Investment Plans 170 views June 28, 2021

Kotak Headstart Child Assure Plan

Kotak Headstart Child Assure is a unit-linked dual benefit plan that helps you secure your child’s future financial needs such as overseas studies, an entrepreneurial start-up, marriage, etc. Based on your risk-taking capacity, you can invest in any of the available funds as per your risk profile. Read this page further and know more about the Kotak Headstart Child Assure Plan.

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Kotak Headstart Child Assure Plan Life Cover

In case of the death of the life assured during the policy term, the insurer shall provide the following benefits to the beneficiary:

  1. Basic Sum Assured is paid immediately as on the date of death
  2. All future premium shall be waived off
  3. Policy Fund Value will be paid at maturity

The death benefit is payable to the beneficiary, provided you have paid all your premiums till the date of death. The minimum death benefit is subject to 105% of the total paid premiums. In case your policy is in a paid-up status, the Reduced Paid-Up Basic Sum Assured shall be paid immediately as a lump sum in case of death of the life assured.

Kotak Headstart Child Assure Plan Maturity Benefits

At maturity, you will receive the policy fund value through which you can meet the financial needs of your child. You can use a settlement option to receive the maturity benefits. To use the settlement option, you need to inform the insurer within 3 months of maturity of the policy. Under settlement options, you’ll get three options:

  1. To receive the entire maturity proceeds in a lump sum
  2. A part of the maturity proceeds as a lump sum and a part of it in installments
  3. Whole maturity proceeds in installments

At the end of the settlement period, the balance in the main account shall be paid in one lump sum and the policy terminates. You can receive maturity installments for a maximum of 5 years.

If you select the settlement option, the number of units will be liquidated to meet each payout depending on the respective fund’s NAVs as on the date of each payment. Partial withdrawals and switches are not allowed during the settlement period. And, the investment risk in the investment portfolio is borne by the policyholder during this period.

You can request pre-closure and receive the remaining maturity installments in one lump sum. If the fund value is insufficient to pay the desired amount of installment during the settlement period due to volatility in the market, the balance Fund Value will be paid to you and the policy will terminate immediately.

Note: Life cover and other benefits are not provided during the settlement period. In case of death of the life assured during the settlement period, the outstanding Fund Value shall be paid as a lump sum to the nominee.

Kotak Headstart Child Assure Plan Fund Options

You can choose to invest any of the following funds under this policy:

  1. Classic Opportunities Fund
  2. Frontline Equity Fund
  3. Balanced Fund
  4. Dynamic Bond Fund
  5. Dynamic Floating Rate Fund
  6. Dynamic Gilt Fund
  7. Money Market Fund

Kotak Headstart Child Assure Plan Partial Withdrawal Facility

You can do partial withdrawals after the completion of five policy years. The minimum amount for withdrawal is INR 10,000. After the partial withdrawal, the minimum balance should be equal to one annualized premium. Partial withdrawals won’t have any impact on the policy basic sum assured. For each partial withdrawal, the insurer will charge INR 500.

Kotak Headstart Child Assure Plan Eligibility Criteria

To purchase Kotak Headstart Child Assure Plan, you need to meet the following age criteria:

  1. Minimum Entry Age – 18 Years
  2. Minimum Entry Age – 60 Years

Note: The maximum age of an individual allowed till maturity is 28-70 years.

Kotak Headstart Child Assure Plan Premium Amount & Sum Assured Options

You’ll have the following policy term options – 10 years, 15-25 years. The minimum policy term will be greater than 10 and 18 minus the age of the beneficiary as on the date of the last birthday on the date of policy commencement. This ensures that the policy matures when the beneficiary has attained the age of majority. In case wherein beneficiary age lies between two available policy terms, the next higher policy term will be provided to you.

You’ll get the following premium payment option under this policy

  1. Regular Pay wherein the premium payment term is the same as the policy term
  2. Limited Pay, wherein you can choose to pay for 5 years (available with policy term 10 years) and 10 years (available with policy term 15 to 25 years)

Child Assure Plan’s minimum premium amount is as follows:

  1.  Regular Pay – INR 20,000 per annum
  2. For a 5-year Limited Pay – INR 50,000 per annum
  3. For a 10-year Limited Pay – INR 20,000 per annum

You can choose to pay your premium yearly or half-yearly.

The minimum basic sum assured under this policy is as follows:

For Entry Age < 45 Years

The basic sum assured is higher of

  1. 10 X Annualized Premium
  2. 0.5 X Policy Term X Annualized Premium

For Entry Age > 45 Years

The basic sum assured is higher of

  1. 7 X Annualized Premium
  2. 0.25 X Policy Term X Annualized Premium

The minimum basic sum assured is 25 X Annualized Premium.

Free Look Period

You will have 15 days of free look period from the date of receipt of the policy wherein you can read the terms and conditions of the policy and can return the same if it is not agreeable. If you return the policy during the free look period, you will be entitled to an amount equal to the non-allocated premium plus charges levied by the cancellation of units plus fund value as on the date of cancellation less expenses in accordance with the Insurance Regulatory and Development Authority of India (IRDAI).

In case you have purchased this policy through distance marketing modes:

  1. Voice mode, such as telephone calls
  2. Short Messaging Service (SMS)
  3. Electronic modes such as email, internet and interactive television (DTH)
  4. Physical modes such as direct postal mail and newspaper & magazine inserts
  5. Solicitation through any means of communication other than in person

The free look period will be 30 days instead of 15 days from the date of receipt of the policy.

Suicide Clause

If you commit suicide within one year from the date of issuance of the policy, the Basic Sum Assured and Premium Waiver shall not be payable and only the Fund Value as on date of death is given to the nominee. In case you commit suicide within one year from the date of revival of the policy, provided the revival is done within 6 months from the date of discontinuance, the suicide clause shall not apply and the Death Benefit shall be payable to the nominee. However, if you commit suicide within one year from the date of revival, provided the revival is done after 6 months from the date of discontinuance, only the fund value as on the date of death is payable to the nominee.

Note: Any charges recovered after the date of death shall also be payable.

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