Investment Plans 389 views January 8, 2022

Ensuring the best for your children through a perfect investment plan must be at the top of your mind. But choosing that would require analyzing the options available and checking which meets the purpose the best way. Amongst the options, we’ve put before you is – Kotak Headstart Future Protect, a unit-linked insurance product, which helps secure your children’s future financial needs. Let’s Take a Glance at its key features before going any further.

  • Death benefit
  • Maturity benefit
  • Rider options
  • Seven fund options
  • Partial withdrawal facility

Read all these benefits in detail and see whether they fulfill your needs.

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What Benefits Do You Get From the Kotak Headstart Future Protect?

The insurance company will provide you and your children the following benefits –

Maturity Benefit

Upon survival till the maturity date, you will get the fund value either in a lump sum or via installments for five years in pre-specified installments – yearly, half-yearly, quarterly, or monthly. You can easily withdraw money from your account via an ATM if you have a Kotak Bank account.

Double Payout Upon the death of the Life Assured

Kotak Headstart Future Protect ensures no financial loss, in case of your death, by paying your nominee 100% of the sum assured amount. Plus, the basic premium multiplied by the number of outstanding premiums will be available immediately or in equal installments – semi-annually – over five years.

In the case of joint life, if the primary life assured dies, the company pays the following –

  • Basic premium x number of outstanding installments goes into a fund pre-selected by the primary life assured
  • Fund balance continues and is payable to the child at maturity

Note – Post-death, there won’t be any liability to pay the premium.

If both the life assured die, 100% of the sum assured is payable immediately and the fund balance is available immediately or in equal installments – semi-annually- over 5 years.

Rider Coverage

You can add any of the following riders to this policy

Critical Illness – Up to 75% of the sum assured is payable on the admission of a claim

Permanent Total Disability – If you are disabled due to an accident, you can get installments

Accidental Death – Your nominee gets a lump sum benefit on your death due to an accident

For the above riders, the respective charges will be recovered by the cancellation of units monthly. The company reserves the right to impose charges not beyond the level mentioned below:

  • Administration charges not more than 5% per annum
  • Fund management charge up to 40%
  • Switching and withdrawal charges increased up to INR 1,000
  • Any increase in charges will be effective after the Insurance and Regulatory Development Authority of India (IRDAI) approves the same

Investment Options for You Under the Kotak Headstart Future Protect Plan

You can invest your money in any of the below funds of your choice –

FundObjective
Kotak Aggressive GrowthA high level of capital growth is provided by investing a significant portion of money in equity instruments, subject to 60-100%.
Kotak Dynamic GrowthYou may experience high levels of shorter-term volatility under this fund, but you’ll get capital appreciation via investments in equity, debt and money-market instruments. Here, 40-80% of the money is in equity, and 0-40% and 0-20% in debt and cash/money-market instruments, respectively.
Kotak Dynamic BalancedGet moderate growth of income through a diversified mix of equities and fixed interest instruments. Your 30-60% of the money is in equity, and 20-70% and 0-20% in debt and cash/money-market instruments, respectively.
Kotak Dynamic FloorFor a long-term return, your money will be invested in the following manner -
0-75% in equity
0-100% in debt
0-20% in cash/money-market instruments
Kotak Dynamic Bond Your earned returns will be in line with those of fixed-interest instruments to ensure protection against unexpected inflation increase during the policy term.
Kotak Dynamic Floating Rate
Kotak Dynamic GiltProtect your capital and minimize downside risk by investing in debt and government instruments.
Kotak Dynamic Money MarketYour money is invested in cash and money-market instrument to protect capital and lower downside risks

Kotak Headstart Future Protect Partial Withdrawals

From the fourth policy year onwards, you can do withdrawals, provided the fund value remains a minimum of INR 25,000 at that time. First, withdrawals are made from the qualifying top-up accounts (if any).

Kotak Headstart Future Protect Policy Term & Premium Payment Options

You can get coverage under the Kotak Headstart Future Protect for the following years –

  • Minimum – 10 years or 18 – child’s age (whichever is greater)
  • Maximum – 25 years

The premium payment term is regular and limited pay. For limited pay plans, the following options are available –

  • 3 years
  • 4 years
  • 5 years
  • 6 years
  • 7 years
  • 8 years
  • 9 years
  • 10 years

The minimum premium amount is INR 25,000 p.a. for a payment term of 4 to 10 years and INR 50,000 p.a. for a payment term of 3 years. For regular pay, the minimum premium amount is INR 15,000.

Eligibility Criteria for Kotak Headstart Future Protect

You can get this ULIP Plan upon meeting the following age criteria –

  • Entry Age – Minimum – 18 years and maximum – 60 years
  • Maturity Age – Minimum – 18 years for the beneficiary and maximum 70 years for the policyholder

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