Kotak Headstart Child Assure Plan and Policy - As a responsible individual, you would want to provide the best of things to your children without compromising on your dignity. In this day and age of rising prices and overall inflation, you need to think beyond merely saving your hard-earned money. You would, therefore, do well to invest wisely in financial instruments which ensure that your children’s education is not jeopardized in the event of your unfortunate death. You can opt for one of the popular kotak Life child plans in India – the Kotak Headstart Child Assure Plan, a unit-linked insurance plan (ULIP). By opting for this plan, you can build a corpus to fund for your children's expenses sans worries. Under this plan, if the life insured dies, the nominee will get the triple benefit as listed below:
- Basic sum assured is paid immediately
- All future premiums will be added to the fund value
- The policy will continue. Fund value will be paid at maturity
Eligibility - Kotak Headstart Child Assure Plan
Entry Age |
18 to 60 years |
Policy Term |
10, 15 to 25 years |
Key Features - Kotak Headstart Child Assure Plan
Type |
Unit-linked non-participating endowment plan |
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Minimum Sum Assured |
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Coverage |
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Premium range |
Minimum Regular and 10 PPT Yearly - Rs.20,000 p.a; half-yearly - Rs.10,000 5 PPT Yearly - Rs.50,000 p.a; half-yearly - Rs.25,000 Maximum: No limit |
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Premium paying term |
Regular 10, 15 to 25 years (equal to the policy term) Limited 5 years for policy term 10 years 10 years for policy term of 15 to 25 years |
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Premium paying frequency |
Annual and half-yearly |
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Loan |
Not available under this plan |
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Freelook period |
Customers can return the policy within 15 days from the date of receipt of policy. |
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Grace period |
30 days from the due date of premium |
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Reinstatement |
This plan can be revived until the expiry of the notice period. Policyholders can revive a discontinued policy within 2 years from the date of discontinuance. |
Advantages - Kotak Headstart Child Assure Plan
Tax benefit |
This plan offers tax benefits under section 80C and section 10 (10D) of the IT Act, 1961 |
Settlement options |
This plan offers maturity proceeds in cash or selected instalments for up to five years after maturity. Customers have the following three options:
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Switching |
Policyholders can switch between fund options or change their future premium allocation according to the their investment objectives |
Funds |
This plan offers a wide range of funds suitable for all types of investors. Customers can invest in fund options depending on their risk appetite and build a corpus. A team of qualified managers handle the portfolio. The funds offered by this plan are listed below:
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Premium Payment - Kotak Headstart Child Assure Plan
Regular premium |
Minimum: Rs. 20,000 p.a |
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Limited premium payment |
5 years minimum: Rs. 50,000 10 years minimum: Rs. 20,000 |
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Premium allocation charge |
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How The Plan Works - Kotak Headstart Child Assure Plan
Abhishekh Sarma, a 33-year-old businessman opts for Kotak Headstart Child Assure Plan for a policy term and premium payment term of 20 years, sum assured of Rs.5 lakh and an annual premium of Rs. 50,000. Sarma selects the Frontline equity fund. The table below displays the fund value and death benefit.
Non-Guaranteed Benefits at 8% * |
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Years |
Age |
Fund Value (Rs) |
Death Benefit (Rs) |
Premium (Rs) |
10 |
45 |
6,27,220 |
1,628,320 |
5,00,000 |
15 |
50 |
1,120,000 |
1,870,000 |
7,50,000 |
20 |
55 |
1,788,510 |
10,00,000 |
*Net Yield is 6.06%
Kotak Child Life Insurance Plans and Policy |