Kotak Superannuation Group Plan – II and Policy
Kotak Superannuation Group Plan – II and Policy - This is a unit linked insurance plan from Kotak. Retirement savings are only going to take you so far, and this plan helps you save a sizeable amount for retirement. Companies can make use of this kotak life plan for benefits for themselves as well as their employees. Through a collaborated regular monthly investment system between employer and employee, this plan aims at securing your post-retirement finances. With one move, employers can increase employee retention and help them plan their retirement, and employees in turn can establish a safe superannuation fund. It’s also worth noting that the investment risk is borne by the policyholder.
The fund has two schemes:
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Defined Benefit Scheme: Under this scheme, the employer funds the contributions towards a specific retirement benefit, which is based on the employee’s salary and years of service. Deficits in amount available through the scheme to be paid to the employee will be handled by the employers.
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Defined Contribution Scheme: Under this scheme, employers and employees both collaborate and contribute towards the accumulation of funds. The rate at which the contributions are added are usually considered as a percentage of the employee’s salary. This scheme is more relevant in today’s fast paced working environment where the work culture includes the occasional shifting of jobs and career paths. The fund value will be payable at the time of benefit payment.
Eligibility - Kotak Superannuation Group Plan II
The plan comes with two options, the Defined Benefit Scheme and the Defined Contribution Scheme, for those companies meeting the following eligibility criteria:
Parameter |
Minimum |
Maximum |
Group size |
10 |
No limit |
Entry age (last birthday) |
18 years, or as specified in the Trust Rules, whichever is higher. |
74 years or normal Retirement Age as specified in the Trust Rules, whichever is lower. |
Maturity age (last birthday) |
- |
75 years or normal Retirement Age as specified in the Trust Rules, whichever is lower. |
Term |
1 year (indefinitely renewable) |
1 year (indefinitely renewable) |
Initial contribution for Defined Benefit |
Rs.2,00,000 at inception. |
No limit |
Initial contribution for Defined Contribution |
Rs.6,000 per member, per year, at inception. |
No limit |
Key Features - Kotak Superannuation Group Plan II
Type |
Unit Linked Superannuation Insurance Plan |
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Coverage and benefits |
Defined Benefit Scheme:
Defined Contribution Scheme:
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Premiums |
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Renewability |
The policy is renewable indefinitely. |
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Add-ons |
Monthly Regular Additions:
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Investment Options |
Because of varying financial goals and risk appetites, Kotak Life insurance offers the specially designed Group Secure Capital Fund to augment the performance of investments.
The investment philosophy incorporates the fundamental principles of transparency, flexibility and a well-defined investment portfolio. |
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NAV Computation |
The policyholder has the power to select funds in which to invest the contributions, according to these rules:
Net Asset Value (NAV) = Market value of investments held by the fund + Value of current assets – value of current liabilities / Number of existing units on the valuation date (before the creation / redemption of units). |
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Annuity Options |
Employers and members can opt for available annuity options at the prevailing annuity rates, subject to the rules of the superannuation scheme. The annuity options available under the Kotak Group Annuity Plan are:
New annuity options are made available by the insurer from time to time. In cases where superannuation funds are maintained with more than 1 insurer, employers have the freedom to purchase annuities from Kotak or any other insurer. |
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Surrender of policy |
The policy can be surrendered by the master policyholder only after giving 3 months prior notice (in writing) to the insurer (Kotak). Once the notice period expires, Kotak will pay the current value of all the units on the date of surrender, after deducting surrender charges of 0.05%. The surrender charge will not be applicable if the policy is being surrendered after 3 policy years. |
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Free look period |
Policyholders are given a 15-day free-look period, in which the policyholder can choose to continue the policy or return it back to Kotak. If the policyholder returns the policy within 15 days of receiving it, all premiums will be refunded after deducting stamp duty expenses. There is no 30-day option for free-look as this policy is not offered through any Distance Marketing channel. |
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Suicide exclusion |
This is one of the few rare policies which does not include a suicide exclusion. Death benefit will be paid regardless of the nature of death. |
Benefits and Advantages - Kotak Superannuation Group Plan II
This fund offers exceptional benefits and advantages for employers and employees alike.
Employer benefits:
- Increase motivation and facilitate employee retention.
- Funds received by trustees for an approved superannuation fund are exempted from taxation under Sec 10(25).
- The amount of deductions available on the ordinary annual contribution to approved superannuation funds cannot exceed 27% of the employee’s annual basic salary for each year of service under Sec 36(1)(iv) - and this includes contributions to Provident Fund.
Employee benefits:
- Any employee contributions towards a superannuation fund qualifies for a tax deduction under Sec 80C of the Income Tax Act, 1961.
- Upon retirement, the benefit will be disbursed as per the scheme rules of the employer’s superannuation scheme and will be tax free.
- In the unfortunate event of your death, the death benefit paid will be exempted from taxation under Sec 10(13) of the Income Tax Act, 1961, and will be as per the scheme rules of employer’s superannuation scheme.
- Contributions made by employers to approved superannuation schemes up to Rs.1,00,00 will not be included under perquisites of employees under Sec 17(2)(vii).
- When you withdraw from your service, or shift jobs, you will have the option to transfer this superannuation account to your new employer, if it’s been allowed as per the scheme rules of the existing superannuation fund.
Charges - Kotak Superannuation Group Plan II
Premium Allocation Charges |
0.3% of the contribution amount. |
Administration Charges |
Nil. |
Fund Management Charges |
0.90% per annum. |
Surrender Charges |
0.05% of the fund, capped at Rs.5,00,000. No charge if policy is being surrendered after 3 years. |
Switching Charges |
None. There is only one plan. |
Kotak Group Life Insurance Plans and Policy |
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| Group Gratuity/Leave Encashment | Kotak Gratuity Group Plan |
| Kotak Gratuity Plus Group Plan | |
| Kotak Secure Return Employee Benefit Plan | |
| Kotak Leave Encashment Group Plan | |
| Group Superannuation | Kotak Secure Return Superannuation Plan |
| Kotak Superannuation Group Plan – II | |
| Group Term | Kotak Term Group Plan |
| Kotak Credit Term Group Plan | |
| Kotak Group Secure | |
| Kotak Group Secure One | |
| Kotak Raksha Group Micro Insurance Plan | |
| Group Credit | Kotak Group Assure |
| Kotak Group Shield | |
| Kotak Complete Cover Group Plan | |
| Kotak Protection Plans |
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| Kotak Saral Suraksha Protection Plan |
| Kotak Income Protection Plan |
| Kotak Term Protection Plan |
| Kotak Preferred Term Protection Plan |
| Kotak Retirement Plans |
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| Kotak Lifetime Income Plan |
| Kotak Premier Pension Plan |
| Kotak Child Life Insurance Plans |
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| Kotak Headstart Child Assure |