Have you recently obtained a loan? Here’s why you need term insurance

must be the most economical and reliable way to add this coverage. We tell you why.
The need to balance your loans
We live in an age where loans are the most common and the most sensible way to enjoy luxury. Whether it’s an auto loan that makes our travel plans easier or a home loan that takes us to the home of our dreams, loans help us live the life we want by ensuring that it is affordable. However, there are various “what ifs” that accompany this easy access. And the biggest “what if” most of us need to plan for is what if there is uncertainty? And
term insurance helps us to counter this risk with ease.
By investing in a reliable term insurance plan, you can ensure that your family has the body they need to not only pay off the debt you currently have, but also to live comfortably, even during tough times. Insurance plans such as the Kotak e-Term plans offer pure protection against these uncertainties and ensure the financial security of your family. Take the example of Reema, a 35-year-old woman who has a mortgage and a car loan in her portfolio. Her monthly EMI stands at Rs 21,000 and her outstanding debt stands at Rs 25,000,000. In case of uncertainty, that financial responsibility will also fall on her family. However, if Reema had life insurance coverage as low as Rs 50.00,000, her family will be protected from this financial burden in these difficult times.
What are you looking for in term insurance?
The most important reason for choosing a term plan must be the affordability of it. You can opt for trusted coverage like the
E-Term Kotak plan
at a nominal cost of less than 15 / day *. Add to this the fact that term plans often come with long-term coverage, up to 75 years in this case; and the reasons for paying attention to the type of term plan you invest in become clearer.

The power of choice
The beauty of term insurance is that it can be as simple or as elaborate as you want it to be. Take the Kotak e-Term Life plan for example. From what’s covered in the plan to how your family will receive payments or benefits, everything can be customized to suit your needs. Want to be protected against serious illness? The Kotak Critical Illness Plus rider allows you to claim the sum insured in the diagnosis of one of the 37 listed illnesses. Do you want to increase or decrease your insurance coverage? Use the Step-down option to change your policy coverage at any time!
Even when it comes to payments, you can either go for a one-time immediate payment, which can help your family clear all your outstanding loans and reinvest the remaining funds to ensure financial stability. Alternatively, you can also opt for a recurring payment option, in which case 10% of your claim settlement is paid up front and the remaining amount is paid over the next 15 years (6% each year). Alternatively, you can also go for the increase in recurring payment, where the annual payment in the first year is 6%, and it increases by 10% (single) each year thereafter.
On top of all of these facts, what makes term insurance an even better choice are the tax benefits that come with it. These nominal payments can help you claim tax deductions for the premium paid for
term plans
, under section 80C of the Income Tax Act. Even when it comes to claiming the payments, your family may enjoy tax benefits under Sedition 10 (10D) of the Income Tax Act, 1961. According to this, as long as the premiums paid on the policy do not exceed 10% of the sum insured (for contracts issued after April 1, 2012) or 20% of the sum insured (for contracts issued before April 2012) the amount received at maturity or the bonus claimed on a life insurance policy is exempt from income tax.
Disclaimer: This article was produced on behalf of Kotak Life by the Times Internet Spotlight team.