KOTAK LIFE INSURANCE
PLAN TO PROTECT YOUR FAMILY IN A RIGHT WAY, WITH RIGHT CHOICE

Child Advantage Plan

Insurence can be taken on the lives of their childeren, who are not majors. The proposal will have to be made by the parents or a guardian.Covers the future financial needs of your child. when the nominee is minor, an appointee should be appointed by the policyholde. the appointee must affix his signature to the endorsement either in the proposal form or on the text of the policy in token of his savings.

when their is no appointee the claim amount under the policy, cannot be paid to the guardian appointed or natural it can be paid only to legal heirs. if the nominees are more than one the policy amount payableto them jointly or to the survivor or the survivors. A plan of aazadi to realize your Child’s dreams. Maturity benefits + bonus on the assured sum , Financial accumulation, life guardian benefits. Accident Disability of Guardian Benefits.

What are the advantages of this plan?"

  • On Maturity, you would receive the sum assured plus the bonus addition. Bonus addition is the amount in the Accumulation Account*, in excess of the sum assured.
  • The balance available in the Accumulation Account is invested in various financial instruments (as per IRDA regulations) so your money works hard to earn more for your child.
  • The Automatic Cover Maintenance facility ensures the policy remains in force even if you miss premium payments. This facility is available after the first three years of the Term.
  • You can take a loan against this plan, after the policy has been in force for at least three years.
  • You have the option of paying premiums quarterly, half yearly or yearly.

Who can avail of this plan?
How old does the child have to be to avail of this plan?
Minimum age - 0 years
Maximum age -17 years

For what term can I avail of this plan?
10 - 30 years

What is the maximum sum assured or allowed under this plan?
Rs.25,00,000

What value-adds can you opt for?
You may avail of these value adds for a nominal premium at the time of taking the plan. The aggregate premium of the value-adds should not exceed 30% of the basic policy premium.

Life Guardian Benefit: In case of the unfortunate death of the premium payer, this benefit keeps the policy alive by waiving all future premiums on the policy.

Accidental Disability Guardian Benefit: In case the premium payer is permanently disabled as a result of accident, this benefit keeps the policy alive by waiving all future premiums on the policy.

Are there any Tax Benefits?
Section 80C, 10(10D) of Income Tax Act, 1961 would apply. You are advised to consult your tax advisor for details.

* Please consult your tax advisor for details

Description Premium
Kotak Child Advantage Plan Premium 31,857

Life Guardian Benefit Premium 1,225

Accidental Disability Guardian Benefit Premium 155

Total Annual Premium Paid 33,237

i) What would be the payout on maturity of the plan?
Assuming that the Accumulation Account grows at 6%p.a., the maturity amount would be Rs. 6,34,800 at the end of 15 years. At a growth rate of 10%, the maturity amount payable would be Rs. 8,82,100.

ii) In the unfortunate event of the death/ disability of the parent (premium payer), what would the beneficiary receive?
Mr.Gupta has taken the benefit of waiver of premium by paying a minimal additional amount of Rs.1,380 per year. In the event of Mr.Gupta’s death or accidental disability, future premiums payable on his son’s policy will be waived and the policy will continue to be in force. On maturity the beneficiary would get the sum assured of Rs.5,00,000 along with bonuses accrued during the term of the policy (as discussed in (i) above).

In the illustration, some benefits are guaranteed and some are variable. Guaranteed Returns are marked "guaranteed" in the illustration. Variable returns are shown at two different rates of assumed future returns. These assumed rates of return are not guaranteed and they are not the upper or lower limits of what you might get back .The actual return may be different depending on a number of factors including future investment performance.

What happens in the event of death of the life insured?
In the event of the unfortunate death of the insured during the term of the plan, the following would become payable:

If the policy has been in force for five years or if the life insured is at least 18 years old, the beneficiary will receive either the Sum Assured or Accumulation Account whichever is higher, as on the date of death.
If the death occurs within five years from commencement of policy and if the insured is less than 18 years old, the death benefit would be either the total of all premiums paid so far or the surrender value at that time, whichever is higher.

General exclusion
  1. In case the life insured commits suicide within 1 (one) year of the plan, no benefits outlined in the plan would be payable.
  2. No claim under the Kotak Life Guardian Benefit would be admitted if, within one year of the date of issue of this policy, the premium payer commits suicide, whether being sane or insane at the time of committing suicide.
No claim under the Kotak Accidental Disability Guardian Benefit would be admissible in the following circumstances:
  1. The premium payer suffers from self-inflicted injuries, attempt to suicide, insanity, immorality, committing any breach of law or being under the influence of drugs, liquor etc.
  2. Where the premium payer is engaged in aviation or aeronautics other than as a passenger on a licensed commercial aircraft operating on a scheduled route.
  3. The premium payer suffers injuries from war (whether war is declared or not), invasion, hunting, mountaineering, motor racing of any kind, other dangerous hobbies or activities, or having been on duty in military, para-military, security or police organization.

Prohibition of Rebates

Section 41 of the Insurance Act, 1938 states: -

(a) No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take out or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any person taking out or renewing or continuing a policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectuses or tables of the insurer.

(b)Any person making default in complying with the provision of this section shall be punishable with fine, which may extend to five hundred rupees.

Kotak Life assures you of a cost effective fund management for you and your employees’ benefit in a transparent and simplistic manner without any hidden costs!
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