Kotak Gratuity Group Plan is a unit-linked gratuity group plan offered by Kotak Life Insurance. Employers can invest their gratuity funds in this plan to reduce business costs and earn the funds needed to pay gratuity to their employees and finance their core businesses. Under this plan, you get the following benefits:
In this plan, investment risk in the investment portfolio is borne by the policyholder.
Listed below are the eligibility factors you must meet to purchase Kotak Gratuity Group Plan:
|Entry Age||18 to 75 years|
|Maturity Age||Up to 76 years|
|Group size||Minimum: 10 employees Maximum: No limit|
The contribution/premium amount, Policy Term and Sum Assured for Kotak Gratuity Group Plan are as follows:
|Premium/contribution||Minimum: Rs.2 lakhs at policy inception Maximum: No limit|
|Policy Term||1 year (renewable yearly)|
|Sum Assured||Minimum: Rs.5,000 Maximum: Subject to the underwriting policy of the insurer|
|Premium/contribution payment frequency||Yearly, half-yearly, quarterly or monthly|
*Premiums vary based on age, location, plan term and other factors.
This is how Kotak Gratuity Group Plan works:
The master policyholder will create a gratuity trust, make contributions to the trust, and appoint trustees to maintain the trust. He or she can choose from 6 investment fund options offered by the company. Units will be allocated after the contributions are made. Upon retirement or resignation during the policy term, the company will redeem the units to pay gratuity benefit.
|Investment Option||Objective||Risk-Return Profile||Equity||Government Guaranteed Securities||Other Debt securities||Short-term Investments|
|Group Balanced Fund||Moderate growth from a diverse combination of equities and fixed interest instruments||Moderate||30-60%||20-70%||20-70%||0-40%|
|Group Bond Fund||Return is from fixed interest instruments, may provide little protection against unexpected rise in inflation||Conservative||-||0-75%||25-100%||0-40%|
|Group Floating Rate Fund||Return is from floating rate debt instruments, may provide little protection against unexpected rise in inflation||Conservative||-||0-75%||25-100%||0-40%|
|Group Gilt Fund||Return is from government fixed interest securities, may provide little protection against unexpected rise in inflation||Conservative||-||80-100%||-||0-20%|
|Group Money Market Fund||Capital protection with minimal risk||Secure||-||-||-||100%|
|Group Short Term Bond Fund||Returns and liquidity from government debt and money market instruments||Conservative||-||0-50%||25-75%||10-75%|
Kotak Gratuity Group Plan does not pay death benefit in the case of suicidal death of life insured within 1 year of policy commencement. Only gratuity settlement is payable to the nominee of the life insured.
Listed below are the key features of Kotak Gratuity Group Plan:
|Premium amount||Allocation charge|
|Up to Rs.2 crores||0.5% of contribution|
|Above Rs.2 crores||Nil|
|Group Money Market Fund||0.80%|
|Group Gilt Fund||0.80%|
|Group Floating Rate Fund||0.80%|
|Group Balanced Fund||1.00%|
|Group Short Term Bond Fund||0.80%|
|1 to 3 years||0.5% of Fund Value or Rs.5 lakhs, whichever is lower|
|4th year onwards||Nil|
There is no policy administration charge, switching charge or redirection charge.
Under Kotak Gratuity Group Plan, employers get the following tax benefits:
Employees get the following tax benefits:
There are several other benefits of purchasing group insurance plans from Kotak Life Insurance such as:
Following are the reasons why you should buy Kotak Gratuity Group Plan from Kotak Life Insurance:
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