Kotak Superannuation Group Plan – II
Kotak Superannuation Group Plan – II
(A Unit Linked Superannuation Insurance Plan)
“IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER.”
In today’s time when the prospect of out-living retirement savings is larger than ever, few employees take the time to plan their long-term financial goals or have the discipline to systematically save for their retirement years. As an employer of choice, you can help your employees tremendously by assisting in their retirement planning and, in turn, increase employee retention. The solution lies in Kotak Life Insurance’s Kotak Superannuation Group Plan – II. This plan offers:
- Defined Benefit Scheme – In this scheme, employers provide employees a specific retirement benefit based on salary and years of service. Such plans are funded by employer contributions. If there is any shortfall between the amounts available in the scheme for payment to the employee, the shortfall will be made good by the master policyholder/employer.
- Defined Contribution Scheme– In this scheme, both employees and/or employers can contribute towards fund accumulation and the rate of employer and/or employee contributions are usually defined as a percentage of salary. This scheme is becoming more important for workers in today’s evolving marketplace where the average worker may switch jobs and even careers multiple times over the course of a lifetime. Both employer and employee can contribute to this scheme. The fund value at the time of benefit payment will be payable.
Key Features
![Assured benefit]()
Assured benefit
This plan offers guarantees in the form of assured benefit payable as per option chosen:
- Defined Benefit Schemes – Assured Benefit payable on complete surrender shall not be less than 100.1% of the total contribution paid, net of withdrawals already made from the account. Assured Benefit shall be applicable on the entire superannuation fund available with the Insurer.
- Defined Contribution Schemes – Assured Benefit payable on retirement or death shall not be less than 100.1% of contributions paid. Assured Benefit is not applicable on exits other than retirement or death.
![Monthly Regular Additions for higher fund sizes]()
Monthly Regular Additions for higher fund sizes
Monthly Regular Additions are added to the Schemes and the percent varies by fund size at the beginning of the calendar month.
![Benefits for the employer]()
Benefits for the employer
- Helps employer increase employee retention and motivation by helping to provide for their retirement.
- Any amount received by the trustees on behalf of an approved superannuation fund is exempt under sec 10(25) (iii).
- The amount of deduction available on ordinary annual contribution to an approved superannuation fund shall not exceed 27% (including the contribution to Provident Fund) of the employee’s annual basic salary for each year of his service under section36 (1)(iv) of the Income Tax Act, 1961.
![Benefits for the employee]()
Benefits for the employee
- Any employee contribution towards an approved superannuation fund qualifies for tax deduction (up to ` 1 lacs) under section 80 C of the Income Tax Act, 1961.
- On death, the benefit paid to nominee shall be exempt from tax under section 10(13) and shall be as per the scheme rules of the employer’s superannuation scheme.
- On retirement (vesting), the benefit shall be as per the scheme rules of the employer’s superannuation scheme and commuted benefit shall be tax free.
- Any contribution by employer to approved superannuation fund up to ` 1 lacs will not be included in perquisites of the employee under Sec 17(2)(vii)
- At the time of withdrawal from service, employee has an option to transfer his superannuation account to his/her new employer, if allowed as per scheme rules of the superannuation fund.
Eligibility
![Eligibility]()
Particulars
Minimum
Maximum
Group size
10
No limit
Entry age (Last birthday)
As specified in the Trust Rules or 18 years whichever is higher
One year before Normal Retirement Age as specified in the Trust Rules or 74 years whichever is lower
Maturity age (Last birthday)
-
Normal Retirement Age as specified in the Trust Rule or 75 years whichever is lower
Term
1 year (renewable indefinitely)
Initial Contribution – Defined benefit
`Rs 2,00,000 at inception
No limit
Initial Contribution – Defined contribution
` Rs 6000 per member per year at inception
No limit
Downloads
Download the brochure to know more about the plan and how it can benefit you.
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Read about Tax benefits & Plan Disclaimer
Benefit for the Employer
- Any amount received by the trustees on behalf of an approved superannuation fund is exempt under sec 10(25) (iii).
- The amount of deduction available on ordinary annual contribution to an approved superannuation fund shall not exceed 27% (including the contribution to Provident Fund) of the employee’s annual basic salary for each year of his service under section36 (1)(iv) of the Income Tax Act, 1961.
Benefit for the Employee
- Any employee contribution towards an approved superannuation fund qualifies for tax deduction (up to ` 1 lacs) under section 80 C of the Income Tax Act, 1961.
- On death, the benefit paid to nominee shall be exempt from tax under section 10(13) and shall be as per the scheme rules of the employer’s superannuation scheme.
- On retirement (vesting), the benefit shall be as per the scheme rules of the employer’s superannuation scheme and commuted benefit shall be tax free.
- Any contribution by employer to approved superannuation fund up to ` 1 lacs will not be included in perquisites of the employee under Sec 17(2)(vii)
- At the time of withdrawal from service, employee has an option to transfer his superannuation account to his/her new employer, if allowed as per scheme rules of the superannuation fund.
Note: Tax benefits are subject to change in the tax laws. You are advised to consult your tax advisor for details.
Risk Factors:
- Unit Linked Life Insurance products are different from traditional insurance products and are subject to risk factors.
- The premium paid in Unit Linked Life Insurance policies are subject to investment risk associated with capital markets and the NAVs of the units may go up or down based on the performance of the fund and factors influencing the capital market and insured is responsible for his/ her decisions.
- Kotak Mahindra Life Insurance Company Ltd. is only the name of the company and Kotak Superannuation Group Plan - II is only the name of the unit linked life insurance contract and does not in any way indicate the quality of the contract, its future prospects or returns.
- The fund offered under this contract is the name of the fund and do not in any way indicate the quality of these plans, their future prospects and returns.
- The past performance of other plans of the Company is not necessarily indicative of the future performance of the fund.
- Please know the associated risks and the applicable charges, from your insurance agent or the intermediary or policy document of the insurer. All benefits payable under the policy are subject to the tax laws and other financial enactments, in force from time to time.
Insurance is the subject matter of solicitation. This is a non-participating unit-linked group plan. For more details on risk factors, terms and conditions please read the sales brochure carefully before concluding a sale.
Kotak Superannuation Group Plan - II UIN: 107L078V01, Form No: L078 Ref. No.: KLI/13-14/E-WEB/081
Kotak Mahindra Life Insurance Company Ltd.; Regn. No.: 107, CIN: U66030MH2000PLC128503, Regd. Office: 8th Floor, Plot # C- 12, GBlock, BKC, Bandra (E), Mumbai - 400 051. Website: www.kotaklife.com| Email: kli.groupoperations@kotak.com | Toll Free No: 1800 120 7856
Trade Logo displayed above belongs to Kotak Mahindra Bank Limited and is used by Kotak Mahindra Life Insurance Company Ltd. under license.
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