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Kotak Life Pension Plans

You have worked hard all your life and have now reached retirement age. The retirement period of your dreams is one where you don't have to worry about a regular and stable monthly income. This also means pursuing pursue your passions which you had to give up earlier because of your demanding work schedule.

This is where pension plans will help you out. Pension plans from renowned insurers like Kotak Life insurance ensure that you will get a stable income regularly which will be unaffected by the volatility of the stock markets or fluctuating interest rates. These guaranteed monthly, quarterly, semi-annual, or annual annuity will take care of your expenses so that you can focus on enjoying your retired life.

Types of Retirement Plans offered by Kotak Life

Kotak Premier Pension Plan

This is a participating plan with assured benefits on death and vesting.

Product Benefits

  • Get guaranteed additions: Guaranteed additions is a percentage of sum assured in the first 5 policy years that is payable on maturity or death, whichever is earlier. This is subject to all the premiums being paid till maturity or death as the case maybe. For regular and limited payment options, the guaranteed additions are 5% of the basic sum assured. For single premium payment option, the guaranteed additions are 2% of the basic sum assured.

  • Bonus: You will be entitled to a bonus from the 6th policy year.

  • Assured benefit: You will get a minimum guaranteed benefit at vesting and your nominee on your death which would be calculated as 105% of all premiums paid till death or vesting. Vesting means the day the policy holder is entitled to the benefits that accrue under the policy.

  • Additional protection: You can also opt for additional protection by choosing one of the two rider options. You have the Kotak Accidental Death benefit Rider (ADB) where a lump sum will be paid on accidental death during the policy term. The other option is Kotak Permanent Disability Benefit Rider (PDB) where you start getting payment in instalments.

  • Vesting Benefit: On vesting, you will be entitled to a basic sum assured plus accrued guaranteed additions plus accrued reversionary bonus with terminal bonus (if any).

  • Reduced paid up sum assured: You can opt for the reduced paid up option under the regular & limited premium pay policies after they acquire a Surrender Value. You will be paid all the accrued reversionary bonus/guaranteed additions already attached to the policy.

  • High sum assured discount: For basic sum assured over Rs. 5 lacs, there will be a premium discount of Rs. 2 per 1000 basic sum assured. For the single premium payment option, there is a discount of Rs. 8 per 1000 basic sum assured for basic sum assured over Rs. 5 Lacs.

  • Death benefit: On the death of the policy holder, the nominee will receive assured benefits plus accrued guaranteed additions plus accrued reversionary bonus with terminal bonus (if any). The nominee has two options; one, purchase an immediate annuity from Kotak Life Insurance, and two, withdraw the entire proceeds of the policy.

  • Tax benefits: You can avail deductions under section 80C of the Income Tax Act.

  • Premium payment flexibility: You can choose the premium paying term that suits you the best and can choose from regular premium pay, limited pay of 10/12 years, or single pay option.

Eligibility Details

Entry Age
  • Minimum:30 years
  • Maximum: Regular & Limited Pay - 55 years , Single Pay - 60 years
Maturity Age45 years - 70 years
Policy Term
  • Regular Pay: 10 - 30 years
  • Limited Pay: 10 pay: 15 - 30 years
  • 12 pay: 17 - 30 years
  • Single Pay: 10 & 15 years
Premium Modal Factor
  • Yearly: 100%
  • Half yearly: 51%
  • Quarterly: 26%
  • Monthly 8.8%
Premium Payment Term (PPT)
  • Regular Pay: Same as policy Term
  • Limited Pay: 10 & 12 years
  • Single Pay
Sum AssuredRs. 2 lacs Subject to underwriting
Premium payment frequencyYearly/half-yearly/quarterly/monthly
Premium Amt Depends on sum assured, age, PPT and policy term

How Plan works

In this policy, you save for the long term to ensure you are financially independent during retirement.

  • Select the tenure considering the years left until retirement.
  • Choose a premium payment term based on the tenure.
  • Determine your retirement corpus.
  • Your premium will now be calculated.

Mr. Nayar, 35 years, opts for the Kotak Premiere Pension Plan with a policy term & premium payment term of 20 years with basic sum assured of Rs. 10 lacs and annual premium of Rs. 54,290. His vesting benefit will be Rs. 22,57,764 including accrued guaranteed additions.

Kotak Lifetime Income Plan

This is an immediate annuity plan.

Product Benefits

  • Annuity options: There are six annuity options to choose from, namely Lifetime Income, Lifetime Income with cashback, Lifetime Income with Term Guarantee (5/10/15/20 yrs), Last Survivor Lifetime Income with 100% annuity to surviving spouse, Last Survivor Lifetime Income with 50% annuity to surviving spouse, and Last Survivor Lifetime Income with 100% annuity to surviving spouse and cashback on death of surviving spouse.

  • Guaranteed annuity rates: The issued rates will remain the same for life.

  • Higher Annuity rates: When you opt for a higher purchase price, you will get a higher annuity rate.

  • Higher purchase price discount.

  • Additional annuity: You can opt to buy another annuity to increase the annuity payout.

Eligibility Details

Entry Age
  • Minimum: New customers: 45 & 55 years, Existing Kotak Life Insurance (KLI) customers: 18 years, Nominees of deceased KLI customers: 0 Spouse: New Customer 35 years Existing KLI Pension Plan policy holders: 18 years
  • Maximum: 99 years
Single Premium Any amount which ensures that minimum monthly annuity is Rs. 1000/-
Minimum annuity
  • Monthly - Rs. 1000/-
  • Quarterly: Rs. 3000/-
  • Half-yearly: Rs. 6000/-
  • Yearly: Rs. 12,000/-
Annuity ModesYearly, half-yearly, quarterly, monthly
Annuity instalment
  • Yearly - 100%
  • Half-yearly: 97%
  • Quarterly: 96%
  • Monthly: 95%

How Plan works

  • Annuity payable will be decided based on your age, single premium amount, annuity option selected, and frequency of payout (monthly, quarterly, half-yearly, yearly)
  • You will receive the policy with annuity rates applicable on the issuance date.
  • After the policy is issued, you will receive the annuity based on the frequency chosen by you.
  • The annuity rates are guaranteed and will not fluctuate depending on the market conditions.

How to Apply for Kotak Life Pension Plans

You can apply for Kotak Life Pension Plans by contacting one of their life advisors. You can either call on their toll free number or enter a few details online like your name, mobile number, city, whether you are a new or an existing customer and select the plan. It is important to choose a life advisor as they have the expertise in selecting the right plan for you according to the annuity payout you require. You will be given complete information by Kotak's life advisors regarding the premium payable, the policy details, and the annuity amount. The life advisor will calculate the right purchase price which will generate the required annuity specified by you after taking into consideration your other sources of income.

FAQs on Kotak Life Pension Plans

Which is best pension plan in Kotak Life Pension Plans?

If you are not an existing KLI pension plan holder, then Kotak Premier Pension Plan is the best choice for you. For existing KLI pension plan subscribers, the Kotak Lifetime Income Plan is advisable as the entry age for you, your spouse and your nominee is much lower.

Which is the best pension plan of Kotak Life Pension Plans 2018?

The Kotak Lifetime Income Plan is the best Kotak Life Pension Plan for 2018 as you are given six different annuity options to choose from.

Which is the best Kotak Life Pension Plan for long term?

If you are looking at a pension plan for the long-term which would take care of your income, your spouse's income and cash back after death of your spouse for your children, then Kotak Lifetime Income Plan would be the best choice.

Why should I buy Kotak Life Pension Plans?

When you buy Kotak Life Pension plans, you have the expertise of the Kotak Group which has been in the banking and financial services industry for decades. You will get professional advice, courteous and transparent services, and real value.

How to pay premium? What are the modes of payment available?

You can pay your premium online or offline. There are options for NEFT, ECS, standing instruction to your bank, direct debit, payment through debit or credit card, internet banking, mobile immediate payment service, bill desk, electronic bill payment, Kotak Mahindra Bank drop boxes, branch offices, postal money order or bank guarantee.

How can I check policy status for Kotak Life Pension Plans?

You can log onto the Kotak Life online portal and check your policy status with your log in id and password.