Kotak Life Insurance has rolled out an e-Lifetime Income Plan that allows the policyholder to select an annuitant (the beneficiary) other than self.
The new immediate annuity product has been introduced considering the growing life expectancy rate of Indian population, which requires a stable source of income to meet the financial requirement post retirement.
According to the life insurer, the single premium paid by the proposer is reimbursed 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 selected and it will not change with fluctuating market conditions.
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 INR50,000.
Kotak Life Insurance marketing head Elizabeth Venkataraman said, "The product fulfills an urgent need-gap among mobile populations to secure incomes of loved ones back home, apart from with those wishing to secure their own retirement income.
"We believe the product will especially appeal to individuals who have moved away from their homes in search of professional opportunities, including NRIs, since the foremost priority for these individuals is to secure a regular source of income for aged parents and spouses back home."