Kotak Life Insurance on Wednesday launched Kotak e-Lifetime income plan that offers the proposer (the purchaser of annuity) the option to choose an annuitant (the beneficiary) other than self.
This way, the beneficiary of regular income from the plan can be any close blood relative or spouse, apart from self, stated Kotak in a press statement.
Why has Kotak launched this plan?
*The plan is in response to increasing population longevity, which necessitates a regular source of income for a longer period, to take care of one’s needs in retirement years.
*It is aimed to address a huge demand among geographically mobile youth population groups such as individuals who have moved away from home in search of professional opportunities, and Non Resident Indians (NRIs), to secure a regular income for family and loved ones living back home.
*Kotak boasts that this newly launched plan represents a significant markup compared to other savings instruments earmarked for similar purpose.
Salient features of the product
* The income rate quoted at the time of purchase is guaranteed for the lifetime of annuitant and will not change with varying market conditions.
*The minimum age of entry for the proposer is 18 years while the minimum age of entry for annuitant is 45 years. The minimum one time investment can be as low as Rs. 50,000.
*The single premium invested is also eligible for a tax rebate under section 80CCC of the Income Tax Act.
*The product offers a choice of four appealing income options like:
a) Lifetime Income – Regular stream of income throughout the annuitant’s life. Payout ceases with death of the annuitant.
b) Lifetime Income with cash-back – Regular stream of income throughout annuitant’s life, and, upon the death of the annuitant the purchase price (single premium paid) will be returned to the nominee, and in absence of a nominee, to the policyholder.
c) Lifetime Income with a term guarantee – Regular stream of income for the guaranteed period (5/10/15/20 years as chosen by the proposer) irrespective of the death of the annuitant during the guaranteed period (in which case the nominee and in absence of a nominee, the policyholder receives income). The income continues for annuitant’s life in case of her/his survival after the guaranteed period.
d) Last survivor Lifetime Income -- Regular stream of income throughout annuitant’s life and after death of the annuitant to the surviving spouse of annuitant.
