Kotak Life
Close

Buy a Life Insurance Plan in a few clicks

Close

Now you can buy life insurance plan online.

Kotak e-Term Plan

Kotak e-Term Plan provides a high level of protection to your loved ones in your absence. Know more

Kotak Guaranteed Savings Plan

Kotak Guaranteed Savings Plan is a savings and protection plan that helps you achieve long-term financial goals and provides an insurance cover against any eventuality. Know more

Kotak E-Invest

Kotak e-Invest plan is a complete Unit-Linked Insurance Plan that can be customized as per your goals and needs. Know more

Kotak Health Shield

Kotak Health Shield Plan helps secure your finances in sudden medical expenses such as Cardiac, Liver, Neuro, and Cancer (all early and significant illness stages/conditions of cancer), along with offering protection for personal accidents - in case of accidental death or disability. Know more

Kotak Lifetime Income Plan

Kotak Lifetime Income Plan gives you the security of your income continuing throughout your life and in your absence throughout your spouse's lifetime! Know more

Do Pension Plans Allow any Death Benefits?

Do Pension Plans Allow any Death Benefits?
  • 30th Nov 2021 |
  • 473

Summary:

The purpose of a pension plan is to provide a stable monthly income post-retirement. Unfortunately, life is full of uncertain events. So, what are the death benefits available for various pension plans?

Content:

The nature and magnitude of death benefits differ from policy to policy. It is primarily dependent on the terms and conditions of each scheme. Here is the list of the commonly available pension plans in India and the death benefits that each of them offers.

Types of Pension Plans – Death Benefits

Generally, you will find the following types of pension plans in India.

1) Deferred Annuity:

Basic Feature: A regular premium or one-time premium is charged. The phase in which you pay the premium is called the accumulation phase. After this phase ends, the pay-out starts. Only the insured is allowed to receive monthly income out of this scheme.

Death Benefit: Every insurer has different policies. Generally, the monthly payments are discontinued if the annuity is in the pay-out phase.

2) Immediate Annuity:

Basic Feature: A single premium is charged under this scheme. Your monthly pay-outs start immediately. You can choose your favourite annuity plan from a range of options.

Death Benefit: The monthly payments are ceased, and the nominee is entitled to receive the balance corpus if the insured dies within the policy tenure.

3) Annuity Certain

Basic Feature: The basic features are the same as a deferred annuity except that the annuity is payable for a certain period.

Death Benefit: If the insured dies within the policy period, the annuity payments are continued to the nominee.

4) Guaranteed Period Annuity:

Basic Feature: You can make a regular or one-time payment just like the deferred policy. The period of annuity pay-outs is predefined. Generally, the guarantee period is in multiples of 5 years.

Death Benefit: In case the insured dies before the completion of the guarantee period, the annuity is paid to the nominee until the guarantee period expires.

5) Life Annuity:

Basic Feature: As the name suggests, the monthly payments are linked to the insured’s life. But this plan gives you two options to choose from,

a) With spouse

b) Without spouse

Death Benefit:

With Spouse: The spouse of the insured is entitled to receive the monthly payments after the death of the insured.

Without Spouse: The annuity payments are ceased after the death of the insured.

6) Unit-Linked Insurance Plans

Basic Feature: These are investment options linked to an insurance policy. You have the option to select the fund in which you want to invest your money. At the same time, one portion of the premiums is charged as a mortality fee to provide a life cover.

Death Benefit:

a) Regular ULIPs: If the insured dies within the policy period, then the sum assured and the invested corpus are paid to the nominee.

b) Whole-Life ULIPs: The amount stays invested for the entire lifetime of the policyholder. Tax-free partial withdrawal is allowed post-retirement. The nominee receives the remaining corpus after the death of the policyholder.

7) National Pension Scheme:

Basic Feature: You can view this as a state-owned ULIP scheme. Handled by NSDL, you can invest an amount at regular intervals, and this amount remains invested until your retirement. Its purpose is to give stability to you post-retirement.

Death Benefit: A lumpsum withdrawal of 60% is allowed after retirement, and you can purchase an annuity with the remaining corpus. Unfortunately, if the subscriber passes away before encashing the scheme, the nominee or legal heir can withdraw the entire corpus in lumpsum.

Each of the plans has different pros and cons. Therefore, check their detailed features online before choosing the best plan that suits your requirements.

Kotak e-Term Plan

Features

  • Nominal Cost
  • Multiple Plan Options
  • Flexible Payout Options
  • Critical Illness Rider
  • Tax Savings
  • Long term Coverage

Ref. No. KLI/22-23/E-BB/492

T&C

Browse our library of resources

- A Consumer Education Initiative series by Kotak Life

Similar Articles

5 Benefits of Early Retirement Planning

How To Choose the Right Sum Assured Under a Term Plan?

Why does every working woman need life insurance?

टर्म इंश्योरेंस क्या है? टर्म इंश्योरेंस का मतलब

Is Term Life Insurance Plan an Investment or Expense?

Buying A Term Insurance? Don't Ignore the Claims Settlement Ratio

Eligibility Criteria for Buying Term Insurance in India

Term Plans are Definitely Cheaper than You Think!

How to Ensure That Your Term Insurance Claims Are Never Rejected?

How To Choose the Right Term Insurance Plan?

Can You Increase Your Term Insurance Cover?

What is a Joint Term Insurance Plan? Key Benefits of Joint Term Plan

Is It Good To Buy A Term Insurance Plan In 2022?

How To Change The Nominee in Term Insurance?

5 Things To Consider While Buying Term Insurance Plan

Can Senior Citizens Avail Term Insurance?

What Is a Renewable Term Insurance Policy?

How Not To Get Your Term Insurance Claim Rejected

What are the Documents Required for Term Insurance Plan?

How to Compare Term Insurance Online

Term Insurance Basics You Should Know

How Much Term Insurance Do I Need

Can Term Insurance Plans Be Purchased As A Gift?

Why Married People Should Buy Term Insurance Under MWP Act?

Difference between Term Insurance and Life Insurance

Reasons You Need Term Insurance Plan as a Self-Employed Person

Gift Your Father A Term Insurance Plan This Father's Day

Why Should New Parents Buy Term Life Insurance?

Do You Need Term Insurance Cover After Retirement?

How to Buy 1 Crore Life Insurance Policy Without Medical Test

Should Youngsters, Working Couples Buy Term Insurance Plans?

Why Term Insurance Is Important in times of COVID-19?

Term Life Insurance Plan for Smokers vs Non-Smokers

Why Term Insurance Is Better Than ULIP?

Is it a Good Time to Buy Term Insurance During the COVID-19 Pandemic?

What Types of Deaths Are Covered in a Term Insurance Plan?

Are The Add-ons and Optional Features of Term Insurance Plans Actually Beneficial?

Can A Housewife Buy a Term Insurance Plan - All You Need to Know

Cost of Term Insurance Likely to Increase Soon

Is term Insurance Needed for People With No Dependents?

Top 3 Reasons Why You Should Buy A Term Plan Now

What is Critical Illness Policy

Ensure Protection Against Death, Disease & Disability With Life Insurance

Ideal Features of a Suitable Term Plan - Act Now for a Stress-free Future

Buying A Term Insurance Plan? Take These Factors into Account

How to Surrender Term Life Insurance When you have No Liabilities

Insuring Protection Against Death With Death Insurance Rider

Term Insurance: What Happens When You Don’t Pay Your Premiums?

Term Insurance Age Limit – Term Plan for All Age Groups

Protection for your family

8 Factors to consider before choosing a Critical Illness Insurance

Do Beneficiaries Pay Taxes on Term Insurance?

Increasing Term Insurance and Riders

What Is a Passive Income? Why Should You Use It to Buy a Term Plan?

Why 1 Cr Term Plan Is Necessary For Family?

4 Methods to Calculate How Much Term Insurance You Need

6 Reasons That Make Term Insurance a Must Buy

What Happens to Term Insurance Plan With No Beneficiary - Kotak Life

What Is the Correct Age to Buy Term Insurance?

Best Investment Plans for Children - Secure Your Child's Future

Make Your Online Term Plan Your Familys Monthly Payout

Importance of Term Insurance at Every Stage of Your Life

What is Form 16, Form 16 part A, Form 16 part B, Information Required and FAQs

Why should single women purchase term life insurance?

Choosing Riders for Insurance Plans

Can I Get Term Insurance on Behalf of My Spouse?

All you need to Know about Term Insurance Plans for Housewives

What are incremental term insurance plans?

Everything About Claim Settlement Ratio for Term Insurance

Individual Life Insurance vs. Group Term Life Insurance

Why Premium Amount for Term Insurance is So Low?

Term Insurance Calculator - Everythng You Need To Know

Does Term Insurance Cover Accidental Death?

How to Identify Term Insurance According to Your Needs?

What is Insurance Premium - A Detailed Guide

Online vs Offline Term Insurance: Which Is The Better Option To Buy

What Are the Best Term Insurance Plans for Planning Retirement?

5 Term Insurance Benefits for Single Women

Is There Any Tax Benefit on Term Insurance?

Can Non-Resident Indians (NRIs) Buy Term Insurance In India?

How Does A Term Life Insurance Work in India?

Why Should You Not Take A Term Plan Without Medical Test in India?

Busting Myths and Facts About Term Insurance Policies

Is ₹1 Crore Term Insurance Good Enough Cover?

What Are Insurance Riders and How to Choose Them in a Term Plan?

What Happens if you Hide Facts in your Term Insurance?

Term Insurance: Most Common Term Insurance Myths Explained | Kotak Life

4 Reasons Why You Need Critical Illness Cover

What Should You opt for - Limited or Premium Pay?

Do I Need to Give a Medical Test for Term Insurance in India?

Insurance Policy for Housewife In India

Understanding Term Insurance Riders

Key Differences Between Term Insurance, ULIPs, And Health Insurance

Term Insurance with Critical Illness

What Should Be The Duration Of Your Term Plan in India?

Term Insurance: Smokers vs Non-Smokers

Planning For Children's Future

Insuring yourself against Ill Health with a Critical Illness Rider

Why Surrendering Your Term Plan Policy In The Final Phase Maybe A Bad Idea?

8 Things To Do After Buying Term Insurance

Calculating Term Insurance Premium

Term Insurance – Why You Must Include In Your Financial Planning?

Why Should You Add a Rider to a Term Insurance Plan?

Which Term Insurance to Choose: Lump Sum or Staggered Pay-out Plan?

What is a short term insurance policy?

Planning For Son or Daughter's Wedding

Advantages of Buying Term Insurance in Your 50s

9 Ways to Help Family Members in Financial Trouble

Key IRDAI Regulations That Changed Face Of Term Insurance Industry In 2020

Insuring Against Disability With Disability Insurance Rider

Why Should You Buy Term Insurance in 2022?

Tips to Choose the Right Term Period for Term Insurance Plan

5 Reasons to Buy Term Insurance When You are in Your 30s

4 Things To Expect From Your Term Insurance Plan in India

Which Death Type Does Your Term Plan Not Cover?

Why Buy Term Insurance Plan With a High Cover?

Is Group Term Life Insurance Provided By Employer Sufficient?

How Does Term Life Insurance Work? Learn the Benefits

10-Year Term Life Insurance Policy - Explained in Detail

All About Term Insurance Inbuilt Coverage

9 Most Frequently Asked Questions on Term Insurance

How Much Cover Should I Take In A Term Plan?

Endowment Plans vs Term Plans: Understanding the difference

Can I Buy Term Insurance for a COVID-19 Patient?

Term Vs. Whole Life Insurance: Which One You Should Buy in India?

How Much Term Life Insurance Cover Do I Need in India?

Different Types of Protection Plans

Why is it important to buy term insurance plan?

8 Benefits of Term Insurance You Should Know

Insuring Against Accidents with an Accidental Death Insurance Rider

What is Term Insurance - A Complete Guide

Term Plan with Spouse Cover

Does Your Term Insurance Plan Cover Death Due to COVID-19?

Why Term Plan Should Be The First Step To Securing Your Future?

Is a Term Insurance Policy Portable?

Advantages & Disadvantages of Term Insurance in India

Term Insurance With Riders In India

Different Types of Premium in Term Insurance

Should You Have Multiple Term Life Insurance Policies?

Comparing Term Plans – What Should You Look Out For

Can I Extend the Tenure of My Term Insurance Plan?

Is Life Insurance Investment Worthy Enough

Why Buying a Term Plan Is Smarter Than Traditional Life Insurance Products

Why Buy Term Insurance Even at Rising Rates?

When is the Right Time to Buy Term Life Insurance Policy for Yourself?

While Buying Term Insurance Compare Features, Not Just Premiums

Make Your Online Term Plan Your Family's Monthly Pay Cheque

What is the Right Term Period For Term Insurance Policy? Here's How You Should Choose!

Should You Buy a Term Plan After 40?

Steps on How to Buy Term Insurance Online

Know How to Invest at Every Age for Larger Returns

Tax Benefits of Term Insurance in India

What All Documents Required For Term Insurance In India?

6 Types of Death not covered in Term Insurance Plan

Term Insurance Plans and Policies for Smokers

Can I Make Changes to My Term Insurance Policy Post Purchase?

How To Calculate The Amount Of Term Life Insurance You Need?