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

What Are Retirement Pension Plans?

What Are Retirement Pension Plans?
  • 30th Nov 2021 |
  • 455

As the name suggests, a retirement pension plan is an investment-cum-insurance plan where you accumulate your savings to receive pensions upon retirement. It assures a secured financial future while allowing you to park your savings safely.

Why are Retirement Pension Plans Important?

Even if you’re earning a good income right now, investing in a retirement plan is highly recommended. When planning your retirement, it is essential to focus on your income to cover your expenses. Let’s look at some reasons why pension plans should be an integral part of your retirement planning.

1. Take Care of Growing Expenses

If you think your expenses will decrease after retirement, you’re wrong. From medical costs to increased incidental expenses, you may have to incur various expenses during old age. And, if you are not sufficiently prepared for it, you can face financial distress.

2. Maintain Your Lifestyle

When you’re playing the second innings of your life, you want it to be free of any worries. A pension plan can surely guarantee a more financially secure future, one that you can look forward to instead of dreading.

3. Inflation is Your Enemy

Have you seen your grandparents complain about the rising prices? Well, inflation is the biggest enemy of retired individuals once the primary income stops coming. A sound retirement plan ensures you don’t have to compromise and can have enough resources to tide through the ever-rising price wave.

Types of Pension Plans

There are many types of retirement plans, but they all can be classified into two types-

1. Deferred Annuity

In this plan, the annuity is deposited into the policy for a fixed number of years or by a single premium payment. The corpus collected is transferred to the policyholder after the policy tenure is over. One-third of corpus from deferred annuity plan is exempted from tax, and only the remaining two-thirds is taxable.

2. Immediate Annuity

Under this policy, the pension is provided immediately. The policyholder deposits a large sum of money and receives the pension instantly based on the amount deposited. As per the Income Tax Act of 1961, the premiums paid under immediate annuity are tax exempted. Many options under an immediate annuity let you dictate what happens to the money in case of the policyholder’s demise during the policy tenure.

Factors to consider before Selecting a Pension plan

  • Monthly Expenses and Lifestyle
  • You may not be able to hash out the exact monthly expense but having an idea will help you put that sum aside for your monthly needs.

  • Life Expectancy
  • While you can never actually predict your life expectancy, having an idea or a vision will help you decide on a pension plan that suits your needs.

  • Medical Bills
  • If you are in regular need of medical care or follow-ups or you support someone financially who needs the same care, factor in the medical expense along with monthly expense.

  • Loans and Debts
  • If you have any student loans, house loans or other miscellaneous loans pending, always account for the monthly EMI you pay to the bank before deciding on an annuity.

Invest in the Right Pension Plan from a Reputed Company

Ensure you buy the plan that suits your financial needs and objectives. While some plans provide income for a lifetime, others offer assured benefits to the nominee on the policyholder’s death. Also, ensure you choose a reliable company that has been here for long enough and will remain here for generations to come.

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

Insuring Against Disability With Disability Insurance Rider

Term Insurance: Smokers vs Non-Smokers

While Buying Term Insurance Compare Features, Not Just Premiums

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

6 Types of Death not covered in Term Insurance Plan

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

What Is a Renewable Term Insurance Policy?

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

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

Is Term Life Insurance Plan an Investment or Expense?

Should Youngsters, Working Couples Buy Term Insurance Plans?

What is Term Insurance - A Complete Guide

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

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

How to Surrender Term Life Insurance When you have No Liabilities

Key Differences Between Term Insurance, ULIPs, And Health Insurance

What are the Documents Required for Term Insurance Plan?

Is Group Term Life Insurance Provided By Employer Sufficient?

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

Is term Insurance Needed for People With No Dependents?

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

Different Types of Protection Plans

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

Choosing Riders for Insurance Plans

Can You Increase Your Term Insurance Cover?

Why Should New Parents Buy Term Life Insurance?

Is Life Insurance Investment Worthy Enough

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

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

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

Endowment Plans vs Term Plans: Understanding the difference

Do Beneficiaries Pay Taxes on Term Insurance?

What Happens if you Hide Facts in your Term Insurance?

Why should single women purchase term life insurance?

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

Can Senior Citizens Avail Term Insurance?

Insurance Policy for Housewife In India

All About Term Insurance Inbuilt Coverage

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

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

Term Insurance with Critical Illness

Term Plans are Definitely Cheaper than You Think!

Why Buy Term Insurance Plan With a High Cover?

Term Life Insurance Plan for Smokers vs Non-Smokers

How Much Cover Should I Take In A Term Plan?

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

What is Insurance Premium - A Detailed Guide

9 Most Frequently Asked Questions on Term Insurance

4 Methods to Calculate How Much Term Insurance You Need

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

Why Premium Amount for Term Insurance is So Low?

Term Insurance Age Limit – Term Plan for All Age Groups

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

Importance of Term Insurance at Every Stage of Your Life

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

Can I Extend the Tenure of My Term Insurance Plan?

Can Term Insurance Plans Be Purchased As A Gift?

Understanding Term Insurance Riders

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

What are incremental term insurance plans?

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

Does Term Insurance Cover Accidental Death?

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

Why does every working woman need life insurance?

टर्म इंश्योरेंस क्या है? टर्म इंश्योरेंस का मतलब

Planning For Children's Future

10-Year Term Life Insurance Policy - Explained in Detail

Difference between Term Insurance and Life Insurance

Should You Have Multiple Term Life Insurance Policies?

What Are the Best Term Insurance Plans for Planning Retirement?

Which Death Type Does Your Term Plan Not Cover?

Insuring yourself against Ill Health with a Critical Illness Rider

Busting Myths and Facts About Term Insurance Policies

8 Factors to consider before choosing a Critical Illness Insurance

Advantages of Buying Term Insurance in Your 50s

Different Types of Premium in Term Insurance

Cost of Term Insurance Likely to Increase Soon

6 Reasons That Make Term Insurance a Must Buy

What Is the Correct Age to Buy Term Insurance?

Should You Buy a Term Plan After 40?

Why 1 Cr Term Plan Is Necessary For Family?

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

Term Insurance With Riders In India

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

What is a short term insurance policy?

4 Reasons Why You Need Critical Illness Cover

Insuring Against Accidents with an Accidental Death Insurance Rider

Planning For Son or Daughter's Wedding

How Does Term Life Insurance Work? Learn the Benefits

Why Buy Term Insurance Even at Rising Rates?

Ensure Protection Against Death, Disease & Disability With Life Insurance

What is Critical Illness Policy

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

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

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

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

Is a Term Insurance Policy Portable?

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

Is There Any Tax Benefit on Term Insurance?

Tips to Choose the Right Term Period for Term Insurance Plan

Insuring Protection Against Death With Death Insurance Rider

Everything About Claim Settlement Ratio for Term Insurance

How to Compare Term Insurance Online

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

8 Things To Do After Buying Term Insurance

Buying A Term Insurance Plan? Take These Factors into Account

Increasing Term Insurance and Riders

What All Documents Required For Term Insurance In India?

What Should You opt for - Limited or Premium Pay?

Advantages & Disadvantages of Term Insurance in India

Term Plan with Spouse Cover

Make Your Online Term Plan Your Familys Monthly Payout

9 Ways to Help Family Members in Financial Trouble

Why Married People Should Buy Term Insurance Under MWP Act?

Top 3 Reasons Why You Should Buy A Term Plan Now

How to Buy 1 Crore Life Insurance Policy Without Medical Test

Can I Get Term Insurance on Behalf of My Spouse?

Term Insurance Basics You Should Know

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

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

Eligibility Criteria for Buying Term Insurance in India

How Does A Term Life Insurance Work in India?

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

Term Insurance Calculator - Everythng You Need To Know

Tax Benefits of Term Insurance in India

Know How to Invest at Every Age for Larger Returns

Is ₹1 Crore Term Insurance Good Enough Cover?

5 Term Insurance Benefits for Single Women

Why is it important to buy term insurance plan?

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

8 Benefits of Term Insurance You Should Know

Calculating Term Insurance Premium

4 Things To Expect From Your Term Insurance Plan in India

Comparing Term Plans – What Should You Look Out For

5 Things To Consider While Buying Term Insurance Plan

Protection for your family

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

Why Term Insurance Is Better Than ULIP?

Term Insurance Plans and Policies for Smokers

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

How to Identify Term Insurance According to Your Needs?

Why Should You Buy Term Insurance in 2022?

Steps on How to Buy Term Insurance Online

5 Benefits of Early Retirement Planning

How To Choose the Right Term Insurance Plan?

All you need to Know about Term Insurance Plans for Housewives

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

Do You Need Term Insurance Cover After Retirement?

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

How Not To Get Your Term Insurance Claim Rejected

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

How To Change The Nominee in Term Insurance?

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

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

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

Individual Life Insurance vs. Group Term Life Insurance

How Much Term Insurance Do I Need