"What is the Kotak Retirement Income Plan?"
The Kotak Retirement Income Plan
is a savings plan designed to meet your post-retirement
needs. It is a plan that gives you "Jeene ki
azaadi". It gives you the choice to remain
independent even after retirement.
The Kotak Retirement Income Plan is a participating
plan. The plan comes in two forms:
(i) With Cover (ii) Without Cover.
"Who can avail
of the Kotak Retirement Income plan?"
| How old do you have to be to
avail of this plan? |
Minimum age
- 18 years
Maximum age - 60 years |
 |
| For what term can you choose
to pay the premiums? |
5 yrs - 30 yrs |
|
| How old do you have to be to
receive your annuity? |
Minimum Age - 45 yrs
Maximum Age - 65 yrs |
|
| At what intervals can you pay
the premium? |
Quarterly
Half Yearly
Annually
|
|
"What are the advantages
of this plan?"
- You can choose to retire at any age between
45 yrs and 65 yrs.
- On Retirement:
You may take a lump sum in cash of up to a third
of your Basic Sum Assured or Accumulation Account*,
whichever is higher; and the balance of the
benefit you are eligible for will be used to
buy an annuity of your choice.
- Annuity Options:
You may buy an annuity either from Kotak Life
Insurance (subject to the choice and rates available
at that time)**, or from any other insurer.
- Early Retirement
Benefits:
You may opt to retire early, i.e. at any age
before the normal retirement date (subject to
the policy being in force for 3 years or your
attaining a minimum age of 45 yrs, whichever
is later). You can then secure benefits with
your Accumulation Account, net of an early retirement
charge of 5%.
If the early retirement is due to ill health,
then you may retire before attaining the age
of 45. You can then secure benefits with your
full Accumulation Account.
- Late Retirement
Benefits:
You may opt to retire after the retirement date
originally selected, and select a new retirement
date (subject to a maximum of 65 years). No
further premiums will be payable and the death
benefit will be equal to the balance in Accumulation
Account. (However, all riders will cease at
the original retirement date).
- You can make lump-sum injections into your
policy at any time before retirement (such lump-sum
injections during a year may not exceed
25% of the Basic Sum Assured). A Supplementary
Accumulation Account will be created for this,
and will be paid out in the same manner as other
benefits.
- You may exercise the option of paying premiums
from the Supplementary Accumulation
Account, created for "lump-sum
injections", if the need arises.
- For a "With Cover" plan, you have
the facility of Automatic Cover Maintenance,
which ensures that the cover remains in force
even when you miss the premium payments. This
facility is available after the first three
years of the term.
- You have the option of paying premiums in
quarterly, half-yearly or yearly installments.
- You have the facility of a 15-day
free look period.
*Accumulation
Account is your personal account in which the
premiums that you pay are
deposited, the returns declared every year are
added and risk and expense charges are deducted.
**For example you can currently avail of the Kotak
Immediate Income Plan, which gives the option
of Life Annuity with Return of Purchase Price.
The annual annuity rate applicable for an immediate
annuity purchased now is 6.11% of Purchase Price
(before deduction of charges), for the age group
56 years to 65 years. This, however, will vary
with prevailing market interest rates, but will
be competitive
"What value-adds
can you opt for?"
You may avail of the following value-adds for a
nominal premium at the time of taking the policy,
subject to the aggregate premium on the value-adds
not exceeding 30% of the premium on the basic benefit.
Term/ Preferred Term Benefit**:
In the event of death during the term of this benefit,
the beneficiary would receive an additional Death
Benefit amount, which is over and above the Sum
Assured. The maximum amount of benefit you can avail
of is equal to the Basic Sum Assured. Where the
Term Benefit cover applied for is more than Rs.10
lakhs, better rates may apply, subject to meeting
eligibility requirements.
Accidental Death Benefit: In the event of
death as a result of an accident during the term
of this benefit, your beneficiary will receive an
additional benefit, which is over and above the
Basic Sum Assured. The maximum Accidental Death
Benefit you can avail of is equal to the Basic Sum
Assured (subject to a maximum of Rs. 10 lakhs).
Critical Illness Benefit**: In case of the
first occurrence of a critical illness during the
term of this benefit, the Critical Illness Benefit
Sum Assured will be added to the Supplementary Accumulation
Account. Once the addition is made to the Supplementary
Accumulation Account , the Basic Sum Assured would
reduce by the Critical Illness Benefit Sum Assured,
the Basic Accumulation Account would reduce in the
same proportion and future premiums for the plan
would be recalculated based on the reduced Sum Assured.
. The maximum Critical Illness Benefit Sum Assured
you can avail of is equal to the Basic Sum Assured
(subject to a limit of Rs.20 lakhs).
(Please
contact our Life Advisor for a list of Critical
Illnesses)
Permanent Disability Benefit : If you meet
with an accident during the term of this benefit,
and are permanently disabled, you would be entitled
to an additional amount, which is over and above
the Basic Sum Assured. This amount will be added
to the Supplementary Accumulation Account and will
be available on retirement. The maximum benefit
available under this plan is equal to the Basic
Sum Assured (subject to a maximum of Rs.10 lakhs).
Permanent
Disability is defined as permanent and immediate
inability to work
or permanent loss of use of two limbs or total
and permanent loss of sight.
Life Guardian Benefit: In case of the unfortunate
death of the proposer, this benefit keeps the policy
alive by waiving all future premiums on the policy.
This is available only where the proposer and the
life insured are two different individuals.
Accidental Disability
Guardian Benefit: In case the proposer is
permanently disabled as a result of an accident,
this benefit keeps the policy alive by waiving all
future premiums on the policy. This is available
only when the proposer and the life insured are
two different individuals.
**Are
available as value adds only on "With Cover"
plan
"What
are the Tax Benefits on this Plan?"
Section 80C, 10(10D) of Income Tax Act would
apply. Premiums paid for Critical Illness Benefit
qualify for benefits under Section 80D. These benefits
are as per the currently prevailing tax regulations
and you are advised to consult your tax advisor
for details.
*Please consult your tax advisor for details.
"What happens in the event
of the death of the life insured before retirement?"
For the "With
Cover" Plan:
The benefits to the beneficiary will be, greater
of:
(i) Sum Assured less all the premiums due but not
paid, and
(ii) Accumulation Account.
This is used to buy an annuity, and provide commutation
benefit, in accordance with the beneficiary's choice.
For the "Without Cover"
Plan:
The benefits to the beneficiary will be, greater
of:
(i) Return of premiums (without interest), and
(ii) Accumulation Account.
This will be used to buy an annuity, and provide
commutation benefit, in accordance with the beneficiary's
choice.
"How
does the Kotak Retirement Income Plan work?"
Mr. Mehta is a 35-year-old man, who wishes to retire
at age 60. He takes the Kotak Retirement Income
Plan with a Basic Sum Assured of Rs. 3 lakhs. He
considers the following two options; "With
Cover" - Option A, and "Without
Cover" - Option B.
(a)What is the benefit available to Mr.Mehta on
retirement?
Under Option A,
Assuming that Mr. Mehta's Accumulation Account
grows at 6% p.a, the fund available to him will
be Rs. 4,67,500. Assuming that it grows at 10%,
then the fund available to him will be Rs. 8,70,000.
Mr. Mehta may commute upto a third in cash immediately,
and buy an annuity with the remaining benefit.
Under Option B,
Assuming that Mr. Mehta's Accumulation Account
grows at 6% p.a, the fund available to him will
be Rs.4,63,000. Assuming that it grows at 10%,
then the fund available to him will be Rs. 8,56,600.
Mr. Mehta may commute upto a third in cash immediately,
and buy an annuity with the remaining benefit.
(b) What is the benefit available
in the event of the unfortunate death of Mr. Mehta
after 15 years?
Under Option A,
Mr. Mehta's beneficiary will be eligible for the
greater of Rs. 3 lakhs or the balance in the Accumulation
Account. The balance in the Accumulation Account
will be less than Rs. 3 lakhs even if the accumulation
account grows at 10% per annum. He/she will also
receive an additional Rs.3 lakhs under the "Term
Benefit" as Mr. Mehta availed of this value-add
by paying a nominal premium of Rs.1,818 p.a, for
it. The beneficiary may commute upto a third in
cash immediately, and buy an annuity from the
remaining benefit.
Under Option B,
Mr. Mehta's beneficiary will be eligible for Rs.
1,95,400 if his Accumulation Account grows at
6% per annum, and Rs. 2,75,600 if his Accumulation
Account grows at 10% per annum. In the event that
Mr. Mehta's death has been due to an accident,
then his beneficiary will receive an additional
Rs.3 lakhs under the "Accidental Death Benefit",
as Mr. Mehta availed of this value-add by paying
a minimal premium of Rs.265 p.a. for it. The beneficiary
may commute upto a third in cash immediately,
and buy an annuity with the remaining benefit.
In the illustration,
some benefits are guaranteed and some are variable.
Guaranteed Returns are marked "guaranteed" in
the illustration. Variable returns are shown at
two different rates of assumed future returns.
These assumed rates of return are not guaranteed
and they are not the upper or lower limits of
what you might get back .The actual return may
be different depending on a number of factors
including future investment performance.
"What do you do next?"
To find out more about this plan, you can
call us at any Kotak
Life Insurance Branch Offices or send
us an e-mail at lifeexpert@kotak.com
"General Exclusion."
In case the life insured commits suicide within
1 (one) year of the plan, no benefits outlined
in the plan would be payable.
Exclusions for Accidental
Death Benefit and Permanent Disability Benefit,
Kotak Accidental Disability Guardian Benefit:
The Accidental Death Benefit, Permanent Disability
Benefit, Critical Illness Benefit & Kotak
Accidental Disability Guardian Benefit would not
be paid out in the following circumstances:
(a) Self inflicted injuries, suicide, insanity,
immorality, committing any breach of law or being
under the influence of drugs, liquor etc.
(b) When the life insured is engaged in aviation
or aeronautics other than as a passenger on a
licensed commercial aircraft operating on a scheduled
route.
(c) Due to injuries from war (whether war is declared
or not), invasion, hunting, mountaineering, motor
racing of any kind, other dangerous hobbies or
activities, or having been on duty in military,
para-military, security or police organization.
Additional Exclusions for Critical Illness:
(a) Unreasonable failure to seek or
follow medical advice.
(b) Any pre-existing medical condition not disclosed
at inception.
(c)Infection with Human Immunodeficiency Virus
(HIV) or condition due to Acquired Immune Deficiency
Syndrome (AIDS).
In addition, no benefit would be paid in respect
of the exclusions specific to each critical illness.
"Prohibition of Rebates"
Section 41 of the Insurance Act, 1938
states:
(1) No person shall allow or offer to allow, either
directly or indirectly, as an inducement to any
person to take out or renew or continue an insurance
in respect of any kind of risk relating to lives
or property in India, any rebate of the whole
or part of the commission payable or any rebate
of the premium shown on the policy, nor shall
any person taking out or renewing or continuing
a policy accept any rebate, except such rebate
as may be allowed in accordance with the published
prospectuses or tables of the insurer.
(2) Any person making default in complying
with the provision of this section shall be punishable
with fine, which may extend to five hundred rupees.
Form No.: KRP01 |
