Kotak Life Child Plans
Kotak Mahindra Life Insurance Company Limited is a joint venture undertaken by Kotak Mahindra Bank Ltd. It is one of India’s leading financial service providers which offers a host of products specifically designed and customized to meet the individual needs of all its customers. The company offers various insurance plans.
What are Child Plans?
Specialized plans meant to provide for the financial safety of the future of the child are called child plan. An individual buys this plan to plan for and secure his child’s future against any unfortunate contingency, namely his death.
Companies offering these plans sell the plans covering the life of either of the parent. Some companies also offer child plans covering the life of the child. The plan boasts of having an inbuilt feature where the premiums payable will be waived off and even paid by the company in the event of death of the parent since he cannot pay the subsequent premiums. This feature ensures that the plan bought with the safety of the child’s future in mind is not disrupted because of any unforeseen event. On death, a benefit will be paid and the plan will continue. On maturity another specified benefit will be paid to take care of the child’s financial requirements.
Kotak Child Plans
Kotak Life Insurance Company offers one type of child insurance plan called the Kotak Headstart Child Assure Plan. The plan promises multiple benefits and comes loaded with great features. The plan with its complete set of characteristics is described below:
Kotak Headstart Child Assure Plan
This is a unit linked child insurance plan which protects the child’s future against untimely death of the parent by providing financial assistance. Notable elements of the plan are highlighted as under:
- Premiums for the plan are required to be paid either for the entire period of the plan through the Regular Pay option of premium payment or for a limited period under the Limited Pay option of paying the premium
- The premiums paid net of charges can be invested in a choice of seven funds available with the company at the discretion of the policyholder. The funds are Classic Opportunities Fund, Frontline Equity Fund, Balanced Fund, Dynamic Bond Fund, Dynamic Floating Rate Fund, Dynamic Gilt Fund and Money Market Fund
- If the insured dies when the plan is continuing, the Sum Assured and the Fund Value is immediately paid to the nominee provided that the minimum value should not be lower than 105% of the premiums which were paid before death. Future premiums will be credited by the company in the fund value. On maturity, the available fund value is paid
- On maturity, the Fund Value is paid and the policyholder can take it either in lump sum on maturity or in instalments post maturity over 5 years under the Settlement Option.
- Four switches are allowed annuallywhich are free to change between the funds
- Partial withdrawals are allowed after policy completes 5 years subject to a minimum amount of Rs.10, 000
- Premium redirection facility is available to redirect future premiums into a choice of another fund
- The premiums you pay for buying the plan will not be taxed as they are exempt as per the provisions of Section 80C
Regular pay - Rs.20, 000
5 Pay – Rs.50, 000
10 Pay – Rs.20, 000
Higher of 10 or 7 times the annual premium or 0.5/0.25*term*annual premium
Premium Payment Term
Equal to policy tenure or 5 or 10 years
Premium paying Frequency
Yearly or half-yearly
Applying for a Child Plan from the company:
The company offers specific plans which are available online only. The customer only needs to log into the company’s website, choose the required plan, choose the coverage and provide the details. The premium will be determined using the filled details. The customer then needs to pay the premium online through credit card, debit card or net banking facilities and the policy will be issued
Plans which are not available online can be purchased from agents, brokers, banks, etc. where the intermediaries help with the application process.
Applying For Child Plans through PolicyBazaar
- On the PolicyBazaar homepage, click on Child Plans under the Personal tab.
- Click New Quotes to compare
- Fill your date of birth (DOB), whether you are a smoker/non-smoker, and the payout amount. On the basis of your payout amount, you will get an estimate of your premium. Next click Continue.
- Fill in your name, email address, city, country code, and mobile number. Click Continue.
- You will be taken to the Life Insurance quotes page where you will see life insurance quotes of more than 10 insurers. Next, choose the plan as per payment schedule – One Time Payout and Monthly Payout Plans.
- After reviewing and comparing each life insurance quote, click the premium amount to buy the desired plan.
- You will see a pop-up on the screen which will give you an overview of the chosen plan like premium, plan features, exclusions, additional riders, etc. Click Proceed.
- This will take you to the insurer’s website. Fill in the necessary details to buy the plan.
What makes a child plan unique?
The fact that the policyholder and the beneficiary are completely different entities, make the child plans unique insurance products. Here, quite literally the policy is purchased for someone else’s benefit. The policyholder is the parent who buys the policy for his/her child. While the child benefits greatly, the parent also stands to gain from a child plan. Let us take a look at the illustration below to understand this concept.
Hari has an ambitious daughter who wants to study abroad in the future. However, with limited finances and a mid-level job, Hari probably cannot sponsor his daughter’s course in a top American university. As a result, with over 10 years to go for his daughter to finish school, he buys a child plan and begins investing in it. At the end of 10 years, not only does he receive the sum assured that is enough to pay for the girl’s travel and college expenses, Hari doesn’t need to pay anything extra from his own pocket. So both he and his daughter gain immensely from the child plan.
Is it mandatory to buy a child plan?
While there is no law in our country that makes child plans compulsory for parents, it is only but logically sound for each and every parent in today’s day and age to buy a child plan. With soaring expenses and rising education costs, it is foolish not to secure the child’s future. Apart from paying for the child’s professional and personal expenses, a child plan also protects the child against unforeseen factors such as a parent’s death. If one or both of the earning parents die within the policy period, the child’s future continues to be safe. The funds continue to flow in but the premium of the plan is waived off. This is undoubtedly the biggest advantage of a child plan. Keeping this in mind, it becomes mandatory for every parent to buy a child plan.
Child plan is a simple traditional investment plan with a coverage kept in mind for a child. It can be taken on the life of a parent or even the child so long as the policy has been especially designed for the child’s bright future.
Kotak Life Child Plans - FAQ
1. How to pay a premium? What are the modes of payment available?
Kotak Mahindra Life Insurance Company Limited offers 12 modes of premium payment namely:
- cheque payment at the branch
- Online Payment
- Payment at the Kotak bank ATM drop boxes
- Standing Instructions
- Direct Debit
- Payment thorough bill desk
- Electronic bill payment
- Postal money order
- Bank guarantee
For the online payment mode, the policyholder can pay via;
- Credit Card,
- Debit Card
- Net banking
2. How can I check policy status for Kotak Life child plans?
If you are a registered user, simply log into the e-Portal with your policy details to check the policy status.
3. What is the policy renewal process for Kotak Life child plans?
If you are a registered user, you can pay online in 3 easy step
Step 1: Logging into the e-Portal with your policy details to check the policy status.
Step 2: Select the policy and payment option- Net Banking. Debit/Credit Card
Step 3: Pay via the secured gateway and print/save the recipt of payment.
In the offline mode, you deposit cheque at the nearest branch.
4. What is the company’s process to settle claim for Kotak Life child plans?
The nominee can visit the branch personally with the policy document and accidental/death certificate. The nominee must fill a claim intimation form and then the company will provide a reference number to him. Usually within 30 days the accidental/death claim without investigation cases is cleared.
5. What is the policy cancellation process for Kotak Life child plans?
Submit your policy documents along with duly filled surrender form at the service desk in any of the branches. Upon successful proccedings, the refund will be credited directly into your bank account and the policy stands cancelled. The comoany claims to setlle it within 7 working days.
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