Kotak e-Term Plan
Kotak e-Term Plan provides a high level of protection to your loved ones in your absence.
Kotak E-Invest Plan
Kotak e-Invest plan is a complete Unit-Linked Insurance Plan that can be customized as per your goals and needs.
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.
Kotak Lifetime Income Plan
Kotak Lifetime Income Plan gives you the security of your income continuing thru your life and in your absence throughout your spouse's lifetime!
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.
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A pension plan is a smart way to build a retirement corpus and use it for receiving a steady income for covering your post-retirement expenses. But with so many options now available, how will you pick the right pension plan?
1. Asset Selection Flexibility
One of the most critical features a pension plan should offer is the flexibility to choose your preferred asset classes so that you can diversify your investment. For instance, if you are in your 20s-30s, you can have a more aggressive investment approach, with equity being the significant component of your portfolio.
In the 40s-50s, the stability and safety offered by the debt class can help you keep your investment protected. The plan provider should offer this option to choose and switch between asset classes to help you make the most of your investment throughout the various stages of your life.
2. Guaranteed Additions and Bonuses
Many pension plans also come with guaranteed additions to the sum assured for up to 5 years from the plan purchase date. The additions are mostly a certain percentage of the basic sum assured and are payable either on demise or vesting.
Moreover, you can also find plans that offer additional bonuses from the 6th year of the policy. Note that these additions and bonuses are generally over and above the assured plan benefit, which can be up to 105% of the basic sum assured.
3. Life Cover and Add-ons
Pension plans are available with and without life cover. It is generally recommended that one choose a plan with life cover to ensure financial security for the family. With these plans, the nominee will receive the basic sum assured, along with the additions and bonuses, on the policyholder’s unfortunate demise.
Some insurers also offer additional riders such as accidental death benefits and permanent disability benefits for extra security.
4. Entry Age and Vesting Age
Like most other types of investments, the sooner you purchase a pension plan, the higher the probability of building a large retirement corpus. All the insurers have different entry age limits. In most cases, you should be able to purchase a pension plan if you are 30 years and above. However, you’ll mostly not be allowed to buy a pension plan if your age is already 55-60 years.
The vesting age is the age after which you’d like to start receiving the pension. In most plans, the vesting period is between 45-70 years. Do check the entry age and vesting age while browsing through the options to choose one that best meets your requirements.
While there are options like PPF and EPF for private employees, inflation will hugely impact the corpus these investments generate for your retirement. A pension plan is a smart addition to any retirement plan to boost your corpus and ensure financial stability essential for living a comfortable retirement life.
Focus on the factors discussed in this post while comparing pension plans offered by top insurers to make the right decision.
- A Consumer Education Initiative series by Kotak Life
Kotak Assured Return Employee Benefit Plan is an insurance plan designed for Employers /Trusts, Employer – Employee groups who wants experts to mana...Know more