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Is the Kotak Confident Retirement Builder Plan the key to a worry-free retirement, or just another complex ULIP wrapped in promises?
Is the Kotak Confident Retirement Builder Plan your long-term financial ally, or is there a smarter retirement path waiting to be discovered?
Does the Kotak Confident Retirement Builder Plan deliver on its confident promise, or does it leave too much to chance?
In this review explores the plan’s features, benefits, and drawbacks to help you decide whether it truly lives up to its name and your expectations for a worry-free retirement.
Table of Contents
What is the Kotak Confident Retirement Builder Plan?
What are the features of the Kotak Confident Retirement Builder Plan?
Who is eligible for the Kotak Confident Retirement Builder Plan?
What are the benefits of the Kotak Confident Retirement Builder Plan?
What are the fund options in the Kotak Confident Retirement Builder?
What are the charges in the Kotak Confident Retirement Builder Plan?
Grace Period, Discontinuance and Revival of Kotak Confident Retirement Builder Plan
Free Look Period for Kotak Confident Retirement Builder Plan
Surrendering Kotak Confident Retirement Builder Plan
What are the advantages of the Kotak Confident Retirement Builder Plan?
What are the disadvantages of the Kotak Confident Retirement Builder Plan?
Research Methodology of Kotak Confident Retirement Builder Plan
Benefit Illustration – IRR Analysis of Kotak Confident Retirement Builder Plan
Kotak Confident Retirement Builder Plan Vs. Other Investments
Kotak Confident Retirement Builder Plan Vs. Pure-term + PPF/ELSS
Final Verdict on Kotak Confident Retirement Builder Plan
What is the Kotak Confident Retirement Builder Plan?
Kotak Confident Retirement Builder Plan is a Non-Participating Unit-Linked Pension Individual Savings Product. It will help individuals accumulate their savings for old age to build up a retirement fund through a basket of choices in Premium Paying Term, Policy Term and Investment funds.
This retirement fund will enable individuals to purchase an immediate/deferred annuity to get retirement income till their survival.
What are the features of the Kotak Confident Retirement Builder Plan?
- 100% Premium Allocation: No allocation charges, so your entire premium goes into fund investment.
- Loyalty Additions: Enjoy yearly additions starting from the end of the 6th policy year.
- Diverse Fund Choices: Choose from 5 fund options tailored to match your risk appetite.
- Emergency Access: Make partial withdrawals when unexpected financial needs arise.
- Flexible Premium Payment: Pay for a limited term or throughout the policy duration—your choice.
- Unlimited Flexibility: Switch between funds and redirect premiums any number of times at no extra cost.
Who is eligible for the Kotak Confident Retirement Builder Plan?
| Parameters | Minimum | Maximum |
| Age at Entry | 25 Years | 60 Years |
| Age at Maturity | 45 Years | 80 Years |
| Annualized Premium | Limited & Regular Pay: ₹ 30,000 | No Limit |
| Premium Paying Term | Regular Pay 5, 7 or 10 Years | |
| Policy Term | 10 to 40 Years | |
| Premium Payment Frequency | Yearly, Half-Yearly, Quarterly and Monthly | |
What are the benefits of the Kotak Confident Retirement Builder Plan?
1. Vesting / Maturity Benefit
On Survival of Life Insured till the end of the Kotak Confident Retirement Builder plan policy term, if all premiums are paid up to date, Fund Value as on the date of Vesting (inclusive of Yearly Additions if any) shall be payable.
Utilization of the Vesting benefit
The policyholder has to utilize the Vesting Benefit in the following manner.
To utilize the entire proceeds (100%) to purchase an immediate annuity or deferred annuity from the same insurer at the then prevailing annuity rate.
However, an option to purchase immediate annuity or deferred annuity from any other insurer at the then prevailing annuity rate to the extent of a percentage will be given, stipulated by the Authority (IRDAI), currently 50% of the entire proceeds of the policy net of commutation.
OR
To commute up to 60% and utilize the balance amount to purchase an immediate annuity or deferred annuity from the same insurer at the then prevailing annuity rate.
However, an option to purchase immediate annuity or deferred annuity from any other insurer at the then prevailing annuity rate to the extent of a percentage will be given, stipulated by the Authority (IRDAI), currently 50% of the entire proceeds of the policy net of commutation.
2. Death Benefit
In the event of the death of the Life Insured, where all due premiums have been paid, your nominee will receive the death benefit, which shall be the higher of the following:
- Fund Value (inclusive of Yearly Additions, if any)
- Assured Benefit, i.e., 105% of the Total premiums paid till the date of death
Utilization of the Death benefit
The nominee or beneficiary can use the proceeds of the death benefit, as per the following options.
- Withdraw the entire proceeds of the policy. OR
- To utilize the entire proceeds of the policy or part thereof for purchasing an immediate annuity or deferred annuity at the then prevailing annuity rate
What are the Fund options in the Kotak Confident Retirement Builder?
This Kotak Confident Retirement Builder plan enables you to choose the funds that suit your risk-return profile. It offers you flexibility to choose from a range of 5 fund options that will help to maximize your earnings potential.
| S no | Fund Name | Equity | Debt | Money Market | Risk Profile |
| 1 | Pension Classic Opportunities Fund | 75%-100% | 0-25% | 0-25% | Aggressive |
| 2 | Pension Frontline Equity Fund | 60%-100% | 0-40% | 0-40% | Aggressive |
| 3 | Kotak Pension Balanced Fund | 0-60% | 20%-70% | 0-40% | Aggressive |
| 4 | Kotak Nifty 500 Multi-cap Momentum Quality 50 Index Pension Fund | 75%-100% | 0-25% | 0-25% | Moderate |
| 5 | Pension Money Market Fund II | 0-100% | Secure |
What are the charges in the Kotak Confident Retirement Builder Plan?
1. Premium Allocation Charge
Nil
2. Policy Administration Charge
A Kotak Confident Retirement Builder Plan policy administration charge of `400 per annum will be recovered through monthly cancellation of units. This charge is applicable until the end of the policy term
3. Fund Management Charges
| Pension Classic Opportunities Fund | 1.35% |
| Pension Frontline Equity Fund | 1.35% |
| Kotak Pension Balanced Fund | 1.35% |
| Kotak Nifty 500 Multi-cap Momentum Quality 50 Index Pension Fund | 1.35% |
| Pension Money Market Fund II | 0.60% |
| Kotak Discontinued Policy Pension Fund | 0.50% |
4. Switching Charge
All the switches in any policy year are free
5. Premium Redirection Charge
Unlimited free premium redirection is allowed in any policy year throughout the Policy Term
6. Partial Withdrawal Charge
All partial withdrawals in any policy year are free
7. Discontinuance Charges
Discontinuance charges will be based on the year of discontinuance, the premium amount and the premium paying term.
8. Mortality Charge
Not Applicable
9. Miscellaneous Charges
This shall be done with prior IRDAI approval, subject to a maximum of ₹ 500 per transaction.
Inference from charges: Some of the charges are throughout the policy term, which will be an extra load to an investor. These charges will pull down your returns down the line.
Grace Period, Discontinuance and Revival of Kotak Confident Retirement Builder Plan
Grace Period
There is a Grace Period of 30 days for annual, half-yearly and quarterly modes and 15 days for the monthly mode from the due date for payment of the premium.
Discontinuance
Discontinuance of the policy during the lock-in period: The fund value after deducting the applicable discontinuance charges shall be credited to the discontinued policy fund, and the life cover shall cease.
The proceeds of the discontinued policy fund shall be paid to the policyholder at the end of the revival period or lock-in period, whichever is later.
Discontinuance of Kotak Confident Retirement Builder Plan Policy after the lock-in period: The policy shall be converted into a Reduced Paid-Up policy. At the end of the revival period, the proceeds of the policy fund shall be paid to the policyholder, and the policy shall terminate.
Revival
The Kotak Confident Retirement Builder Plan policy can be revived within the revival period of three years.
Free Look Period for Kotak Confident Retirement Builder Plan
In case the Policyholder is not agreeable to any terms and conditions of the Kotak Confident Retirement Builder Plan Policy or otherwise, then, subject to no claims having been made hereunder, the Policyholder may choose to return the Policy within 30 days (except for policies having a policy term of less than a year) beginning from the date of receiving the Policy Document in electronic form.
Surrendering Kotak Confident Retirement Builder Plan
Within Lock-in Period: Fund Value (less applicable discontinuance charges) will be moved into the Discontinued Policy Fund. Proceeds of the Discontinued Policy Fund shall be refunded only upon completion of the lock-in period or Revival period, whichever is later, and the Policy gets terminated.
After the Lock-in Period: Fund Value, as available on the date of Discontinuance of Policy, will be paid out immediately, and the policy will be terminated.
The proceeds shall be utilized as per the provisions of the Vesting Benefit, as explained under Plan Benefits on Vesting / Maturity
What are the advantages of the Kotak Confident Retirement Builder Plan?
- Partial Withdrawals: After the 5-year lock-in period, you can make up to three partial withdrawals during the entire policy term.
- Free Fund Switching: Enjoy the flexibility to switch between funds or modify future premium allocations anytime, free of charge.
- Premium Flexibility: Option to reduce your premium by up to 50% of the original annual amount, based on your financial needs.
What are the disadvantages of the Kotak Confident Retirement Builder Plan?
- No Loan Facility: Loans cannot be availed under this plan.
- No Lump Sum Maturity Benefit: Instead of a cash payout at maturity, the final benefit is vested for future use.
- Restricted Partial Withdrawals: Allowed only for specific purposes such as children’s higher education or marriage, and home construction.
Research Methodology of Kotak Confident Retirement Builder Plan
The Kotak Confident Retirement Builder Plan invests your premiums in market-linked funds. However, it does not allow you to withdraw the maturity benefits as a lump sum.
Instead, at the end of the policy term, the benefits are vested, meaning they must be used to purchase an annuity plan, rather than being paid out directly. Partial withdrawals during the policy term are permitted, but only for specific reasons.
To understand this better, let’s look at the benefit illustration from the policy brochure.
Benefit Illustration – IRR Analysis of Kotak Confident Retirement Builder Plan
Consider a 35-year-old male who buys the Kotak Confident Retirement Builder Plan with a Sum Assured of ₹10.50 Lakh. The policy term is 20 years, and the premium paying term is 10 years, with an annual premium of ₹1,00,000.
| Male | 40 years |
| Sum Assured | ₹ 10,50,000 |
| Policy Term | 20 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 1,00,000 |
If premiums are paid regularly, the benefits vest at the end of 20 years. The illustration shows two return scenarios—4% p.a. and 8% p.a.—though it’s important to note that these are assumed rates and bonuses are not guaranteed, as they depend on the company’s actual performance.
| At 4% p.a. | At 8% p.a. | ||||
| Age | Year | Annualized premium / Maturity benefit | Death benefit | Annualized premium / Maturity benefit | Death benefit |
| 40 | 1 | -1,00,000 | 10,50,000 | -1,00,000 | 10,50,000 |
| 41 | 2 | -1,00,000 | 10,50,000 | -1,00,000 | 10,50,000 |
| 42 | 3 | -1,00,000 | 10,50,000 | -1,00,000 | 10,50,000 |
| 43 | 4 | -1,00,000 | 10,50,000 | -1,00,000 | 10,50,000 |
| 44 | 5 | -1,00,000 | 10,50,000 | -1,00,000 | 10,50,000 |
| 45 | 6 | -1,00,000 | 10,50,000 | -1,00,000 | 10,50,000 |
| 46 | 7 | -1,00,000 | 10,50,000 | -1,00,000 | 10,50,000 |
| 47 | 8 | -1,00,000 | 10,50,000 | -1,00,000 | 10,50,000 |
| 48 | 9 | -1,00,000 | 10,50,000 | -1,00,000 | 10,50,000 |
| 49 | 10 | -1,00,000 | 10,50,000 | -1,00,000 | 10,50,000 |
| 50 | 11 | 0 | 10,50,000 | 0 | 10,50,000 |
| 51 | 12 | 0 | 10,50,000 | 0 | 10,50,000 |
| 52 | 13 | 0 | 10,50,000 | 0 | 10,50,000 |
| 53 | 14 | 0 | 10,50,000 | 0 | 10,50,000 |
| 54 | 15 | 0 | 10,50,000 | 0 | 10,50,000 |
| 55 | 16 | 0 | 10,50,000 | 0 | 10,50,000 |
| 56 | 17 | 0 | 10,50,000 | 0 | 10,50,000 |
| 57 | 18 | 0 | 10,50,000 | 0 | 10,50,000 |
| 58 | 19 | 0 | 10,50,000 | 0 | 10,50,000 |
| 59 | 20 | 0 | 10,50,000 | 0 | 10,50,000 |
| 60 | 14,76,674 | 26,63,327 | |||
| IRR | 2.53% | 6.41% | |||
At 4% return, the vested benefit amounts to ₹14.76 lakh
At 8% return, the vested benefit amounts to ₹26.63 lakh
These amounts are not directly paid to the policyholder. Instead, they serve as the purchase price for an immediate or deferred annuity plan, offered by Kotak Life or another insurer. The annuity rate will be based on prevailing rates at the time of vesting.
Since the payout is not received upfront and is instead converted into an annuity, calculating the Internal Rate of Return (IRR) on the accumulation phase alone doesn’t give the full picture. However, for reference:
The IRR in the 4% scenario is 2.53% as per the Kotak Confident Retirement Builder Plan maturity calculator.The IRR in the 8% scenario is 6.41% as per the Kotak Confident Retirement Builder Plan maturity calculator.
Even though the premiums are invested in market-linked funds, these return figures are lower than what most traditional debt instruments offer. Moreover, these returns do not include the distribution phase, where the actual annuity is received, which further affects the overall benefit.
Kotak Confident Retirement Builder Plan Vs. Other Investments
This section explores an alternative investment strategy that separates life insurance from retirement savings, rather than combining them as done in the Kotak Confident Retirement Builder Plan.
By adopting this split approach, you can build your retirement corpus through investment options that do not impose restrictions on fund utilization, offering greater flexibility and control.
Kotak Confident Retirement Builder Plan Vs. Pure-term + PPF/ELSS
For instance, a pure term life insurance policy with a sum assured of ₹10.5 lakh is available at an affordable premium of just ₹9,500 per year for a policy term of 20 years and a premium payment term of 10 years.
In comparison, the Kotak Confident Retirement Builder Plan requires an annual premium of ₹1 lakh for the same coverage. This means you can save ₹90,500 each year by choosing a term plan and investing that amount based on your risk appetite.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 10,50,000 |
| Policy Term | 20 years |
| Premium Paying Term | 10 years |
| Annualized Premium | ₹ 9,500 |
| Investment | ₹ 90,500 |
Risk-averse investors may prefer safer options like the Public Provident Fund (PPF), while those seeking higher returns can consider equity-linked instruments like ELSS (Equity Linked Saving Scheme).
| Term Insurance + PPF | Term insurance + ELSS | ||||
| Age | Year | Term Insurance premium + PPF | Death benefit | Term Insurance premium + ELSS | Death benefit |
| 40 | 1 | -1,00,000 | 10,50,000 | -1,00,000 | 10,50,000 |
| 41 | 2 | -1,00,000 | 10,50,000 | -1,00,000 | 10,50,000 |
| 42 | 3 | -1,00,000 | 10,50,000 | -1,00,000 | 10,50,000 |
| 43 | 4 | -1,00,000 | 10,50,000 | -1,00,000 | 10,50,000 |
| 44 | 5 | -1,00,000 | 10,50,000 | -1,00,000 | 10,50,000 |
| 45 | 6 | -1,00,000 | 10,50,000 | -1,00,000 | 10,50,000 |
| 46 | 7 | -1,00,000 | 10,50,000 | -1,00,000 | 10,50,000 |
| 47 | 8 | -1,00,000 | 10,50,000 | -1,00,000 | 10,50,000 |
| 48 | 9 | -1,00,000 | 10,50,000 | -1,00,000 | 10,50,000 |
| 49 | 10 | -97,500 | 10,50,000 | -1,00,000 | 10,50,000 |
| 50 | 11 | -500 | 10,50,000 | 0 | 10,50,000 |
| 51 | 12 | -500 | 10,50,000 | 0 | 10,50,000 |
| 52 | 13 | -500 | 10,50,000 | 0 | 10,50,000 |
| 53 | 14 | -500 | 10,50,000 | 0 | 10,50,000 |
| 54 | 15 | -500 | 10,50,000 | 0 | 10,50,000 |
| 55 | 16 | 0 | 10,50,000 | 0 | 10,50,000 |
| 56 | 17 | 0 | 10,50,000 | 0 | 10,50,000 |
| 57 | 18 | 0 | 10,50,000 | 0 | 10,50,000 |
| 58 | 19 | 0 | 10,50,000 | 0 | 10,50,000 |
| 59 | 20 | 0 | 10,50,000 | 0 | 10,50,000 |
| 60 | 26,70,691 | 49,62,684 | |||
| IRR | 6.44% | 10.59% | |||
If the saved ₹90,500 is invested annually in a PPF account, the maturity value at the end of 20 years would be ₹26.70 lakh, delivering an internal rate of return (IRR) of 6.44%.
While this return appears close to the IRR of 6.41% from the 8% scenario of the Kotak plan, the difference lies in accessibility—under the split approach, the entire PPF corpus is freely available without restrictions.
Alternatively, investing the same amount in an ELSS fund could yield a maturity value of ₹55.24 lakh before taxes. After accounting for long-term capital gains tax, the post-tax value stands at ₹49.62 lakh, with a post-tax IRR of 10.59%.
This return is significantly higher than what the Kotak plan offers, and the entire corpus is available to the investor at maturity.
| ELSS Tax Calculation | |
| Maturity value after 20 years | 55,24,496 |
| Purchase price | 9,05,000 |
| Long-Term Capital Gains | 46,19,496 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 44,94,496 |
| Tax paid on LTCG | 5,61,812 |
| Maturity value after tax | 49,62,684 |
In summary, separating insurance and investment not only offers better potential returns but also ensures full flexibility and access to your funds, advantages that are not available under the Kotak Confident Retirement Builder Plan.
Final Verdict on Kotak Confident Retirement Builder Plan
The Kotak Confident Retirement Builder Plan invests your savings in market-linked funds to help you build a retirement corpus over time. However, the key limitation is that the maturity value is not available for your direct use.
Instead of a lump-sum payout, the plan offers a vesting benefit, which must be used to purchase an annuity. The income you receive from this annuity depends on prevailing market annuity rates at the time of vesting—rates that are not guaranteed and are not a part of the plan itself.
Moreover, the accumulated corpus at vesting is also a non-guaranteed amount, as it depends on market performance.
Combined with the uncertainty of future annuity rates, this creates ambiguity around how much retirement income you’ll receive. Ironically, this lack of clarity undermines the very “confidence” the plan’s name suggests.
Such unpredictability may lead to mistrust or dissatisfaction with the Kotak Confident Retirement Builder Plan and it also has a high agent commission.
Retirement planning is too important to leave to chance; it demands a thoughtful, customized approach tailored to your financial goals, lifestyle needs, and risk appetite.
For true peace of mind in your golden years, it’s wise to build a retirement plan that addresses both the accumulation and distribution phases effectively.
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