Kotak Life Child Plan is a comprehensive financial solution with a focus on long-term savings and protection. This plan offers tailored benefits to secure your child's education, milestones, and aspirations.
Insurer pays premium in case of loss of life of parent
Create wealth for child’s aspirations
Tax Free maturity amount+
12+ plans available
Invest ₹10k/month your child will get ₹1 Cr Tax Free*
Kotak Life Child Plan is a life insurance policy designed to secure the financial future of your child. It provides a combination of insurance coverage and savings benefits to ensure your child's needs are fulfilled even in your absence.
The plan typically offers a lump sum payment in case of the policyholder's demise during the policy term, ensuring that your child's education, marriage, or other needs are taken care of. Additionally, it offers maturity benefits where a lump sum amount is paid to the child upon reaching a certain age, thus helping fulfil their future aspirations.
Kotak Life Child Plan offers the following key features:
Flexibility: Allows partial withdrawals from the 4th policy year onwards, providing access to funds for unforeseen expenses.
Top-up Option: This enables you to increase the investment in the plan if you have surplus funds, potentially boosting the final payout.
Redirection: Allows you to switch between different investment funds within the plan to potentially maximize returns based on market conditions.
Investment Flexibility: ULIPs allow you to invest a portion of your premium in chosen investment funds.
Tax Benefits: Premiums paid towards the policy qualify for tax deductions under Section 80C of the Income Tax Act, 1961, up to Rs. 1.5 lakh per year. Additionally, the maturity benefit is tax-exempt under Section 10(10D) of the Income Tax Act, subject to certain conditions.
Death Benefit: In case of the unfortunate demise of the policyholder during the policy term, the sum assured is paid to the nominee (usually the child). This helps secure the child's financial future even in the absence of a parent.
Waiver of Premium Benefit: This rider ensures that future premiums are waived off and even paid by the insurance company in case of the parent's death. This ensures the plan continues even if the policyholder is no longer there to pay the premiums.
Maturity Benefit: On policy maturity, the fund value, along with accrued bonuses (if any), is paid to the child. This helps them financially when they reach important milestones like higher education or marriage.
Optional Riders (additional cost): Waiver of Premium Rider on Disability: Waives off future premiums if the parent becomes permanently disabled due to an accident or illness, ensuring the plan continues.
Critical Illness Rider: Provides an additional payout in case the parent is diagnosed with a critical illness, offering financial support during a difficult time.
People also read: Sukanya Samriddhi Yojana
Kotak Life currently offers one child insurance plan, Kotak Headstart Child Assure Plan, which is a unit-linked child plan (ULIP).
Bharti AXA Child Plan | Entry Age | Maximum Maturity Age | Premium Payment Term (PPT) | Policy Term (PT) | Minimum Premium (in Rs.) | Tax Benefits u/ IT Act, 1961 |
Kotak Headstart Child Assure Plan | 18 – 60 years | 28 – 70 years | Regular: Same as PT; Limited: 10 Year PT: 5 years; 15 – 25 Year PPT: 10 years |
10 years, OR 15 – 25 years |
Regular: ₹20,000 p.a.; Limited: 5-Year PPT: ₹50,000 p.a. 10 Year PPT: ₹20,000 p.a. |
Section 80C and Section 10(10D) |
The key details of the Kotak Headstart Child Assure Plan, the only child education plan offered by Kotak Life Insurance, are mentioned below:
The Kotak Headstart Child Assure Plan is a Unit-Linked Child Insurance Plan offered by Kotak Life Insurance. It is a combination of protection and investment, providing financial security for your child in case of your death and helping you create wealth for their future needs.
Protection and Investment: This plan offers life insurance coverage for the parent and invests a portion of the premium in chosen funds to grow wealth for the child.
Triple Benefit: In case of the parent's death during the policy term, the plan provides:
Death benefit: The sum assured is paid to the child immediately.
Future premium waiver: All future premiums are waived off, and Kotak Life Insurance pays them.
Policy continuation: The policy continues to mature, and the child receives the accumulated fund value at maturity.
Maturity Benefit: On policy maturity, the child receives the fund value along with the sum assured. The maturity proceeds can be received as a lump sum or in installments.
Flexibility: The plan offers various options for premium payment terms, policy terms, and fund choices.
Partial Withdrawals: Partial withdrawals are allowed after five policy years, subject to a minimum amount.
People also read: Sukanya Samriddhi Yojana Calculator
The Kotak Life Child Plan is a great way to save and protect money for your child's future. It helps you set aside money for important things like education or marriage, giving you peace of mind. It is like a safety net for your child's dreams, ensuring they have the support they need to succeed.
†Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is based on past 10 years’ fund performance (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
*Please note that the quotes shown will be from our partners
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
#The lumpsum benefit is calculated if policyholder invested ₹10000 monthly for 10 years in the fund with a policy term of 20 years. This Point To Point past performance data of last 10 years has been used to illustrate a scenario for the customers benefit. It is assumed that the past 10 years returns would have also been delivered in last 20 years. This is not guaranteed and not in anyway indicative of what the customer may actually get 20 years from now. The investment is subject to market risk and the risk is borne by the policyholder.