Pension plans from reputable insurers, such as Kotak Life Insurance, ensure that you will get a consistent income that is unaffected by stock market volatility or shifting interest rates. These guaranteed monthly, quarterly, semi-annual, or yearly annuities will cover your costs, allowing you to focus on enjoying your retirement. This is a participating plan with death and vesting benefits.
Benefits of Kotak Life Pension Plans
- Get guaranteed additions: Guaranteed additions are a percentage of the total promised in the first five years of the policy that is payable on maturity or death, whichever comes first. This is subject to all premiums being paid until maturity or death, as applicable. The guaranteed additions for regular and restricted payment choices are 5% of the basic sum promised. The guaranteed additions for the single premium payment option are 2% of the base sum assured.
- Assured benefit: You will get a minimum guaranteed benefit upon vesting and your nominee will receive a benefit equal to 105 percent of all premiums paid until death or vesting. The day the insurance bearer becomes entitled to the benefits provided by the policy is referred to as vesting.
- Additional security: You may add extra security by selecting one of the two rider choices. The Kotak Accidental Death Benefit Rider (ADB) provides a lump sum payment in the event of accidental death during the policy period. The other option is the Kotak Permanent Disability Benefit Rider (PDB), which pays out in instalments.
- Vesting Benefit: You will be entitled to a base payment assured plus cumulative guaranteed additions + accrued reversionary bonus with terminal bonus upon vesting (if any).
- Reduced paid-up sum assured: If your regular or limited premium pay policy has a Surrender Value, you can choose the reduced paid-up option. All earned reversionary bonus/guaranteed additions already connected to the insurance will be paid to you.
- High sum assured discount: For basic sum assured in excess of Rs. 5 lacs, a premium discount of Rs. 2 per 1000 basic sum assured would be applied. For basic sum insured exceeding Rs. 5 Lacs, there is a rebate of Rs. 8 per 1000 for the single premium payment option.
- Death benefit: If the policyholder dies, the nominee will get guaranteed benefits + accrued guaranteed additions plus accrued reversionary bonus with terminal bonus (if any). The nominee has two options: acquire an instant annuity from Kotak Life Insurance or remove the whole insurance money.
- Tax advantages: Deductions are available under section 80C of the Income Tax Act.
- Premium payment flexibility: You may pick the ideal premium payment period for you, such as regular premium pay, limited pay of 10/12 years, or single pay option.
|Entry Age||Minimum – 30 years maximum – Regular & Limited Pay – 55 years single Pay = 60 years|
|Maturity Age||45 years – 70 years|
|Policy Term||Regular Pay: 10 – 30 yearsLimited Pay: 10pay: 15 years12 pays: 17 – 30 years Single Pay: 10 & 15 years|
|Premium Modal Factor||Yearly: 100%Half Yearly: 51%Quarterly: 26%Monthly: 8.8%|
|Premium Payment Term (PPT)||Regular Pay: Same as policy term Limited Pay 10 & 12 years single Pay|
|Premium Amt||Depends on sum assured, age, PPT, and policy term|
Kotak Lifetime Income Plan
The Kotak Lifetime Income Plan is a non-participating instant annuity plan that guarantees a steady source of income for the rest of one’s life.
The annuitant will get a regular income for the rest of his or her life based on a one-time payment paid to Kotak Life Insurance. The Kotak Lifetime Income Plan essentially provides a choice of six annuity alternatives as well as the frequency with which the income flow is required. The Kotak Lifetime Income Plan will be available to both individual consumers and Superannuation Fund Members.
Lifetime Income, Lifetime Income with cashback, Lifetime Income with Term Guarantee (5/10/15/20 yrs.), Last Survivor Lifetime Income with 100 percent annuity to surviving spouse, Last Survivor Lifetime Income with 50 percent annuity to surviving spouse, and Last Survivor Lifetime Income with 100 percent annuity to surviving spouse and cashback on death of surviving spouse are the annuity options.
- Guaranteed annuity rates: The issued rates will stay the same for the rest of your life.
- Greater Annuity Rates: If you choose a higher purchase price, you will receive a higher annuity rate. Increased buying price discount
Additional annuity: You can purchase another annuity to raise the annuity payment.
|Entry Age||Minimum: New customers: 45 and 55 years old; existing Kotak Life Insurance (KLI) customers: 18 years old; and nominees of dead KLI customers: 0 years old. Spouse: 35-year-old new customer Holders of existing KLI Pension Plan policies: 18 yearsMaximum age: 99 years.|
|Single Premium||Any sum that offers a minimum monthly annuity of Rs. 1000/-|
|Minimum Annuity||Monthly: Rs1000/-Quarterly: Rs3000/-Half-yearly: Rs6000/-Yearly: Rs,12,000/-|
|Annuity Modes||Yearly, half-yearly, quarterly, monthly|
|Annuity Instalment||Yearly: 100%Half-yearly: 97%Quarterly: 96%Monthly: 95%|
Kotak e-Lifetime Income Plan
This is a Kotak Life Insurance quick annuity plan with no deferral concept, and pension payments begin immediately when the premium is paid.
- Death Benefit: There are four alternatives for benefit payment upon the death of the insured:
- Lifetime Income- When the annuitant dies, the income payments stop and the policy is automatically canceled.
- Lifetime income with cash back- The single payment paid for the plan will be paid to the nominee, and the policy will be canceled
- If the annuitant dies during the designated guaranteed period, the income pay-out will be provided to the nominee until the end of the guaranteed term, at which point the policy will be canceled. If the annuitant dies before the end of the stipulated term, the income payments stop and the insurance is canceled.
- If the initial annuitant to whom the insurance is issued dies, the income pay-out is provided to the surviving spouse. When the remaining annuitant dies, the pay-out ceases, and the policy is finally canceled.
- Income possibilities: This plan offers four income alternatives based on your individual retirement needs.
- Lifetime income – Income will be paid during the annuitant’s life and will end when the annuitant dies.
- Lifetime income with cashback – Income will be provided during the annuitant’s lifetime, and the single premium paid for acquiring the plan will be reimbursed to the nominee upon the annuitant’s death.
- Lifetime income with term guarantee – The income will be provided for the annuitant’s specified period of 5 years, 10 years, 15 years, or 20 years. If the annuitant survives the stipulated term, the pay-out will continue for the rest of his life.
- Last survivor lifetime income – The income will be paid during the lifetime of one of the annuitants to whom the insurance is issued, and after his death, the income will be paid for the lifetime of the surviving annuitant.
- The customer has 30 days from the date of receipt of the policy to cancel it. If the policyholder is not happy, he may return it during that time period. The consumer receives a return of the premium paid after deducting the costs of the medical examination, stamp duty, and any annuity payments.
|Entry Age||Minimum – 45 yearsMaximum – 99 years|
|Entry age for nominees of deceased Kotak life pension holder||Minimum – 0Maximum – 99 years|
|Spouse Entry Age||Minimum – 35 yearsMaximum – 99 years|
|Single Premium||Minimum – Online channel – Rs 50,000Distance Marketing – Rs.20,000Maximum – No Limit|
What do you mean by Pension Plans?
A pension plan is the retirement amount that an individual receives from their insurance company on a monthly or lump sum basis. There are a variety of such programmes available in the nation, provided by various firms. However, having more options might be confusing and make it harder for people to pick the best one. It is feasible to build a significant corpus via regular investments, which when mature provides a regular monthly income for taking care of your post-employment years. The amount you earn might be referred to as an annuity or a pension.
Two types of annuity plans
1. Immediate Annuity
2. Deferred Annuity
Immediate Annuity Plan
You begin getting monthly income immediately after investing in an instant annuity plan. You invest a lump sum and begin receiving payments 12 months after the commencement of your insurance, depending on the frequency selected. This option may be more appropriate if you are nearing retirement and want an immediate source of funds.
The regular income or annuity in a deferred annuity plan begins after a certain date. This strategy may be more acceptable if you still have a few years before retirement and do not want a retirement income right now.
When should you buy a pension plan?
There is no such thing as early preparation when it comes to your post-retirement life. Nobody knows what will happen when you are no longer in a solid employment, especially with the rising cost of living. During their golden years, people are at their most vulnerable. With the unified family system collapsing around you, you have no one to fall rely on. In such a situation, the only support that matters are the crucial financial support. When you have a job, your money is your strength, but what happens when that stability ends?
- Begin as soon as you have a job.
- Only if you begin preparing early on will you be able to create a corpus that is suitable for covering you when you are no longer in a job environment. This is why most businesses require individuals to save 12% of their basic pay from the first day of employment. If your company or institution already offers a pension plan, that’s great; otherwise, go for a savings plan that deducts 12% of your monthly salary and provides the same benefits when you retire.
- When you are in your mid-thirties
- Those who have an established pension system at their current employer should assess their status in their mid-thirties and predict how much they will require after retirement. Is the present strategy appropriate for such scenarios, or do you need to increase your savings to keep up with escalating costs? Find further plans to invest in and safeguard your future based on the answers to these questions.
Advantages of Pension Plans
When people retire, their income decreases; a pension compensates for some of this income loss in retirement; pension schemes can provide protection in the form of lump sums and pensions to dependants in the event of a member’s death; and, to encourage pension schemes, the State provides tax relief on contributions made to pension schemes and the growth in their investments.
Kotak Life pension plans guarantee that one has enough cash after retirement to not only pay day-to-day expenditures, but also to continue enjoying the same lifestyle as before retirement. These Kotak Life plans enable people to live with dignity even after they have retired from active job.
Retirement Pension Plan from Kotak Life allow you to be self-sufficient and financially independent even after you retire, so you don’t have to rely on others for money.
Income After Retirement
The Kotak Life plans offer the best post-retirement income to help you live a comfortable, stress-free life. After retirement, one can pursue interests, accomplish things one has always wanted to do, and live one’s dream without worry.
Create the Habit of Regular Saving
A Kotak Life pension plan is designed to save money at regular intervals in order to build a sizable post-retirement corpus. Committing a little sum every month to a Kotak Life plan instils the habit of saving, the benefits of which become apparent during crises and, finally, in one’s elderly years.
Applying for a pension plan from Kotak Life Insurance:
Kotak Life Insurance provides unique products that are exclusively available online. The consumer merely has to enter onto Kotak Life’s website, select the relevant Kotak Life plan, select the coverage, and supply the necessary information. The premium will be calculated based on the information provided. The consumer must then pay the premium online using a credit card, debit card, or net banking, and the Kotak Life insurance will be issued.
Kotak Life plans that are not accessible online can be acquired through agents, brokers, banks, and other intermediaries, who will assist with the application procedure.
Frequently Asked Question (FAQ’s)
Q1. How to pay a premium? What are the modes of payment available?
Ans – Kotak Life Insurance has 12 premium payment options, which are as follows:
a. Payment can be made in cash or by check at the branch.
b. Payment at Kotak Bank using Internet ATM deposit boxes
c. Standing Instructions for NEFT ECS
d. IMPS Direct Debit
e. Payment via the bill desk
f. Online bill payment
g. Money order via mail
h. Bank assurance
i. The policyholder of a Kotak Life pension plan can pay using the online payment mechanism;
j. Net Banking Credit Card Debit Cards
Q2. How can I check policy status for Kotak Life pension plans?
Ans – Simply log into the e-Portal using your Kotak Life policy information to check the policy status of your Kotak Life pension plan if you are a registered user.
Q3. What is the policy renewal process for Kotak Life pension plans?
Ans – If you are a registered Kotak Life subscriber, you may pay online in three simple steps:
Step 1: To check the policy status, log in to the Kotak Life Insurance e-portal using your Kotak Life policy information.
Step 2: Choose a Kotak Life insurance and a payment method (Net Banking, Debit or Credit Card).
Step 3: Pay through the secure channel and print/save your Kotak Life pension plan payment receipt.
You deposit cash/cheque at the nearest branch in an offline manner.
Q4. What is the company’s process to settle claims for Kotak Life pension plans?
Ans – The nominee must personally visit the branch with the Kotak Life policy papers and accidental/death certificate. The nominee must complete a Kotak Life claim notification form, after which the business will furnish him with a reference number. Without an inquiry, most accidental/death claims are resolved within 30 days.