Buy a Life Insurance Plan in a few clicks
Insurance and Investment in one plan.
Protect your family's financial future.
Thank you
Our representative will get in touch with you at the earliest.
A ₹25 lakh term insurance plan offers a fixed coverage amount of ₹25 lakh for a specified duration, providing financial protection to beneficiaries.
When planning for your family’s future, it is crucial to think about how they will manage their finances if you are not around. Term insurance for ₹25 lakh is designed to provide you with this peace of mind and rid you of such worries.
In ₹25 lakh term insurance, by paying affordable term insurance premiums, you can ensure that your family receives a lump sum of ₹25 lakh in the event of your passing. This amount can help cover important expenses, like any outstanding debts, your child’s education, or even household costs, helping them maintain their lifestyle.
Let us dive deeper and learn more about the plan and how it works to make smarter choices.
A ₹25 lakh term insurance is basically a term insurance for family with a coverage of ₹25 lakh that protects you and your family for a set duration if you (the insured person) pass away during the plan’s active period. In such cases, the designated beneficiary receives a payout of ₹25 lakh. This amount can help your loved ones manage daily expenses without needing to use money from their savings.
A term insurance plan for ₹25 lakh provides a death benefit to your beneficiaries if you pass away during the policy term. Similar to any other term insurance plan, this plan’s process and working principle are simple. So, if you were to get a term plan of ₹25 lakh, here is how it would work:
Note that depending on your chosen payment option (regular, single, limited pay), you must make premium payments per the policy terms. If you fail to pay premiums by chance, it may lead to a policy lapse or reduced coverage.
Let us further understand this process with an example:
If Mohan, a 30-year-old non-smoker, takes out a ₹25 lakh term plan for a policy term of 20 years, he starts his premium payments at an affordable rate (this may vary based on age, health, and policy options). Mohan diligently pays his premiums every month. Now, if Mohan were to pass away during the policy term, his family would receive a ₹25 lakh payout. The amount from the payout can help his family cover various financial obligations. But, if he fortunately survives, there will be no payout as term insurance plans mostly do not offer any survival or maturity benefits.
Life is uncertain, and having financial protection in place can provide you peace of mind. What makes such a life insurance policy so great? Let us explore:
So, a ₹25 lakh term insurance policy acts as an income replacement and allows your loved ones to live without financial stress. Add to that. You can easily choose an amount that works for you, be it a ₹50 lakh term insurance or ₹1 crore term insurance, and even ₹5 crore term insurance.
Before you move forward and learn how to choose a plan, you must know the term insurance benefits and features. This will help you understand your needs better and how a term insurance plan can fulfill those requirements:
Feature/Benefit |
Description |
|---|---|
| Death Benefits | Ensures a payout of ₹25 lakh to your family if you pass away during the policy term, providing financial stability in your absence. |
| Maturity Benefits | Some term plans offer a return of premiums paid if you outlive the policy term, letting you recover part of your investment. |
| Tax Benefits | Avail term insurance tax benefits with deductions under Section 80C for premiums paid and Section 10(10D) for claim payouts. |
| Rider Benefits | Enhance your coverage with additional protection options:
|
| Coverage Against Various Liabilities | Helps cover outstanding debts, loans, and other financial liabilities, preventing your family from bearing the burden. |
| Claim Assistance | Insurers provide dedicated claim support to simplify the process and help your family access the benefits without hassle. |
| Low Premiums | Term insurance plans offer high coverage for affordable premiums, making them budget-friendly and accessible. |
| Buying Process | The policy can be bought online or offline, with easy steps to compare, apply, and complete the process, saving time and effort. |
| Premium Payment Frequency | Choose a payment frequency—monthly, quarterly, semi-annually, or annually—that aligns with your budget, giving you greater control over finances. |
| Payout Options of Term Plan | Select from different payout options, like lump sum or monthly installments, allowing your family to receive benefits as per their needs. |
| Financial Protection | A ₹25 lakh term plan offers security to ensure your family’s financial needs are met, even in your absence, safeguarding their future. |
Choosing the right term insurance is a critical task for anyone. You must be aware of your financial needs, budget, and many other factors affecting it. Before making the final decision, you must go through the following factors impacting your term plan insurance:
Premium is one of the most important aspects of any term insurance plan. It is the amount of money that you pay to the insurance company to avail of the benefits provided under the plan you chose. This amount should be evaluated properly so that it covers all your expenses when the crisis arrives. You should also continue paying your premiums on time to avail of the benefits. Therefore, choose a premium that fits your budget and matches your needs.
When choosing an insurance provider, consider their Claim Settlement Ratio (CSR). The CSR reflects the percentage of claims the company approves each year. A higher CSR generally indicates a smoother claim process and a greater likelihood of your claim being settled efficiently.
Additional riders or add-ons are extra features that you can opt for along with your regular insurance plan. These are complementary benefits that enhance the usability of your term plan. Accidental cover, critical illness rider, or permanent disability riders can add to the already existing benefits of your term plan.
Here are the steps to consider when purchasing a term insurance plan ₹25 lakh in India:
Identify your needs and consider factors like age, dependents, income, and desired policy term (coverage period). You should also compare insurance plans from different insurance providers. Insurance company websites, comparison websites, or independent insurance brokers can provide quotes and plan details.
Consider factors like level cover (fixed sum assured) or increasing cover (adjusted for inflation) and rider benefits (additional coverage for critical illness or accidental death). Also, look for insurers with a good claim settlement ratio , which indicates their record of paying claims
Many insurers offer online applications, or you can also approach an insurance agent. You should be prepared to provide your basic details, medical history, and lifestyle habits (smoking, etc.)
Depending on your age and the sum assured, a medical checkup might be required.
Carefully review the policy document to ensure all details are accurate, and choose a payment mode (yearly, half-yearly, quarterly, or monthly) that suits you.
The premium paying term is when you must pay premiums for your policy. This term can either match or be shorter than your policy’s overall duration. For example, you might opt for a term insurance plan offering life coverage for 40 years. The following are some of the popular premium payment options for a term insurance plan ₹25 lakhs:
With this option, you pay premiums for the entire policy duration until it matures or until the end of the policy term. Premiums are paid on a regular basis, such as monthly, quarterly, semi-annually, or annually, depending on the policy terms.
With this option, you pay higher premiums for your policy but for a shorter period while keeping coverage for the full term.
It involves making a one-time lump sum payment for the entire policy coverage at the beginning of the policy term. Once you make this single premium term insurance payment, you are not required to make any further payments toward the policy.
A ₹25 lakh term insurance plan ensures that your beneficiaries receive a significant payout, providing them with the necessary support to maintain their standard of living and meet future expenses. By understanding the benefits, features, and premium payment options associated with term insurance, you can make informed decisions to safeguard your family’s financial security. Remember to assess your needs thoroughly, compare plans from different insurers, and choose a policy that aligns with your requirements and budget. If your family might need more coverage, you can explore other options like ₹2 crore term insurance. The aim is to select a plan that helps your family members maintain the same standard of living in your absence.
1
Anyone meeting the insurer’s eligibility criteria can buy a ₹25 lakh term policy.
2
You can buy a term insurance ₹25 lakh by comparing policies online, choosing the one that fits your needs, and completing the application with the necessary documents and a medical check-up if required.
3
The maximum maturity age for a ₹25 lakh term plan varies among insurers, typically ranging from 75 to 85 years.
4
Yes, the Kotak Standard Plan typically offers a grace period for premium payments.
5
A ₹25 lakh term plan provides financial protection to your beneficiaries in case of your demise.
6
The premium amount for a ₹25 lakh term plan depends on various factors like age, health, and chosen coverage.
7
Missing premium payments could result in policy lapse or require reinstatement with potential penalties.
8
The claim settlement process involves notifying the insurer, submitting required documents, and undergoing evaluation.
9
Many insurers offer options to add spouses or children to a ₹25 lakh term life plan for enhanced coverage.
10
Coverage usually begins shortly after purchasing a ₹25 lakh term plan once all formalities are completed.
11
The usage of death benefits from a term insurance for ₹25 lakh is typically unrestricted, allowing beneficiaries to utilize it as needed.
Amit Raje is an experienced marketer who has worked in various Fintechs and leading Financial companies in India. With focused experience in Digital, Amit has pioneered multiple digital commerce in India. Now, close to two decades later, he is the vice president and head of the D2C business department. He masters the skill of strategic management, also being certified in it from IIMA. He has challenged his challenges and contributed his efforts in this journey of digital transformation.
Prasad Pimple has 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
The information herein is meant only for general reading purposes and the views being expressed only constitute opinions and therefore cannot be considered as guidelines, recommendations or as a professional guide for the readers. The content has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Recipients of this information are advised to rely on their own analysis, interpretations & investigations. Readers are also advised to seek independent professional advice in order to arrive at an informed investment decision. Further customer is the advised to go through the sales brochure before conducting any sale. Above illustrations are only for understanding, it is not directly or indirectly related to the performance of any product or plans of Kotak Life.
Get your premiums back with special exit value