"IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER."
In today's time when the prospect of out-living retirement savings is larger than ever, few employees take the time to plan their long-term financial goals or have the discipline to systematically save for their retirement years. As an employer of choice, you can help your employees tremendously by assisting in their retirement planning and, in turn, increase employee retention. The solution lies in Kotak Life Insurance's Kotak Superannuation Group Plan - II. This plan offers:
- Defined Benefit Scheme - In this scheme, employers provide employees a specific retirement benefit based on salary and years of service. Such plans are funded by employer contributions. If there is any shortfall between the amounts available in the scheme for payment to the employee, the shortfall will be made good by the master policyholder/employer.
- Defined Contribution Scheme - In this scheme, both employees and/or employers can contribute towards fund accumulation and the rate of employer and/or employee contributions are usually defined as a percentage of salary. This scheme is becoming more important for workers in today's evolving marketplace where the average worker may switch jobs and even careers multiple times over the course of a lifetime. Both employer and employee can contribute to this scheme. The fund value at the time of benefit payment will be payable.
|Group size||10||No limit|
|Entry age (Last birthday||As specified in the Trust Rules or 18 years whichever is higher||One year before Normal Retirement Age as specified in the Trust Rules or 74 years whichever is lower|
|Maturity age (Last birthday)||-||Normal Retirement Age as specified in the Trust Rule or 75 years whichever is lower|
|Term||1 year (renewable indefinitely)|
|Initial Contribution – Defined benefit||2,00,000 at inception||No limit|
|Initial Contribution – Defined contribution||6,000 per member per year at inception||No limit|
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