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Kotak Premier Pension Plan

What is the Plan all About?

Kotak Premier Pension Plan is a traditional participating pension plan that helps you to accumulate a retirement corpus, so you can lead a comfortable and worry-free life after retirement. It provides assured benefits on death and vesting. This plan also provides guaranteed additions and bonuses that help you to build a corpus that ensures a secure future after retirement.

What are the Key Features?

  • Assured Benefit on Death and Vesting
  • Guaranteed Additions during first 5 years
  • Bonuses accrue from 6th year onwards
  • Flexible policy term
  • Convenient premium payment term & mode
  • Option to choose retirement benefit
  • Enhance protection through riders
  • High Sum Assured Discount
  • Tax benefits

What are the Plan Benefits?

Death Benefit

    In the event of death of the life insured within the policy term, the nominee will receive Assured Benefit plus accrued Guaranteed Additions plus accrued Reversionary Bonuses and Terminal Bonus.

    There is a minimum guaranteed death benefit equal to 105% of the total premiums paid.

    The nominee can utilize one of the following ways to receive the death benefit:

    • Use the entire proceeds of the policy or a part of it to purchase an Immediate Annuity at the then prevailing rate.
    • Withdraw the entire proceeds of the policy.

Maturity/Vesting Benefit

    On completion of complete term under the policy, Basic Sum Assured plus accrued Guaranteed Additions plus accrued Reversionary Bonuses and Terminal Bonus is payable.

    There is a minimum guaranteed vesting benefit equal to 105% of the total premiums paid.

    The life insured can take the vesting benefit as per any one of the following options:

    • Commute a portion of the vesting benefit (up to the limit applicable under the Income Tax Act) and the
    • Purchase a single premium deferred pension product.
    • Extend the accumulation period.

Commutation Benefit

    A policyholder can take up to 1/3rd of the benefit as tax-free lump sum as per the prevailing income tax regulations. The remaining amount shall be used to purchase an annuity at the then prevailing annuity rate.

Deferment of Vesting Benefits

    The policyholder has an option to extend the accumulation period within the same policy, provided the life insured is under 55 years of age.

Guaranteed Additions

    During the first 5 policy years, Guaranteed Additions will accrue and vest at the end of the each financial year and will be available either on vesting or on death whichever is earlier. For Regular & Limited Premium payment options, guaranteed addition is 5% p.a. of the Basic Sum Assured and for Single Premium Payment option, it is 2% p.a. of the Basic Sum Assured.

Bonus

    Simple Reversionary Bonus: The company may declare a simple reversionary bonus at the end of each financial year and it is expressed as a percentage of the Basic Sum Assured. This bonus is accrued from 6th policy year onwards till the vesting and will be available either on vesting or death.

    Interim Bonus: In case of a claim, in the middle of a financial year or before declaration of the Simple Reversionary Bonus for the Financial Year, an interim bonus may be available as declared by the company.

    Terminal Bonus: The Terminal Bonus is available in case of death after 10 policy years. This bonus may also be available on vesting and it is a percentage of the Basic Sum Assured.

Loan Benefit

    No loan facility is available under this policy.

Surrender Value

    For Regular & Limited Premium Paying policy, the Guaranteed Surrender Value is acquired after payment of all premiums for three consecutive years. For Single Premium Paying policy, the Guaranteed Surrender Value can be acquired any time after payment of the Single premium.

    The Surrender Value payable is the higher of Guaranteed Surrender Value or Special Surrender Value.

Who can Buy the Plan?

Factor Minimum Maximum
Age (as on last birthday) 30 Years 55 Years (regular/limited Pay), 60 Years (single Pay)
Vesting Age 45 Years 70 Years
Policy Term Regular Pay- 10 To 30 Years Limited Pay- 15 To 30 Years (10 Pay), 17 To 30 Years (12 Pay) Single Pay- 10/15 Years -
Premium Payment Term Single, Limited (10/12 Years) & Regular Pay -
Premium Paying Mode Single, Annually, Semi Annually, Quarterly & Monthly -
Premium Amount Depend On Sum Assured Levels, Age, PPT And Term -
Basic Sum Assured Rs 2 Lacs No Limit (subject To Underwriting)
Freelook Period 15 Days/ 30 Days (for Distance Marketing Channel) From The Receipt Of The Policy -
Grace Period 30 Days (15 Days For Monthly Mode) -
Plan Type Offline -

Is any Rider Available with this Plan?

This policy offers following riders, on payment of additional rider premium.

  • Kotak Accidental Death Benefit Rider
  • Kotak Permanent Disability Benefit Rider

Is the Plan, eligible for Tax Benefit?

You may avail tax benefits on premium paid under Section 80CCC of Income Tax Act, 1961 subject to the provisions specified. Tax laws are subject to change from time to time.

How the Plan Works?

Rohtash Singh aged at 35 years wants to accumulate a retirement corpus, so he can lead a financially independent life after retirement. He opts for Kotak Premier Pension Plan with the policy term and premium payment term of 20 years with the basic sum assured of Rs 10 Lacs.

Scenario A: On survival of Rohtash

On completion of policy term, Basic Sum Assured plus accrued Guaranteed Additions plus accrued Reversionary Bonuses and Terminal Bonus is payable.

Scenario B: On demise of Rohtash during the policy term

On the unfortunate death of Rohtash within the term of the policy, the nominee will receive Assured Benefit plus accrued Guaranteed Additions plus accrued Reversionary Bonuses and Terminal Bonus.

Benefit Illustration:
 

Kotak Premier Pension Plan Benefit Illustration