A unit linked child insurance plan to escalate the future aspects of your child, Kotak Headstart Child Assure Plan is brought to you by Kotak Mahindra Life Insurance Company Limited private sector insurance provider since 2001. Catering to a large chunk of insurance seekers (15 million customers approximately), this company has its wings spread to over 167 cities with 232 branches to provide better customer base.
Why should one invest in Kotak Headstart Child Assure Plan?
For any parent, the most important aspect is and will always be the happiness of their children which is directly proportional to their safety. This safety can be physical, emotional or financial. And when it comes to financial security, nothing beats a good child plan. That is exactly what you get with this Kotak child plan. But besides being an insurance plan, this products makes sure your investment escalates too. This means that a part of the premium you’d be paying would be invested in market funds which will enable you build a strong reservoir to expend for your child’s needs in future.
What all entails this child plan by Kotak Life Insurance?
Kotak child plans are designed in a way to provide the most comprehensive coverage possible and that is exactly what this particular child plan carries with it. To understand this plan properly, let’s discuss the features of the same.
Features
- Planned corpus at maturity
A stitch in time saves nine. Money your child would need in future for educational or any other expense can’t be earned in that particular moment. Planning is required and that is what this Kotak life insurance for your child is there to assist you in. With in-time payment of premium you will be building a strong corpus for your child’s needs.
- Triple protection
At unfortunate even of the death of a parent, the life of child becomes no less than a chaos Although nobody can recuperate for the emotional loss bu the financial aspect will be taken care of by Kotak life insurance. Three benefits will unfold.
1st – Life cover amount of the parent will be paid to the beneficiary (the child) immediately so that the sudden income flow doesn’t break another havoc on the child.
2nd – all the future premiums shall be waived off and will be paid by Kotak itself.
3rd – policy will continue to exist with all the benefits continuing the same way. Also, the fund value of the policy will be paid to the child at the time of maturity.
- Maturity amount as per the risk-return preference
You might be a safe market player while some other person might be more interested in being the bull of the market. That’s why Kotak Headstart Child Assure Plan has proposed its customers 7 funds with different risk-return ratio thus making it satiable for everyone’s risk appetite. Also, for those of you who don’t have an upper hand in market fund investments can be rest assured of their investments as Kotak has a team of qualified fund managers who are dedicated to provide you with the best of profits.
- Flexible premium payment period
A long term commitment should not make you feel burdened for some policies require you to pay premium for the entire period of policy period. But with this Kotak child plan you are given the liberty to choose from a premium payment term of 5 years opt 10 years for the policy terms of 10 years and 15-25 years, respectively. This way your money would not be locked up and you can keep on reaping the benefits of liquidity.
Also Know: Kotak Life Child Plans
Benefits
- Maturity benefit
As the name says, this is the amount you receive after the completion of the policy term with all premiums paid in time. The entire fund value will be credited to you so that it can be used as per the time and need of your child. Along with it, the policyholder can choose to receive the full fund value in the form of lump sum or partly in cash and partly in the form of regular installments ( for a period of 5 years, maximum).
- Flexibility in withdrawals
After the completion of minimum 5 years of policy term, you can exercise this particular option. This option is given so as to provide the policyholder with flexibility to be aided from at the time of sudden need. Minimum amount to be withdrawn is fixed at Rs.10,000 without hampering the minimum balance in the main account (I.e. one annualized premium amount). also note that this withdrawal won’t have any effect on the Basic Sum Assured which is 105% of the total premiums paid.
In the event of unforeseen financial emergency, you may decide to
discontinue the policy. Discontinuance of the policy before the 5th year
will attract Discontinuance Charges.
- Discontinuance of Policy
If in case you are no more able to continue with this children plan, Kotak life insurance gives you the option to exit from the same. Although if you opt out before 5 years from the commencement of policy, you’ll have to pay Discontinuance Charges.
- Option of redirection/switching of premiums
With changing time, your needs and financial preference can alter too and that’s why this child plan from Kotak offers you the option to switch market funds and/or change the premium amount/period.
Eligibility
Now that we have gone through almost all the features and benefits of Kotak Headstart Child Assure Plan, let’s discuss some facts related to the eligibility of the same.
| Criteria | Details |
| Entry Age | 18 years to 60 years |
| Policy Term | 10, 15 to 25 years |
| Premium Amount | Regular & 10 PPT : Rs.20,000 p.a. and Rs.10,000 semi-annually
5PPT: Rs.50,000 p.a. and Rs.25,000 semi-annually |
| PPT | Regular Pay:
10/15 to 25 years Limited Pay: 5 years (10 years of policy term) 10 years (15-25 years of policy term) |
| Basic Sum Assured | Minimum:
– Entry before 45 years: Higher of 10 x annualized premium / 0.5 x policy term x annualized premium – Entry at or after 45 years: Higher of 7 x annualized premium / 0.25 x policy term x annualized premium Maximum: 25 x annualized premium |
*PPT = Premium Payment Term
Illustration
Name: Mr. X
Age of parent: 27 years
Age of Child: 3 years
Plan: Kotak Headstart Child Assure Plan
GST: 18%
Policy Term: 20 years
Premium Amount: Rs.50,000
Premium Payment Term: 10 years
Mode: Yearly
Premium Allocation :
| Funds | Money Market Fund | Dynamic gilt Fund | Dynamic Bond Fund | Dynamic Floating Rate Fund | Balanced Fund | Frontline Equity Fund | Classic
Opportunities Fund |
| Percentage | 10% | 10% | 20% | 30% | 10% | 10% | 10% |
As per the above information, Mr.X shall receive the Maturity Benefit of Rs.11,44,129.
FAQs
Q1. What are the documents required to be submitted for purchasing the Kotak child plan?
You need to deposit the following documents to sail thought the purchasing process of Kotak Headstart Child Assure Plan:
- Proposal Form
- Photo ID Proof
- Address Proof of Proposer
- Age Proof of Insured
- Photocopy of Cancel Cheque
- Pan Card of Proposer OR Payer
- Standard Letter for Employer Employee Insurance
- Nomination Form OR Nominee Details
- Salary Income Proof of the Employee
- Identity Proof Address Proof and Photo of Individual signing the Proposal Form
Q2. Would my basic sum assured change if I partially withdraw some amount (after 5 years of lock-in period)?
No. Basic Sum Assured is directly related to the total premiums paid by the policyholder. It is 105% of the premiums paid. Hence, partial withdrawal won’t make any change to this assured sum.