Reliance Pension Plan
Kotak Lifetime Income Plan – Overview
Kotak Lifetime Income Plan is an immediate annuity plan. By paying a one-time lump sum premium, the plan provides a regular stream of income throughout the lifetime of the annuitant. The quoted income is guaranteed for the entire life of the annuitant and does not change with variations in the market conditions. This ensures that the annuitant is financially independent long after he/ she has stopped working. The plan supplements ones limited income on retirement so that one can lead a comfortable retired life without any worries. It also helps overcome a situation where one exhausts his/ her savings and those of the loved ones. This pension plan offers 4 income options which help address the retirement needs of all kinds.
Kotak Lifetime Income Plan – Key Features
Immediate Annuity Plan: The annuity payouts begin immediately on payment of the insurance premium
Single Premium: The premium of this annuity plan has to be paid upfront in a single lump sum
Ensures Financial Independence: The plan provides regular payouts to meet the needs after retirement. It allows one to be financially independent and lead life on own terms.
4 Income Options:This annuity plan offers a wide range of income options to suit different retirement needs. One can choose from the following 4 annuity options:
Lifetime Income: This option is most appropriate for people who do not have any dependents. It pays a regular stream of income throughout the life of the annuitant which helps in meeting daily expenses. The payout stops on the death of the annuitant.
Lifetime Income with Cash-Back: This option is suitable for people with dependents. It pays a regular income during the lifetime of the annuitant and returns the single premium to the nominee on the death of the annuitant to take care of the family.
Lifetime Income with a Term Guarantee: This option is relevant for people with liabilities that will continue for a definite term. It pays a regular income for the guaranteed period (choice of 5, 10, 15 or 20 years). The income continues for life in case of survival after the guaranteed period.
Last Survivor Lifetime Income: This option is fitting for people who have to provide for their spouse. It pays a regular stream of income during the lifetime of the annuitant and further continues for the life of the spouse after the death of the annuitant.
Multiple Payout Frequencies: The plan offers a range of annuity payout options to suit the needs of different people. The income payment modes available are monthly, quarterly, half-yearly and yearly.
Lifetime Annuity: The plan provides a regular income to the annuitant as long as he/ she is alive
Payment Option Choice: The plan gives 2 options to access the annuity payout – income is either credited to the bank account or paid through cheque
Negates the Risk of Poor Investment Returns: The plan guarantees the quoted income during the lifetime of the annuitant. The regular income remains fixed and does not change with any fluctuations in the market conditions. This works out to be better than investing on own to save for life after retirement because such investments may yield poor returns and lead to a reduction in savings.
Relaxed Entry Age: The policy allows people between the ages of 45 and 99 years to opt for this annuity plan. So even if one has not saved for life after retirement in their early life, they can do so at a later stage and secure the time when regular income stops.
Kotak Lifetime Income Plan – Benefits
Death Benefit: There is no Death Benefit as such. Only in the case of Lifetime Income with Cash-Back option, the nominee receives the full single premium paid at policy inception on the death of the annuitant. Other income options do not have any Death Benefit.
Maturity Benefit: Since this is an annuity plan, there is no Maturity Benefit
Tax Benefits: Tax benefits can be availed on the premium paid under Section 80CCC of the Income Tax Act, 1961
Kotak Lifetime Income Plan – Product Specifications