Kotak Headstart Child Assure Plan
Kotak Headstart Child Assure Plan
Kotak Headstart Child Assure Plan is a unit linked insurance plan (ULIP) for the benefit of a child, where the parent is the Life Insured. In this plan if the Life Insured, i.e. the parent dies within the policy tenure, the nominee, i.e. the child would receive the higher of Sum Assured or 105% of all premiums paid till date as Death Benefit to address the immediate needs of the family. The future premiums would also be paid by the company such that the Fund Value would also be paid out on maturity of the policy. Hence the Fund Value would be paid out in all circumstances.
Key Features
Death Benefit is higher of Sum Assured or 105% of all premiums paid and future premiums are waived off to pay Maturity Benefit as well.
Maturity Benefit is Fund Value which is payable when the Policy Term ends.
This policy has 1 inbuilt rider namely Premium Waiver Benefit rider.
This policy has 4 additional riders available with this plan
There are 8 funds for investment purpose
Premium = Rs. 50,000
Sum Assured = Rs 5,00,000
Age of Parent = 35 years
Policy Term = 20 years
Premium Paying Term = 20 years
Total Investment = Rs 50,000 X 20 years = Rs 10,00,000
Benefits
In case of death of the Life Insured, the Nominee would get the higher of the Sum Assured or 105% of all premiums paid till date. The future premiums would be waived off and be paid by the company to continue the plan till the end and the Fund Value would also be paid whenever due.
On maturity, the Fund Value is paid to the policyholder.
Life Insurance premiums paid up to Rs. 1,50,000 are allowed as a deduction from the taxable income each year under section 80C
There is 1 in-built rider available with this plan:
- Premium Waiver Benefit rider.
And 4 Additional Riders:
- Accidental Death Benefit
- Permanent Disability Benefit
- Critical Illness Benefit
- Accidental Disability Guardian Benefit - Future unpaid premiums waived on accidental disability
Investment Fund Options
There are 8 Investment Funds available
- Classic Opportunities Fund
- Frontline Equity Fund
- Balanced Fund
- Dynamic Floor Fund II
- Bond Fund
- Floating Rate Fund
- Gilt Fund
- Money Market Fund
First 4 switches in a year are free of cost.
Partial withdrawals are allowed only after completion of 5 policy years. Minimum Amount for Partial Withdrawal is Rs 10,000 such that at least 1 years’ Annual Premium remains in the fund after withdrawal.
Eligibility
|
Minimum |
Maximum |
|
|
Sum Assured (in Rs.) |
For age<45 yrs, Higher of (10 X AP) or (½ X T X AP) For age>=45 yrs, Higher of (7 X AP) or ¼ X T X AP) |
No Limit |
|
Policy Term (in years) |
10 |
20 |
|
Premium Payment Term (in years) |
PPT= 5 years for PT= 10 yrs PPT= 10 years for PT= 15 to 25 yrs |
20 |
|
Entry Age of Parent (in years) |
18 |
60 |
|
Age at Maturity of Parent (in years) |
28 |
70 |
|
Single Premium (in Rs.) |
NA |
NA |
|
Payment modes |
Yearly and Half-Yearly |
|
FAQs
What happen if you stop paying the premium before 5 years ?If the policy holder stops paying the premium, the insurance cover will cease and the fund value net of any discontinuance charge will be transferred to the Discontinued Policy Fund. The Discontinued Policy Fund will be credited with a minimum interest rate of 3.5% p.a. and the proceeds from this will be payable after the fifth policy anniversary. In case of death of the Life Assured during this period, only the accumulated fund value will be payable to the nominee. It can also be revived. Before 5 years, the discontinuation charge is applicable.
What happen if you stop paying the premium after 5 years ?If the policy holder stops paying the premium after 5 years, then the accumulated policy fund amount till the date of discontinuance shall be paid to the policy holder and the policy will terminate immediately.
What happen if you want to surrender the policy ?If the policy holder wants to surrender the policy before completing 5 years, then the insurance cover will cease and the fund value net of any discontinuance charge will be transferred to the Discontinued Policy Fund. The Discontinued Policy Fund will be credited with a minimum interest rate of 3.5% p.a. and the proceeds from this will be payable after the fifth policy anniversary. In case of death of the Life Assured during this period, only the accumulated fund value will be payable to the nominee.
If the policyholder surrenders the policy after completion of 5 policy years, then the insurance cover will cease and your fund value shall be paid immediately and the policy would be terminated.
What happen if you want a loan against your policy ?There is loan available under this plan.
