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 6^th 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 1/3^rd 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 6^th 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: