Pension planning is one of the prime steps to determine the approximate sum you would require for your retirement years. During your earning ages, good pension planning will make you financially independent for the years when your primary income ceases. The Kotak Life Insurance Company brings you a broad range of pension plans depending on your varied requirements for your retirement years. The Kotak Life Pension Plans are annuity plans especially designed for the customers to ensure a regularly fixed income post-retirement.
What does Pension Plans Mean?
The insurance sector in India is emerging with newer protection plans launched each year. Pension plans are designed to build a considerable corpus for the years after retirement from your years of work life. Retirement is the time when you would want to take a good break from fulfilling your responsibilities all life. Pension plans work as a financial backbone for your independent and stress-free retirement years. The policyholder is free to choose the mode of payments you wish to receive as an annuity which serves as a regular income throughout your lifetime.
Pensions Plans from Kotak Mahindra
Kotak Life Insurance offers a broad array of annuity plans with many benefits with each plan. Following are the types of pension plans offered by Kotak Mahindra for secure and independent retirement years:
Kotak Lifetime Income Plan
It is an immediate annuity plan that ensures a regular stream of income for life with one time premium. It comes with the six annuity options which allow the policy holder to choose the frequency (Monthly, Quarterly, Bi-Annually, or Annually) at which they would need the income flow.
- Features Of Kotak Lifetime Income PlanUnder this plan, you can receive the annuity payments (after a month or year) as soon as you pay the single premium
- You can buy this policy individually or as a joint policy
- The policies would be issued with the applicable annuity rates on the issuance date based on the terms and conditions of the plan.
- After the issuance of the policy, the first installment of the annuity would be paid according to your chosen option for annuity payment frequency from the monthly, quarterly, half-yearly, or yearly basis.
- The issued annuity rates are guaranteed for the entire life of the annuitant and do not alter along with the fluctuating conditions of the market
- Six annuity options are given to the annuitant to choose from, they are:
- Lifetime Income
- Lifetime Income with Cash Back
- Lifetime Income with Term Guarantee
- Last Survivor Lifetime Income (100% annuity to surviving spouse)
- Last Survivor Lifetime Income (50% annuity to surviving spouse)
- Last Survivor Lifetime Income (100% annuity to surviving spouse & cash back on the death of the surviving spouse)
- The frequency of annuity payout and the annuity option selected will remain stable throughout the lifetime except for the annuity option, ‘Lifetime Income with Term Guarantee.’
- Option to purchase additional annuity along with an existing annuity plan
- Higher purchase price attracts higher annuity rates
- Guaranteed annuity rates for lifetime
- Existing members of Kotak Life Insurance Pension Plans or other Policies are free to select preferred annuity rates
Eligibility
| Entry Age for New Customers | Min: 45 years
Max: 99 years |
| Entry Age for Existing Customers | Min: 0 years
Max: 99 years |
| Entry Age for Spouse (New Customer) | Min: 35 years
Max: 99 years |
| Entry Age for Spouse (Existing Customer) | Min: 18 years
Max: 99 years |
| Annuity Modes | · Monthly
· Quarterly · Half-Yearly · Yearly |
| Purchase Price | Min: Rs. 50,000
Max: No limits |
Also Read: Kotak Lifetime Income Plan
Kotak e-Lifetime Income Plan
It is a pure risk cover plan that provides protection to your loved ones. Moreover, it provides special premium rates to nontobacco users and women.
Features Of Kotak e-Lifetime Income Plan
- This immediate annuity plan is independent of deferment and similar to the Kotak Lifetime Income Plan, the annuity payout begins soon after the initial premium payment
- The policies will be issued with the applicable annuity rates on the date of issuance after the annuity rate is fixed. However, this will be entirely subject to the terms and conditions of the policy
- Depending on your choice of annuity payout, the first annuity will be paid to you after a particular time from the date of issuance
- The annuity rates are completely devoid of fluctuations in the market rates. This means that the fluctuations in the market rate will not alter your annuity rate throughout your lifetime
- Like the Kotak Lifetime Income Plan, six annuity options are provided, they are:
- Lifetime Income
- Lifetime Income with Cash Back
- Lifetime Income with Term Guarantee
- Last Survivor Lifetime Income (100% annuity to surviving spouse)
- Last Survivor Lifetime Income (50% annuity to surviving spouse)
- Last Survivor Lifetime Income (100% annuity to surviving spouse & cash back on the death of the surviving spouse)
- Five bands are determined based on the purchase price of the policy, they are:
| Bands | Band 1 | Band 2 | Band 3 | Band 4 | Band 5 |
| Purchase Price (Rs) | ≤ Rs. 2,50,000 | Rs. 5,00,000 ≥ Rs. 2,50,000 | Rs. 10,00,000 ≥ Rs. 5,00,000 | Rs. 50,00,000 ≥ Rs. 10,00,000 | ≥ Rs. 50,00,000 |
- Kotak offers assured annuity rates for a lifetime of the annuitant.
- As per the plan, the higher purchase price attracts higher annuity rates
- The annuitant has the option to Option to purchase additional annuity along with an existing annuity plan
- The frequency of annuity payout and the annuity option selected will remain stable throughout the lifetime except for the annuity option, ‘Lifetime Income with Term Guarantee.’
- Existing members of Kotak Life Insurance Pension Plans or other Policies are free to select preferred annuity rates
Eligibility
| Entry Age for New Customers | Min: 18 years
Max: 65 years |
| Maturity Age | Min: 23 years
Max: 75 years |
| Annuity Modes | · Monthly
· Quarterly · Half-Yearly · Yearly |
| Basic Sum Assured | Min: Rs. 25,00,000
Max: No limit |
| Policy Term | 5 Years (Minimum)
Up to 40 years
|
Kotak Premier Pension Plans
This is a traditional pension plan offered by Kotak Life Insurance wherein you can build a sizeable corpus via bonus participations. This plan is synonymous to a with-profit plan by which you can earn bonuses that are affirmed by Kotak Insurance Company
Features Of Kotak Premier Pension Plans
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- The policyholder can select the mode of premium payment from limited, regular, or single payment options
- The percentage of basic sum assured is added in the initial 5 policy years based on the mode of premium payment chosen. For limited/regular options the assured additions are 5%, and for a single premium option, it is 2%
- From the 6th policy year, reversionary bonuses are accrued till the maturity of the policy or the death of the annuitant
- In case the annuitant dies during the tenure of the policy, a higher value of death benefit equal to 105% of the accumulated corpus from all the premiums paid and the reversionary bonuses are payable along with the assured additions
- The nominee is free to withdraw the accrued amount in a lump sum or choose to receive them as an immediate annuity payment
- On the completion of the policy term, the vesting benefit is payable. The vesting benefit is the summing of the assured sum, reversionary bonus, and assured additions (min: 105% of the premiums paid)
- You can utilize the vesting benefits in different forms like:
- You can withdraw 1/3rd of the accrued sum
- You can purchase another deferred annuity plan
- The policyholder can extend the date of vesting if he/she is younger than 55 years old.
- You have the option to add the Kotak Permanent Disability Benefit Rider and Kotak Accidental Death Benefit Rider to your existing policy for enhancing your coverage
- If you opt for higher sum assured value of Rs 5 lakh or more, you can avail discounts on the premiums paid
Eligibility
| Entry Age for New Customers | Min: 30 years
Max: i. Limited/Regular Payment – 55 years ii. Single Payment – 60 years |
| Vesting Age | Min: 45 years
Max: 70 years |
| Policy term | Limited Payment (10): 15 years
Limited Payment (12): 17 years Regular Payment: 10 years Single Payment: 10 and 15 years |
| Premium Payment Term | Plan term/ Single payment/ Limited Payment for 10 or 12 years |
| Annuity Modes | · Monthly
· Quarterly · Half-Yearly · Yearly |
| Sum Assured | Min: Rs. 2 lakhs
Max: No limits |
| Annual Premium Sum | Based on the age, tenure, and coverage |
Frequently Asked Questions
- What is the claim settlement procedure of Kotak Insurance Pension Plans?
For claim settlement from Kotak Insurance Company, you would require to follow the steps mentioned below:
- You need to visit the branch.
- You need to fill claim intimation form and submit policy documents and the accident or death certificate.
- The company representative provides a reference number for the further procedure, and within 30 days, the claim is settled.
- What are the modes of payment provided by Kotak Insurance Premium Payment?
Kotak Life Insurance Company offers many modes of payments, they are:
- Credit Card
- Net Banking
- Debit Card
- IMPS
- NEFT
- Cash/Cheque
- Kotak Bank ATM Drop Box
- Bill Desk
- Direct Debit
- Standing Instructions
- Electronic Bill Payment
- ECS
- Bank Guarantee
- Postal Money Order
- What is the procedure to check the policy status with Kotak Insurance Plans?
If you are a registered user of Kotak Life Insurance, all you have to do is to log in to the e-portal by filling up a few necessary details. Your policy status will be displayed as soon as you input the details.
- How can I renew my policy from Kotak Life Insurance?
You got to follow three steps so as to renew your policy from Kotak Life Insurance, they are:
Step 1
Log into the e-portal of Kotak Life Insurance with your policy details to check your policy status.
Step 2
Check the type of policy you have chosen and chose the mode of payment you prefer.
Step 3
Make payment through the secured gateway and save the e-receipt for your reference. For offline mode, you can pay through cash or Cheque at the nearest branch.