If you’re looking for immediate and regular pension (called annuity), there is a good news for your. Kotak life insurance has launched a new product called e-lifetime Income Plan, which allows the investor to start immediate annuity.
Kotak e-Lifetime Income Plan is unique in 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.
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. The unique design of the plan also effectively addresses 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.
The plan is available for online purchase at https://insurance.kotak.com.
The one time premium paid by the proposer is paid out to the annuitant at the interval chosen – monthly, quarterly, half yearly or yearly at the predefined annuity rate promised at the time of purchase. Annuity rates will depend upon the age of the annuitant, the amount invested and the annuity option chosen. For instance, a son investing Rs 3 lakhs for purchasing an annuity for his father aged 66 years can be assured a guaranteed annual payout at 11.12% under the Lifetime Income option and at 10.58% under the 10 year guaranteed payout, irrespective of death of the annuitant during the guaranteed period option. These represent a significant markup compared to other savings instruments earmarked for similar purpose.
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:
1. Lifetime Income – Regular stream of income throughout the annuitant’s life. Payout ceases with death of the annuitant.
2. 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.
3. 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.
4. Last survivor Lifetime Income – Regular stream of income throughout annuitant’s life and after death of the annuitant to the surviving spouse of annuitant.
Speaking at the launch, Ms. Elizabeth Venkataraman, Head, Marketing at Kotak Life Insurance said ‘The product fulfills an urgent need-gap among mobile populations to secure incomes of loved ones back home, apart from with those wishing to secure their own retirement income. We believe the product will especially appeal to individuals who have moved away from their homes in search of professional opportunities, including NRIs, since the foremost priority for these individuals is to secure a regular source of income for aged parents and spouses back home. From now on, regardless of how busy one is, a convenient one-time investment can ensure a perfect gift for one’s parents and loved ones, guaranteeing them regular income and financial peace of mind”