Kotak Lifetime Income Plan

Retirement years are surely the golden phase of life and anyone would wish to do all those things, which they had been planning for long or had not given it much of a thought or priority. Retirement is the golden phase wherein you would want to everything and not worry about the financial expenses.

To enjoy the retirement years it is important that the period is secured financially and to fulfil the same Kotak Life Insurance has introduced Kotak Lifetime Income Plan.

What is Kotak Lifetime Income Plan?

The Kotak Lifetime Income Plan is the non-liked and a non-participating immediate annuity plan, which assures regular stream of income lifelong.

On the premise of onetime premium paid to the Kotak Life Insurance regular income will be received by the annuitant throughout life. The Kotak Lifetime Income Plan essentially comes up with the choice of 6 annuity options and the frequency on, which the income flow would be needed. The Kotak Lifetime Income Plan will be offered to both individual customers and the Members of the Superannuation Fund.

Benefits of Kotak Lifetime Income Plan

The following are the key benefits of Kotak Lifetime Income Plan:

  • Preferred Rates: This is offered to the existing members of the pension plan or the KLI policyholder who are essentially utilizing the proceeds of the plan for the annuity.
  • High Purchase Price Discount: The rates of the annuity will differ by the purchase price band. The table below shows the buying price bands:
Bands Buying Price
Band One Less than Rs 2,50,000
Band Two Rs 2,50,000 to less than Rs 5,00,000
Band Three Rs 5,00,000 to less than Rs 10,00,000
Band Four Rs 10,00,000 to less than Rs 50,00,000
Band Five Rs 50,00,000 and above
  • Additional Annuity: Any annuitant who has accessed an immediate annuity can also make an extra annuity buy simply to increase the annuity payout. In this case, the annuity rate will be modified. This will be as per the age as upon the date of issuance of the additional annuity and band of buying price after combining the initial purchase price along with an extra purchase price that excludes services and good tax or any statutory levies. The annuity frequency and option is chosen at the beginning and will remain the same and not altered later. The purchase price for an additional annuity will be as per the existing terms and conditions. All the annuity options are accessible within this feature apart for lifetime income with the term guarantee.
  • Tax Benefit: You can easily avail the tax benefits within Section 80CCC subject to the conditions as specified in the sections. The payment of annuities and the death benefit will be subject to the taxes as per the existing tax laws on the payment date and as per the legal heir/ annuitant’s taxable slabs of income.

Note: The tax laws are subject to change as per the existing laws.

Eligibility Criteria of Kotak Lifetime Income Plan

Age at Entry ·        Minimum: 45 years / 55 years (For the new customers) 18 years (Existing KLI policyholders)
·        Maximum: 99 years
Age at Entry for Nominees of the Deceased KLI Policyholder 0 year to 99 years
Spouse Age at Entry ·        Minimum: 35 years (For the new customers) 18 years (Existing KLI policyholders)
·   Maximum: 99 years
Single-Premium ·        Minimum: Any sum that ensures monthly annuity minimum of Rs 1000 for each member for the superannuation fund
·        Maximum: No limit
Minimum Annuity ·        Monthly: Rs 1,000
·        Quarterly: Rs 3,000
·        Half-yearly: Rs 6,000
·        Yearly: Rs 12,000
Modes of Annuity Monthly, quarterly, half-yearly or Yearly
Annuity Instalment (Per Frequency)
Mode Instalment
Monthly 100 per cent
Quarterly 97 per cent of yearly annuity X ½
Half-yearly 96 per cent of yearly annuity X ¼
Yearly 95 per cent of yearly annuity X 1/12

Note: The new customers are those customers who intend to buy the separate annuity plan and not use the proceeds of any Kotak Life Pension Plans or the Superannuation funds.

Advantages of Kotak Lifetime Income Plan

Primarily, let us take a look at the following advantages of Kotak Lifetime Income Plan:

  • Higher annuity rates are for the higher purchase price.
  • Have six annuity options to make a choice.
  • The annuity rates issued are for a lifetime.

Who Can Buy Kotak Lifetime Income Plan?

The Kotak Lifetime Income Plan can be opted by both the customers and the members of the superannuation fund that includes the following:

  • The existing Kotak Lifetime Income pension plan policyholders that the members of the KLI managed superannuation funds and who utilize the proceeds of this plan.
  • The new customers or the members of superannuation funds that are managed by various insurers or organization who intends to buy the annuity from the KLI and includes customers, transferring the UK tax-relieved resources via QROPS.

How Does the Kotak Lifetime Income Plan Function?

Further, let us understand the working of Kotak Lifetime Income Plan below:

  • The annuity rates will be set on the premise of the following:
  • The age of annuitants
  • Single-premium sum
  • Chosen annuity option
  • Choice of frequency payout (Monthly, Half-yearly, quarterly and yearly)
  • Subject to the terms and conditions the policies will be issued and the annuity rates will be applicable on the date of issuance.
  • Post the issuance of the initial annuity instalment will be paid one/ three/ six months or one year right after the issuance date on the premise of the frequencies respectively.
  • The issued rates of the annuity will be guaranteed for the complete life of the annuitant and not change with the varying conditions of the market.

Income Options Available with the Kotak Lifetime Income Plan?

On the premise of the needs the Kotak Lifetime Income Plan comes up with six annuity options that you can easily choose from listed below:

  • Lifetime Income: Under this option, the annuity payment will be mostly made throughout the life of the annuitant and will cease only upon the annuitant demise.
  • Lifetime Income with the Cashback: The annuity payout will be made throughout the life of the annuitant and on the demise of the annuitant, the complete premium that excludes the services and good tax and any statutory levies in case of any will be paid for buying the plan and will be then paid to the nominee back.
  • Lifetime Income with the Income Term Guarantee: The annuity payout will be made for a guaranteed term of 5/ 10/ 15 or 20 years as chosen by the annuitant regardless of the annuitant survival. If the annuitant survives the opted guaranteed term then the payout will continue throughout the life and upon demise, the annuity payout will be ceased. Upon the demise of the annuitant within the guaranteed period, the annuity payout will continue to the nominee until the guaranteed term expires.
  • Last Survivor Lifetime Income With 100 per cent Annuity to a Surviving Spouse: The annuity payout will be done throughout the life of the primary annuitant and on demise 100 per cent of the beginning annuity payout will be done throughout the life of a surviving spouse or a secondary annuitant. In case a secondary annuitant predeceases a primary annuitant, 100 per cent of the annuity payout will continue for the primary annuitant.
  • Last Survivor Lifetime Income With 50 per cent Annuity to a Surviving Spouse: The annuity payout will be done throughout the life of the primary annuitant and on demise 50 per cent of the first annuity payout will be done throughout the life of the spouse surviving or a secondary annuitant. In case a secondary annuitant predeceases a primary annuitant, 100 per cent of the annuity payout will continue for the primary annuitant.
  • Last Survivor Lifetime Income With 100 per cent Annuity to a Surviving Spouse and Cashback upon Demise of Surviving Spouse: The annuity payout will be done throughout the life of the primary annuitant and on demise 100 per cent of the first annuity payout will be done throughout the life of a surviving spouse or a secondary annuitant. In case a secondary annuitant predeceases a primary annuitant, the annuity payments will continue for the primary four annuitants. On the demise of the surviving annuitant, the complete premium that excludes the services and good tax or any statutory levies paid for buying the plan will be then paid to the nominee back.

Terms and Conditions

Let us take a brief understanding of the key terms and conditions of Kotak Lifetime Income Plan:

  • Annuitant: An annuitant is the recipient of the annuity or the policyholder. When it comes to the annuity options four, five and six then there are two annuitants and they will be spouses. The primary annuitant will be eligible to receive the payouts and the spouse is going to be the secondary annuitant in case the primary annuitant is no more.
  • Annuity Rates: The annuity rates are going to apply to the policy conversion date and will be then provided to the customers. Once it is issued the rates are going to be guaranteed for life. At the time of purchase, please check for the latest and updated rates.
  • Total Premium: In case the annuitants have opted for an additional annuity it would include the single premiums and the extra single premiums paid that excludes the services and goods tax or statutory levies.
  • Evidence of Existence: Every fifteen days before the anniversary of the policy, the annuitant or the annuitant surviving will be required to submit valid evidence of existence in the company in a certain format or via any suitable mode that is accepted by the company. In case of the company does not receive the evidence within time, the payment of annuity will be ceased except in the case of lifetime income along with the term guarantee wherein annuity will continue to be paid until the guaranteed period ends. The annuity payment will resume upon receipt of the evidence and likewise, the arrears will then be settled.
  • Nomination and Assignment: Nomination will be permitted with the plan as per Section 39 that is amended from time to time, for the annuity options of the lifetime income with term guarantee, lifetime income with cashback and last survivor lifetime income with 100 per cent annuity to a surviving spouse and cashback upon the demise of a spouse surviving. The assignment will be permitted in the plan as per Section 38 provisions that are amended from time to time.
  • Free Look Period: The policyholder is given fifteen days free look period for the policy that is sold via all the channels except for the channel of distance marketing and has 30 days from the receipt date of the policy. The policyholder again returns the policy and provides reason within 15 days to a month after the receipt with any mentioned terms and conditions that they do not agree to of the plan. Anyone who does so will be entitled to the refund of the paid premium after the adjustment of stamp duty. In case the product is bought with proceeds of the pension plan from any other insurer the proceeds that are the applicable sum from the cancellation in free look period will be transferred to the same insurer back from where the amount was received. Besides, if the product is bought as QROPS via the transfer of the UK tax-relieved resources the proceeds from the cancellation in the free look period will be transferred back to fund house from where the sum was received. Once an annuity has been chosen, it cannot be changed post free look period.

Note: The free look period will not be accessible in case of any existing customers wherein it is mandatory to buy an annuity from the Kotak Life.

You may also like to read: Present Value of Annuity Formula | Future Value of Annuity Calculator

Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
Average Rating
(Based on 24 Reviews)
Newsletter
Sign up for newsletter
Sign up our newsletter and get email about health plans.

Kotak Lifetime Income Plan Reviews & Ratings

4.3 / 5 (Based on 24 Reviews)
(Showing Newest 24 reviews)
Ekta
Kanpur, July 20, 2016
Coverage Is High
I have pension plan which purchase from kotak life. The service is fantastic, online service is so simple which can be access by anyone. Easy renewals though online portal. The executives and staff response so well to the customers which makes policyholder so comfortable.
Bhanu
Deoli, July 20, 2016
Good Service
Kotak life is very popular insurance company right now, i took pension plan from them in very low premiums. The service is fast and the claims are high. Policy coverage is high approx. 91% and it reduces the percentage of the tax paying.
Nirbhaya
Chandipur, July 11, 2016
Pension Policy
My pension insurance plan i purchased in low investments, the premiums is also less but the returns are high. Policy coverage is good and claims are simple to clear due to fast service given by staff members. Online service is also easy to operate and access it.
Abhilasha
Akbarpur, June 29, 2016
Good
The pension plan I have is good insurance policy. Service provided by your staff of your company is good and fast too. The internet service is also nice and easily accessed. Good investment for my future. The any updates regarding the policy is mailed to me.
Himanshu
Dwarka, April 25, 2016
Marvelous
I purchase kotak life pension plan for my father. My father happy with the policy and its benefits. Policy coverage is high ~91% and the premium amount is low. The amount of Rs.45 K is given per month after the policy mature. The behaviour of executives and staff members are nice. Nice services, good work.
Kushagra
Nasik, April 25, 2016
Awesome Policy
I have a pension policy plan like every one does. The policy is great with high returns and low premiums. Policy coverage is also nice ~ 92% and service is fast. Really good job guys, you provide best services. Great future investment with tax saving.
Rohit
Jodhpur, April 25, 2016
Great Plan
My pension policy plan is suggestion of the friend, So i took it from kotak mahindra life insurance which really good insurer. Staff members and executives provide good and quick services. Policy coverage is good approx. 89% but the premiums are normal. Good terms in compare with other companies.
Harish
Ahmedabad, April 25, 2016
Satisfactory
Recently took kotak life pension plan. Great retirement plans with low premiums and nice policy coverage. The service providers are cooperative and doing there jobs very nicely. Claims easy to get and time period is less. Nice deal, satisfied.
Tanishk
Chennai, April 25, 2016
Good Service
Kotak life pension plan I have which is really very nice. Plan is an average one with okay services, 77% policy coverage, Rs.40 K per month returns. Good future investment which reduces my taxes too. The behaviour of the executives and staff members. Manageable.
Bhasker
Navi_mumbai, April 25, 2016
Totally Safe
I have my pension plan from kotak mahindra life insurance. Policy coverage is good ~90%. Service is also nice provided by the executives and stuff, the claim sanctioning easily. The executives and staff members are doing there work very nicely. Good future investment and save taxes.
Vikas
Chota_udepur, April 25, 2016
High Returns In Low Premium
I got pension plan from kotak mahindra life insurance. The policy coverage is ~85%. No doubt the service is good. The claiming experience i don't have yet. Good future investment with low premiums and save taxes too. The behaviour of executives and staff members are really very nice.
Harindra
Darjeeling, April 25, 2016
Tax Saver
I got a very fine policy kotak life pension plan. Now, I'm tension for future. The coverage is good around 91%, service is great and fast too, even the claims are fantastic. Great behaviour of executives and staff members, Good future investment and tax saver, i like it.
Lalit
Chatra, April 25, 2016
Better Plan
I found the best pension plan for old age with kotak mahindra life insurance. The plan is for my mom and she like the policy very much. The policy coverage is 82% and return is ~Rs.35 K per month. The service is good and the amount is directly transfer to mom bank account. I so stress free now.
David
Koriya, April 25, 2016
Awesome Policy
I own the kotak life pension plans. The investment is low and the returns is huge. Policy coverage is high approx. 89% and claims are even better. The service is awesome with very calm behaviour of executives and team. Good future investment and it saves taxes also.
Nitin
Iswarpur, April 25, 2016
Fantastic Plan
My friend suggested me to invest money for future so i invest my money with kotak mahindra life insurance and buy kotak life pension plan. The policy coverage is high ~91% and the claim is around Rs.41 K per month after policy get mature. Good future investment which reduces taxes too. Great services.
Jayant
Mumbai, April 25, 2016
Better Policy
I invest my money for my future security with kotak life pension plan. Policy coverage is 88% and claims are around 41 K per month. Service is good and executives behave well. Good future investment which saves tax also. Nice policy plan.
Lakshay
Chittoor, April 25, 2016
Quality Investment
I purchase kotak life pension plan. I'm relaxed now for my future, the returning amount is 46 K per month after the policy end. The policy coverage is 89% and claims are also high with low premiums. The behaviour of the executives and staff members are really very good. Nice policy.
Deepak
Bhubaneswar, April 25, 2016
Above Average
I purchase kotak life pension plan. Plan is good with nice services and always on time. Policy coverage is 90% and the claim is of Rs.40 K per month after policy ends. Investment is low and returns are high. The behaviour from executives is nice. Good future investment with tax saving.
Rohit
Kashipur, April 25, 2016
Satisfactory
I buy pension policy for my parents. My parents are happy with the policy due to low premiums. The returns are high ~Rs.42 K per month for each. The policy coverage is high ~87% and service is rapid and on time. The online facilities are simple and easily accessible. Good job guys.
Saajid
Ratnagiri, April 25, 2016
Trustworthy
My pension policy plan is with kotak mahindra life insurance. The policy has good coverage approx. 87% with low premium. Claims are also high and the returns is Rs.34 K per month after policy end. Service is fantastic and the executives do best work. Good investment for future and taxes are also reduced.
Yajan
Indore, April 25, 2016
Average
My friend suggested me to invest money for future so i buy kotak life pension plan. The policy coverage is high ~81% and the claim is around Rs.32 K per month after policy get mature. Great services with fast interface provided by executives and staff members. Good future investments with tax saving.
Uttam
Bistupur, April 25, 2016
Very Nice
I have kotak mahindra life insurance pension policy plan which has low premiums and payed quarterly. Policy coverage is 85% and claims are high and the payback amount is around Rs.38 K per month. Service is very good and fast. The policy is nice investment for future and it is good tax saver too. Nice plan.
Kishore
Karnal, April 25, 2016
Fine
I got a very good policy plan from kotak mahindra life insurance. The policy is great for future investment nice pension policy plan. The coverage is good ~91%, service is great, even the claims are the best. Good behaviour from executives and staff members. Great policy, very happy with it.
Prashant
Allahabad, April 25, 2016
Good
My pension policy plan is suggestion by the friend, So i took it from kotak mahindra life insurance. Staff members and executives provide good and quick services. Policy coverage is good approx. 83% but the premiums are normal. Good terms and conditions in compare with other. Best future investment and it saves taxes too.
Close
Download the Policybazaar app
to manage all your insurance needs.
INSTALL