Investment Plans September 6, 2021

Kotak Lifetime Income Plan is a non-linked, non-participating, immediate annuity policy that provides you regular income throughout your lifetime. So, invest in this annuity plan and live your golden years without any financial worries. Check out the key features of the Kotak Lifetime Income Plan below –

  • Six Annuity Options
  • Guaranteed Annuity Rate for Lifetime
  • Higher Annuity Rates for Higher Purchase Price
  • Additional Annuity
  • Flexible Payout Frequency

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Read this page further and know more about these and other features of the Kotak Lifetime Income Plan.

Kotak Lifetime Income Plan Annuity Options

You’ll get the following annuity options with this Kotak Life Insurance Plan, so choose them as per your financial needs –

Option 1: Lifetime Income

The annuity shall be payable until the annuitant is alive, and the payment will cease in case of death only.

Option 2: Lifetime Income with Cashback

You’ll receive the annuity payout until you are alive and upon death, the insurer shall pay the total paid premiums (excluding Goods and Services Tax or other statutory levies, if any) to the nominee.

Option 3: Lifetime Income with Term Guarantee

Here, you can choose a guaranteed term to receive the annuity payout from the following –

  • 5 years
  • 10 years
  • 15 years
  • 20 years

The annuity shall be payable during the guaranteed term whether you’re alive or not. In case of death, the insurer shall provide the remaining annuity to the nominee till the expiry of the guaranteed term.

However, if you survive the chosen term, the annuity will continue for a lifetime and it will cease on your death.

Option 4: Last Survivor Lifetime Income with 100% Annuity to Surviving Spouse

The annuity is payable to you until you are alive and in case of your death, 100% of the initial payout shall be provided to your spouse. In case the spouse dies before you, the annuity shall continue until you’re alive.

Option 5: Last Survivor Lifetime Income with 50% Annuity to Surviving Spouse

You’ll receive the annuity until you are alive and in case of your death, 50% of the initial payout shall be provided to your spouse. However, if your spouse dies before you, 100% of the annuity payouts shall continue until you’re alive.

Option 6: Last Survivor Lifetime Income with 100% Annuity to the Surviving Spouse and Cashback on Death of Surviving Spouse

The insurer shall pay the annuity until you’re alive. In case of your death, 100% of the initial income payout shall be provided to your spouse. If the spouse dies before you, the annuity shall be payable until you’re alive. On the death of the last surviving annuitant, the insurer shall pay the total paid premiums (excluding Goods and Services Tax or other statutory levies, if any) to the nominee.

Kotak Lifetime Income Plan Annuity Rates

This policy will be issued with the applicable annuity rate prevailing on the issuance date. When the annuity rates are issued, they will be guaranteed for your entire life and cannot be changed. The insurer will provide preferred annuity rates to existing pension plan members or policyholders of the Kotak Lifetime Income (KLI) Plan.

Kotak Lifetime Income Plan Additional Annuity Payout Option

If you have received an immediate annuity, you can make an additional annuity purchase to increase the payout. In this case, the annuity rate will be modified based on the following –

  • Annuitant age as on date of issuing the additional annuity
  • Band of purchase price after combining the initial and additional purchase price (excluding Goods and Services Tax or other statutory levies, if any)

Your annuity option and payout frequency will remain the same as chosen at inception.

Note – This feature isn’t available to you if you choose Option 3: Lifetime Income with Term Guarantee.

Eligibility Criteria for Kotak Lifetime Income Plan

You can buy Kotak Lifetime Income Plan if you meet the following age criteria –

Minimum Entry Age of the Annuitant (as on the last birthday) – 45 or 55 years (for New Customers) and 18 years (for existing policyholders of Kotak Lifetime Income Plan)

Maximum Entry Age of the Annuitant (as on the last birthday) – 99 years if the policy is purchased as Qualifying Recognized Overseas Pension Scheme (QROPS) through the transfer of UK tax-relieved assets.

Entry Age for Nominees (as on the last birthday) – 0-99 years
Minimum Entry Age of the Spouse (as on the last birthday) – 35 years (for New Customers) and 18 years (for existing policyholders of Kotak Lifetime Income Plan)

Maximum Entry Age of the Spouse (as on the last birthday) – 99 years
Kotak Lifetime Income Plan Purchase Price & Annuity Amount

You can pay the Kotak Lifetime Income Plan purchase price once in a lump sum The minimum purchase price is an amount that ensures a monthly annuity of INR 1,000 (per member for Superannuation Fund). There is no maximum limit on the purchase price. You can choose to receive the annuity in installments by choosing any of the payout modes.

Payout ModeAnnuity Installment (per frequency)Minimum Annuity Amount (In INR)
Yearly100%12000
Half-yearly97% of Yearly Annuity x1/2 6000
Quarterly96% of Yearly Annuity x 1/43000
Monthly95% of Yearly Annuity x 1/121000

Free Look Period

If you’re a new customer, you’ll get a free look period of 15 days from the date of receipt of the policy to review its terms and conditions. And if you don’t agree with the same, return the policy stating the reason for it. On cancellation, the insurer refunds the paid premium after adjusting for stamp duty charges. However, if you purchase this plan from the proceeds of the pension plan of another insurer, the refund shall be transferred to the insurer. If you purchase this policy as QROPS through the transfer of UK tax-relieved assets, the refund is transferred back to the Fund House from where it is received.

If you purchase Kotak Lifetime Income plan through distance marketing modes like –

  • Short Messaging Service (SMS)
  • Email, internet and interactive television (DTH)
  • Direct postal mail, newspaper and magazine inserts

then the free look period is 30 days.

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