What is Kotak Assured Pension?
Kotak Assured Pension is an annuity plan that @guarantees a consistent income either immediately or after a deferment period throughout your life. The plan offers a variety of annuity options, including 8 Immediate Annuity and 2 Deferred Annuity Options. You also have the freedom to select the annuity frequency that suits your needs. This plan is available for Individual Customers (including those transferring UK tax-relieved assets through the Qualifying Recognised Overseas Pension Scheme, i.e., QROPS), participants in Reverse Mortgage Schemes, subscribers of the National Pension System (NPS), and members of Group Schemes.
Benefits of Kotak Assured Pension
The primary purpose of annuity plans is to offer financial security after retirement. Kotak Assured Pension is an annuity plan that offers several benefits, including:
Guaranteed Income
The plan provides a @guaranteed stream of income for life, either immediately or after a deferment period. This can help you to meet your living expenses in retirement and avoid outliving your savings.
Multiple Annuity Options
You can choose from a variety of annuity options to suit your needs. The issued annuity rates are guaranteed for lifetime and with higher premium, you get higher annuity rates. It offers Immediate Annuity with:
- 8 Annuity options to choose from
- Flexibility to avail of additional annuity payout through Top Up
- Issued annuity rates are guaranteed for a lifetime
- Higher Annuity Rates for Higher Premium
It also offers Deferred Annuity with:
- 2 annuity options to choose from
- Flexibility to choose a Deferment Period between 1-10 years based on your annuity requirement
- Guaranteed additions accrued during the deferment period
- The lump-sum amount payable on the Demise of Annuitant or Surviving Annuitant during and after the Deferment Period
Flexibility
You can choose the frequency of your annuity payments (monthly, quarterly, half-yearly, or annually) and the premium payment term and frequency. Here are the annuity & premium payment frequency:
| Mode |
Annuity Installment (per frequency) |
|---|
| Yearly |
100% of Yearly Annuity |
| Half-yearly |
98% of Yearly Annuity x 1/2 |
| Quarterly |
97% of Yearly Annuity x 1/4 |
| Monthly |
96% of Yearly Annuity x 1/12 |
| Premium Payment Frequency |
Modal Factor |
|---|
| Yearly |
100% of Yearly Premium |
| Half-yearly |
51% of Yearly Premium |
| Quarterly |
26% of Yearly Premium |
| Monthly |
8.8% of Yearly Premium |
Tax Benefits
$Tax benefits on premium paid are subject to conditions specified Income Tax Act, 2025. Tax laws are subject to amendments from time to time. Customer is advised to take an independent view from Tax Advisor.
Eligibility for Buying Kotak Assured Pension
This plan is available for both Individual Customers and Group Master Policyholders aiming to provide financial security for their employees’/members’ retirement. It includes:
- New Customers (Individual or Group)
- Existing Customers (Individual or Group)
- Customers transferring UK tax-relieved assets through the Qualifying Recognized Overseas Pension Scheme (QROPS)
- Subscribers of the National Pension System (NPS)
- Nominees of deceased Pension Plan Policyholders of Kotak Life Insurance
Calculating Annuity Rates for Kotak Assured Pension
An annuity rate is an income amount, typically paid, dependent on various factors, including interest rates, retirement age. Annuity rates are calculated based on the following factors:
- Age of the annuitants
- Deferment period (for deferred annuity options)
- Premium payment option, premium payment term, and premium payment mode
- Premium and additional premium (if applicable)
- Annuity option selected
- Annuity payout frequency chosen (monthly, quarterly, half-yearly, yearly)
- New or existing customer status
Note: Individual Customers means Life Assured & Policyholders both while Group Customers means Members & Master Policyholder both.
Annuity rates applicable as on the date of policy issuance will be provided to the customer. Once a policy is issued, the rates will be guaranteed for life. Please check for the latest rates at the time of purchase.
Issued annuity rates are guaranteed for the annuitant’s lifetime and remain unaffected by market fluctuations.
Following issuance, the first annuity installment is to be paid as follows:
- Immediate Annuity Options: one month, three months, six months, or one year after the policy issuance date, depending on the chosen annuity payout frequency.
- Deferred Annuity Options: one month, three months, six months, or one year after the end of the Deferment Period, based on the selected annuity payout frequency.
Final Thoughts
With its commitment to providing a @guaranteed stream of retirement income tailored to individual needs, Kotak Assured Pension ensures peace of mind throughout one’s lifetime. The multiple annuity options, flexibility in payment frequencies, and $tax benefits contribute to the plan’s appeal. Kotak Assured Pension is guaranteed to pay you a steady income for life, no matter what happens in the market.
