Kotak Child Future Plan

Kotak Child Future Plan is a Money Back Child Plan, which helps to pay expenses of the child’s higher education and helps the child to set a solid threshold for stepping into the future.

In this plan, premium needs to be paid for a fixed period of 10 years. However, the returns start when the child is 23 years old. 15% of the Sum Assured is paid when the child is 23 years old and requires some amount of money for higher educational expenses. On Policy Maturity, i.e. when the child is 25 years old 110% of the Sum Assured + accrued Bonuses would be paid as Maturity Benefit. Since the money is returned in a staggered but pre-decided form, this plan qualifies to be a Money Back Plan.

However, if the parent dies 200% of the Sum Assured would be paid in a lumpsum to take care of immediate expenses and future premiums are waived and paid by the insurer to ensure that the policy continues to pay the survival benefits for the child’s educational purposes. Accidental Disability Benefit is inbuilt with this plan.

Additional riders can also be opted for to enhance the protection level. Hence this is an overall protection plan to ensure that the child’s higher education costs are covered under all circumstances. This plan also provides a strong stepping stone to the child for the future.

• This is a simple Money Back Child Plan.
• Reversionary Bonus + Terminal Bonus + Future Reversionary Bonuses are payable on Policy Maturity.
• Survival Benefit of 15 % of Sum Assured is payable when the child is 23 years old.
• A Maturity Benefit of 110% of the Sum Assured is payable when the child is 25 years old.
• Thrice Death Benefit is payable in this plan- 200% of Sum Assured would be paid immediately on death + Future Premiums waived off + Future Benefits and Bonuses to be payable.
• Optional higher cover through Riders.
• Large Sum Assured Discount is also payable in this plan.
• Parent, Grandparent or any other suitable relative can avail this plan for the benefit of the concerned child. 

Death Benefit – In case of death of the Life Insured, the nominee

§  200% of Sum Assured would be paid immediately on death +

§  Future Premiums waived off  and paid by the insurer+

§  Survival Benefits to be payable +

§  Reversionary Bonus + Terminal Bonus + Future Reversionary Bonus would be payable

Survival Benefit – The Life Insured would receive the 15% of the Sum Assured as Survival Benefit when the child is 23 years old.

Maturity Benefit – At the maturity of the policy, i.e. when the child is 25 years old, the Life Insured will get 110% of the Sum Assured + accrued Reversionary Bonus + Terminal Bonus + Future Reversionary Bonus.

Income Tax Benefit – Premiums paid under life insurance policy are exempted from tax under Section 80 C and maturity proceeds are exempted from tax under Section 10 (10D)

The below illustration is for a healthy Male (non-tobacco user) opting for a

Age of Child = 11 years

Sum Assured = Rs 2,00,000

Policy Term = 25 years – entry age of child.

Riders - There are 3 additional riders available in this plan

§  Term Benefit/ Preferred Term Benefit

§  Accidental Death Benefit

§  Permanent Disability Benefit

And 2 in built riders

§  Premium Waiver Benefit

§  Accidental Disability Benefit

You stop paying the premium – If you stop paying the premiums after 3 policy years, the policy acquires a Paid Up Value for a Reduced Sum Assured.

You want to surrender the policy – There is a Guaranteed Surrender Value after 3 policy years
Guaranteed Surrender Value = 30% of all premiums paid – 1st year’s premium

You want a loan against your policy – Loan facility is available under this policy

LIC Komal Jeevan Plan

ICICI Prudential Cash Back Plan

SBI Life Smart Scholar Plan

Kotak Child Edu Plan

Kotak Child Advantage Plan

Kotak Headstart Child Assure Plan