Kotak Premier Income Plan by Kotak Mahindra Old Mutual Life Insurance Ltd, is a bundled policy that offers insurance as well as investment. The plan is designed to give fixed income payouts to the policyholder. As it’s a participating plan, the maturity corpus will depend on the bonus that the policy generates. Let’s understand the plan in detail.
The offering
The policy term is divided between premium-payment term and the payout term. The premium-payment term is longer than the payout term by a year. So, if you choose a premium-payment term of 12 years (maximum for the policy) you get a guaranteed annual income for 11 years. The amount of guaranteed income depends upon the premium payment term chosen. So, for a premium-payment term of 12 years you get guaranteed annual income, which is 113% of the annual premium, for 11 years. For a premium-payment term of 8 years (the shortest premium-payment term for the plan) the guaranteed annual income for 7 years comes to 103% of the annual premium.
