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Term insurance is one of the most essential and simplest types of life insurance available, where you pay regular premiums, and in return, the insurer provides a death benefit to your family if you...Read more
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Term insurance is a type of life insurance policy that provides financial security to your family in case of your untimely demise during the policy term. The death benefits offered under this policy can help your loved ones manage daily expenses, pay off debts, or achieve future goals.
As term life plans offer pure protection for a fixed term, you can get a larger cover (sum assured) at relatively low premiums. Their cost-effectiveness and extensive coverage make them a popular choice among those who want to prioritize the financial well-being of their loved ones. Find out more aboutwhat is term insuranceand how it can benefit your family.
Let’s say you buy a ₹1 crore term insurance plan. This is how your premiums will look based on the age at which you buy the plan:
The Earlier You Buy, The Less Premiums You Pay!
A term insurance policy provides essential financial security for your family if something happens to you. Here’s why it stands out as a smart choice:
Term insurance is easy to understand and hassle-free to purchase. It comes with clear terms, fixed premiums, and a guaranteed payout. This eliminates confusion and makes it a preferred choice for those who value transparency.
As term plans provide coverage for a limited term, they are more affordable than whole life insurance. You can secure a large coverage amount at a low premium without straining your budget.
Term plans such as ₹5 crore term insuranceor ₹10 crore term insuranceoffer extensive coverage to help your family meet a wide range of expenses like loans, household needs, or future aspirations. You can also add riders for critical illnesses, accidental death, or disability.
Extended protection is a feature that allows you to extend your coverage beyond the original term of your policy. With this option, you can choose a longer policy tenure, ensuring continuous coverage and peace of mind for years to come.
When you buy term insurance, you can avail yourself of tax-saving perks under Section 80C and 10(10D) of the Income Tax Act. Not only can you save money on premiums paid, but the payout to your family is also tax-free.
You can choose the coverage amount, policy term, and additional riders to create a plan that suits your family’s requirements perfectly. For instance, you can go for a ₹5 lakh term insuranceor10 lakh term insuranceif you have limited needs or a ₹3 crore term insurancefor more comprehensive protection.
When you buy term insurance, the insurer agrees to pay your nominees a pre-decided death benefit if you pass away during the policy term. This sum acts as an income replacement and helps your family maintain the same living standard.
Customise Your Plan
As long as you stay consistent in premium payments, your policy remains active. Premiums are determined based on factors such as age, health, lifestyle, sum assured and are paid as per your chosen mode.
Policy tenure refers to the duration for which the term insurance provides coverage. You can select a tenure like 10 years, 20 years, or 30 years that best aligns with your financial goals.
If you unfortunately pass away during the policy tenure, the insurer pays the death benefit to your nominee to help them maintain financial stability. However, if you survive the tenure, no maturity benefits are paid.
Most term plans offer optionalterm insurance ridersor add-ons to enhance coverage. For instance, acritical illnessrider ensures a payout if you are diagnosed with severe diseases like cancer or heart conditions.
Start your term insurance journey like Mr.Aman did.
| Parameters |  Kotak e-Term | Traditional Plans |
|---|---|---|
| Plan Options | 3 Plan Options | Majorly 1 or 2 plan options |
| Affordability | Premiums start at just₹15/day* | Differs from₹20-25/day |
| Cost Savings | Up to62%* with 5-Year Limited Pay Option on total premium | Variable as per term |
| Discounts | Online discounts of up to7.5% | Online discounts from5-8% |
| Option to Exit the Plan | Yes | Allowed |
Life Cover till 85 years for Life & Life Secure OptionSpecial Rates for WomenSpecial Rates for Non-Tobacco Users3 Payout OptionsOption to exit the policy with a premium refund at the age of 60*Free Medical Check Up every 5th year**
100% Return of Premium on survivalLife ROP and Legacy ROP plan optionsCover 2 generations under 1 planAdditional 5% life cover for female livesEnhanced Protection with RidersTax Benefits u/s 80C and 10(10d)
Kotak Term Plan
Kotak Saral Jeevan Bima
Health Maximiser
Any person with financial dependents should definitely go for a term life policy. This would, in general, include parents, single women or men having senior parents, professionals with debts or loans, people nearing retirement, etc.
Term insurance plays a crucial role in financial planning, giving you peace of mind and safeguarding against unexpected events. Let's explore the top term insurance benefits and how they can boost your financial security.
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.
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.
If you already have life insurance, term insurance can supplement your existing policy. Purchasing additional term insurance like a ₹20 lakh term insurancecan 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. With an extensive term life insurance plan like a ₹2 crore term insurance, you can secure your loved ones’ future.
Many term insurance plans let you addcritical illness riders. These add-ons pay out a lump sum amount if you get diseases like cancer, have a heart attack, or suffer a stroke. This can help you with hospital bills, which keeps your family's money safe.
If you end up with a lifelong disability from an accident,disability insuranceriders can offer financial support. When you buy such a term plan, the insurer can help pay for your daily needs and medical care during recovery.
If the insured person passes away during the policy period, term insurance provides a lump sum payment to the beneficiaries. This money helps your family maintain their living standard, pay off any debts, and ensure they're okay in the future.
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.
Term insurance with the "return of premium" option reimburses the premiums paid if you outlive the policy term. For example, if you have paid ₹9 lakh premiums under ₹1 crore term insurance, the insurer will refund that amount after the term ends.
You can stretch some term insurance plans to cover you until you're 99 or 100 years old, making them work like whole 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 buy riders to add more layers of protection to your term plan. For instance, if you buy ₹1.5 crore term insurance, and add an accidental death benefit rider, your family will receive an extra ₹50 lakh if you pass away in an accident.
Life expectancy is the average number of years a person is expected to live, influenced by factors like gender, health, and lifestyle. In India, life expectancy has increased to 67.3 years due to better healthcare.
While this is a welcome trend, it highlights the uncertainty of life. This is why it is important to ensure in advance that your family’s needs are taken care of even if something unfortunate happens to you. A term insurance plan can help do exactly that.
Data source:https://data.who.int/countries/356
Aterm insurance calculatoris an online tool that helps estimate your premium based on factors like age, lifestyle habits, coverage amount, and policy term. It gives you a clear idea of how much you will need to pay for the coverage you are looking for.
You can use this tool to compare different policies and choose the one that fits your budget and needs. You can also check how adding certain riders will impact your policy cost and decide accordingly.
Purchasing a term insurance cover is indeed a responsible move to safeguard you and your loved ones’ financial future. Read on to learn more about the important features of the term life insurance 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 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.
Term insurance offers massive coverage against liabilities such as home loans, personal loans, and other debts due. In the case of the untimely demise of the policyholder, this death benefit shall be used to help pay pending debts and hence save the surviving family members from the financial burden.
Most of the term insurance plans extend coverage up to a considerably high maturity age of 75 or even 100 years. This ensures long-term financial protection, peace of mind, and financial security for your loved ones, irrespective of when the event of death may occur.
Aterm plan with return of premiumfeature pays back all the premiums if the policyholder survives the policy term. This provides a financial cushion and a certain savings element that was lacking in pure protection given by term insurance. This is an example ofzero cost term insurance, where the policyholder benefits from risk coverage and savings.
Because term insurance premiums usually do not have any investment components, the premium one pays for buying a term policy is normally less, unlike other life insurance products. Again, when one purchases a term plan while young, it usually results in cheaper premiums.
Other than Section 80C, the premium paid for any rider that covers health-related expenses such as critical illness riders are allowed as a deduction under Section 80D. This then provides additional tax savings and makes a term insurance investment tax efficient.
These plans provide a term policy that offers a lump sum payout on the occurrence of any of the critical illnesses specified in the policy document. Such a payout can be availed to compensate for loss of income, medical expenses, and other financial expenses throughout the recovery period. That is to say, one gets comprehensive financial support during times of health crisis
Accidental death and disability cover riders provide extra benefits in the event of death or disability due to an accident. The accidental death rider provides an additional payout, while an accidental disability rider allows one to seek financial support in cases of permanent or temporary disability through the coverage of treatment expenses and loss of income.
Basic term insurance offers your beneficiary the death benefit in the event of any untimely death during the policy term. Whether you buy15 year term insuranceor5 year term insurance, the insurer will offer a payout if you pass away during this term. Otherwise, no proceeds will be given out at the end of the term.
An increasing term plan is a type of dynamic policy, where the sum assured amount grows progressively over the years. The death benefit can have an upper cap on the sum assured's growing amount. This policy, just like the basic term policy, does not give any maturity benefits but does have life coverage.
In decreasing term policies, the death benefit amount goes on declining gradually as the policy term is about to end. Such policies usually have affordable premiums because their core purpose is to cover some specific debt or loans.
In a TROP plan, you can get back all the premiums paid throughout the policy term after the plan expires. All the premiums are returned to you under this arrangement. TROP plans also provide a maturity benefit, apart from life coverage being provided if you survive the policy term.
Term insurance with critical illness cover has a rider under which the policyholder or the beneficiary is given a lump sum in case a person gets diagnosed with a critical illness such as cancer, heart attack or stroke. This can help cover the heavy costs of medical treatment for critical illnesses.
This type of term insurance may have an added feature of accidental death rider wherein the policyholder receives an additional payout if the cause of death is an accident. The accidental death benefit is usually a multiple of the basic sum assured and, therefore, gives additional financial protection to the policyholder's family in the case of an accidental death.
Under a limited pay term insurance, the policyholder pays premiums for a short duration while he is covered for a longer duration. For example: you shall pay the premium for only 10 years under a20 year term insurance. You would pay premiums for a shorter duration but enjoy 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.
The term insurance policies with health benefits normally provide protection for hospitalization expenses, including surgeries & other health related costs. These policies are also offered with riders, whereby a lump sum or reimbursement of medical expenses is offered. Before selecting an insurer, you should check whether they offerterm insurance without medical testsor checkups.
Several factors determine the premium you pay for term insurance. Here’s a breakdown of what affects the cost:
The younger you are when buying a term policy, the lower your premiums will be. Younger individuals are considered healthier and have a longer life expectancy, making them less risky to insure.
Habits like smoking or excessive drinking can raise your premiums. These lifestyle choices are linked to higher health risks, so insurers charge more to cover potential claims.
Sum assured is the amount of coverage provided in case of your untimely demise. The higher the coverage amount you choose, the higher your premium will be.
Your profession can also influence premiums. Jobs with higher risks, such as those in construction, mining, or aviation, may lead to higher premiums than desk jobs.
Statistically, women have a longer life expectancy than men. As a result, women often pay slightly lower premiums for the same coverage.
If you have pre-existing medical conditions or a history of serious illnesses, your premium may be higher to account for the increased risk.
Policy term refers to the duration of coverage you select. A longer policy term generally results in higher premiums.
Rider benefits are additional features added to the policy, such as critical illness or accidental death benefits. These increase your premium.
Engaging in adventurous activities like skydiving, scuba diving, or mountaineering can increase premiums. These hobbies are considered risky, and insurers factor in the additional danger.
Certain life events make it the perfect time to secure term life insurance. You should consider getting insured under the following circumstances:
You should try to buy a health plan while you are relatively healthy, as it can help you secure lower premiums. If you are susceptible to any diseases or have a family history of illnesses, it is wise to get term insurance as early as possible.
When you are getting married or planning to start a family, it is essential to think about your loved ones’ financial security. A term policy ensures your partner and future children are protected in case something happens to you.
If you have taken a home loan, car loan, or any significant financial liability, term insurance can help. It ensures that your family won’t have to worry about repaying debts in your absence.
Welcoming a child into your life brings immense joy but also financial responsibility. Term insurance gives your growing family a safety net to meet expenses like education, healthcare, and daily needs.
Are you switching jobs but worried about losing employer-provided life insurance benefits? An individual term life policy can avoid such concerns, as it provides consistent coverage, no matter where you work.
If you are considering leaving an inheritance or ensuring that your assets are passed on smoothly to your loved ones, term insurance is a smart choice. It can provide the funds needed for estate taxes or other expenses.
If it has been a few years since you purchased life insurance, reviewing your coverage is a good idea. Changes in your income, family size, or financial responsibilities might mean you need more comprehensive protection.
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
With so many insurance companies and innumerable policy options available in the market, choosing the best term policy seems to be a difficult and confusing task. You need to check and compare various factors before choosing a term life insurance policy from a particular insurer. Here is how you should proceed:
The first step to buying the right term policy 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. For example, a young professional with fewer financial obligations can opt for a lower sum assured, while someone with a family and significant liabilities needs more coverage.
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. Let’s say you are in your 30s with young children. In such a case, a longer tenure that covers you until your children are financially independent will be ideal.
Sum assured refers to the amount your nominees would get if you pass away. It should align with your family's liabilities and income replacement needs. For example, if you have outstanding loans and dependents, a higher sum assured will ensure that your family is financially protected. But remember that a higher sum assured will result in higher premiums. Thus, you should balance coverage requirements and affordability concerns.
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. If your monthly income is irregular, a yearly payment plan might be easier to manage, while a monthly premium plan could be more cost-effective if you have a steady income every month.
Read through the terms and conditions carefully and understand them before proceeding to buy it. You can also look for what isterm insurance in Hindifor better understanding. Look out for factors liketerm insurance grace period,term insurance age limit, policy exclusions, waiting periods, and claim settlement procedures. Being informed about the fine print ensures that you are not caught off guard when it comes time to make a claim.
You should buy plans from an insurer with a high Claim Settlement Ratio. 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. A high ratio suggests a better track record for claim resolution. As of date, Kotak Life Insurance has aClaim Settlement Ratio^of 98.29%.
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 benefits, 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. For instance, if you are concerned about medical emergencies, adding critical illness cover will be beneficial.
Before making a final decision on the best term policy, you should compare multiple quotes from different insurers. Premium rates, coverage options, and riders can vary significantly from one provider to another. By comparing different plans, you can ensure that you are getting the most cost-effective solution that aligns with your needs.
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. A higher solvency ratio indicates that the company is financially capable of meeting its obligations. In the fiscal year 2023-2024, Kotak Life Insurance's solvency ratio* stands at 2.56%, suggesting a strong financial position.
Assess 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 so that you can easily and conveniently manage your policy.
Term insurance policies often provide different payout options, such as lump-sum or monthly payouts. 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.
A term life insurance policy ensures that your family does not have to go through financial hardships in your absence. The death benefit can be used to cover living expenses and fund long-term goals.
Your family can use the death benefits to pay off debts. This will prevent the lender from claiming rights on the collateralized assets and protect your family’s wealth.
A new lifestyle opens up a variety of risks, like critical illness, accidents, and fluctuating economic conditions. Term insurance comes with riders and add-ons that provide coverage against these risks.
Term insurance helps ensure that your family does not inherit your financial liabilities. They can settle debts using the sum assured and focus on their future.
You can use term insurance to address your temporary needs like funding your children’s education. Term insurance can be designed to provide coverage until such needs are met.
Term insurance provides assurance that your loved ones will have the financial resources to maintain their lifestyle and pursue their dreams, even without you. This provides a priceless sense of relief.
When you buy a term plan, you should pay close attention to selecting the sum assured amount. It directly impacts how well your family is protected financially.
The sum assured determines the premium you pay for the policy. Selecting an amount that strikes the right balance between adequate protection and affordable premiums ensures you do not overburden your budget.
Your sum assured should cover existing liabilities like loans, as well as future financial goals such as your children’s education. This will ensure that your family does not face financial strain in your absence.
An adequate sum assured helps your family maintain their lifestyle and meet their needs without compromise. If the sum assured is too low, it may not fully cover their expenses or long-term goals.
In today’s digital age, buying a term policy 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 your 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.
You can use online comparison tools to gather quotes from various insurance companies and compare their plans’ features. This will help you select the plan that offers comprehensive coverage at a reasonable cost.
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.
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.
Buying a term plan online from Kotak Life ensures you have access to a wide range of comprehensive features that cater to your specific needs. You can choose from various riders, flexible premium payment options, and customizable policy terms that align with your financial goals.
Here’s a step-by-step guide to how our term insurance plan works and provides financial security to your family members:
We, at Kotak Life, offer various options with customizable coverage and policy tenures. You can choose the policy that best meets your requirements.
You are then required to pay premiums according to the pre-decided amount and frequency.
You can track your premium payments, view your policy details, and make updates whenever needed using our online portal.
In the unfortunate event of a claim, your nominated beneficiary can easily submit the claim. We work efficiently to ensure the death benefit is paid promptly.
Purchasing a Kotak Life term insurance plan is a simple and convenient process designed to help you secure your family’s financial future in just a few steps. Here’s how you can buy a Kotak Life Term Insurance Plan:
1
Explore the available term insurance options on our website. You can choose from various plans likeKotak Gen2Gen ProtectPlan,Kotak e TermPlan, orKotak Saral Jeevan Planbased on your coverage needs, duration, and premium preferences. The website provides easy-to-understand details on each plan so that you make an informed decision.
2
After selecting your plan, you can personalize it by selecting the sum assured, tenure, and additional riders (such as Critical Illness Cover or Accidental Death Benefit) that suit your specific needs. Kotak Life gives you the flexibility to design a plan that meets your financial goals and offers comprehensive protection.
3
Once you have chosen your plan, you can easily fill out the online application form. Kotak Life provides a simple, user-friendly interface that allows you to enter personal details, medical history, and preferences for premium payment. You can also upload any necessary documents directly on the platform.
4
After submitting your application, you can pay your premium online using secure payment gateways. Kotak Life supports various payment options, including credit/debit cards, net banking, and UPI. Once the payment is completed, your policy will be issued digitally, and the documents will be sent to your email. You can then access and manage your policy online, ensuring everything is in order.
Kotak Life Insurance offers several riders that can enhance the benefits of a term policy. Here are the top 3 riders to consider for better coverage:
The Critical Illness Cover rider provides additional protection in case of diagnosis of serious illnesses such as cancer, heart attack, stroke, kidney failure, and other major conditions. If the insured is diagnosed with any of the listed critical illnesses, this rider pays a lump sum amount to the policyholder to help with medical expenses, recovery costs, and lifestyle adjustments.
This rider ensures that if the policyholder becomes permanently disabled due to an accident or illness, the premiums for the term life policy are waived. The policy will continue, and the sum assured will still be paid out at the end of the term. This rider provides peace of mind in case the insured is unable to work due to a permanent disability.
The Accidental Death Benefit rider provides an additional sum assured to the beneficiary in case of the policyholder's accidental death. This benefit is over and above the basic sum assured by the policy and can help the family cope with financial challenges during a tragic time. It is an important rider to have for additional protection against unforeseen accidents.
Many believe term insurance for family is a waste of money because it doesn't provide cash value. However, its primary purpose is to offer financial protection to your family through a death benefit.
People often think health insurance covers all needs. While it pays for medical expenses, it doesn't provide financial support to your family if you pass away. Term insurance specifically secures your family’s financial future.
Insurance companies offerterm insurance for smokersas well as for those who have existing health issues. However, such individuals should disclose all information while buying the plans and may be required to undergo additional medical tests.hhk
There’s a common belief that term insurance premiums are high. In reality, term insurance is one of the most affordable life insurance options, especially for younger individuals in good health.
Some delay purchasing term insurance, thinking they can buy it later. However, premiums increase with age, and health issues may arise, making it more difficult or expensive to get coverage later.
Many assume only the primary income earner needs insurance. In reality, anyone contributing to the household, whether financially or through caregiving, should have coverage to protect their family’s standard of living.
Choosing the right policy period for your term insurance is essential to ensure your loved ones remain financially protected at the right stages of life. Here’s a breakdown of why the duration matters:
Your term insurance should cover the years you actively earn an income. During this period, your family depends on you financially for daily expenses, savings, and investments. Selecting a policy term that spans your working years ensures they remain financially secure if something happens to you.
As you age, health risks increase, and securing a new insurance policy becomes more challenging and expensive. A longer policy term guarantees that your family is protected during these vulnerable years without needing to renew or take on additional costs.
Term insurance can align with your family’s long-term goals, such as funding your children’s education, paying off a mortgage, or ensuring a comfortable retirement for your spouse. Choosing a policy period that matches these milestones ensures that your financial commitments are covered even in your absence.
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 ₹75 lakh term insurance, for example, the entire amount of ₹75 lakhs will be paid to your nominee once their claim has been processed.
This option combines a one-time lump-sum payment and consistent income. For example, in ₹25 lakh term insurance, ₹10 lakhs could be paid upfront as a lump sum, while the remaining ₹15 lakhs are distributed in fixed monthly or annual installments over a specified period.
A part of the death benefit is provided to the beneficiaries as a lump sum, accompanied by regular monthly payments, which increase with time. Such plans provide a higher payout in the later years, thus catering to inflation and increased living costs.
When filing a term life insurance claim, having the necessary documents ready ensures a smooth and hassle-free process. Here’s a list of essential documents:
Death Certificate
Policy Document
Identification Proof
Medical Records
Police Report (if applicable)
Nominee/Beneficiary ID
Bank Details
Proof of Relationship
Additional Documents
The official death certificate is a mandatory document to confirm the policyholder's demise. It’s issued by the municipal or local authority and serves as the primary proof for initiating the claim process.
The original term life insurance policy document must be submitted. This document contains all the details of the policy, including the terms, sum assured, and nominee information.
You will need the identification proof of the deceased policyholder, such as an Aadhaar card, PAN card, or passport, to verify their identity.
If the death was due to illness, the medical records and treatment history of the policyholder will be required to validate the claim. These records provide details of the illness and its progression.
In case of accidental death or unnatural causes, a police report or FIR (First Information Report) must be submitted. This helps verify the circumstances surrounding the death.
The nominee or beneficiary must provide their identification proof, such as an Aadhaar card or voter ID, to establish their identity and claim rights.
You must submit the nominee’s bank account details, including a canceled cheque or a copy of the passbook. This helps process the claim payout and ensures the funds are transferred directly.
A document proving the relationship between the policyholder and the nominee, such as a marriage certificate, birth certificate, or other legal papers, may be required.
Depending on the insurer’s requirements, additional documents like a post-mortem report or employer’s certificate may be requested for specific cases.
The official death certificate is a mandatory document to confirm the policyholder's demise. It’s issued by the municipal or local authority and serves as the primary proof for initiating the claim process.
The original term life insurance policy document must be submitted. This document contains all the details of the policy, including the terms, sum assured, and nominee information.
You will need the identification proof of the deceased policyholder, such as an Aadhaar card, PAN card, or passport, to verify their identity.
If the death was due to illness, the medical records and treatment history of the policyholder will be required to validate the claim. These records provide details of the illness and its progression.
In case of accidental death or unnatural causes, a police report or FIR (First Information Report) must be submitted. This helps verify the circumstances surrounding the death.
The nominee or beneficiary must provide their identification proof, such as an Aadhaar card or voter ID, to establish their identity and claim rights.
You must submit the nominee’s bank account details, including a canceled cheque or a copy of the passbook. This helps process the claim payout and ensures the funds are transferred directly.
A document proving the relationship between the policyholder and the nominee, such as a marriage certificate, birth certificate, or other legal papers, may be required.
Depending on the insurer’s requirements, additional documents like a post-mortem report or employer’s certificate may be requested for specific cases.
While term insurance offers simplicity and affordability, some of the terminology used in term insurance often can be confusing to policyholders.
Sum assured refers to the amount that the insurer agrees to pay in the case of the insured person's death during the policy term. 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 and who receives the policy 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 the term plan provides life insurance coverage. It may vary from one year to 100 years or even for a whole life. It is commonly known as policy term or policy duration.
The maturity age is when your policy coverage ends. It is similar to policy tenure but expressed in terms of age. For example, if your policy tenure is 30 years and you start at age 30, the maturity age is 60.
The premium is the amount you pay to maintain your life insurance policy and keep it active. If you fail to pay it by the due date or during the grace period, the policy will be canceled.
Life insurance premiums can be paid flexibly: regularly over the policy tenure (monthly, quarterly, etc.), for a limited period (e.g., 10 or 15 years), or as a single lump-sum payment (undersingle premium term insurance).
Riders are optional add-ons that enhance your insurance policy’s coverage for an additional cost. Common riders include Accidental Death Benefit, Accidental Total and Permanent Disability Benefit, Critical Illness Cover, and Premium Waiver.
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 in this case and the death benefit is not payable.
Thegrace periodis the extra time after a premium is due, during which the policy remains active, even if the payment has not been made. If the premium remains unpaid by the end of this period, the policy lapses.
There is no surrender value applicable in term insurance. 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 insurer evaluates the risk of the individual to be insured. It involves assessing several aspects of the applicant's health, lifestyle, occupation, etc., and determining the premium rate accordingly.
A convertible term life insurance policy can 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.
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 duration for which an insurance policy provides coverage to the insured. It can vary based on the policy type and insurance provider, with options that may range from a few years to a lifetime.
The insured is the individual whose life is covered by the term insurance policy. If the insured person passes away during the policy term, the designated beneficiaries will receive the death benefit as per the policy's terms and conditions.
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 best age to buy term insurance is in your 20s or early 30s, as premiums are lower and you can secure a higher coverage for a longer tenure, ensuring financial protection for your family at an affordable cost.
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.
Yes, term insurance is tax-free in two ways: premiums paid are eligible for deductions under Section 80C of the Income Tax Act, and the claim amount received by the nominee is tax-free under Section 10(10D), subject to certain conditions.
The number of years you need to pay for term insurance, known as the premium payment term, depends on the policy. It can range from a limited period (e.g., 10 or 15 years) to the entire policy tenure, which is typically up to the age of 60-75 years or as chosen by you.
The 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 for further details regarding thetax benefits of term insurance.
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 the Income-tax Act, 1961. Tax benefits are subject to change as per tax laws. Tax laws are subject to amendments from time to time. Customer is advised to take an independent view from tax consultant.
The example is for a non-smoker healthy male aged 25 year old; Plan: Life; Payout Options: Immediate Payout; PPT: 35 years (pay till age 60); PT: 50 years (cover till age 75); Salaried or non-salaried: Non-salaried
Claim Settlement and Solvency ratio*disclaimer:
^Figures arrived are basis the company’s latest annual audited figures for Individual Policy Claims for 2023-24
*https://www.kotak.com/content/dam/Kotak/investor-relation/Financial-Result/QuarterlyReport/FY-2024/q4/investor-presentation/Q4FY24%20Investor-Presentation.pdfGet 1 Crore Life Cover @₹15/day*Disclaimer:
≈The above illustration is for a 18-year-old healthy male, non-smoker who has opted for the Life Option with a 40-year policy term with regular premium payment mode, Level Recurring Payout Option and Sum Assured on Death of Rs.1 Crore. The per day premium is Rs.15 [Rs. 5,400 Annualized Premium / 365 days = Rs. 14.79].
Get 1.5 Crore Life Cover @₹22day*Disclaimer:
≈The above illustration is for an 18-year-old healthy male, non-smoker who has opted for the Life Option with a 40-year policy term with regular premium payment mode, Level Recurring Payout Option and Sum Assured on Death of Rs.1.5 Crore. The per day premium is Rs.22 [Rs. 8,100 Annualized Premium / 365 days = Rs. 22.19].
Get 2 Crore Life Cover @₹30/day*Disclaimer:
≈The above illustration is for an 18-year-old healthy male, non-smoker who has opted for the Life Option with a 40-year policy term with regular premium payment mode, Level Recurring Payout Option and Sum Assured on Death of Rs.2 Crore. The per day premium is Rs.30 [Rs. 10,800 Annualized Premium / 365 days = Rs. 29.59].
Get 5 Crore Life Cover @₹67/day*Disclaimer:
≈The above illustration is for an 18-year-old healthy male, non-smoker who has opted for the Life Option with a 40-year policy term with regular premium payment mode, Level Recurring Payout Option and Sum Assured on Death of Rs.1.5 Crore. The per day premium is Rs.67 [Rs. 24,500 Annualized Premium / 365 days = Rs. 67.12].
Get 75 Lakh Life Cover @₹16/day*Disclaimer:
≈The above illustration is for an 18-year-old healthy male, non-smoker who has opted for the Life Option with a 40-year policy term with regular premium payment mode, Level Recurring Payout Option and Sum Assured on Death of Rs.1.5 Crore. The per day premium is Rs.16 [Rs. 5,775 Annualized Premium / 365 days = Rs. 15.82].
Get 51 Lakh Life Cover @₹11/day*Disclaimer:
≈The above illustration is for an 18-year-old healthy male, non-smoker who has opted for the Life Option with a 40-year policy term with regular premium payment mode, Level Recurring Payout Option and Sum Assured on Death of Rs.1.5 Crore. The per day premium is Rs.11 [Rs. 3,927 Annualized Premium / 365 days = Rs. 10.75].
The Above premium figures are exclusive of Goods and Services Tax and cess. Goods and Services Tax and Cess thereon, shall be charged as per the prevalent tax laws over and above the said premiums. The channel selected is Online.
You may avail of tax benefits as per the Income Tax Act, 1961 subject to conditions as specified in those sections. Tax benefits are subject to change as per tax laws. You are advised to consult your Tax Advisor for details. Goods and Services Tax and Cess, as applicable shall be levied over and above premium amount shown here as per applicable tax laws.
Kotak Gen2Gen Protect -UIN: 107N132V02, Kotak Permanent Disability Benefit Rider - UIN: 107B002V03, Kotak Critical Illness Plus Benefit Rider - 107B020V02, Kotak Accidental Death Benefit Rider - UIN: 107B001V04. This is a non-participating non-linked life insurance individual savings product. For more details on risk factors, terms and conditions, please read sales brochure carefully before concluding a sale. For more details on riders please read the Rider Brochure.
Kotak e-Term:UIN No.: 107N129V03, Kotak Critical Illness Plus Benefit Rider UIN No.: 107B020V02, Kotak Permanent Disability Benefit Rider UIN No.: 107B002V03. This is a non-participating non-linked life insurance individual pure risk product. For more details on risk factors, terms and conditions, please read sales brochure carefully before concluding a sale. For more details on riders, please read the Rider Brochure.
Kotak Term PlanUIN No.: 107N005V06, Kotak Accidental Death Benefit Rider - UIN: 107B001V04, Kotak Permanent Disability Benefit Rider - UIN: 107B002V03, Kotak Critical Illness Plus Benefit Rider UIN: 107B020V02. This is a non-participating non-linked life insurance individual pure risk product. For more details on risk factors, terms and conditions, please read sales brochure carefully before concluding a sale. For more details on riders please read the Rider Brochure.
Kotak Saral Jeevan BimaUIN No.: 107N120V01. This is a Non-Participating Non-Linked Life Insurance Individual Pure Risk Product. For more details on risk factors, terms and conditions, please read sales brochure carefully before concluding a sale.
Health MaximiseUIN No.: ZUKHLIP24026V022324 is a Combi Product with both protection & health benefits, where protection benefits are being offered by Kotak Mahindra Life Insurance Company Ltd. under Kotak Term Plan - UIN 107N005V06 and health benefits are being offered by Zurich Kotak General Insurance Company (India) Limited under Health Premier – UIN ZUKHLIP23109V052223. For more details on risk factors, terms and conditions, please read sales brochure carefully before concluding a sale.
This website content only gives the salient features of the plan.
*Get your premiums back through Special Exit Value, under your policy, if your policy term is:
40 years: Earlier of 25th policy year OR during the policy year, when you attain 60 years
> 40 years: Earlier of 30th policy year OR during the policy year, when you attain 60 years
5% Discount on Salary Infographic Disclaimer:
The 5% discount is only on the first year of the policy.
**Free Medical Checkup every 5th year starting from 5th policy year onwards
Section 41-
Extract of Section 41 of the Insurance Act, 1938 as amended from time to time states: (1) No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any person taking out or renewing or continuing a policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectuses or tables of the insurer. (2) Any person making default in complying with the provisions of this section shall be liable for a penalty which may extend to ten lakhs rupees.
Section 45-
Fraud, Misstatement and Forfeiture would be dealt with in accordance with provisions of Section 45 of the Insurance Act, 1938 as amended from time to time. Please visit our website for more details: https://www.kotaklife.com/assets/images/uploads/why_kotak/section38_39_45_of_insurance_act_1938.pdf
https://www.kotaklife.com/assets/images/uploads/why_kotak/section38_39_45_of_insurance_act_1938.pdfRegd. Office:
Kotak Mahindra Life Insurance Company Ltd. Reg No. 107 | CIN: U66030MH2000PLC1285038th Floor, Plot # C- 12, G- Block, BKC, Bandra (E), Mumbai – 400051 | Toll Free: 1800 209 8800 | Website: https://www.kotaklife.com | Email: kli.in/WECARE ARN No: KLI/24-25/E-WEB/1851
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