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Kotak Secure Return Employee Benefit Plan

Kotak Secure Return Employee Benefit Plan is an insurance product that is designed to cater to the needs of trustees, employers, State Governments, Central Government, and PSUs that are looking to fund the benefit schemes of the group members. The plan works as a comprehensive employee benefit programme that manages the gratuity and leave encashment schemes of the employees in a convenient and effective manner. The scheme is a traditional, non-participating, variable insurance group plan that provides life insurance cover and competitive returns to the members.

The plan provides a Guaranteed Minimum Floor Rate of 2% per annum for the whole policy tenure, and this accumulates on the Account Value balance. There is also a Competitive Additional Interest Rate declared under the policy at the beginning of each quarter. The member has the option to avail additional life cover under the plan at an extra cost. The plan invests in a professionally managed fund with great service. The policy can also be renewed conveniently on an annual basis.

Eligibility - Who is the Kotak Secure Return Employee Benefit Plan for?

A customer has to fulfil the following eligibility criteria to be able to buy the Kotak Secure Return Employee Benefit Plan:

Parameter Eligibility
Minimum Entry Age 18 years
Maximum Entry Age 74 years
Maximum Maturity Age 75 years
Policy Term 1 year, renewable

Sum Assured and Premium Range - What you get and what it costs?

Sum Assured:

The policy provides various benefits, such as death benefit, vesting benefit, etc. that are paid out as per the scheme rules. The payments are made at the occurrence of specific events, such as the member’s death, retirement, resignation, or withdrawal from the plan. The maximum sum assured under the plan is the Policy Account Value.

Premium:

The member makes contributions towards the policy at specific intervals throughout the policy term. The minimum and maximum contributions are as listed below:

Parameter Description
Minimum Contribution Rs.15 lakh
Maximum Contribution No limit

The premium is paid by the policyholder according to the funding valuation report. Premium can be paid at monthly, quarterly, half-yearly, or yearly frequencies. No additional or top-up premium is allowed under the scheme, unless the funding valuation report requires such a payment.

Plan Coverage - What the Kotak Secure Return Employee Benefit Plan covers?

The group plan covers the group schemes listed below:

  • Gratuity
  • Leave Encashment

Each policyholder will have a unique policy account under the Kotak Secure Return Employee Benefit Plan. The premiums paid and the applicable charges/ interest rates will be accumulated in the policy account. All payouts or withdrawals will also be deducted from the policy account. The policy account value under the plan will be disclosed everyday through the assigned unique identification number (SAIN).

The benefits under the plan are payable to the group member as his/her gratuity/leave encashment payouts. The death benefit is paid to the nominee of the member. The coverage of the Kotak Secure Return Employee Benefit Plan is as detailed below:

Death Benefit The death benefit is payable as per the scheme rules. The maximum amount of this benefit is the Policy Account Value. An additional amount of Rs.1,000 is paid to each member if the life cover is opted for.
Benefit paid at the exit of the member This benefit is paid at the member’s exit from the policy in the event of resignation, early retirement, etc. The payment is according to the scheme rules, and the maximum payout is the Policy Account Value.
Vesting Benefit According to the scheme rules, the vesting benefit is paid to a member on his/her normal retirement date.

Other Key Features – Freelook Period, Surrender Values, Grace Period etc.

The salient features of the Kotak Secure Return Employee Benefit Plan are described below:

Insurance Benefit Based on the scheme rules, benefits are paid out in the event of retirement, death, resignation, or withdrawal of the member from the plan. The benefits are deducted from the policy account of the policyholder, subject to the funds being available.
Minimum Floor Rate A minimum floor rate of 2% per annum is available as a guaranteed benefit for the entire policy term. This amount accumulates on the account value balance. The minimum floor rate is added to the balance on a quarterly basis.
Additional Interest Rate An Additional Interest Rate is applicable on the funds on a quarterly basis.
Residual Additions Non-negative residual additions are added to the policy account at the end of each policy year.
Additional Protection The policyholder can opt for additional protection of the members’ life in the form of enhanced sum assured.
Charges The Kotak Secure Return Employee Benefit Plan is associated with the following charges:
  • Mortality Charge - This is equal to Rs.1 for every Rs.1,000 sum assured.
  • Surrender Charge - The policy can be surrendered at any time. The policyholder should provide 1 month’s notice to the insurer for the same. The surrender value is the policyholder’s account value after adjustments are done as per Market Value Adjuster (MVA).
  • The policy does not have any allocation charge.
Free-look Period The policyholder has a free-look period of 15 days from the date of receipt of the policy documentation. During this time, the policyholder can read through the terms and conditions and reconsider his/her decision to continue with the plan. If he/she decides to return the policy back to the insurer, this can be done within the free-look period. The insurer should be informed of the reasons for return of the plan. The policyholder will then be eligible for a refund of the premiums paid after the adjustments for stamp duty. This product is not available through distance marketing channels.

Tax Benefits – How you can save with the Kotak Secure Return Employee Benefit Plan?

The policy will provide tax benefits as applicable. However it is advisable to consult a tax advisor to understand the latest provisions.

Other Benefits – How you can save with the Kotak Secure Return Employee Benefit Plan?

  • The Kotak Life Insurance website enables policyholders to pay their premiums conveniently. Premium payments can be done through the following channels:
    • Payment through NEFT
    • Debit card payments
    • Payments through standing instructions
    • Credit card payments
    • Mobile - Immediate Payment Service
    • Electronic Clearing Services
    • Payments through direct debit
    • Payments through Kotak Mahindra Bank ATM Drop boxes
    • Payments can also be made at the branch offices of the insurer
    • Pay through Bill Desk
  • Kotak Life Insurance also provides the SMS Alert facility to customers through which they can access their insurance policy details on the go. When a policyholder registers to this service, he/she can receive updates regarding premium due dates, renewal notice, unit link statement, etc.
  • It is possible to contact the customer service team of the insurer by requesting for a callback.

Why you should buy the Kotak Secure Return Employee Benefit Plan from Kotak Life Insurance?

Kotak Mahindra Old Mutual Life Insurance Ltd., a collaboration between Kotak Mahindra Bank Ltd. and Old Mutual Plc. is a leading insurance provider in India. The partner companies in the joint venture have a large amount of global expertise and local experience in the banking and financial services domain.

The life insurance company offers a bouquet of insurance products for the varied needs of customers of different age and income groups. Kotak Life Insurance has a competitive turnaround time for claim settlement and issue resolution as they lay a lot of focus on customer satisfaction. The company has been delivering competitively priced insurance solutions and quality services to customers across the country for several years.

This Insurance Company has not partnered with BankBazaarInsurance.com. For more details, please visit its website/branch office. The trademarks, logos and other subject matters of intellectual property belong to their respective owners.