Kotak Life Insurance launches immediate annuity plan

Plan offers the option to chose a beneficiary other than self

Kotak Life Insurance has launched Kotak e-Lifetime income plan, an immediate annuity product.

The plan offers the purchaser of the annuity the option to choose an annuitant or beneficiary other than self. This will ensure regular income to any close blood relative or spouse, other than self. The plan is also available online, said a press release issued by Kotak Life Insurance.

The one time premium paid by the proposer is paid out to the annuitant or beneficiary 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 lakh 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.

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 release said.

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.

Elizabeth Venkataraman, Head, Marketing at Kotak Life Insurance said, "The product will appeal to individuals who have moved away from their homes for professional reasons, including NRIs, since the foremost priority for these individuals is to secure a regular source of income for aged parents and spouses back home.''