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 of Kotak Headstart Child Assure Plan

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Benefits you get from Kotak Headstart Child Assure Plan

Death Benefit – 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.

Maturity Benefit – On maturity, the Fund Value is paid to the policyholder.

Income Tax Benefit - Life Insurance premiums paid up to Rs. 1,50,000 are allowed as a deduction from the taxable income each year under section 80C

 

Eligibility conditions and other restrictions in Kotak Headstart Child Assure Plan

	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

 

 

Sample illustration of returns in Kotak Headstart Child Assure Plan

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

 

Additional Features and Benefits of Kotak Headstart Child Assure Plan

Riders – 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

1.     Classic Opportunities Fund

2.     Frontline Equity Fund

3.     Balanced Fund

4.     Dynamic Floor Fund II

5.     Bond Fund

6.     Floating Rate Fund

7.     Gilt Fund

8.     Money Market Fund

Switching - First 4 switches in a year are free of cost.

Partial Withdrawal - 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.

 

               

What happens 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.

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.

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.

You want a loan against your policy - There is loan available under this plan.