Kotak Lifetime Income Plan: Features & Review

Updated: 14-03-2019 10:05:36 AM

All our years, we strive to earn money, not only for our survival but for our financially secured future as well. Earlier saving money was enough for a decent life after retirement. But, now, with increasing inflation rate, saving alone is insufficient for a healthy and stress-free life post-retirement. Investing money in the right place can help you grow a good corpus for your retirement period. India’s first Non-Banking Financial Company (NBFC) that received a banking license from the RBI (Reserve Bank of India), Kotak Mahindra Finance Limited (KMFL) promises you such a secured life with their Kotak Lifetime Income Plan.

How Does the Kotak Lifetime Income Plan work?

 

Kotak Lifetime Income Insurance Plan is a single premium immediate annuity plan that ensures a regular stream of income for life. With a choice of six annuity options and the option to choose the frequency at which you need the income flow, one can easily plan their retirement fund.  Annuity rates are determined based on the details mentioned below:

• Age of the annuitant
• Single premium amount
• Annuity option selected
• The preferred frequency of annuity payout (Monthly, Quarterly, Bi-Annually, or Annually)

1. Policies shall be issued with the applicable annuity rates on the date of issuance as per the terms and conditions of the plan.
2. After the policy issuance, the first installment of the annuity would be paid as per your choice of annuity payment frequency from the monthly, quarterly, half-yearly, or yearly basis.
3. The issued annuity rates are guaranteed for the entire life of the annuitant and do not change with fluctuating market rates or conditions.

Key Benefits of the Plan

 

1. Six annuity options are given to the annuitant to choose from, they are:
2. Lifetime Income

With this annuity option, the annuitant receives a regular lifetime income. This income will cease only at the incident of death of the annuitant.

1. Lifetime Income with Cash Back

In this annuity option, the annuitant gets a regular lifetime income as well as cashback from the total premium after tax deductions (if any) on the death of the annuitant.

• Lifetime Income with Term Guarantee

The annuitant here needs to choose the term until which he/she wishes to get paid with a regular income from 5 years, 10 years, 15 years, and 20 years. This term is independent of the annuitant’s survival. If the annuitant survives the term period, he/she will receive regular payout throughout his/her lifetime. If the annuitant is deceased before the completion of the term, the annuity will be paid out to chosen nominee until the term end of the plan.

1. Last Survivor Lifetime Income (100% annuity to surviving spouse)

In this type of annuity payout, in case of the death of the primary annuitant, 100% of initial annuity payout will be made to the secondary annuitant, i.e., the surviving spouse. Similarly, if the secondary annuitant passes out before the primary annuitant, 100% annuity amount shall be paid out to the primary annuitant.

1. Last Survivor Lifetime Income (50% annuity to surviving spouse)

In this option of annuity payout, in case of the death of the primary annuitant, 50% of initial annuity payout will be made to the secondary annuitant, i.e., the surviving spouse. Similarly, if the secondary annuitant passes out before the primary annuitant, 100% annuity amount shall be paid out to the primary annuitant.

1. Last Survivor Lifetime Income (100% annuity to surviving spouse & cash back on the death of the surviving spouse)

With this annuity payout option, in case of the death of the primary annuitant, 100% of initial annuity payout will be made to the secondary annuitant, i.e., the surviving spouse. Similarly, if the secondary annuitant passes out before the primary annuitant, 100% annuity amount shall be paid out to the primary annuitant. Additionally, on the death of the surviving spouse, the entire premium paid to purchase the plan will be paid back to the chosen nominee.

2. Guaranteed annuity rates for lifetime
3. Higher purchase price attracts higher annuity rates
4. Existing members of Kotak Life Insurance Pension Plans or other Policies are free to select preferred annuity rates.
5. Option to purchase additional annuity along with an existing annuity plan
6. Five bands are determined based on the purchase price of the policy, they are:

Bands	Band 1	Band 2	Band 3	Band 4	Band 5
Purchase Price (Rs)	≤ Rs. 2,50,000	Rs. 5,00,000 ≥ Rs. 2,50,000	Rs. 10,00,000 ≥ Rs. 5,00,000	Rs. 50,00,000 ≥ Rs. 10,00,000	≥ Rs. 50,00,000

 

7. The frequency of annuity payout and the annuity option selected will remain stable throughout the lifetime except for the annuity option, ‘Lifetime Income with Term Guarantee.’

Eligibility Criteria to Buy Kotak Lifetime Income Plan

Following are the eligibility criteria set by the financial provider to avail this lifetime annuity plan:

Entry Age for New Customers	Min: 45 years Max: 99 years
Entry Age for Nominees of deceased KLI Pension Plan	Min: 0 years Max: 99 years
Entry Age for Spouse (New Customer)	Min: 35 years Max: 99 years
Entry Age for Spouse (Existing Customer)	Min: 18 years Max: 99 years
Annuity Modes	·         Monthly ·         Quarterly ·         Half-Yearly ·         Yearly
Minimum Annuity	Monthly: Rs. 1000 Quarterly: Rs.3000 Half-Yearly: Rs. 6000 Yearly: Rs. 12,000
Annuity Installments	Monthly: 95% of annual annuity x 1/2 Quarterly: 96% of annual annuity x 1/4 Half-Yearly: 97% of annual annuity x 1/12 Yearly: 100%

 

How to Apply for a Kotak Life Income Plan?

 

• You need to visit the website of Kotak Life Insurance
• Next, you got to select the type of customer category you belong to from new customers and existing customers
• You can now submit a few necessary details and request a life advisor
• The life advisors of Kotak Life Insurance are experienced professionals to instruct you throughout while opting the right plan for you
• You can also contact the customer care number easily available on the website
• You can check out the review, details, benefits, and eligibility for the policy from the site
• A brochure is easily accessible on the website that can be downloaded for your reference
• To calculate the premiums instantly, you can use the online calculator which is also provided on the Kotak website

Terms and Conditions to Invest in Kotak Lifetime Income Insurance Plan

 

Every insurance company has terms and conditions to be confined for availing the policy. You must read these conditions before signing up the documents of the policy to avoid disappointments in the future. Below mentioned are the terms and conditions to avail Kotak Lifetime Income Plan:

• The annuitant of the plan must either be just a recipient or a policyholder
• In case of annuity options involving primary and secondary annuitants, the secondary annuitant must mandatorily be a spouse of the primary annuitant.
• After the issuance of the annuity rates, the annuitant will receive guaranteed annuity rates for a lifetime.
• After the free-look period, the annuity option selected cannot be changed.
• The total premium will include all the single premiums paid by the annuitant including the additional annuity purchased (if any).
• The annuity will be subject to income tax deduction as applicable by the laws.
• At every 15 days before each policy anniversary, the annuitant or the surviving annuitant need to submit a valid proof of existence. This must be compulsorily done in the format mentioned by the company.
• In case the proof is not received by the company within the designated time, the annuity payment will cease (except for Lifetime Income with Term Guarantee). This will be resumed once the proof copy is submitted settling all the existing debts.
• Under Section 39 of the Indian Insurance Act, the nomination is allowed under this insurance policy.
• Every policyholder is offered a free-look period of 15 days from the date of receipt of the policy. During this time the policyholder can opt to return the policy. However, the policyholder must state the reasons for returning the policy. After the adjustments of the stamp duty, the premiums paid will be refunded to the policyholder.
• If the plan is bought from the proceeds of some other plans from another company, the refund will be given to the company from which the premium was received and not to the policyholder.

Frequently Asked Questions

 

1. How should I verify my financial advisor?

You can visit the website of Kotak Insurance and Click on ‘How do I?’, and then on verify my advisor. You will get a tab to enter the agent ID and search for their details. You can further verify the details of your financial advisor easily.

2. Why go for Kotak Life Insurance?

Kotak Insurance is known to be one of the prominent insurance companies of India. The insurance company covers over 20 million lives from all over the country. With a wide range of products offered, Kotak makes sure to provide assured financial protection to their customers. The company is recognized to have a reputed professional standard with a customer friendly unique approach.

3. What is the company’s procedure for claim settlement?

• You need to visit the branch and fill the claim intimation form, submit policy documents and the accident or death certificate.
• The company representative provides a reference number for the further procedure, and within 30 days, the claim is settled.

 

4. What is the policy renewal procedure of Kotak Life Insurance?

You need to follow three steps to renew your policy from Kotak Life Insurance, they are as follows:

Step 1

Log into the e-portal of Kotak Life Insurance with your policy details to check your policy status.

Step 2

Check the type of policy you have chosen and chose the mode of payment you prefer.

Step 3

Make payment through the secured gateway and save the e-receipt for your reference. For offline mode, you can pay through cash or Cheque at the nearest branch.