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Kotak Premier Pension Plan

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Kotak Premier Pension Plan

Kotak Premier Pension Plan is a traditional plan which provides the guaranteed additions in the first five policy years and bonuses accrue from 6 year onwards. The plan ensures financial independence in the golden years of retirement so that an individual can lead a life as per his/her choice.
How it works – Illustrated with an example below:-
For a person aged 35 years for a Basic Sum Assured of 10 lakhs and with a policy term & premium payment term of 20 years, below is the tentative benefit payable:-

End of year

Age (in years)

Cumulative Annual Premium (in Rs.)

Accrued Guaranteed Additions (in Rs.)

Total Vesting Benefit (in Rs.)

Guaranteed Death Benefit (in Rs.)

       

@4 %

@ 8 %

 

1

36

54,290

50,000

-

-

1,07,005

5

40

2,71,450

2,50,000

-

-

5,35,023

10

45

5,42,900

2,50,000

-

-

8,20,045

15

50

8,14,350

2,50,000

-

-

11,05,068

20

55

10,85,800

2,50,000

15,06,250

22,57,764

-



 

Key Features of Kotak Premier Pension Plan

  • Guaranteed Additions: A fixed percentage of Basic Sum Assured in the first 5 policy years
  • Earn bonus: 6th policy year onwards
  • Assured Benefit: 105% of Total Premiums paid on Death and on Vesting
  • Tax Benefit: Under section 80CCC on Income Tax Act
COMPARE THIS PLAN WITH OTHER PENSION PLANS

 

Benefits you get from Kotak Premier Pension Plan

Death Benefit – If the Life Insured dies during the tenure, the nominee will receive the following:
  • Assured Benefit - This is the minimum guaranteed benefit available either on death or on vesting. This benefit will be equal to 105% of the Total Premiums (excluding taxes and rider premium, if any) paid till date of death or vesting.
  • Accrued Guaranteed Additions - A fixed percentage of Basic Sum Assured in the first 5 policy years
  • Accrued Reversionary Bonuses and Terminal Bonus, if any
The nominee can use any one of the following options for receiving the Death Benefit pay-out:
- Purchase an Immediate Annuity from the insurer with the entire proceeds of the policy or with part of it; OR
- Withdraw the entire proceeds of the policy; 

Vesting Benefit – Upon completion of complete tenure of the plan, the following benefit will be payable:
  • Basic Sum Assured 
  • Accrued Guaranteed Additions 
  • Accrued Reversionary Bonuses and Terminal Bonus, if any
The Vesting Benefit can be taken as per any one of the following options:
- Receive a lump sum of up to 1/3 of the vesting benefit. The remaining amount must be used to purchase an annuity from the insurer OR
- Purchase a single premium deferred pension product from the insurer OR
- Extend the accumulation period within the same policy provided the Life Insured is below 55 years of age. 

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 Premier Pension Plan

Eligibility Criteria

Minimum

Maximum

Entry Age (in years)

30

For Regular and Limited Pay - 55 years

   

For Single Pay - 60 years

Vesting Age (in years)

45

70

Sum Assured (in Rs.)

2 lacs

Subject to underwriting

Policy Term (in years)

Regular Pay: 10 - 30

Limited Pay: 10 Pay: 15 - 30

12 Pay: 17 - 30

Single Pay: 10 and 15

Premium Payment Term (PPT)

Regular Pay: Same as policy term

Limited Pay: 10 and 12 years

Single Pay

Premium Payment Mode

Yearly, Half yearly, Quarterly, Monthly



 

Additional Features and Benefits of Kotak Premier Pension Plan

Riders – There are 2 riders in this plan
  1. Kotak Accidental Death Benefit (ADB)
  2. Kotak Permanent Disability Benefit (PDB)

High Sum Assured Discount – Discount on premium for option higher sum assured

Free look – If the policyholder is not convinced with the terms and conditions of the policy, s/he cancel the same within 15 days from the date of receipt of the policy document. 

 

What happens if?

You stop paying the premium – If the premium is not paid within 30 days from the premium due date, the policy will lapse and all the benefits will cease.
You want to revive the policy – The policy can be revived within 2 years of the first unpaid premium.
You want to surrender the policy – The policy acquires surrender value after 3 years. Guaranteed Surrender Value will be paid upon the surrender and the policy will terminate.
You want a loan against your policy – Loan facility is not available under this plan.
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