Headstart Future Protect Brochure

8/14/2019 Headstart Future Protect Brochure

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Zindagi se ek kadam aagey

Kotak

Headstart Future Protect

Bring alive your childs dreams. Start preparing.


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At A glAnce - BeneFits to tHe cHild

The table above gives you a snapshot o the benefts. The ones that are available with the plan are marked asand the benefts that are optional are marked as

For details on riders, please re er to the rider brochure.

For 5 years a ter maturity

Withdraw any amount on maturity or your children

The balance, i any, can be taken in pre-speci ed installments- yearly, hal -yearly, quarterly or monthly

Convenience o ATM to access the proceeds, i Kotak Bankaccount opted or

On maturity - Fund value will be paid

On death o li e insured, i single li eoption selected

100% o the sum assured payable immediately

Policy balance and additional death bene t (i.e. basicpremium x number o outstanding premiums) availableimmediately or in equal installments payable semi-annuallyover 5 years

On prior death o the primary li e insured,i joint li e option selected (parent,grandparent or legal guardian)

Additional death bene t cover, equal to basic premium xnumber o outstanding installments, is paid into the MainAccount, into a und pre-selected by the primary li e insured

Fund balance will continue and will be available to the childat maturity

No uture premiums will be payable by the joint li e

On death o the latter o both livesinsured, i joint li e option selected(parent, grandparent or legal guardian)

100% o the sum assured payable immediately

Policy balance available immediately or in equal installmentspayable semi-annually over 5 years

To boost protection you have a choiceo riders (charges will be deducted romthe und)

Portion o sum assured (max 75%) payable on admission o aclaim on a critical illness, through our Critical Illness Bene t

Installments on admission o a claim on becoming disabled,through our Permanent Disability Bene t

Lump sum bene t paid on accidental death, through ourAccidental Death Bene t

Remaining premiums paid on your behal in case o disability,through our Accidental Disability Guardian Bene t


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His rst steps

KOTAK HEADSTART FUTURE PROTECTBring alive your childs dreams. Start preparing.

Your children are your joy, your pride and your world. And you strive to give yourlittle one(s) the very best in life. You would like to provide your children with all theopportunities that could give them the extra edge over others. For this, you wouldrequire an investment and protection package that is specially designed to help youplan wisely for a nancially secure and comfortable tomorrow, no matter what theuncertainty of life.

Introducing Kotaks Headstart Future Protect, a unit-linked dual benet plan to help

secure your childrens future nancial needs and ensure that plans do not go awry,given you may not always be there to help.

Note

In this policy, the investment risk is always borne by the policyholder.

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His frst birthday

H w h p a b my h r ?

d ub b a hLi e is uncertain and you would not want to take a chance when it comes to your childrens

uture. In the event o the death o a parent, grandparent or a legal guardian, there would bean irreplaceable void in the li e o their children, but Headstart Future Protect can ensure thatthe nancial loss is minimized.

Under this plan, a ump um am u 100% h um a ur w u b pa umm a y h ur a h(on the second death, in case o joint li e), to assist

in meeting unanticipated nancial obligations now acing your children.

At the same time, it provides an additional boost (on death o the li e insured*) via a lump sumbene t which reduces over the term o the plan to compensate bene ciaries or the outstandingpremiums that would have been payable had the policyholder survived the ull term o thepolicy.

Your planned corpus will thus remain available to secure your childrens uture nancial needs,be it studying abroad or an entrepreneurial start-up or marriage. The proceeds will be payableby way o equal semi-annual installments or 5 years.

Pr b rYou can p r a a r r b paym should accidental death bring on yourdemise or, un ortunate events render you disabled or incapacitated. Should a critical illness

un ortunately be all you along the way, a portion o the sum assured is immediately madeavailable. Premiums waiver protection is also available on disability. These bene ts will becharged or by way o additional unit deductions rom the und.

i v m max m z r urWhen saving over a longer horizon to meet uture education costs or other crucial savingsaims, it is important that your investment outpaces the cost o living. We call these real returnsbecause they grow aster than infation does.

Equity exposure in your port olio is a key driver o real returns in the long run, and so you willneed to balance the need to beat the cost o living 10, 15 or 20 years rom now, with the shorterterm swings the equity market can expose your capital to.

However, you may nd it di cult to take a view on the markets and may not be in a position toswitch your money e ciently rom one und to another to balance risk and return. Understandingthis requirement o yours, we have introduced the unique dYnAMic FlooR FUnd. This und is

a y u h m r r k-av r v rwhose priority is capital preservation but whostill wants to participate in actively managed upside market growth.

* In case o joint li e plan, on death o primary li e.


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This fund benets you by aiming to:

Maximize equity exposure in bull markets, actively trimming it back either to lock instrong returns or limit downside risk in falling markets

Shield the savings for your children from the vagaries of market volatility

In short, the Dynamic Floor Fund offers embedded advice in a single fund from experts, aimingfor stable returns and capital appreciation to comfortably outpace the cost of living .It allows you to invest and forget about the hassles of switching across fund options or dependingon the advice of others.

For those who would like to manage their portfolio, weve provided a choice of fund options thatwill allow you to balance your risk prole with the tenure of your investment. Your premiums willbe invested net of all initial charges.

Investment Objective Risk Return Equity Debt Cash &Option Prole MoneyMarket

0%-20%

0%-

20%

0%-20%

0%-20%

0%-20%

100%

0%-40%Kotak AggressiveGrowthKotak DynamicGrowth

Kotak DynamicBalanced

Kotak DynamicFloor

Kotak DynamicBondKotak DynamicFloating Rate

Kotak DynamicGilt

Kotak DynamicMoney Market

Aims for a high level of capital growth byholding a signicant portion in equities.

May experience high levels of shorterterm volatility (downside risk).

Aims for moderate growth by holdinga diversied mix of equities and xedinterest instruments.

May also be susceptible to moderate levelsof shorter-term volatility (downside risk).

Aims to provide stable long-term inationbeating growth over the medium to longerterm and defend capital against short-term capital shocks.

Is likely to out-perform traditional balancedor equity funds during sideways or fallingmarkets and shadow the rising equitymarkets.

Returns will be in line with those of xedinterest instruments, and may provide littleprotection against unexpected inationincreases.

Will preserve capital and minimize downsiderisk, with investment in debt and governmentinstruments.

Will protect capital and not have downsiderisks

Aggressive

Moderate

Cautious

Conservative

Secure

0%-40%

20%-

70%

0%-100%

0%-100%

80%-100%

60%-100%

40%-80%

30%-

60%

0%-75%

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In short, you can select over time which unds you would like to be in, based on your timehorizon and views on the market. Or you can let us manage the risk more actively on yourbehal , by investing in the Dynamic Floor Fund.

i v m t m H r z R mm up & a a

If your child is below the age of 7, youwill probably not require the money foranother 15-20 years.

If your child is between the age of 8 and12, you are likely to save for the next10-15 years.

If your child is between the age of 13 and15, you may require the amount within7-10 years.

75% in Aggressive GrowthFund or Dynamic Growth Fund

25% in Dynamic Growth Fund

50% Dynamic Growth Fund50% Dynamic Floor Fund

100% in Dynamic Floor Fund

Some suggestions on how you might allocate your savings are illustrated in the chart below:

When there are about 2 or 3 years be ore you actually require the money, it is advisable togradually switch your money to the debt unds, i.e. Dynamic Bond Fund, Dynamic Floating RateFund or the Dynamic Gilt Fund, so that it is sa e and accessible.

F x b w h rawaWith costs being di erent or every need, the nancial requirements or your children would

change rom time to time and you require a child savings plan that is fexible. With this plan, youcan access the investment a ter completion o the 3 rd policy year, with no penalty charges romyear 7 onwards. Alternatively, you can just let the amount multiply i the need is not immediate.You can also elect to receive a percentage o the maturity proceeds in cash and the balance byway o pre-speci ed installments, or up to 5 years a ter maturity.

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His graduation

^ The policyholder must be the primary li e insured.# These will be invested in separate Top-up Accounts, each with a lock-in o 3 years rom

the date o Top-up, except during the last 3 policy years.

* May require underwriting.

o h r B d a

A a a ur ha f x b y

To allow your investment plan to keep pace with the changing times and varying needs o yourchild, there are bene ts that you could use.

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Hassle- ree, cost-e ective saving through a single plan or one or two children.

Enjoy additional unit allocation or long-term investment or your child.

Extra units o 1%, 1.5% and 2% o the und will be allocated at the end opolicy year 10, 15 and 20 respectively, provided all premiums are paid up todate and the policy has not yet reached maturity.

Increase investments or your childs uture i you have surplus money.Invest up to 25% o the cumulative premiums paid up to that date.

At each policy anniversary, you can reduce your basic premium payment tothe minimum amount i a ordability becomes an issue. The Top-up acility

alls away though.May therea ter increase * your basic premiums at any policy anniversary in the

uture up to the original premium amount.

Available a ter paying 3 ull regular annual premiums.The sum assured is adjusted to ensure the cover is equal to the greater o5 x Altered Premium and 0.5 x Term x Altered Premium.

Available to meet the childs expenses along the way, rom year 4 onwards.

Early withdrawal charges all away at the end o year 7, allowing you fexibleaccess to your money, subject to a minimum und balance o Rs. 25,000.Withdrawals must be made rom the quali ying Top-up Accounts rst.

You may switch or change the und options to maximize returns rom themarket.

In case you miss your premium payment, this acility will ensure that whilst youhave adequate unds in the policy, your insurance cover remains in orce.

This acility is available a ter payment o premiums or 3 completed policyyears. The additional risk cover bene t alls away. The policy will terminate iit is not revived or the policyholder does not elect to retain the policy in ACMmode post the revival period.

Saving or 2 children

Survival units

Top-up premiums #

Flexible premiums

Partial withdrawals

Switching

Automatic covermaintenance

Joint li e option available ^ (Primary & Joint Li eInsured)

Both parents can be covered where sum assured is paid on the second death.

Boost the accumulation amount at maturity or your children, where you mayalready have insurance to cover them along the way.

Pay your premiums annually, hal -yearly, quarterly or monthly (through directdebit only).

Convenient premiumpayment modes


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His rst day at work

How do I apply for this plan?

Step 1: Decide the amount you will save regularly to secure your childs future, i.e. theRegular Annual Premium.

Step 2: Decide the term of the policy depending on goals for your child (higher education,marriage, etc.) that you have in mind.

Step 3: Choose your life cover - the sum assured , depending on your existing insurancecover, subject to the minimum requirement - Higher of (5 x Annual Premium) and(0.5 x Term x Annual Premium)

Step 4: Select your fund options .

Step 5: Choose the optional benets.

For a snapshot of the benets, please refer to the table on the inside cover.

Eligibility

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Entry Age Min 18 yearsMax 60 years

Term Min 10 years or 18 minus the younger childs currentage, whichever is greaterMax 25 years

Limited Premium Payment Term 3 10 years

Maturity Age Max 70 years (older policyholder)Min 18 years (younger beneciary)

Regular Annual Premium Min Rs.15,000

Limited Premium Payment Min Rs. 25,000 p.a. for payment term of 4 10 yearsMin Rs. 50,000 p.a. for payment term of 3 years

Tax benet:

Section 80C and Section 10 (10D) of Income Tax Act, 1961 would apply. Premiums paid forCritical Illness Benet qualify for a deduction under Section 80D. You are advised to consultyour tax advisor for details.


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Fu ma a m harThe annual und management charge is a percentage o the und value and is towards managingyour money e ciently to earn you handsome returns. The charge varies depending on the und andcurrently are: Dynamic Money Market Fund 0.6%, Dynamic Gilt Fund 1.0%, Dynamic FloatingRate Fund 1.2%, Dynamic Bond Fund 1.2%, Dynamic Balanced Fund 1.3%, Dynamic Floor Fund 1.75%, Dynamic Growth Fund 1.5% and Aggressive Growth Fund 1.6%. The names o the

unds o ered under this contract do not in any way indicate the quality o these unds, their utureprospects and returns.

A m ra harFor annual premiums below Rs. 1 lakh, a fat ee o Rs. 75 per month is charged in year 1 andRs. 40 per month rom year 2 onwards is recovered by liquidation o units (reduced to Rs. 30 or

policies made paid-up prior to maturity). There is no administration charge or annual premiumso Rs. 1 lakh and above.

Fu urr r / Par a w h rawa har There is no surrender / partial withdrawal allowed in the rst 3 policy years. Therea ter thesurrender charge (expressed as a % o und value) / partial withdrawal charge (expressed as a% o amount withdrawn) is 3% in year 4, 2% in year 5, 1% in year 6, 0% rom year 7 onwards.No surrender / partial withdrawal charges apply to the Top-up Accounts. For the 3 rd and

PolicY teRM oF 15 YeARs & ABoVe

A ua 15,000 25,001 Ab vPr m um 25,000 1,50,000 1,50,000

(R .)

Year 1 64% 68.5% 79%

Year 2 86% 91% 93%

Year 3 93% 95% 96%

Year 4-10 99% 99% 99%

Year 11 100% 100% 100%onwards

PolicY teRM less tHAn 15 YeARs

A ua 15,000 25,001 Ab vPr m um 25,000 1,50,000 1,50,000

(R .)

Year 1 68% 72% 80.50%

Year 2 86% 91% 93%

Year 3 93% 95% 96%

Year 4-10 99% 99% 99%

Year 11 100% 100% 100%onwards

For Top-up premiums, the allocation will be 99%.

charPr m um a a har

There is an initial advice and distribution charge related to policy issue that is a percentage o thepremium received. The net premium % invested is as per the ollowing table:

His wedding

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subsequent partial withdrawals rom the Main Account in any policy year an additional Rs. 500per withdrawal will be charged.

sw h harThe rst our switches in a year are ree. Rs. 500 will be charged or every additional switch.

M r a y harThis is the cost o li e cover and will be levied by cancellation o units on a monthly basis.

R r harIn return or providing the additional booster bene ts (riders), the respective charges will berecovered by cancellation o units on a monthly basis.

Please note, in the event o experience being worse than expected, the Company reserves itsright to impose charges not beyond the level mentioned below:

The administration charges will not be increased rom their initial level by more than5% per annum.

The und management charges will not be increased rom their initial level by more than 40%.

The switching and withdrawal charges may be increased to a maximum o Rs.1,000.

Any increase in charges will only be made a ter clearance by the Insurance andRegulatory Development Authority.

o h r rm l a

No loan acility.

lapWhere the premiums or the rst 3 policy years are not paid within the grace period, thepolicy together with the rider bene ts shall lapse rom the due date o unpaid premiums.

A lapsed policy can be revived within 2 years o the date o lapse by payment o arrears opremiums and a revival charge o Rs. 500.

P y r v vaThe policy may be revived within 2 years rom the date o the rst unpaid premium bymaking payment o the arrears o premiums and a revival charge o Rs. 500. Any revivalsa ter six months rom the due date o unpaid premium will require production o evidenceo good health.

Start preparing

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Ab u uKotak Li e Insurance is a joint venture between Old Mutual plc. and Kotak Mahindra.

o Mu ua p .is a London-listed Fortune 500 international nancial services groupocusing on asset gathering and asset management. On 31 st December 2005, Old Mutual

plc. had more than 7 million li e assurance policies, 3.6 million banking customers and over550,000 general insurance policies. Its unds under management exceeded $310 billion.The Group has a substantial presence in the UK, US and South A rican markets. It urtherexpanded its European presence through the acquisition o Skandia in early 2006.

Established in 1984, the K ak Mah ra group has long been one o Indias most

reputed nancial organizations. Kotak Mahindra today is one o Indias leading nancialinstitutions, o ering complete nancial solutions that encompass every sphere o li e. TheGroup has net worth o over Rs. 2,900 crore, employs around 8,800 people in its variousbusinesses and has a distribution network o branches, ranchisees, representative o cesand satellite o ces across 282 cities and towns in India and o ces in New York, London,Dubai and Mauritius. The Group services over 1.6 million customer accounts.

For our customers, this joint venture translates into a company that combines internationalexpertise in insurance, advice and und management with an understanding o the local market.

R k a r Unit Linked Li e Insurance products are di erent rom the traditional insurance products and are subject to the risk

actors. The premium paid in Unit Linked Li e Insurance policies are subject to investment risks associated with capital markets

and the NAVs o the units may go up or down based on the per ormance o und and actors infuencing the capitalmarket and the insured is responsible or his / her decisions.

Kotak Mahindra Old Mutual Li e Insurance Ltd is only the name o the Insurance Company and Headstart FutureProtect is only the name o the unit linked li e insurance contract and does not in any way indicate the quality o thecontract, its uture prospects or returns. The various unds o ered under this contract are the names o the unds anddo not in any way indicate the quality o these plans, their uture prospects and returns.

Please know the associated risks and the applicable charges rom your Insurance agent or the Intermediary or policydocument o the insurer.

g ra x uIn case the li e insured commits suicide during the rst year o the plan, the bene ciary would receive the prevailing undvalue in the Main and Top-up Account.

Pr h b r baSection 41 o the Insurance Act, 1938 states:No person shall allow or o er to allow, either directly or indirectly, as an inducement to any person to take out or renewor continue an insurance in respect o any kind o risk relating to lives or property in India, any rebate o the whole orpart o the commission payable or any rebate o the premium shown on the policy, nor shall any person taking outor renewing or continuing a policy accept any rebate, except such rebate as may be allowed in accordance with thepublished prospectuses or tables o the insurer.

Any person making de ault in complying with the provision o this section shall be punishable with ne, which mayextend to Rs. 500.


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Contact Details

Form No: HFP01

Kotak Mahindra Old Mutual Life Insurance Ltd. Regn. No.: 107 Regd. Ofce: 6th Floor, Peninsula Chambers, Peninsula Corporate Park,Ganpatrao Kadam Marg, Lower Parel (W), Mumbai - 400 013. Website: www.kotaklifeinsurance.com Email: [email protected]

This product leaet gives only the salient features of the plan. For detailed terms and conditions, please refer to the specic policy document.

Anand656801/03/05/07

Ahmedabad Ellisbridge

66315000-04 Satellite66061637

Aurangabad6610251-75

BangaloreRajaji Nagar

66628050-54Residency Road

66188365-71

Baroda6675000

Bharuch645247

Bhavnagar6451057-58

Bhopal4008800-05

Chandigarh5076451-54

Chennai Ceebros Centre

42101122 Teynapet

42000100

Cochin2377611-14

Coimbatore6502211-16

DelhiBhikaji Kama

41595000K. G. Marg

41795000 Laxmi Nagar

43043000Pitampura

65195000-04

Gandhidham654902-05

Gurgaon4025000-30

Guwahati2340672-75

HyderabadBegumpet

23412929/39

Secunderabad66205000

Indore4027181-85

Jaipur2371627-30

Jamnagar6545902-04

Jamshedpur6450993

Jodhpur2632901/02

Jorhat2309073/74

Kanpur2331211-15

Karnal2268671/73

Kolhapur6685000

Kolkata15 Park Street

22093000

Chowringhee Road22881799

Gariahat Road24617711

Kakurgachi23648606-09

Lucknow2625770/59

Ludhiana5089643-47

MumbaiAndheri

66765000Borivali

64510882/90 Chembur

67995000

Churchgate66541000

Lower Parel66635353

Nadiad2561042

Nagpur2525848

Nashik6605005

Palanpur261184

Pune Aundh

30284315-22 Sasoon Road

56055073

Rajkot6625000

Surat Adajan

6555550 Dumas Road

6589200-03

Thane67925000

Tinsukhia2336037/56-58

Trichy4002010/55/66

Valsad645822/23

Vapi6545821/22

Vashi67905003

Customer Contact Center6050 5000

Toll Free 1800-22-8081

SMS KLIFE to 676788

Documents

Headstart Future Protect Brochure