Kotak Mahindra Life Insurance Company Ltd. offers various types of life insurance plans. They include Protection Plans, Saving and Investments Plans, Retirement Plans, Child Plans and Group Plan. Kotak Life Child Plans are life insurance plans, offering coverage along with a means to save money to meet the expenses of the child when he/she grows up.
What are Kotak Life Child Plans?
Kotak Life Child Plans are unit linked insurance plans (ULIP) that help the child with all the opportunities to be financially stable and have a comfortable tomorrow, irrespective of any uncertainties in life. With the increase in cost of education, fulfilling child’s dream is getting tougher day by day. Thus, Kotak Life Child Plans are a package of investment and protection to provide a financially sound future to all.
Types of Kotak Life Child Plans
Kotak Life Insurance offers one type of Kotak Life Child Plan – Kotak Headstart Child Assure. As part of this ULIP, the investment risk is borne by the policyholder. ULIP consists of investment plan coupled with insurance plan. Thus one can invest in the market through their investment funds. In the event of the death of the parents, Kotak Headstart Child Assure protects the child’s future by providing financial assistance as and when needed.
Eligibility Criteria
| Parameters | Minimum | Maximum |
| Entry Age | 18 years | 60 years |
| Maturity Age | 28 years | 70 years |
| Policy Term | 10 years | 25 years |
| Premium Payment Terms | Regular: Equal to Policy term Limited: 5 years available with policy term 10 years and 10 years available with policy terms 15 to 25 years | No limit |
| Regular Premium | Rs. 20,000 | – |
| Limited Premium Payment | For 5 year- Rs. 50,000
For 10 year- Rs. 20,000 |
– |
| Basic Sum Assured | Min for entry age less than 45 yrs: Higher of (10 X AP) OR (0.5 X Policy Term X AP)
Min for entry age 45 yrs and above: Higher of (7 X AP) OR (0.25 X Policy Term X AP) |
25x Annualized Premium |
Funds under Kotak Headstart Child Assure Plan
There are seven funds available for the policyholder to choose under the Kotak Headstart Child Assure plan. Based on their risk capacity, a policyholder can invest in the desired funds, ranging from High-Equity exposure i.e. Aggressive Funds to safer debt fund with no equity exposure i.e. Moderate Funds.
| Fund Options | Investment Objective | Risk-Return | Equity | Debt | Money Market |
| Classic Opportunities Fund | · Maximises opportunity through long-term capital growth
· Holds significant portion through mix of large/medium sized company equities |
Aggressive | 75%-100% | 0%-25% | 0%-25% |
| Frontline Equity Fund | Aims for long term capital growth through holding significant portion in large sized company equities | Aggressive | 60%-100% | 0%-40% | 0%-40% |
| Balanced Fund | Focuses on moderate growth by holding mix of equities and fixed interest instrument | Moderate | 30%-60% | 20%-70% | 0%-40% |
| Dynamic Bond Fund | Preserves capital by investing in high quality corporate bonds and generating higher fixed returns | Conservative | – | 60%-100% | 0%-40% |
| Dynamic Floating Rate Fund | Minimises the interest rate risk by investing in floating rate debt instruments
|
Conservative | – | 60%-100% | 0%-40% |
| Dynamic Gift Fund | Aims to provide safety to capital by investing in Govt. securities | Conservative | – | 80%-100% | 0%-20% |
| Monet Market Fund | · Protects capital
· No downside risks |
Secure | – | – | 100% |
Important Aspects
It makes sense to understand the important points under the Kotak Life child plan so that you don’t get to miss any important aspect. Let us look at some of them:
- Partial withdrawal is allowed after the completion of five policy years,subject to a minimum amount of Rs. 10,000
- After the death claim, policy will be continued and fund value will be paid to the beneficiary on maturity
- Switch between funds option is available for the policyholder to maximise the returns
- First four switches between various funds are free in a year
Advantages of Buying Kotak Life Child Plan
- Policyholder can decide the discontinuance of the policy, in case of unforeseen financial emergency.The insured can discontinue the policy before the 5th year, otherwise, will attract discontinuance charges.
- The premium paid for the policy and the returns give tax benefits under Sections 80C and 10(10D) of the Income Tax Act 1961.
- Beneficiary gets triple protection on the death of the insured – beneficiary is paid the life cover amount immediately to compensate the loss of income, future premiums are waived off and is fully paid by Kotak Life Insurance, policy will continue and the beneficiary will receive the fund value of the policy at maturity.
FAQs
Q1. How can we structure our financial planning?
An individual can structure the financial planning by following 4 simple steps mentioned below:
Step 1: Decide the amount you want to save on yearly or half yearly basis
Step 2: Plan for the term of policy depending on your child’s dream
Step 3: Opt for life cover i.e. Sum Assured according to your existing insurance cover
Step 4: Select your fund option
Q2. How can we check the Unit Statement?
A policyholder can check the Unit Statement on the Online Policy Manager (OPM) using the link-https: //customer.kotaklifeinsurance.com/CP/Loginopm.aspx. For viewing the statement, the policyholder needs to get registered on Online Policy Manager to generate the Login ID and Password.
Q3. What are the modes of payment of premium?
A policyholder can make payment of premium through following modes:
- Cash/Cheque payment at Branch
- Payment at Kotak Bank ATM drop boxes
- NEFT
- RTGS
- ECS
- IMPS
Postal Money Order