Kotak Child Advantage Plan

Kotak Child Advantage Plan is a Traditional Participating Child Plan. In this plan, the life of the Child is insured and it helps to save up for the child’s future requirement like higher education, wedding, etc.

The premiums paid, after deduction of charges, are credited in the Accumulation Account and invested as per IRDA norms. Since this is a participating plan, i.e. with Bonus facility, the returns as per declared (i.e. Bonus) are credited to the Accumulation Account. If the parent dies within the policy tenure, the policy continues since the life of the child is insured. However, if Life Guardian Benefit rider has been taken, then the premiums are paid by the company. However if the child dies within the policy tenure, then the Death Benefit is paid and the policy is terminated. If the child survives till the policy maturity, higher of Sum Assured or Accumulation Amount is paid as Maturity Benefit.

• This is  a Traditional Child Plan where the life of the child is insured.
• The Death or the Maturity Benefit is the higher of Sum Assured or Accumulation Amount.
• Accumulation Account = Amount invested in various financial instruments (as per IRDA regulations).
• This plan provides for Automatic Cover Maintenance facility which ensures that the policy remains in force even if you miss premium payments after the first 3 year premiums have been paid.
• There are 2 additional riders with this plan.
• Bonus is available with this plan. 

Death Benefit –

·         In case of death of the parent, the policy continues since the child is the Life Insured. However, if the Life Guardian Benefit rider has been opted for, the future premiums would be paid by the Insurance Company

·         In case of death of the child, within the policy tenure

o    And if the policy has been in force for 5 years or if the child is >= 18 years of age, the Death Benefit =Higher of (Sum Assured) OR (Accumulation Account) as on the date of death.

o    And if the death occurs within five years from commencement of policy and if the child is <18 years of age, the Death Benefit = Higher of (Total of premiums paid till date) OR (Surrender Value)

Maturity Benefit – On maturity the higher of the Sum Assured or the Accumulation Account will be paid

Income Tax Benefit - Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C

Age of Child = 5 years, 10 years and 15 years respectively

Policy Term = 25 years

Sum Assured= Rs.5,00,000

Riders – There are 2 additional riders available with this policy. The Waiver of Premium Benefit is provided in case of any unforeseen event if any of the 2 riders have been opted for:

1.     Kotak Life Guardian Benefit (LGB) and

2.     Kotak Accidental Disability Guardian Benefit (ADGB)

You stop paying the premium – The policy will lapse if the premium stops. However, it can be revived within 3 years from the first unpaid premium. However, it can be revived within 2 years from the date of first unpaid premium.

You want to surrender the policy – If premiums for 3 years have been paid up, then surrender of policy is allowed.

Guaranteed Surrender Value = 30% of basic premiums paid – 1st year’s premium and additional premium paid (if any).

You want a loan against your policy - There is Loan available under this plan after 3 policy years.

BSLI Bachat (Child) Plan

DLF Pramerica Rakshak

ICICI Prudential Smart Kid

Kotak Headstart Child Assure Plan