Kotak e-Term Plan
Kotak e-Term Plan provides a high level of protection to your loved ones in your absence.
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 e-Invest plan is a complete Unit-Linked Insurance Plan that can be customized as per your goals and needs.
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.
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!
You like to live life king size. Why should that change when you retire and have all the time to enjoy the thrills of life? Choose a Retirement Plan and instead of limited possibilities, open your doors to limitless fun and security.
A sense of self-reliance
Relaxed retired life
Assurance of savings
Retirement planning refers to a multi-step process of defining retirement income goals and the strategy required to achieve the said goals. It involves identifying income sources, assessing expenses, executing a savings strategy and managing overall risk. In general terms, retirement planning involves making financial strategies to save, invest and distribute money for your sustenance and survival during retirement.
Retirement is considered as the golden period of life. Hence, it is important to plan this time in a way that you are financially stable and do not outlive your savings. Kotak Life understands the need to maintain your financial independence even after retirement. To enable you to take care of yourselves, we offer two attractive retirement plans so that you ‘Live Life King Size’ even after retirement.
Retirement planning is not limited to assets and income. It includes a holistic evaluation of these, along with future costs, liabilities and overall life expectancy. Ideally, it is a life-long process, which can be started at any time. However, it is always best to plan your retirement years well and much in advance. Starting your retirement planning when young offers you more opportunities to grow your funds, absorb risk and ensure future security.
Retirement planning is a crucial process to ensure you enjoy the non-working years of your life. For this purpose, you need to invest yourself in a reliable retirement plan so that you are secured for life. Here are some significant benefits of retirement planning:
Retirement pension plans are reliable financial future security solutions. Pension plans are similar to an investment plan, where you can accumulate a share of funds, allowing it to grow over a long period. The purpose of investing in a pension plan is to safeguard the future years of life and secure a regular income after retirement. Retirement pension plans provide you with financial independence, allowing you to live your life with pride even after retiring. A good retirement pension plan can help maintain your and your family’s living standard, as well as combat the rising inflation and the overall high cost of living.
You can choose to pay regular pension plan premiums or a lump sum payment, and allow your funds to grow significantly during the working years of life. These funds can be used to create a stable income during retirement. Among other pension plans in India, Kotak’s Premier Pension Plan, helps you accumulate adequate retirement wealth to live the golden years of your life. This retirement pension plan allows your funds to grow sufficiently and also offers assured benefits on death and vesting.
A retirement pension plan is a very popular retirement investment plan tool. Some of its most significant features and benefits include:
Features of a retirement pension plan
Benefits of a retirement pension plan
Best pension plans in India have a similar type of eligibility requirements. Some basic eligibility criteria include:
If you meet the eligibility age criteria for a retirement pension plan, then the best time for a retirement investment plan is now, implying as soon as possible. There are significant benefits of investing early on in retirement pension schemes, these include:
Below are the documents necessary to buy the best retirement plan:
In some cases, companies offering retirement pension schemes ask you to also provide recent medical reports before the purchase of the retirement investment plan.
Kotak Life offers two retirement plans so that you are assured of a relaxed retired life. The assured returns and host of features guarantee complete financial and mental well-being in your golden years.
Let us look at the Kotak Life retirement plans:
This is a traditional participating pension plan that offers assured benefits on vesting or death of the policyholder. The basic features of the plan are:
This is an Annuity plan that promises to pay a regular stream of income on regular basis:
This is an Annuity plan that gives you the assurance of regular stream of income throughout your lifetime:
Retirement plans are also known as pension plans. They are a type of life insurance plan, which are specifically created to fulfil your post-retirement needs. Typically, you would require such plans to provide you with a consistent stream of income, enabling you to meet living expenses and pay medical costs in retirement. In retirement plans, you would need to pay regular premiums during your working years to receive regular income post-retirement. Retirement pension plans offer you guaranteed income for life, future security of your children and several tax advantages.
There will be a time when you would stop working and eventually retire to enjoy the bliss of those non-working days. However, this is also the time when you would be transitioning from a regular earner to a non-earner. And even though your income stream would dry up in retirement, you would be incurring living and medical expenses. In such cases, a pension plan for retirement provides you with the much-needed respite. You can get a standard income flow by paying a lump sum amount or by investing over a period of time. These premiums that you pay in the initial years of life tend to become the regular payments for your future, ensuring your adequate financial security.
Some specific types of pension plans in India include:
A term plan is different in nature from a retirement plan. Some of the major differences include:
Overall, both retirement and term plans have their pros and cons. The final choice depends on your financial requirements. A term plan is more a protection plan than a policy, which can secure your future with regular income earnings.
As a prudent planner, you should plan your retirement years well in advance. This provides you with a sense of security and financial independence during the non-working phase of your life. Moreover, since your regular income stream would have dried up during retirement, it is important to opt for retirement investment plans that offer a continuous monthly earning. A retirement plan is the best option for such investments for the future.
Here are some benefits that would justify why you should invest in a retirement plan:
An income plan, like Kotak Lifetime Income Plan, is a very effective retirement investment plan to earn income even while you are not working. An income plan is generally an immediate annuity non-linked, non-participatory life insurance plan. This type of retirement plan aims to provide you with a secure alternative source of earning during retirement to fulfil your needs and manage your standard of living.
With an assured income plan, you can be sure to let go off all your financial worries for the retirement years. An income plan allows you to live a comfortable and financially independent life post-retirement. With income plans, like Kotak Lifetime Income Plan, you receive an assured pay throughout your life. In case of your absence or untimely demise, the income is given to the spouse or your nominee.
Income plans by Kotak offer ensure your financial independence post-retirement. They also offer you a wide array of income options to best match your needs. Moreover, you can choose from a range of annuity payout frequencies – yearly, half-yearly, quarterly and monthly – in tune with your financial requirements.
Also, known as retirement plans, pension plans secure a part of your savings over a long period to provide you financial security in the future. You can choose the get the pension scheme benefits in a lump sum or regularly. Typically, pension plans come to your rescue when your regular income dries up in retirement. The money from retirement pension plans can help you be financially independent in non-working years of your life. You can use the earnings from your retirement pension plan to manage uncertainties, financial crunch situations, medical emergencies, etc. during post-retirement.
In a retirement pension plan, you would be required to contribute a specific sum regularly until retirement. The accumulated amount is then given back to you either as a lump sum payment at once or across a period at regular intervals after retirement. Best pension plans in India, like Kotak Premier Pension Plan, help you create a substantial retirement corpus, allowing you to spend your golden years worry-free and comfortably. Moreover, the pension plan by Kotak has assured benefits on death and vesting. There is also an opportunity to earn a bonus and get guaranteed additions.
Even if you have invested in a provident fund (PF), it is advisable to invest in a retirement plan. Existing provident fund plans are not enough for your future financial security because they do not account for inflation adequately. The returns offered on these social security investments are not suitable if you consider your income requirements during retirement. To state, assuming the long-term inflation stands at 6%, the provident funds offer merely 8.5% return rate, which accounts for only 2.5% net of inflation. This 2.5% is insufficient to meet the future expenses of your post-retirement life.
People mostly consider investing in provident funds to tax-saving purposes and not to generate a source of retirement income. This is evident from statistics as well. Despite the country having a high savings rate, only 10% of the working people in India have retirement investments in provident funds. Most employees in the organised sector contribute toward provident fund only to save on taxes, as opposed to retirement planning. So, if you wish for a financially secure retirement, it is advisable to invest in a retirement plan even if you have invested in a provident fund. Retirement pension plans support you financially when your income starts to recede. Pension schemes allow you to live with pride and maintain a good standard of living, making fewer compromises and more memories. Moreover, by allowing your funds to grow and accumulate over time, you can acquire inflation-adjusted wealth in the long run with channelised income cash flows.
A retirement pension plan is one of the most reliable assets for your post-retirement financial security. So, if you are framing your financial plan for the future, it is important to incorporate investment in a retirement plan. Some benefits offered by best pension plans in India include:
Yes, you can invest in multiple retirement plans at a time. You could choose to make retirement investment in different private banks and commercial pension scheme providers. However, if you opt to invest in the National Pension Scheme or other government-sponsored retirement pension plan, then you cannot have more than one retirement plan at a time. In this case, you could re-invest your money when the pension plan matures.
Yes, by investing in a retirement plan, you can avail tax benefits. As per the Income Tax Act, 1961, the pension scheme premiums paid up to a limit of Rs. 1.5 lacs are exempt from taxes under Section 80CCC. Additionally, the retirement plan payouts received at the time of maturity are completely tax-free under Section 10(10 A) of the Income Tax Act. However, applicable taxes are charged as per the prevailing rates, and these tax laws are subject to changes from time-to-time.
In case, the policyholder dies while the retirement plan is active, the pension plan continues to live its term. According to the type of retirement pension plan, either the spouse or the nominee of the policyholder receives the pension benefits after the demise of the policyholder. So, a retirement plan not only serves to provide you with financial security for retirement but also supports your family and children in your absence.
Browse through the following plans to know more
A single premium non-linked and nonparticipating individual immediate annuity plan that gives you the assurance of regular stream of income throughout your lifetime.
Kotak Premier Pension Plan helps you accumulate enough wealth for your retirement, while you are earning sufficiently and also offers assured benefits on death and vesting.
Kotak Lifetime Income Plan gives you the assurance of your income continuing throughout your life and in your absence throughout the lifetime of your spouse!
Kotak Assured Pension is an annuity plan that promises to pay a regular stream of income on immediate basis or post deferment period for life, ensuring a worry-free retirement.
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