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Kotak Lifetime Income Plan

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Kotak Lifetime Income Plan

Kotak Lifetime Income Plan is an Immediate Annuity Plan. It is a Traditional Plan without Bonus facility.
 
How it works – In this plan, premium needs to be paid in a lumpsum while the annuity can be enjoyed for lifetime.
 
There are 4 options for annuity in this plan:
  • Life Annuity- In this option, Annuity will continue till the death of the policyholder and nothing further is payable. This option is called Lifetime Income in this plan.
  • Joint Life Annuity- In this option, Annuity will continue till the death of the last survivor of the policyholder or his spouse. This option is called Last Survivor Lifetime Income in this plan.
  • Annuity Certain- In this option, Annuity will continue at least for 5/10/15/20 years as chosen by the policyholder and then till the death of the policyholder. This option is called Lifetime Income with a Term Guarantee in this plan.
  • Life Annuity with Return of Purchase Price- In this option, Annuity will continue till the death of the policyholder and then the single premium paid at the policy inception would be paid to the nominee as Death Benefit. This option is called Lifetime Income with Cash-Back in this plan.
 
Annuity can be taken monthly, quarterly, half-yearly or yearly but once it has been selected, it cannot be changed.
 
 

Key Features of Kotak Lifetime Income Policy

  • It is an Immediate Annuity plan
  • Premium needs to be paid upfront while pension continues forever
  • There are 4 options for Annuity in this plan
    • Lifetime Income
    • Last Survivor Lifetime Income
    • Lifetime Income with a Term Guarantee
    • Lifetime Income with Cash-Back
  • The rate at which the Income option is issued is guaranteed for life.
  • Income option, once selected, cannot be changed thereafter
  • Annuity can be taken monthly, quarterly, half-yearly or yearly
COMPARE THIS PLAN WITH OTHER PENSION PLANS

 
 

Benefits you get from Kotak Lifetime Income Policy

Death Benefit – Being an Annuity Plan, there is no Death Benefit as such. Only under Lifetime Income with Cash-Back Option, the nominee gets the entire Single Premium paid at policy inception as Death Benefit. There is no Death Benefit under other options.
 
Survival Benefit – There are Survival benefits under this plan according to the Plan option selected
  • Lifetime Income - In this option, Annuity will continue till the death of the policyholder and nothing further is payable
  • Last Survivor Lifetime Income - In this option, Annuity will continue till the death of the last survivor of the policyholder or his spouse
  • Lifetime Income with a Term Guarantee - In this option, Annuity will continue at least for 5/10/15/20 years as chosen by the policyholder and then till the death of the policyholder
  • Lifetime Income with Cash-Back - In this option, Annuity will continue till the death of the policyholder and then the single premium paid at the policy inception would be paid to the nominee as Death Benefit
 
Maturity Benefit – Being a pure Annuity Plan, there are no Maturity Benefits under this plan.
 
Income Tax Benefit – The premium paid is tax free under Section 80CCC of Income Tax Act, 1961. Income paid by the annuity is taxable in the hands of the customer.
 
 

Eligibility conditions and other restrictions in Kotak Lifetime Income Insurance Policy

 
Minimum
Maximum
Policy Term (in years)
Lifelong
Premium Payment Term (in years)
Single
Entry Age of Life Insured (in years)
45
99
Entry Age of Spouse (in years)
35
99
Age at Maturity (in years)
-
Whole Life
Single Premium (in Rs.)
50,000
No Limit
Payment modes
Single
 
 

Sample illustration of Annuity Amount in Kotak Lifetime Income Plan

The below illustration is for a health male paying lumpsum of Rs 10,00,000 and opting for Lifetime Income in a yearly mode.
Kotak Lifetime Income Plan Sample Annuity Values

 

Additional Features and Benefits of Kotak Lifetime Income Plan

Riders – There are no riders in this plan
 
 

What happens if?

You stop paying the premium – Being a Single Premium Immediate Annuity plan, there is no requirement of further payment of premium.
 
You want to surrender the policy – There are no Surrender Benefits in this plan.
 
You want a loan against your policy – Loan facility is not available under this plan.


 
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