. Such add-ons ensure that you and your family are covered in every situation.
When choosing the right term insurance for you, you must understand the factors that are necessary when determining the premium &eligibility for term insurance.plans. Understanding these factors is crucial for individuals seeking to purchase a term insurance policy that suits their needs.
Have a look at your financial obligations, like any debts, future expenses, or any income replacement needs which will help you determine the right coverage amount for you. Make sure the death benefit is enough to provide your loved ones the best financial cushion. This is particularly important when consideringterm insurance for smokers, as premiums may be higher due to associated health risks.
When picking the term length, consider your financial goals, age, and specific responsibilities. The policy should ideally cover the time when your family depends on you financially or when your financial obligations are the highest.
Have a look at your budget and make sure the premiums are within your budget. Even though term insurance can be very affordable, it's very important for you to choose a policy that you can make regular & consistent payments throughout the term.
Please check the claim settlement ratio^of the term insurance policy you're considering. This ratio shows you how many claims are settled compared to the number of claims made. A 97%claim settlement ratio^means 97 out of the total 100 claims were settled by the insurance organization. Kotak Life Insurance has a great claim settlement ratio^ of 98.29%.
Kotak Life Insurance is a trusted and fastest-developing names in the Indianlife insuranceindustry.
Added features that make Kotak Life the best choice to choose from are as follows:
If you are looking for top-notch customer service and easily manageable plans, you are thinking Kotak Life.
There are several types of term insurance plans available in the market to suit different people’s needs and requirements. Knowing these variations can help you choose theterm insurancethat could meet your financial goals and bring peace of mind to you and your family. Here are the various types of term insurance policies available while opting for pure life cover.
Basic term insurance also known as pure term insurance offers your beneficiary the death benefit in the event of any untimely death. This policy does not include maturity benefits at the end of the term if you survive the policy 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 withcritical illnesscover has a rider upon 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 one may have to go through, providing a cushion of financial relief during these difficult times.
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.
Limited pay term insurance is a policy where the policyholder pays premiums for a short duration of time while he is covered for a longer duration till the end of the term. For example: You shall pay the premium only for 10 years, but you will be covered either for 20 or 30 years. No doubt, such a plan will definitely be very useful for a person who wants to pay premiums for a shorter duration but also enjoys long-term protection.
Group term life insurance plans refer to those that are normally provided by employers or different associations to their staff or employees. It is a means by which life coverage is provided at relatively lower premiums on account of its group nature. Group term insurance is an effective means to provide financial security to many under a single insurance plan.
Pure Protection term plans basically focus on providing life coverage with no additional benefits or savings component. The plans are designed to offer maximum coverage at the least possible premium which makes them perfect for people looking for comprehensive protection without any investment element.
Some term insurance policies of today have wellness benefits that encourage a healthy lifestyle. Some of these benefits may include discounts given on premiums payable for maintaining a healthy lifestyle, periodic health checkups, and engagement in wellness programs. These policies not only motivate people to have a healthy lifestyle but also lower their health expenses thereby increasing their life expectancy.
The term insurance policies with health benefits normally provide health protection for hospitalization expenses, including surgeries & other health or medical related costs. These policies are also offered with riders, whereby a lump sum or reimbursement of medical expenses is offered in the case of the policyholder being ill or injured, thereby providing comprehensive financial protection.
Though purchasing a term insurance cover is one of the most affordable options to provide your dependents with financial security, it is indeed a responsible move to safeguard their financial future. Unlike any othertypes of life insurance policies, the term insurance policy provides pure protection coupled with a higher sum assured at a lower premium. Read on to learn more about the important features of the term plan that make it attractive to most people.
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. They may pay the premiums yearly, half-yearly, quarterly, or monthly, depending upon their convenience, and even as a single payment.
Because term insurance premiums usually do not have any investment components, the premium one pays for buying a term insurance plan is normally less, unlike other life insurance products. Again, when one purchases a term plan while young, in most cases it results in cheaper premiums.
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 your surviving family members from the financial burden.
Other than Section 80C, the premium that is paid for any rider that covers health-related expenses such as Critical illness riders is allowed as a deduction underSection 80D. This then provides additional tax savings and makes a term insurance investment tax efficient.
Some term insurance plans have this return of premium feature whereby, if the policyholder outlives the policy term, then all premiums that he had paid are returned. The option brings together the advantages related to pure risk coverage with a savings element so that the policyholder is guaranteed to get a return on his investment.
Most of the term insurance plans extend coverage up to a considerably high maturity age of 75 or even 100 years. This thus ensures long-term financial protection, peace of mind, and financial security for your loved ones, irrespective of when the event of death may occur.
These plans provide a term insurance plan 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.
Policies with the return of premium on maturity feature return all the premiums paid 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 ofzero cost term insurance, where the policyholder benefits from risk coverage as well as a savings element.
The 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.
A term insurance plan provides essential financial security for your family if something happens to you. Here’s why it stands out as a smart choice:
One of theimportant features of term insuranceis that it offers a large coverage amount for a low premium, making it one of the most cost-effective ways to secure your family’s future.
In case of your absence, the policy payout can help your family maintain their lifestyle, cover essential expenses, and fund long-term goals, like children’s education or mortgage payments.
Term plans let you choose coverage that matches your life stage, with options to extend protection or add riders for critical illness, accidental death, ordisability insurancebenefits. This flexibility means your policy can adapt as your responsibilities grow.
Term insurance is straightforward, often with a simplified claim process so that your family can receive the death benefit quickly and without added stress.
A term plan ensures that your loved ones have a financial cushion, allowing you to leave behind a legacy without burdening your family with debt or financial uncertainty.
Overall, term insurance offers comprehensive protection with the flexibility to align with your financial goals, giving you peace of mind that your family will be secure, no matter what.
Any person with financial dependents should definitely go for a term insurance policy. This would, in general, include parents, single women or men having senior parents, professionals with debts or loans, people nearing retirement, etc.
Purchasing a term insurance plan also brings for you tax benefits underSection 80CandSection 10(10D)of the Income Tax Act, 1961. This is in conjunction with reducing your taxable income. Here is a detailed version of who should buy a term plan:
As parents, your spouse, children, and your parents may be financially dependent on you. You can help secure the future of your children, take care of your parents, and pay outstanding dues. Be assured that, once you get a term life insurance plan, you can be free of stress about the financial condition of your loved ones.
You might have availed of some education loan to go abroad and study. But in the event of your death, 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. Suppose you are a 28-year-old software engineer who has taken an education loan of ₹15 lakh to pursue your degree abroad. If something were to happen to you, this liability would be transferred onto your parents. By purchasing a₹50 lakh term insurance policy, you ensure that the sum assured received from the insurance company can completely payout the loan. The remaining amount can help your parents with any other expenses, ensuring they aren't left financially strained while dealing with the loss.
Term insurance is a perfect way to safeguard interests in case of death if you are going to retire soon and have dependents or debts. Not only the death benefit would be sufficient to pay back any kind of debt, but will also help your family member financially.
People who seek some tax savings that give beneficial returns can opt for term insurance. The investment in a term plan is the perfect way of getting tax benefits & earning a life cover. The premium paid for the term insurance policies is deductible under Section 80C of the Income Tax Act, 1961.
Today, women support families not only emotionally but also financially. Aterm plan for womenallows them to secure the future of their family, so their family members and the dreams of little ones are protected, even in their absence.
Housewives are not only entrusted with managing all the work at home. Even though they do not earn a paycheck, the contribution of the housewife in the family is enough to show how important aterm plan for housewivesis in securing them financially. It is clever to obtain term insurance for the wife and the husband separately with amounts covered and premiums differentiated. Thus, if anything happens to the family, they will be more protected; at the same time, they can also save on taxes by maintaining both policies.
By purchasing term insurance early, individuals, especially young professionals at the threshold of their careers, can lock in lower rates in premium payments. At a young age, most policyholders have fewer health issues and lower risk profiles, hence they can benefit from affordable premiums with a view of securing long-term financial protection for their future families and dependents.
Most of the self-employed people cannot avail of the benefit of life insurance offered by the employer. In such cases, aterm plan for self-employedindividuals is a must to keep his family financially sound in case of untimely death. It shall definitely ensure his family is left burdened with business liabilities and other financial burdens.
A term insurance policy is essentially a must for NRIs with families or other financial interests in India to ensure protection for loved ones back home.Term insurance for NRIprovides a financial safety net that can take care of family needs from anywhere in the world.
This will also help senior citizens who still have dependents or who want to leave behind a financial legacy. Though the premium payable would be more, aterm plan for senior citizenscan definitely address final expenses and outstanding debts, while also helping with financial support for the surviving family.
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
Term insurance is very important for ensuring the sound financial future of your loved ones. It offers a cost-effective way of protecting your family from all unexpected situations. With so many insurance companies and innumerable policy options available in the market, choosing the best term insurance plan seems to be a difficult and confusing task.
There are various factors that you need to check and compare before choosing a term insurance policy from a particular insurer. Here are some factors that you should consider before buying a policy:
The first step to buying the right term insurance plan is to assess your needs. Your needs have to be assessed based on your age, income, financial liabilities, future goals, and the number of dependents.
One can get the best term life insurance in India only by comparing several plans and their offers. One needs to look out for only those plans that are credible and have a record of settling claims pretty quickly, other than other benefits.
Term insurance plans offer coverage for a specific period, called the policy tenure. Depending on aspects like your age, financial liabilities & long-term financial goals, you should choose a policy tenure that gives your dependents adequate coverage to fulfill their needs, like education or mortgage payments.
Sum assured refers to the amount your nominees would get if you pass away. It should be such that with this money, all your family liabilities like loans, future liabilities, and income replacement would be done away with.
Term insurance policies have many premium paying options, including single, quarterly, yearly, half-yearly, or even monthly payment plans. Cross-check your cash flows and affordability before arriving at premium payment intervals.
Read through the terms and conditions of the plan of term insurance carefully and understand them before proceeding to buy it. Look out for factors like policy exclusions, waiting periods, and claim settlement procedures.
This is the ratio where the percentage of claims settled successfully by the insurer is taken against the number of claims received by the insurer. As of date, Kotak Life Insurance has a Claim Settlement Ratio^of 98.29% for the FY 2023-24.
Term life insurance plans could come with a number of riders or add-ons for additional coverage. Some common ones are critical illness coverage, accidental death benefit, waiver of premiums, and disability cover. Look up these riders to see which one, or more, you would like to add to your term life insurance plan.
The solvency ratio*is another avenue that one must not ignore while taking a term policy. It represents the insurance company's ability to meet monetary demands and financial strength or stability. In the fiscal year 2023-2024, Kotak Life Insurance's solvency ratio*stands at 2.56%.
Access the insurance provider’s service quality such as customer support, efficiency in the process of claim, and ease of accessibility to information of the policies. You should choose the insurance companies that support the policyholders with online services, such as making payments for premiums, renewing policies, and filing claims, through which you can easily and conveniently manage your policy.
Some of the term insurance policies offer multiple payout options such as such as lump-sum payment, monthly income, or a combination of both. You can benefit from choosing the payout option that best fits your financial needs. For example: a monthly payout option can help in managing your daily/ monthly expenses whereas a lump-sum payout option can help you pay off your debts or make large investments.
Purchasing term insurance is one of the most important ways to protect a loved one's financial future. It's an easy and inexpensive way of securing your family against financial loss in case of some unfortunate event of death.
The general purpose of a term insurance policy is to buy financial protection for your family. In case of an unfortunate event of death, the policy ensures that your family does not have to go through any financial hardships. The death benefit can be used to cover daily living expenditures and also reimburse the child's education and other valuable expenses that might have occurred in living with the standard or in achieving long-term aims and aspirations. It assures peace of mind in the sense that even in your absence, your family will be financially safeguarded.
Term insurance can readily help you protect assets of very high value. Supposing you have large financial liabilities such as a home loan, car loan, or personal loan; in such a situation, the death benefit from a term insurance policy can be utilized to pay off such debts. This makes sure that your family does not fall under the responsibility of paying back the sum; therefore, they can retain all possessions-small or big, like your house or your car. By protecting one's assets, the term policy allows one to secure his family's finances and his legacy.
The new lifestyle opens up a variety of risks and uncertainties it, like critical illness, accidents, and fluctuating economic conditions. It is because term insurance policies come with riders and add-ons that provide coverage against these risks. For instance, critical illness riders will give a lump sum if you get diagnosed with some serious illness, thereby covering treatment and the loss of income. Accidental death and disability riders provide additional benefits in cases of accidental injuries. These optional coverages can help you to get full protection that can let you survive sudden eventualities without much depletion of your savings.
Aterm plan for family, provides a crucial financial safety net, ensuring stability if anything happens to you.
Take Ramesh, a 40-year-old father of two, who took out a term plan to protect his family. When he unexpectedly passed away, the plan’s lump-sum payout enabled his wife to pay off their home loan and secure their children’s education without financial strain.
Similarly, Meera, a single mother, included acritical illnessrider in her term plan. After a cancer diagnosis, this rider covered her medical bills, preventing her from falling into debt and providing peace of mind.
Term insurance relieves financial burdens in tough times, covering essential expenses and giving your family stability and security. By opting for it, you ensure your loved ones are supported, no matter what life brings.
The ease and reach of online platforms in today's digital world have revolutionized the way one shops for products and services, including insurance. One of the most well-detected methods for buying a term life policy is online because it is easy and hassle-free.
The first step towards buying a term life policy online is the sum assured amount, which is actually the amount your nominees are supposed to get in case of your unfortunate demise during the tenure of this policy. Now, the points to consider while calculating the correct sum assured amount are as follows:
Once the sum assured is calculated, you will have to choose the benefits and additional riders that best fit your needs. Some of the common riders are as follows:
Once you select the benefits and riders you require, obtain a quote from more than one insurer. You can compare premium rates, coverage features, and the benefits of various policies using online comparison tools.
After you have identified the most appropriate term insurance plan for your requirements, apply as follows:
In today’s digital age, buying a term insurance plan online has become the preferred option for many. Here’s why choosing an online platform for your term plan offers unmatched benefits:
Purchasing a term plan online allows you to browse, compare, and buy policies at your own pace and from the comfort of home. There’s no need for in-person meetings, making the process faster and easier for those with busy schedules.
Online platforms display all policy details clearly, allowing you to compare various features, premiums, and benefits across multiple insurers without any hidden information or pressure from agents. This transparency helps you make informed, confident decisions.
Online term plans are often more affordable since they cut out intermediaries, saving on commission and administrative costs. These savings are passed on to you in the form of lower premiums for the same coverage.
Online platforms give you immediate access to customer reviews and ratings, providing real-world insights into policy performance, customer service quality, and claim settlement experiences.
Online purchases typically involve faster processing and instant policy issuance, with digital documents emailed to you directly. This makes it easier to manage, access, and store your policy details securely.
Unlike physical branches, online insurance platforms are accessible anytime. You can browse policies, make payments, and even access customer support 24/7 through chat support or FAQs.
With online purchases, you can choose flexible payment options that best suit your budget, such as monthly, quarterly, or annual payments. Many platforms also offer auto-renewal settings, so you never miss a due date.
Buying online often allows you to easily add riders, such as critical illness or accidental death benefits, with a few clicks. This flexibility ensures your policy can be tailored to cover specific needs.
Overall, buying a term plan online is a modern, efficient approach that provides transparent information, lower costs, and the flexibility to manage your policy on your own terms.
Aterm insurance rideralso referred to as the term life insurance rider, is an extra feature or provision which can be attached or added to the primary life insurance policy, providing extra coverage for a specific period of time called the "term" upon payment of an extra premium.
This will help you keep your life insurance coverage valid, even though you might not be able 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.
This rider has an additional premium payment that can be paid in case one is diagnosed with any of thecritical illnessesstated therein in a policy document. This benefit is very similar to an income replacement plan, and the proceeds can be used to cover both medical and domestic expenses.
You pay an additional premium for this benefit to cover your family in the event of accidental death. When you opt for an accidental death benefit cover, the insurer will pay the nominee an additional death benefit sum assured which is over and above your basic death sum assured.
The best time for buying term assurance is now. As you grow older, the likelihood of you falling victim to lifestyle-related diseases grows, and so does your insurance cost. The earlier you get a term plan, the earlier you secure an insurance policy at a smaller premium. Consequently, you may want to consider getting term life insurance plans early in life.
A term insurance policy is primarily for providing financial support for your dependents upon your death. So the correct time for a term insurance product is generally when you have dependents or financial responsibilities.
Generally, the younger and healthier you are when buying a policy, the less you are likely to pay in premiums. Age and health are factors insurers use as risk variables, where the risk of health problems increases with age. When you purchase term insurance at an earlier age, you will have the opportunity to secure lower premiums for the policy term.
If you have big debts, such as a mortgage, car loans, or student loans, it is prudent to buy some term insurance. These debts can prove to be a burden for your family in your demise. Term insurance will make sure that in your absence, your family is not left with financial liabilities and is able to meet all their commitments.
Certain life milestones often trigger the need for term insurance. Getting married, having a baby, and purchasing a house are some significant events that increase your financial responsibilities. Most of the time, these also signify a change in the circumstances of your life, and it is extremely important to reassess your needs with regard to life insurance.
It may also be used for the purpose of long-termfinancial planning. Any kind of financial goal, like securing a child's education or building your legacy; all of these goals can be achieved by purchasing a term insurance policy.
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 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 a₹2 Crore term plan, for example, the entire amount of ₹2 Crores will be paid to your nominee once their claim has been processed.
In this option, a certain percentage of the sum assured will be paid to the nominee as a lump sum, and the remaining amount will be paid out in monthly/annual installments.
Another payout option available in term life insurance is a one-time lump sum with increasing monthly payouts. A part of the death benefit would be provided to the beneficiaries as a lump sum, accompanied by regular monthly payments which increase with time. In doing so, it provides a higher amount in the later years of payout, thus catering to inflation and increased living costs.
The Term Insurance policy offers a fixed amount of coverage, commonly referred to as term insurance cover or term plan cover, for a limited period of time. Choosing the right amount of coverage for a person is always a highly difficult decision.
The first step to determining the right term insurance cover is to assess your financial liabilities. Consider the various loans that you have, such as a home loan or car loan, and add up the total amount that has to be repaid.
Apart from immediate liabilities and loss of income, expenses in the future need to be kept in mind. This would include education, marriage, or other important milestones of your children. Estimate the costs associated with such expenses and adequately cover them under your term insurance.
Inflation is a process through which the value of money decreases over time. There should be a consideration for including inflation-adjusted term insurance coverage to help offset such wealth erosion. Estimate the future value of your financial obligations and income replacement needs based on projected inflation rates.
In case you already have some other life insurance policies, such as a traditional life insurance plan or employee group insurance, calculate the sum assured available in those policies. Now subtract the existing coverage from the total term insurance cover that you need to arrive at the additional coverage that you need.
Many believe term insurance 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.
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.
While the term insurance offers simplicity and affordability, some of the terminology used in term insurance often can be confusing to the policyholders.
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 what a life insurer pays the nominee in case of the death of the covered individual during the term of the policy. The sum assured selection occurs at the time of buying an insurance plan.
The 'nominee' is the person whom the policyholder names as his legal heir, to whom the life insurance company would pay the sum assured and other benefits in case of untimely death. The nominee could be the wife, child, parents of the life insured, or whosoever he desires.
'Policy tenure' is the period for which it provides life insurance coverage. Depending on the type of life insurance plan and its terms and circumstances, policy tenure may vary from one year to 100 years or even for whole life. It is commonly known as policy term or policy duration.
The maturity age of the life guaranteed is the age at which the policy stops or terminates. This is very much like the policy tenure, but it expresses how long the plan shall be in effect in a different way. Essentially, the life insurance company declares the maximum age at which the life insured shall be provided with life insurance coverage.
The premium is what you pay to continue holding yourlife insurance policyin force and remaining covered. Provided you cannot pay the premium by the due date or even within the grace period, then the insurance shall be canceled.
There are various options for paying the premium, such as:
You can pay your life insurance premium whenever convenient.
Riders are paid-for extras that help extend the scope of the basic life insurance policy. The riders are purchased at the time of purchase or on the anniversary day of insurance. Various types of riders may be purchased in addition to the standard plan. However, the quantity and type of riders will vary by insurance.
More importantly, the terms and conditions of each insurance may be different. Here are some of the common riders available from life insurance providers.
A policy lapses if the premium is due and the policyholder fails to pay it within the grace period mentioned in the policy. The coverage ceases if a policy lapses and the death benefit is not payable.
The grace period refers to the time after a premium payment falls due and the policy is still in force with coverage; that is, even if the premium has not been paid. Provided that the premium is unpaid at the end of this grace period, the policy may lapse.
There is no surrender value applicable in any term insurance policy. Some insurers do offer a return of premium under their term policies, wherein either part or the full premium paid gets returned in case the life insured survives the term.
Underwriting is the process through which an insurance company evaluates the risk of the individual to be insured and the premium rate to be charged. In other words, underwriting involves assessing several aspects of the applicant's health, lifestyle, occupation, etc., and determining the premium rate accordingly.
Convertible term insurance provides for a term life insurance policy to be converted to a permanent life insurance policy such as a whole life, or universal life insurance policy without the need to undergo a medical examination. In effect, this makes the product flexible, with provisions that provide for its long-term coverage.
A beneficiary is an entity or person whom the policyholder nominates to receive the death benefit in case of the death of the insured. Beneficiaries may involve family members, friends, or even a charity and trust organization.
The term length refers to the period an insurance policy provides coverage to the insured individual. This may have options available depending on the provider of the insurance.
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 is bought to secure your family financially in case of your untimely death. It will make sure that the future of your family is settled, and all their needs are properly met.
The maximum age limit to purchase a term insurance plan varies between 18 years and 65 years, but it depends on the policy of the insurance company.
The best time to buy term insurance is as early as possible, optimally when one has dependents or financial responsibilities, to benefit from low rates and long-term coverage.
The reason is it is an excellent cost-effective way of delivering substantial life insurance coverage, reducing the possibility of financial instability for your dependents.
Yes, it is generally covered under term plans unless it is specified otherwise in the terms and conditions of the policy.
Yes, you can opt for more than one term insurance policy to expand the overall sum assured, provided you disclose the existing policies to the insurance companies.
Premiums payable towards a term insurance plan are eligible for a tax benefit under section 80C of the Income Tax Act, 1961, the maximum limit of which is governed by the income tax laws. Consult a tax professional or refer to the tax regulations for specific details.
A term insurance premium basically depends on the factors of age, sum assured, policy tenure, and health and lifestyle of the applicant. The online premium calculators provided by the insurance companies facilitate accurate estimates
One can pay term insurance premiums online using net banking, debit or credit cards, UPI, or any digital wallet on the website or mobile app of the insurance company.
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.
Yes, some insurers specifically provideterm plans for smokers, keeping in view the higher health risks that smoking brings to the table.
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.
It is an added advantage to be attached to a term insurance plan wherein the policyholder is provided with a lump sum amount if the life insured on that policy is diagnosed with any covered critical illness.
The options in a term insurance plan could be either on an annual, semi-annual, quarterly, or monthly premium paying basis, as per the insurance company's offerings.
A person can buy a term insurance plan online. It is convenient. More often, it is sold with more variety and at lower premiums as compared to offline. But the choice between online and offline would again depend on your preference and comfort level.
The term insurance premium is decided by the insurance company, taking into consideration different factors, including age, coverage, policy tenure, medical background, occupation, and lifestyle habits.
When you take a term plan, it is for giving financial protection to your family in case of your death. It yields no returns. For creating wealth, search for insurance or other savings instruments.
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.
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 thereturn 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.
The gender of the insured does matter in a term insurance policy, wherein the gender of the insured could affect the quantum of applicable premium, as a principle; the mortality rates for women are lesser compared to that for men. Hence, the insurance companies take into consideration gender-based mortality tables while deciding the premiums.
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.
Riders with term insurance depend on your specific needs and requirements. Riders would add some features to your policy such as additional coverage of critical illnesses, accidental death, disability, and many others but they will come for an additional cost.
The premium for riders is entirely dependent on the type of rider, the sum insured, the age of the insured, and the term of the rider. Insurance companies provide specific details about rider premiums.
If you buy a rider, it increases the coverage of a basic term insurance plan by certain specific risks or requirements. It financially secures the person from critical illness, disability, and accident occurrence, thus making the overall coverage of the rider more advantageous.
Generally, if you become a Non-Resident Indian after buying a term plan, you remain covered by the policy. It is, however, extremely important to inform the insurance company of the change in the residential status to have such details recorded for smooth policy servicing.
The decision to purchase a limited pay or a regular pay-term policy depends on the financial capacity and preference. Limited pay plans require higher premium payments for a shorter duration, while regular pay plans spread the premium payments over the policy term.
Yes, a term plan can be used to cover financial liabilities such as loans, mortgages, or any other debt your family has to take care of. The sum insured can be used to repay the outstanding liabilities in the case of the life insured's death.
There is no compulsion to buy a rider with term insurance. It is purely optional and depends upon the needs and choice of a policyholder. Riders are add-ons that provide additional coverage and benefits in addition to the basic term insurance policy.
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.
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 section 10(10D) and section 80C of 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 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 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].
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 sub-standard lives, extra premium may be charged based on Kotak Mahindra Life Insurance Company’s underwriting policy. 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.
*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
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, 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.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/24-25/E-WEB/1235
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