Kotak Assured Pension

What is Kotak Assured Pension?

Kotak Assured Pension is a non-linked, non-participating annuity plan designed to provide you with a steady stream of income throughout your retirement. This plan ensures financial security during your golden years, allowing you to enjoy your retirement without worrying about money. With Kotak Assured Pension, you can confidently pursue your dreams and aspirations, knowing that you have a reliable source of income to support your lifestyle.

Annuity Options available under Kotak Assured Pension

The plan offers various annuity options to suit different retirement needs. These options include:

• Lifetime Income

• Lifetime Income with Annual Increase

• Last Survivor Lifetime Income

• Deferred Income with Cash-Back

• Deferred Income with 100% / 50% Annuity to Secondary Annuitant and Cash-Back on Death

• Joint Life Options

Features of Kotak Assured Pension

Below are the features of Kotak Assured Pension: 

1. Immediate Annuity

   • Wide Range of Options: Choose from 8 different annuity options to find the one that best suits your lifestyle and income requirements.

   • Top-Up Flexibility: Enhance your annuity payout with additional top-ups for increased income.

   • Lifetime Guaranteed Annuity Rates: Enjoy the peace of mind that your annuity payments will remain consistent throughout your lifetime.

   • Higher Premium, Higher Returns: Receive higher annuity rates when you invest a larger premium.

2. Deferred Annuity

   • Flexible Deferment Periods: Select a deferment period between 1 and 10 years based on your annuity needs.

   • Guaranteed Additions: Accrued guaranteed additions to your annuity during the deferment period.

   • Lump-Sum Death Benefit: Receive a lump-sum payment upon the death of the annuitant or surviving annuitant, both during and after the deferment period.

   • Lifetime Guaranteed Annuity Rates: Benefit from guaranteed annuity rates for the duration of your retirement.

   • Flexible Premium Payment Options: Choose how long you want to pay premiums based on your annuity option.

   • Higher Premium, Higher Returns: Enjoy higher annuity rates with larger premium investments.

Eligibility Criteria for Kotak Assured Pension

Benefits of Kotak Assured Pension 

Below are the benefits of Kotak Assured Pension: 

1. Survival Benefit:

   • Lifetime Income: The annuity payout will continue throughout the lifetime of the annuitant (in case of Single Life Options) or both primary and secondary annuitants (in case of Joint Life Options).

   • Duration: The duration of the annuity payout depends on the chosen annuity option.

2. Death Benefit

   • Payout: The death benefit is payable as per the selected annuity option.

   • Non-Payable Options: Death benefit is not applicable under certain annuity options, including Lifetime Income with Annual Increase and Last survivor Lifetime Income options.

3. Benefit Payout on Critical Illness

   • Cash-Back: If you have opted for the Lifetime Income with Cash-Back on Death or Critical Illness option, you will receive the total premium paid (excluding taxes) upon diagnosis of a covered critical illness.

4. Maturity Benefit

   • No Maturity Benefit: There is no maturity benefit under this plan.

5. Other Benefits

   • Deferment Period: For Deferred Annuity Options, you can choose a deferment period between 1 and 10 years. The annuity payout will start after the completion of this period.

   • Guaranteed Additions: During the deferment period, guaranteed additions will accrue under the plan.

   • Surrender Benefit: You can surrender the policy under certain annuity options. The surrender benefit will be equal to the higher of the guaranteed surrender value or special surrender value.

Policy Details of Kotak Assured Pension 

1. Free Look Period

   • Individual Policy: Policyholders have a 30-day free look period to review the policy terms and conditions. If dissatisfied, the policy can be canceled within this period for a full refund, minus stamp duty.

   • Group Policy: The free look period varies based on the type of group policy (defined contribution or defined benefit). Generally, the group master policyholder has 30 days to cancel the policy.

2. Grace Period

   • Individual Policy: A grace period of 30 days is provided for yearly, half-yearly, and quarterly premium payments, while it's 15 days for monthly payments. During this period, the policy remains in force with risk coverage.

   • Group Policy: Grace periods may differ based on the group policy terms.

3. Lapse

   • Individual Policy: If premiums are not paid within the grace period, the policy may lapse. A lapsed policy can be revived within a specified period, subject to certain conditions.

   • Group Policy: Lapse provisions may vary based on the group policy terms.

4. Reduced Paid-Up

   • Individual Policy: If premiums are not paid after the policy acquires surrender value, it may be converted into a reduced paid-up policy. This means the annuity amount will be reduced.

   • Group Policy: Reduced paid-up provisions may differ based on the group policy terms.

5. Revival

   • Individual Policy: Lapsed or reduced paid-up policies can be revived within a certain period by paying outstanding premiums and interest.

   • Group Policy: Revival provisions may differ based on the group policy terms.

6. Loan

   • Individual Policy: Loans can be availed during the deferment period, subject to certain conditions and interest charges.

   • Group Policy: Loan provisions may differ based on the group policy terms.

7. Alterations

   • Individual Policy: Certain alterations, such as changing annuity frequency or nominee details, are allowed.

   • Group Policy: Alteration provisions may differ based on the group policy terms.

8. QROPS

   • Individual Policy: If the policy is purchased as a QROPS (Qualifying Recognized Overseas Pension Scheme), specific terms and conditions apply regarding cancellation, annuity payout, surrender, and loans.

   • Group Policy: QROPS is not applicable for group policies.

9. NPS Subscribers

   • Individual Policy: For NPS subscribers, GST and other statutory levies may not be applicable on premiums but may apply to charges related to policy alterations.

10. Termination

    • Individual Policy: The policy may terminate due to various reasons, such as non-payment of premiums or reaching the end of the policy term.

    • Group Policy: The group master policyholder or Kotak Life Insurance may terminate the policy, subject to certain conditions.