Kotak Life Insurance (Kotak Mahindra Old Mutual Life) is a joint venture between India’s eminent bank, the Kotak Mahindra Bank Ltd., and one of the world’s highly acclaimed investment group, Old Mutual. While the former holds a 74% stake in the company and is known for rendering avant-garde financial services in the country, the latter holds a 26% stake in the insurance company, and provides asset management, banking, & insurance solutions to individuals & organizations across Europe, America, Africa, and Asia. In India, the insurer serves 4 million customers and helps them to achieve their financial goals and protection requirements, through an exceptional range of cost-effective products.
To ensure that you have a fulfilling experience in those golden years of life, there needs to be a financial plan in place well in advance. Kotak Mahindra Old Mutual Life offers three pension plans, which help you create a good retirement kitty, so that you need not be dependent on others for your medical expenses or pursuing your hobbies. These plans offer a great amount of flexibility by letting you choose how you wish to avail the proceeds at vesting time. You could opt for a lump sum amount in one go, or select a monthly income payout for a lifetime. There are also options to provide your spouse with a monthly income benefit, even after you’re gone.
Pension plans help you live a financially independent life, even when those monthly salaries have stopped coming in. They induce you to save money whilst you are still earning, so that when you approach retirement, you have enough funds to pay the bills and meet other financial obligations. With the help of Annuity plans, one can be assured of receiving a monthly income throughout life, and can also provide his/her spouse with the same benefit, in case of occurrence of any unfavourable eventuality.
Common Features of Kotak Mahindra Old Mutual Life Pension Plans:
Guaranteed Additions: These are the assured additions which get credited to your policy in the first 5 policy years, and are payable either on vesting or on death, whichever is earlier, provided the policy is in force and all due premiums have been paid in full. These are expressed as a percentage of the Basic Sum Assured. While for Regular & Limited Premium payment options, the Guaranteed Additions are calculated at 5% p.a. of the Basic Sum Assured, for Single Premium Payment option, the additions are accrued at 2% p.a. of the Basic Sum Assured.
Bonuses: Under this plan, you are eligible to receive the following three types of bonuses:
Simple Reversionary Bonus, which is declared at the end of each financial year, and is expressed as a percentage of the Basic Sum Assured. These bonuses are accrued to the policy from the 6th policy year onwards and continue to be credited till the end of the Policy Term, and are receivable either on vesting or on death.
Interim Bonus, which may be provided by the Company, if a claim has been made part-way through a financial year or before declaration of the Simple Reversionary Bonus for the Financial Year in which such a claim is intimated.
Terminal Bonus, which the Company may decide to pay in case of death, provided the policy has completed 10 years. It is expressed as a percentage of the Basic Sum Assured, and may be received by the policyholder on vesting, provided the policy is not Reduced Paid-Up or surrendered.
Assured Benefit: As the name suggests, this is the minimum guaranteed benefit that is receivable either on death or on vesting, and is equivalent to 105% of the Total Premiums (excluding taxes and rider premium, if any) paid till the date of death or vesting.
Vesting Benefit: At the time of vesting, the policyholder becomes eligible to receive the following benefits, subject to a minimum of Assured Benefit:
Basic Sum Assured + Accrued Guaranteed Additions + Accrued Reversionary Bonuses & Terminal Bonus, if any
The Vesting Benefit may be availed as per any one of the following options:
Death Benefit: In the unfortunate event of death of the Life Insured during the term of the policy, the nominee is granted with a Death Benefit, which is an accumulation of the following:
Assured Benefit + Accrued Guaranteed Additions + Accrued Reversionary Bonuses & Terminal Bonus, if any
The nominee may select any one of the following options for receiving the payout:
|Entry Age||Minimum: 30 years | Maximum: For Regular & Limited Pay: 55 years; For Single Pay: 60 years|
|Vesting age||Minimum: 45 years | Maximum: 70 years|
|Policy Term||Regular Pay: 10 - 30 yrs | Limited Pay: 10 Pay: 15 - 30 yrs; 12 Pay: 17 - 30 yrs Single Pay: 10 yrs & 15 years|
|Premium Payment Term||Regular Pay: Same as policy term Limited Pay: 10 and 12 years Single Pay|
|Premium Payment Mode||Yearly, Half yearly, Quarterly, Monthly|
|Basic Sum Assured||Minimum: Rs. 2,00,000 | Maximum: Subject to underwriting|
|Premium||Will depend on Sum Assured, Age, Premium Payment Term, & Policy Term|
|Premium Payment Frequency||Yearly, half-yearly, or monthly|
Income Options : Based on your retirement needs and those of your dependents, you may select any one of the following Income Options:
|Entry Age of Annuitant (as on last birth date)||Minimum: 45 years | Maximum :99 years|
|Spouse Entry Age (as on last birth date)||Minimum: 35 years | Maximum: 99 years (For Lat Survivor Lifetime Income Option)|
|Single Premium (retirement fund)||Minimum: Rs. 50,000 | Maximum: No Limit|
Benefit Payouts on Death of Annuitant: In the unfortunate event of the demise of the annuitant, the Death Benefit payable will depend upon the Annuity Option chosen and will be as follows:
On death of the annuitant during the chosen Guaranteed Term: The nominee will continue to receive the income payout till the end of the guaranteed term, following which, the policy will come to an end.
On death of the annuitant after the Guaranteed Term: The income payout will be stopped and the policy will be terminated.
|Minimum Entry Age (as on last birthday)||Minimum : 45 years (For New Customers); 18 years (For existing Kotak Life Insurance Pension Plan policyholders)|
|Maximum Entry Age (as on last birthday)||99 years|
|Entry age for Nominees of deceased Kotak Life Pension policyholder||Minimum: 0 years | Maximum: 99 years|
|Spouse Entry Age (Applicable only for Last Survivor Lifetime Income||Minimum: 35 years (For New Customers); 18 years (For existing Kotak Life Insurance Pension Plan policyholders) | Maximum: 99 years|
|Single Premium (retirement fund)||Minimum: New Customers : Rs. 50,000
Existing Kotak Life Pension Plan Policy holders: Any amount that ensures the minimum annuity amount as per section 4(I) of Insurance Act 1938 as amended from time to time Maximum: No Limit