Kotak Child Advantage Plan

Features of the Kotak Child Advantage Plan

The features of the Kotak Child Advantage Plan are:

• It is a child insurance plan where the life of your child is insured.

• This plan helps your child to save up money for the future. 

• This plan invests your paid premium in various financial instruments (as per the IRDA regulations.).

• In this plan, the money that is saved or the money that is invested in various financial instruments is accumulated in an "Accumulation Account."

• This plan also provides the option of two additional riders. 

• Bonuses that are declared in the Kotak Child Advantage Plan are credited to your accumulation account.

• If the parent dies within the policy tenure, the policy continues since the child's life is insured.

• This plan provides Life Guardian Benefit rider. With this additional rider, if the parent dies within the policy tenure, then the premiums are paid by the insurance company.  

• Unfortunately, if the child passes away within the policy tenure, then the insurance company will pay the death benefit to the parents.

• If the child survives till the maturity of the policy, then the maturity benefit is paid.

• Kotak Accidental Disability Guardian Benefit (ADGB) – If the parents, unfortunately, become disabled due to an accident, the insurance company will pay the remaining premiums.

Benefits of the Kotak Child Advantage Plan

The benefits of the Kotak Child Advantage Plan are:

• Income Tax Benefit – Premiums paid up to Rs.1,50,000 are exempt from your taxable income under Section 80C of the IT Act. The sum assured amount, and any paid bonus received on policy maturity or surrender or also on the insured's death are entirely tax-free for the beneficiary. The benefits are available under Section 10(10D) of the IT Act. 

• Savings for the Future – The premiums invested in multiple financial instruments are beneficial for the child's future. This money will be helpful for the child for his/her higher educations since college fees nowadays have skyrocketed to lakhs and even higher for abroad colleges. This money can also help her/him to achieve his/her goals and dreams.

• Death Benefit – 

• If the child's parents pass away within the policy tenure, then the policy does not get terminated since the child's life is insured. However, if add on "Life Guardian Benefit rider" was added to the existing policy, then the insurance company would pay the rest of the premiums.

• Suppose the child passes away within the policy tenure, and if the child was 18 years old or more, or if the policy was active for 5 years. In that case, the death benefit will be either sum assured or the sum accumulated in the accumulation account. It is higher of the two amounts as on the date the child passed away.

• Suppose the death occurs and the child's age was less than 18 years, and if the policy was active for less than 5 years. In that case, the death benefit paid would be either the surrender value at that time or the total of all premiums paid (excluding rider premiums), whichever is higher.

• Maturity Benefit – On maturity, the amount paid is higher than the sum assured or accumulated in the "Accumulation Account." This account has all your premiums and your various investments accumulated.

• The Benefit of Getting Loans – If your Kotak Child Advantage Plan policy has been in force for more than 3 years, you can get a loan facility from Kotak Life Insurance against your policy.

Advantages of Kotak Child Advantage Plan

The advantages of your Kotak Child Advantage Plan are:

• Long-Term Investment – This plan promotes long-term investment for your child. The compound interest works better if your investing horizon is long-term. This compounding can help you to generate a large amount of sum at maturity for your child.
  Bonuses – You pay premiums after deducting all the policy charges are credited in the Accumulation Account, and that amount is invested as per IRDA regulations. The bonuses declared are also credited to this account.
  This money in your Accumulation Account is strategically invested into various financial instruments and assets by investment managers in the insurance company. They ensure that your money grows and compounds and that you get a high rate of return.

• Wavier of Premium – This policy provides two optional riders, Kotak Accidental Disability Guardian Benefit (ADGB), and Kotak Life Guardian Benefit (LGB), which help the policy remain in force in case of any unfortunate event that occurs to the parents.
  With Kotak Life Guardian Benefit (LGB), if the parent dies within the policy tenure, then the premiums are paid by the insurance company.
  With Kotak Accidental Disability Guardian Benefit (ADGB), if the parents become disabled, then the premiums that are remaining will be given by the insurer on behalf of the parents.
  Thus, the additional riders can strengthen your existing policy, give you peace of mind, and help to secure your child's future.

• Automatic Cover Maintenance (ACM) – If you miss some premium payments, Automatic Cover Maintenance ensures that your policy remains in force. This facility is provided after the premium for the first three years is fully paid.

Eligibility for Kotak Child Advantage Plan?

How to Buy the Kotak Child Advantage Plan?

You can buy this policy online by visiting the official website of Kotak life insurance. You can also buy from online third-party brokers and distributors by visiting their websites. 

Otherwise, you can buy this policy offline by visiting a nearby Kotak Mahindra Bank branch. You can walk into the branch and talk to the policy experts over there, and they will guide you through the whole process of buying the policy and with premium payments.

Why Should You Invest in this Plan?

The Kotak Child Advantage Plan builds a healthy habit of investing and saving. This helps you to invest your money systematically and consistently. Your premiums are strategically invested in different financial instruments to maximize your returns as much as possible. This will help your child get a large sum of money at maturity, which can be used to fulfill his/her dreams and wishes.

Terms and Conditions for Kotak Child Advantage Plan

• Grace Period – This policy has a grace period of 30 days from the due date for payment of premium for the yearly and half-yearly frequency of payments and 15 days for the monthly mode.

• Policy Lapse – If the premiums for the first three years are not paid within the grace period, then the policy and the rider benefits will lapse from the unpaid premium's due date, and no benefits will be payable to the insured.

• Policy Revival – If the policy has lapsed, it still can be revived within 2 years from the date of the first unpaid premium. To revive you have to make payments of the premiums along with interest on such terms and conditions as fixed by the company.

• Surrender – On completing 3 policy years and paying all the premiums for the three years, your policy will acquire a guaranteed surrender value. 

The Guaranteed Surrender Value will be 30% of all premiums paid to date, excluding the first year's premium, extra premiums, and also rider premiums. 

The value of the bonus will also be included in the guaranteed surrender value. The Insurance Company may pay you a Special Surrender Value, which will not be less than the Guaranteed Surrender Value.

• Free-Look Period – This policy offers the policyholders 15 days of freelook period from the date of receipt of the policy where the policyholder can decide to return the policy within 15 days of receipt if he/she is not comfortable with any of the terms and conditions of the plan. 

• General Exclusion - In case the life insured commits suicide within one year of the policy's date of issue, the policy will be void, and no benefits will be paid.

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