Kotak Secure Return Employee Benefit Plan

Overview

Kotak Life Insurance has designed Kotak Secure Return Employee Benefit Plan to cater to the needs of employers, trusts, state government, central government or PSUs to fund a group member's benefit schemes. This product offers comprehensive employee benefit solution to manage the gratuity and leave encashment schemes in an efficient manner. It is a non-participating variable insurance group plan that offers competitive returns. It offers a guaranteed minimum floor rate of 2 percent per annum and a competitive additional interest rate is declared at the beginning of each quarter. It offers an additional protection to life at an additional cost and the renewal process is convenient and auto renewed provided that there are sufficient premiums available.

Eligibility Conditions of Kotak Secure Return Employee Benefit Plan

Particulars

Minimum

Maximum

Entry Age

18 years

74 years

Maximum maturity age

-

75 years

Term

1 year renewable

-

Contribution

Rs.15 lakhs

No limit.

Key Features of Kotak Secure Return Employee Benefit Plan

Type

A group life insurance plan, group gratuity or leave encashment plan.

Basis

Group

Coverage

Insurance Benefit: If a member dies, the sum assured will be paid to the nominee as advised by the policyholder. The insurance cover is mandatory to gratuity and leave encashment schemes. These benefits are paid by the company.

Guaranteed minimum floor rate of 2 percent per annum is paid to the entire policy term on the balance of the account value.

Policy account

Each policyholder will have separate policy account.

Premium paying term

1 year

Premium paying frequency

Monthly, quarterly, half-yearly or annually. The premium frequency can be as desired by the policyholder.

Bonuses

No bonus.

Surrender Value

The policy can be surrendered at any time provided you give one month’s written notice. The surrender value will be equal to policyholders account value that is adjusted for Market Value Adjuster.

Loan

Loan facilities are not available.

Free look period

Policyholder gets 15 days free look period from the date of receipt of the policy. If the policyholder wants to return the policy, the refund will be paid after adjusting for expenses for stamp duty.

Grace period

Not applicable.

Advantages of Kotak Secure Return Employee Benefit Plan

The advantages of the are:

  • On death of a scheme member, the benefit is paid in accordance with the scheme rules and focus on a maximum of the policy account value. If the member has opted for life cover, he gets an additional benefit of Rs.1,000.
  • If the member exist this plan due to termination of service or on resignation or early retirement or due to natural death, the benefit is paid in accordance with the scheme rules bearing in mind the maximum policy account value.
  • The benefits are payable on normal retirement as per the scheme rules laid out by the employer.
  • On the accumulating balance of the account value, a guaranteed minimum floor rate of 2 percent per annum is paid for the entire policy term.
  • Competitive additional interest rates are professed at the beginning of every quarter.
  • The plan is auto renewed annually subject to availability of sufficient premiums.
  • Tax benefits change from time to time, so you need to consult with your tax advisor for further details.

How The Plan Works

The plan is taken by the employer and it has to paid for by the employer on behalf of the employee. The group members cannot contribute to the premiums directly. The additional can be opted for your members at an additional cost. The benefits are paid on the date of retirement. If the member dies or is terminated, resigns, retires early, then the benefit is paid in accordance to the rules of the scheme, subject to a maximum of the policy account value.

For instance, you contribute Rs.100,000,000 in the first year, subject to a mortality charge of Re.1 per Rs.1,000 sum assured, your account value will be:

Year

Annual Contribution (in Rs.)

Investment Income (non-guaranteed)

 

Account value at end of the year

 
   

4% (in Rs.)

8% (in Rs.)

4% (in Rs.)

8% (in Rs.)

1

40,000,000

5,600,000

11,200,000

145,600,000

151,200,000

2

42,400,000

7,520,000

15,488,000

195,520,000

209,088,000

3

44,944,000

9,618,560

20,322,560

250,082,560

274,354,560

4

47,640,640

11,908,928

25,759,616

309,632,128

347,754,816

5

50,499,078

14,405,248

31,860,312

374,536,455

430,114,206

6

43,529,023

17,122,619

38,691,458

445,188,097

522,334,687

7

56,740,764

20,077,154

46,326,036

522,006,016

625,401,488

8

60,145,210

23,286,049

54,843,736

605,437,275

740,390,434

9

63,753,923

26,767,648

64,331,549

695,958,846

868,475,906

10

67,579,158

30,541,520

74,884,405

794,079,525

1,010,939,469

Premium Payment and Riders

The premium is paid only once while purchasing this plan. It is usually auto renewed each year provided that there sufficient premiums are available.

This plan also does not have riders.

This Insurance Company has not partnered with BankBazaar.com. For more details, please visit its website/branch office. The trademarks, logos and other subject matters of intellectual property belong to their respective owners.

GST of 18% is applicable on life insurance effective from the 1st of July, 2017

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