Kotak Premier Pension Plan

What is Kotak Premier Pension Plan?

Kotak Life Insurance presents the Kotak Premier Pension Plan, a traditional participating pension plan designed to help you build a comfortable retirement corpus. This plan offers guaranteed additions in the first five policy years and accrues bonuses from the sixth year onward, ensuring a steady growth of your retirement corpus. With assured benefits on death and vesting, you can rest assured that your loved ones will be financially protected even in unforeseen circumstances. By investing in the Kotak Premier Pension Plan, you're taking a proactive step towards securing your retirement and ensuring a worry-free future.

Features of Kotak Premier Pension Plan

Features of Kotak Premier Pension Plan: 

• Guaranteed Additions: Enjoy a fixed percentage of Basic Sum Assured as guaranteed additions in the first 5 policy years. This provides a stable and predictable income stream.

• Earn Bonus from 6 Policy Year Onwards: From the 6th policy year onwards, you have the opportunity to earn bonuses, which can enhance your retirement corpus.

• Assured Benefit of 105% of Total Premiums Paid: In the event of death or vesting, you are guaranteed to receive 105% of the total premiums paid. This ensures a minimum payout, providing financial security for your loved ones.

• Additional Protection through Optional Riders: Customize your plan with optional riders like Accidental Death and Disability Benefit, Critical Illness Benefit, and Waiver of Premium Benefit to safeguard your retirement income against unforeseen circumstances.

Eligibility Criteria of Kotak Premier Pension Plan

Benefits of Kotak Premier Pension Plan

Below are the benefits of the Kotak Premier Pension Plan: 

1. Guaranteed Additions

   One of the key features of the Kotak Premier Pension Plan is its guaranteed additions. These additions are assured returns that accumulate over the policy term, providing a guaranteed growth component to your investment.

   • Regular & Limited Premium Payment Options: For these options, you'll receive a guaranteed addition of 5% per annum of the basic sum assured in the first five policy years.

   • Single Premium Payment Option: If you opt for a single premium payment, you'll receive a guaranteed addition of 2% per annum of the basic sum assured in the first five policy years.

   These additions are vested at the end of each financial year and are available either on vesting or death, provided the policy is in force, and all premiums have been paid.

2. Death Benefit

   In the unfortunate event of the life insured's death during the policy term, the nominee will receive the following:

   • Assured Benefit: This includes the basic sum assured.

   • Accrued Guaranteed Additions: Any accumulated guaranteed additions up to the date of death.

   • Accrued Reversionary Bonuses and Terminal Bonus: Any bonuses earned during the policy term.

   The nominee has the flexibility to choose how to receive the death benefit payout:

   • Purchase an Annuity: They can use the death benefit proceeds to purchase an immediate or deferred annuity from Kotak Life Insurance or another insurer.

   • Withdraw Proceeds: The nominee can also opt to withdraw the entire death benefit proceeds.

3. Maturity Benefit

   Upon completion of the policy term, you'll receive the following:

   • Basic Sum Assured

   • Accrued Guaranteed Additions

   • Accrued Reversionary Bonuses and Terminal Bonus

This maturity benefit provides a lump sum amount that can be used to supplement your retirement income or for other financial needs.

Riders Under Kotak Premier Pension Plan

Enhance your pension plan's coverage with Kotak Premier Pension Plan's optional riders. Choose from:

• Kotak Accidental Death Benefit Rider: Receive a lump sum payment in case of accidental death.

• Kotak Permanent Disability Benefit Rider: Get regular installments if you become permanently disabled due to an accident.

Policy Details of Kotak Premier Pension Plan

1. Bonuses:

   • Simple Reversionary Bonus: Accrues from the 6th policy year and is paid on vesting or death.

   • Interim Bonus: Paid in case of a claim before the declaration of the Simple Reversionary Bonus for the current financial year.

   • Terminal Bonus: Paid on death after 10 full policy years or on vesting.

2. Annuity:

   • Vesting or surrender benefits can be used to purchase an annuity plan from Kotak Life or another insurer.

   • If the annuity amount falls below the IRDAI-mandated minimum, the proceeds will be paid in a lump sum.

3. Grace Period:

   • 30 days for yearly, half-yearly, and quarterly premiums.

   • 15 days for monthly premiums.

4. Lapse:

   • If premiums for the first two policy years are not paid within the grace period, the policy will lapse.

5. Reduced Paid-Up Policy:

   • If premiums are not paid after the second policy year, the policy will be converted to a Reduced Paid-Up policy.

   • No future bonuses or guaranteed additions will be available.

   • Benefits on vesting or death will be based on the Reduced Paid-Up Basic Sum Assured.

   • Can be reinstated within 5 years.

6. Policy Revivals:

   • Lapsed or Reduced Paid-Up policies can be revived within 5 years by paying outstanding premiums with late payment charges.

7. Free Look Period

   • 15 days for policies sold through most channels.

   • 30 days for Distance Marketing channels.

Exclusions of Kotak Premier Pension Plan

Suicide within the First Year: If the policyholder commits suicide within a year of the policy's start date, only 80% of the premiums paid will be paid to the nominee.

Suicide After One Year:

• Revival within 6 Months: No suicide exclusion applies if the policy is revived within 6 months of the first missed premium.

• Revival After 6 Months: The higher of 80% of premiums paid or the surrender value will be paid if the policyholder commits suicide within a year of revival.