The Premier Pension Plan is traditional participating plan created to enable working individuals to invest in a corpus to assist them during their post-retirement life. The plan, through a number of assured benefits on vesting and death, will allow the policyholders to live a stress-free life.
With plenty of interesting and handy features, this plan caters to the needs of a wide range of working professionals with different paychecks.
For individuals to buy the Kotak Premier Pension Plan, they need to meet the basic eligibility criteria, which is as follows:
|Minimum Entry Age||30 years|
|Maximum Entry Age||Regular and Limited Payment model: 55 years Single Pay: 60 years|
|Minimum Policy Term||10 years|
|Maximum Policy Term||30 years|
Sum Assured under the Kotak Premier Pension Plan is as follows:
Minimum Sum Assured: Rs.2 lakhs
Maximum Sum Assured: No limit as it depends on underwriting
Premium Range for Kotak Premier Pension Plan depends on the type of payment frequency chosen, i.e., monthly, quarterly, half-yearly, and yearly, and the term chosen.
The Kotak Premier Pension Plan comes with a number of interesting features. Here’s all of them listed below in the tabular column.
|Guaranteed Additions||A Premier Pension policy is eligible for Guaranteed Additions, wherein a small percentage of the sum assured will be added to the sum assured. These additions vest when a financial year comes to an end and is made available upon vesting and death, whichever event occurs earlier, provided that all the due premiums are paid. Here’s the additions that will be added for different payment frequencies:
|Assured Benefit||Assured benefit is the benefit a policyholder will get at the time of vesting and when he/she meets their demise. This benefit will be at least 105% of the total premiums paid, excluding any taxes and rider premiums paid at the time of death or vesting.|
|Death Benefit||If the person insured meets their demise, the nominees will receive the Assured Benefit along with Guaranteed Additions, and any accrued Reversionary and Terminal Bonuses.
Also, the nominees have two options to choose from as far as death benefit is concerned.
|Vesting Benefit||Once the policy reaches its vesting and maturity period, benefits payable will be:
The basic sum assured along with the accrued guaranteed additions, and accrued terminal bonus and reversionary bonus, if applicable.
The bonus you receive will be any one of the following:
A rider is basically a policy which can be availed on top of the original policy to enhance the coverage options available. There are two riders available under the Kotak Premier Pension Plan. These are as follows:
The policy has just one exclusion, which is regarding the issue of suicide. Under this policy, if the person insured commits suicide within a year, the nominees will be paid at least 80% of the sum assured.
Some of the key features of the plan are as follows:
|Bonuses||The plan offers three different types of bonuses to the policyholder. They are:
|Grace Period||A policyholder will be given a grace period of 30 days from the last date for premium payment, in the case of yearly, half-yearly, and quarterly plans. On the other hand, monthly payment plan holders will only receive a grace period of 15 days, within which period the policy needs to be revived/|
|Annuity||If the policyholder decides to reinvest the vesting and surrender benefits, they can choose to buy a Kotak Annuity Plan. However, if the annuity amount is less than Rs.1,000 per month, the policyholder can receive the amount on a lump sum basis.|
|Reduced Paid-up Policy||This is applicable to regular and limited premium paying policies, wherein if the plan reaches surrender value and subsequent premiums are not paid within the grace period, the policy will be turned into a reduced paid-up policy by default.|
|Nomination||As per Section 39 of the Insurance Act, nomination facility will be available under this plan.|
|Assignment||Assignment facility is not available under this policy.|
|Free Look Period||If the policy is bought through conventional means, a free look period of 15 days in provided, wherein a policyholder can choose to withdraw his/her investment and get a refund of all the payments they have made. On the other hand, if the policy is bought by Distance Marketing means, a free look period of 30 days is offered to individuals.|
|Policy Revival||A lapsed policy can be revived if the outstanding premiums are paid within 2 years of the last unpaid premium. However, to complete the revival the policyholder will need to pay a penalty which, at the moment, stands at 9% of the outstanding premium.|
|Surrender||Depending on the payment term and the number of premiums paid, a policy acquires a Guaranteed Surrender Value (GSV).
People who own the Kotak Premier Pension Plan can save a lot of money on taxes. According to the Income Tax Act, insurance premiums are eligible for deduction under Section 80C and Section 10 (10D) of the country’s tax framework.
The Kotak Premier Pension Plan is ideal for you if you are looking to save a sizeable amount of money to secure your post-retirement. This plan comes with several rarely seen benefits such as guaranteed additions, assured benefit, and the like and also offers bonuses depending on the number of years you have owned the policy for. Another important aspect of this policy is that it comes with multiple payment options, which can be made use of by you depending on your income.
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