Kotak Gen2Gen Income Plan: Good or Bad? An Insightful Review
Can the Kotak Gen2Gen Income Plan secure your family’s financial future, or is it just another overhyped insurance product?
Does the Kotak Gen2Gen Income Plan live up to its promise of intergenerational financial security, or does it fall short of expectations?
Is the Kotak Gen2Gen Income Plan a wise choice for consistent income, or are there hidden drawbacks you need to know about?
This review takes a closer look at the plan’s key features, benefits, and drawbacks, helping you make a well-informed decision.
What is the Kotak Gen2Gen Income Plan?
What are the features of the Kotak Gen2Gen Income Plan?
Who is eligible for the Kotak Gen2Gen Income Plan?
What are the plan options and the benefits of the Kotak Gen2Gen Income Plan?
Plan Option C: Life Paid-Up Additions
Plan Option D: Legacy Paid-Up Additions
Grace Period, Lapsed and Paid-up Policy and Revival of Kotak Gen2Gen Income Plan
Free Look period for Kotak Gen2Gen Income Plan
Surrendering Kotak Gen2Gen Income Plan
What are the advantages of the Kotak Gen2Gen Income Plan?
What are the disadvantages of the Kotak Gen2Gen Income Plan?
Research Methodology of Kotak Gen2Gen Income Plan
Benefit Illustration – IRR Analysis Kotak Gen2Gen Income Plan
Kotak Gen2Gen Income Plan Vs. Other Investment
Kotak Gen2Gen Income Plan Vs. Pure-term + ELSS
Final Verdict on Kotak Gen2Gen Income Plan
Kotak Gen2Gen Income Plan is a Participating Non-Linked Life Insurance Individual Savings Product. It provides regular income for your whole life, up to 99 years, or until a fixed age, depending on your preference
(This is a single life plan option)
Survival benefit
At the end of each Kotak Gen2Gen Income Plan policy year, Cash Bonus (if declared) shall be payable to you on a monthly/yearly basis starting from the end of the 13th policy month till the end of the policy term (i.e. till age 99 years) or death or surrender, whichever is earlier.
Maturity benefit
On your survival till the end of the Kotak Gen2Gen Income Plan Policy Term, the Maturity Benefit is payable as a lump sum.
Death benefit
The Death Benefit payable to the nominee shall be as below:
However, the Death Benefit payable shall at least be equal to 105% of Total Premiums paid (including underwriting extra premium, if any) till the date of death.
(This is a joint life plan option)
Survival / Maturity Benefit
Survival benefit during Coverage term: At the end of each policy year, on your (Primary Life Insured) survival, Cash Bonus (if declared), shall be payable to you (Primary Life Insured) on a monthly/yearly basis starting from the end of the 13th policy month till end of the coverage term or death (as the case may be) or surrender, whichever is earlier.
Maturity benefit at the end of the Coverage term: On your (Primary Life Insured) survival till the end of the Coverage Term, Milestone Benefit is payable as a lump sum, and your Life Cover continues.
In case the Secondary Life Insured has predeceased the Primary Life Insured during the Coverage Term, the Milestone Benefit is paid at the end of the Coverage Term, and the Kotak Gen2Gen Income Plan policy shall terminate. Milestone Benefit is defined as:
Survival benefit during the Legacy Coverage term: the Survival Benefit for Primary Life Insured is 7 X Annualised Premium.
For Secondary Life Insured, Cash Bonus (if declared) shall be payable on a monthly/yearly basis till the end of the Legacy Coverage Term or death (as the case may be) or surrender, whichever is earlier.
Maturity benefit at the end of the Legacy Coverage Term (end of policy term): On survival of the Secondary Life Insured till the end of the Legacy Coverage Term, the following Maturity Benefit is payable as a lump sum.
Death benefit
Death benefit during the Coverage term
Death Benefit for Primary Life Insured:
However, the Death Benefit payable shall at least be equal to 105% of Total Premiums paid (including underwriting extra premium, if any) till the date of death.
Death Benefit for Secondary Life Insured:
Death benefit during the Legacy Coverage Term
Death Benefit for Primary Life Insured:
Death Benefit for Secondary Life Insured:
However, the Death Benefit payable shall at least be equal to 105% of Total Premiums paid (including underwriting extra premium, if any) till the date of death.
(This is a single life plan option)
Survival benefit
At the end of each policy year, the Cash Bonus (if declared) will be utilised to purchase Paid-Up Additions.
Further, at the end of the next policy year Cash Bonus may be declared on both the Benefit Sum Assured and the Accrued Paid-Up Addition, which in turn will be utilised to purchase Paid-Up Addition for that policy year and so on and so forth.
Maturity benefit
On survival till the end of the Kotak Gen2Gen Income Plan Policy Term, the following Maturity Benefit is payable as a lump sum.
Death benefit
The Death Benefit payable to the nominee shall be as below:
However, the Death Benefit payable shall at least be equal to 105% of Total Premiums paid (including underwriting extra premium, if any) till the date of death.
(This is a joint life plan option)
Survival benefit during Coverage term: At the end of each policy year, starting from the end of the 13th Policy Month, the Cash Bonus (if declared) will be utilised to purchase Paid-Up Additions and accrue till the end of the Coverage Term or death or surrender, whichever is earlier.
Further, at the end of the next policy year, Cash Bonus may be declared on both the Benefit Sum Assured and Accrued Paid-Up Additions, which in turn will get utilised to Purchase Paid-Up Additions for that policy year and so on and so forth.
Maturity benefit at the end of the Coverage term: On your (Primary Life Insured) survival till the end of the Coverage Term, Milestone Benefit is payable as a lump sum, and your Life Cover continues.
In case the Secondary Life Insured has predeceased the Primary Life Insured during the Coverage Term, the Milestone Benefit is paid at the end of the Coverage Term, and the policy shall terminate. Milestone Benefit is defined as:
Survival benefit during the Legacy Coverage term: the Survival Benefit for Primary Life Insured is 7 X Annualised Premium.
For Secondary Life Insured, the Cash Bonus (if declared) will be utilised to purchase Paid-Up Additions and accrue during the Legacy Coverage Term or till death or surrender, whichever is earlier.
Further, at the end of the next policy year, Cash Bonus may be declared on both Benefit Sum Assured and Accrued Paid-Up Additions, which in turn will get utilised to Purchase Paid-Up Additions for that policy year and so on & so forth.
Maturity benefit at the end of the Legacy Coverage Term (end of policy term): On survival of the Secondary Life Insured till the end of the Legacy Coverage Term, the following Maturity Benefit is payable as a lump sum.
Death benefit
Death benefit during the Coverage term
Death Benefit for Primary Life Insured:
However, the Death Benefit payable shall at least be equal to 105% of Total Premiums paid (including underwriting extra premium, if any) till the date of death.
Death Benefit for Secondary Life Insured:
Death benefit during the Legacy Coverage Term
Death Benefit for Primary Life Insured:
Death Benefit for Secondary Life Insured:
However, the Death Benefit payable shall at least be equal to 105% of Total Premiums paid (including underwriting extra premium, if any) till the date of death.
Grace Period
There is a grace period of 30 days from the due date for payment of premium for the yearly, half-yearly and quarterly modes, and 15 days for the monthly mode.
Lapsed and Paid-up Policies
If at least one full year’s premium is not paid, the Kotak Gen2Gen Income Plan policy, together with Rider Benefits (if any) shall lapse at the end of the grace period, and no benefits will be payable.
If at least one full year’s premiums are paid, but due premiums are not received within the grace period.
For Life Income Option & Legacy Income Option: the policy will not be eligible for any future Cash bonuses once it has been converted into a Reduced Paid-Up policy.
For Life Paid-Up Additions Option & Legacy Paid-Up Additions Option: if the policy is converted to reduced paid-up status, then the Accrued Paid-Up Additions shall continue to participate in the future profits of the participating fund.
Revival
A lapsed / Reduced Paid-Up policy can be revived within five policy years from the due date of the first unpaid premium
In case the Kotak Gen2Gen Income Plan Policyholder is not agreeable to any terms and conditions of the Policy or otherwise; then subject to no claims having been made hereunder, the Policyholder may choose to return the Policy within 30 days y (except for policies having a policy term of less than a year) beginning from the date of receiving the Policy Document in electronic form.
The Kotak Gen2Gen Income Plan Policy shall acquire a Guaranteed Surrender Value if full Premiums due for at least 2 consecutive policy years have been paid.
In case of surrender of the policy, after completion of the first year, provided one full year’s premium has been received, a Special Surrender Value shall be payable. Surrender Value payable will be higher of the Guaranteed Surrender Value or the Special Surrender Value
The Kotak Gen2Gen Income Plan offers customizable income and maturity benefits across four plan options. As a whole-life policy, it spans an extensive term, often 50 to 60 years.
Before committing to such a long-term product, it’s essential to evaluate the potential returns, as your capital remains locked in for decades. Let’s consider a scenario based on a benefit illustration from the Kotak Gen2Gen Income Plan policy brochure.
A 35-year-old male opts for the plan with an annual premium of ₹1,00,000 for 10 years under Plan Option C: Life Paid-Up Additions. The policy term in this case extends to 64 years.
Upon regular premium payments, the Kotak Gen2Gen Income Plan policyholder becomes eligible for maturity benefits, along with accrued paid-up additions.
| Male | 35 years |
| Sum Assured | ₹ 12,00,000 |
| Policy Term | 64 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 1,00,000 |
| At 4% p.a. | At 8% p.a. | ||||
| Age | Year | Annualised premium / Maturity benefit | Death benefit | Annualised premium / Maturity benefit | Death benefit |
| 35 | 1 | -1,00,000 | 12,00,000 | -1,00,000 | 12,00,000 |
| 36 | 2 | -1,00,000 | 12,00,000 | -1,00,000 | 12,00,000 |
| 37 | 3 | -1,00,000 | 12,00,000 | -1,00,000 | 12,00,000 |
| 38 | 4 | -1,00,000 | 12,00,000 | -1,00,000 | 12,00,000 |
| 39 | 5 | -1,00,000 | 12,00,000 | -1,00,000 | 12,00,000 |
| 40 | 6 | -1,00,000 | 12,00,000 | -1,00,000 | 12,00,000 |
| 41 | 7 | -1,00,000 | 12,00,000 | -1,00,000 | 12,00,000 |
| 42 | 8 | -1,00,000 | 12,00,000 | -1,00,000 | 12,00,000 |
| 43 | 9 | -1,00,000 | 12,00,000 | -1,00,000 | 12,00,000 |
| 44 | 10 | -1,00,000 | 12,00,000 | -1,00,000 | 12,00,000 |
| 45 | 11 | 0 | 12,00,000 | 0 | 12,00,000 |
| 46 | 12 | 0 | 12,00,000 | 0 | 12,00,000 |
| 47 | 13 | 0 | 12,00,000 | 0 | 12,00,000 |
| 48 | 14 | 0 | 12,00,000 | 0 | 12,00,000 |
| 49 | 15 | 0 | 12,00,000 | 0 | 12,00,000 |
| 50 | 16 | 0 | 12,00,000 | 0 | 12,00,000 |
| 51 | 17 | 0 | 12,00,000 | 0 | 12,00,000 |
| 52 | 18 | 0 | 12,00,000 | 0 | 12,00,000 |
| 53 | 19 | 0 | 12,00,000 | 0 | 12,00,000 |
| 54 | 20 | 0 | 12,00,000 | 0 | 12,00,000 |
| 55 | 21 | 0 | 12,00,000 | 0 | 12,00,000 |
| 56 | 22 | 0 | 12,00,000 | 0 | 12,00,000 |
| 57 | 23 | 0 | 12,00,000 | 0 | 12,00,000 |
| 58 | 24 | 0 | 12,00,000 | 0 | 12,00,000 |
| 59 | 25 | 0 | 12,00,000 | 0 | 12,00,000 |
| 60 | 26 | 0 | 12,00,000 | 0 | 12,00,000 |
| 61 | 27 | 0 | 12,00,000 | 0 | 12,00,000 |
| 62 | 28 | 0 | 12,00,000 | 0 | 12,00,000 |
| 63 | 29 | 0 | 12,00,000 | 0 | 12,00,000 |
| 64 | 30 | 0 | 12,00,000 | 0 | 12,00,000 |
| 65 | 31 | 0 | 12,00,000 | 0 | 12,00,000 |
| 66 | 32 | 0 | 12,00,000 | 0 | 12,00,000 |
| 67 | 33 | 0 | 12,00,000 | 0 | 12,00,000 |
| 68 | 34 | 0 | 12,00,000 | 0 | 12,00,000 |
| 69 | 35 | 0 | 12,00,000 | 0 | 12,00,000 |
| 70 | 36 | 0 | 12,00,000 | 0 | 12,00,000 |
| 71 | 37 | 0 | 12,00,000 | 0 | 12,00,000 |
| 72 | 38 | 0 | 12,00,000 | 0 | 12,00,000 |
| 73 | 39 | 0 | 12,00,000 | 0 | 12,00,000 |
| 74 | 40 | 0 | 12,00,000 | 0 | 12,00,000 |
| 75 | 41 | 0 | 12,00,000 | 0 | 12,00,000 |
| 76 | 42 | 0 | 12,00,000 | 0 | 12,00,000 |
| 77 | 43 | 0 | 12,00,000 | 0 | 12,00,000 |
| 78 | 44 | 0 | 12,00,000 | 0 | 12,00,000 |
| 79 | 45 | 0 | 12,00,000 | 0 | 12,00,000 |
| 80 | 46 | 0 | 12,00,000 | 0 | 12,00,000 |
| 81 | 47 | 0 | 12,00,000 | 0 | 12,00,000 |
| 82 | 48 | 0 | 12,00,000 | 0 | 12,00,000 |
| 83 | 49 | 0 | 12,00,000 | 0 | 12,00,000 |
| 84 | 50 | 0 | 12,00,000 | 0 | 12,00,000 |
| 85 | 51 | 0 | 12,00,000 | 0 | 12,00,000 |
| 86 | 52 | 0 | 12,00,000 | 0 | 12,00,000 |
| 87 | 53 | 0 | 12,00,000 | 0 | 12,00,000 |
| 88 | 54 | 0 | 12,00,000 | 0 | 12,00,000 |
| 89 | 55 | 0 | 12,00,000 | 0 | 12,00,000 |
| 90 | 56 | 0 | 12,00,000 | 0 | 12,00,000 |
| 91 | 57 | 0 | 12,00,000 | 0 | 12,00,000 |
| 92 | 58 | 0 | 12,00,000 | 0 | 12,00,000 |
| 93 | 59 | 0 | 12,00,000 | 0 | 12,00,000 |
| 94 | 60 | 0 | 12,00,000 | 0 | 12,00,000 |
| 95 | 61 | 0 | 12,00,000 | 0 | 12,00,000 |
| 96 | 62 | 0 | 12,00,000 | 0 | 12,00,000 |
| 97 | 63 | 0 | 12,00,000 | 0 | 12,00,000 |
| 98 | 64 | 0 | 12,00,000 | 0 | 12,00,000 |
| 99 | 39,55,969 | 3,50,27,243 | |||
| IRR | 2.33% | 6.13% | |||
The projected returns are based on non-guaranteed rates of 4% and 8% p.a.:
At 4%, the final maturity value is ₹39.55 lakhs, yielding an IRR of just 2.33% as per Kotak Gen2Gen Income Plan maturity calculator.
At 8%, the maturity value rises to ₹3.50 crores, with an IRR of 6.13% as per Kotak Gen2Gen Income Plan maturity calculator.
It’s important to note that bonuses are added as paid-up additions and are only paid out at maturity. If one opts to receive the cash bonus annually as a survival benefit instead, the overall returns would decline further.
Holding an investment for over six decades for returns that barely match inflation (or fall below it) may not add substantial value to your portfolio. Moreover, life cover till age 99 often becomes redundant, as your retirement corpus should sufficiently cover your needs by that stage.
Given the long commitment, complexity, and modest returns, the Kotak Gen2Gen Income Plan may not be a suitable choice if your objective is long-term wealth creation or aligning with key financial goals.
The Kotak Gen2Gen Income Plan aims to combine life insurance and investment in a single product. However, return analysis shows that committing to a long-term investment that fails to beat inflation may not be financially rewarding.
A more effective approach is to separate insurance and investment into two distinct, goal-focused instruments. Let’s look at an alternative strategy.
You can purchase a pure-term life insurance policy with a sum assured of ₹12 lakhs and a 35-year term (coverage until age 70) for an annual premium of ₹15,200, payable for 10 years. This leaves you with ₹84,800 annually to invest.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 12,00,000 |
| Policy Term | 35 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 15,200 |
| Investment | ₹ 84,800 |
| Term insurance + ELSS | |||
| Age | Year | Term Insurance premium + ELSS | Death benefit |
| 35 | 1 | -1,00,000 | 12,00,000 |
| 36 | 2 | -1,00,000 | 12,00,000 |
| 37 | 3 | -1,00,000 | 12,00,000 |
| 38 | 4 | -1,00,000 | 12,00,000 |
| 39 | 5 | -1,00,000 | 12,00,000 |
| 40 | 6 | -1,00,000 | 12,00,000 |
| 41 | 7 | -1,00,000 | 12,00,000 |
| 42 | 8 | -1,00,000 | 12,00,000 |
| 43 | 9 | -1,00,000 | 12,00,000 |
| 44 | 10 | -1,00,000 | 12,00,000 |
| 45 | 11 | 0 | 12,00,000 |
| 46 | 12 | 0 | 12,00,000 |
| 47 | 13 | 0 | 12,00,000 |
| 48 | 14 | 0 | 12,00,000 |
| 49 | 15 | 0 | 12,00,000 |
| 50 | 16 | 0 | 12,00,000 |
| 51 | 17 | 0 | 12,00,000 |
| 52 | 18 | 0 | 12,00,000 |
| 53 | 19 | 0 | 12,00,000 |
| 54 | 20 | 0 | 12,00,000 |
| 55 | 21 | 0 | 12,00,000 |
| 56 | 22 | 0 | 12,00,000 |
| 57 | 23 | 0 | 12,00,000 |
| 58 | 24 | 0 | 12,00,000 |
| 59 | 25 | 0 | 12,00,000 |
| 60 | 26 | 0 | 12,00,000 |
| 61 | 27 | 0 | 12,00,000 |
| 62 | 28 | 0 | 12,00,000 |
| 63 | 29 | 0 | 12,00,000 |
| 64 | 30 | 0 | 12,00,000 |
| 65 | 31 | 0 | 12,00,000 |
| 66 | 32 | 0 | 12,00,000 |
| 67 | 33 | 0 | 12,00,000 |
| 68 | 34 | 0 | 12,00,000 |
| 69 | 35 | 0 | 12,00,000 |
| 70 | 36 | 0 | 12,00,000 |
| 71 | 37 | 0 | 12,00,000 |
| 72 | 38 | 0 | 12,00,000 |
| 73 | 39 | 0 | 12,00,000 |
| 74 | 40 | 0 | 12,00,000 |
| 75 | 41 | 0 | 12,00,000 |
| 76 | 42 | 0 | 12,00,000 |
| 77 | 43 | 0 | 12,00,000 |
| 78 | 44 | 0 | 12,00,000 |
| 79 | 45 | 0 | 12,00,000 |
| 80 | 46 | 0 | 12,00,000 |
| 81 | 47 | 0 | 12,00,000 |
| 82 | 48 | 0 | 12,00,000 |
| 83 | 49 | 0 | 12,00,000 |
| 84 | 50 | 0 | 12,00,000 |
| 85 | 51 | 0 | 12,00,000 |
| 86 | 52 | 0 | 12,00,000 |
| 87 | 53 | 0 | 12,00,000 |
| 88 | 54 | 0 | 12,00,000 |
| 89 | 55 | 0 | 12,00,000 |
| 90 | 56 | 0 | 12,00,000 |
| 91 | 57 | 0 | 12,00,000 |
| 92 | 58 | 0 | 12,00,000 |
| 93 | 59 | 0 | 12,00,000 |
| 94 | 60 | 0 | 12,00,000 |
| 95 | 61 | 0 | 12,00,000 |
| 96 | 62 | 0 | 12,00,000 |
| 97 | 63 | 0 | 12,00,000 |
| 98 | 64 | 0 | 12,00,000 |
| 99 | 66,33,16,207 | ||
| IRR | 11.45% | ||
If this remaining amount is invested in an ELSS (Equity-Linked Savings Scheme) for 10 years and held for the full 64-year period (matching the policy term of Kotak Gen2Gen), the post-tax maturity value would be ₹66.33 crores.
This strategy yields an impressive IRR of 11.45%, even after accounting for capital gains tax.
| ELSS Tax Calculation | |
| Maturity value after 64 years | 75,79,36,665 |
| Purchase price | 8,48,000 |
| Long-Term Capital Gains | 75,70,88,665 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 75,69,63,665 |
| Tax paid on LTCG | 9,46,20,458 |
| Maturity value after tax | 66,33,16,207 |
In this approach:
You enjoy higher returns.
Your investments remain liquid, allowing redemptions as needed.
You maintain adequate life coverage at a low cost.
In contrast, the Kotak Gen2Gen Income Plan lacks both liquidity and competitive returns, making it less effective in helping you achieve long-term financial goals.
The Kotak Gen2Gen Income Plan offers life cover, maturity benefits, and income payouts—all of which can be customised to suit individual needs.
While this flexibility is positioned as a key advantage, the benefits differ significantly across plan options and sub-variants, often leading to confusion when selecting the most appropriate one.
As a whole-life policy with a term of 50 to 60 years, the plan demands a long-term commitment. However, holding an investment over such an extended period without meaningful value addition is impractical and it also has a high agent commission.
Moreover, life cover up to age 99 is unnecessary, especially when a well-structured retirement plan can sufficiently meet financial needs beyond one’s working years. These factors reduce the plan’s overall effectiveness in serving both insurance and investment objectives.
A more efficient alternative is to adopt a diversified investment strategy aligned with your personal goals, risk tolerance, and investment horizon. This approach not only offers greater flexibility and potentially higher returns, but also allows you to manage your portfolio as life circumstances change.
For life protection, a pure-term insurance policy is highly recommended. It offers adequate coverage during your income-earning years at a much lower cost, ensuring your family’s financial security without compromising on investment potential.
While Kotak has branded this plan as Gen2Gen, aiming to position it as a legacy-building tool, there are several other investment avenues that may serve this purpose more effectively.
Do Quora, Facebook, and Twitter have the final say when it comes to financial advice?
To ensure your legacy planning aligns with your long-term goals, it’s wise to consult a Certified Financial Planner for personalised advice tailored to your financial journey.
Listen to this article Power looks dominant—until it fails. History is rarely decided by who…
Listen to this article Is building a retirement corpus of ₹1–2 crore really only possible…
Listen to this article Markets feel predictable—until they suddenly aren’t. At market peaks, confidence is…
Listen to this article Your salary will likely grow with time. Promotions, job switches, and…
Listen to this article Markets are falling, headlines are screaming, and uncertainty feels louder than…
Listen to this article What if the biggest mistake in your investing journey isn’t choosing…