Kotak Headstart Future Protect Docs/Headstart_FP.pdf · KoTAK HEADSTART FUTURE PRoTECT Bring alive your child’s dreams. Start preparing. Your children are your joy, your pride and

Zindagi se ek kadam aagey

KotakHeadstart Future Protect

Bringaliveyourchild’sdreams.Startpreparing.

AT A GLANCE - BENEFITS To THE CHILD

The table above gives you a snapshot of the benefits. The ones that are available with the plan are marked as and the benefits that are optional are marked as

For details on riders, please refer to the rider brochure.

For 5 years after maturity

Withdraw any amount on maturity for your children

The balance, if any, can be taken in pre-specified installments - yearly, half-yearly, quarterly or monthly

Convenience of ATM to access the proceeds, if Kotak Bank account opted for

On maturity - Fund value will be paid

On death of life insured, if single life option selected

100% of the sum assured payable immediately

Policy balance and additional death benefit (i.e. basic premium x number of outstanding premiums) available immediately or in equal installments payable semi-annually over 5 years

On prior death of the primary life insured, if joint life option selected (parent, grandparent or legal guardian)

Additional death benefit cover, equal to basic premium x number of outstanding installments, is paid into the Main Account, into a fund pre-selected by the primary life insured

Fund balance will continue and will be available to the child at maturity

No future premiums will be payable by the joint life

On death of the latter of both lives insured, if joint life option selected (parent, grandparent or legal guardian)

100% of the sum assured payable immediately

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

To boost protection you have a choice of riders (charges will be deducted from the fund)

Portion of sum assured (max 75%) payable on admission of a claim on a critical illness, through our Critical Illness Benefit

Installments on admission of a claim on becoming disabled, through our Permanent Disability Benefit

Lump sum benefit paid on accidental death, through our Accidental Death Benefit

Remaining premiums paid on your behalf in case of disability, through our Accidental Disability Guardian Benefit

Zindagi se ek kadam aagey

His first steps

KoTAK HEADSTART FUTURE PRoTECT Bring alive your child’s dreams. Start preparing.

Your children are your joy, your pride and your world. And you strive to give your

little one(s) the very best in life. You would like to provide your children with all the

opportunities that could give them the extra edge over others. For this, you would

require an investment and protection package that is specially designed to help you

plan wisely for a financially secure and comfortable tomorrow, no matter what the

uncertainty of life.

Introducing Kotak’s Headstart Future Protect, a unit-linked dual benefit plan to help

secure your children’s future financial 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.

1

2

His first birthday

How does this plan benefit my children?

Double benefit on death

Life is uncertain and you would not want to take a chance when it comes to your children’s future. In the event of the death of a parent, grandparent or a legal guardian, there would be an irreplaceable void in the life of their children, but Headstart Future Protect can ensure that the financial loss is minimized.

Under this plan, a lump sum amount of 100% of the sum assured would be paid out immediately on the life insured’s death (on the second death, in case of joint life), to assist in meeting unanticipated financial obligations now facing your children.

At the same time, it provides an additional boost (on death of the life insured*) via a lump sum benefit which reduces over the term of the plan to compensate beneficiaries for the outstanding premiums that would have been payable had the policyholder survived the full term of the policy.

Your planned corpus will thus remain available to secure your children’s future financial needs, be it studying abroad or an entrepreneurial start-up or marriage. The proceeds will be payable by way of equal semi-annual installments for 5 years.

Protection boosters

You can opt for additional rider benefit payments should accidental death bring on your demise or, unfortunate events render you disabled or incapacitated. Should a critical illness unfortunately befall you along the way, a portion of the sum assured is immediately made available. Premiums waiver protection is also available on disability. These benefits will be charged for by way of additional unit deductions from the fund.

Investment to maximize returns

When saving over a longer horizon to meet future education costs or other crucial savings aims, it is important that your investment outpaces the cost of living. We call these real returns because they grow faster than inflation does.

Equity exposure in your portfolio is a key driver of real returns in the long run, and so you will need to balance the need to beat the cost of living 10, 15 or 20 years from now, with the shorter term swings the equity market can expose your capital to.

However, you may find it difficult to take a view on the markets and may not be in a position to switch your money efficiently from one fund to another to balance risk and return. Understanding this requirement of yours, we have introduced the unique DYNAMIC FLooR FUND. This fund is ideally suited to the more risk-averse investor whose priority is capital preservation but who

still wants to participate in actively managed upside market growth.

* In case of joint life plan, on death of primary life.

His first day at school

3

This fund benefits you by aiming to:

Maximize equity exposure in bull markets, actively trimming it back either to lock in strong 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, aiming for 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 depending on the advice of others.

For those who would like to manage their portfolio, we’ve provided a choice of fund options that will allow you to balance your risk profile with the tenure of your investment. Your premiums will be invested net of all initial charges.

Investment objective Risk Return Equity Debt Cash & option Profile Money Market

0%-20%

0%-20%

0%-20%

0%-20%

0%-20%

100%

0%-40%Kotak Aggressive Growth

Kotak Dynamic Growth

Kotak Dynamic Balanced

Kotak DynamicFloor

Kotak DynamicBond

Kotak Dynamic Floating Rate

Kotak DynamicGilt

Kotak DynamicMoney Market

Aims for a high level of capital growth by holding a significant portion in equities.

May experience high levels of shorter term volatility (downside risk).

Aims for moderate growth by holding a diversified mix of equities and fixed interest instruments.

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

Aims to provide stable long-term inflation beating growth over the medium to longer term and defend capital against short-term capital shocks.

Is likely to out-perform traditional balanced or equity funds during sideways or falling markets and shadow the rising equity markets.

Returns will be in line with those of fixed interest instruments, and may provide little protection against unexpected inflation increases.

Will preserve capital and minimize downside risk, with investment in debt and government instruments.

Will protect capital and not have downside risks

Aggressive

Moderate

Cautious

Conservative

Secure

0%-40%

20%-70%

0%-100%

0%-100%

80%-100%

–

60%-100%

40%-80%

30%-60%

0%-75%

–

_

His first achievement

In short, you can select over time which funds you would like to be in, based on your time

horizon and views on the market. Or you can let us manage the risk more actively on your

behalf, by investing in the Dynamic Floor Fund.

Investment Time Horizon Recommended fund options & allocation

Ifyourchildisbelowtheageof7,youwillprobablynotrequirethemoneyforanother15-20years.

Ifyourchildisbetweentheageof8and12,youarelikelytosaveforthenext10-15years.

Ifyourchildisbetweentheageof13and15,youmayrequiretheamountwithin7-10years.

75%inAggressiveGrowthFundorDynamicGrowthFund

25%inDynamicGrowthFund

50%DynamicGrowthFund

50%DynamicFloorFund

100%inDynamicFloorFund

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

When there are about 2 or 3 years before you actually require the money, it is advisable to

gradually switch your money to the debt funds, i.e. Dynamic Bond Fund, Dynamic Floating Rate

Fund or the Dynamic Gilt Fund, so that it is safe and accessible.

Flexible withdrawals

With costs being different for every need, the financial requirements for your children would

change from time to time and you require a child savings plan that is flexible. With this plan, you

can access the investment after completion of the 3rd policy year, with no penalty charges from

year 7 onwards. Alternatively, you can just let the amount multiply if the need is not immediate.

You can also elect to receive a percentage of the maturity proceeds in cash and the balance by

way of pre-specified installments, for up to 5 years after maturity.

4

His graduation

^ The policyholder must be the primary life insured.# These will be invested in separate Top-up Accounts, each with a lock-in of 3 years from

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

* May require underwriting.

other Benefits Details

Additional features to enhance flexibility

To allow your investment plan to keep pace with the changing times and varying needs of your

child, there are benefits that you could use.

5

Hassle-free, cost-effective saving through a single plan for one or two children.

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

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

Increase investments for your child’s future if you have surplus money.

Invest up to 25% of the cumulative premiums paid up to that date.

At each policy anniversary, you can reduce your basic premium payment to the minimum amount if affordability becomes an issue. The Top-up facility falls away though.

May thereafter increase* your basic premiums at any policy anniversary in the future up to the original premium amount.

Available after paying 3 full regular annual premiums.

The prevailing sum assured remains in force subject to the minimum requirement under the plan.

Available to meet the child’s expenses along the way, from year 4 onwards.

Early withdrawal charges fall away at the end of year 7, allowing you flexible access to your money, subject to a minimum fund balance of Rs. 25,000.

Withdrawals must be made from the qualifying Top-up Accounts first.

You may switch or change the fund options to maximize returns from the market.

In case you miss your premium payment, this facility will ensure that whilst you have adequate funds in the policy, your insurance cover remains in force.

This facility is available after payment of premiums for 3 completed policy years. The additional risk cover benefit falls away. The policy will terminate if it is not revived or the policyholder does not elect to retain the policy in ACM mode post the revival period.

Saving for 2 children

Survival units

Top-up premiums#

Flexible premiums

Partial withdrawals

Switching

Automatic covermaintenance

Joint life option available^ (Primary & Joint Life Insured)

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

Boost the accumulation amount at maturity for your children, where you may already have insurance to cover them along the way.

Pay your premiums annually, half-yearly, quarterly or monthly (through direct debit only).

Convenient premiumpayment modes

His first day at work

How do I apply for this plan?

Step 1: Decide the amount you will save regularly to secure your child’s future, i.e. the

Regular 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 insurance

cover, 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 benefits.

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

Eligibility

6

Entry Age Min – 18 years

Max – 60 years

Term Min – 10 years or 18 minus the younger child’s current

age, whichever is greater

Max – 25 years

Limited Premium Payment Term 3 – 10 years

Maturity Age Max – 70 years (older policyholder)

Min – 18 years (younger beneficiary)

Regular Annual Premium Min – Rs.15,000

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

Min – Rs. 50,000 p.a. for payment term of 3 years

Tax benefit:

Section 80C and Section 10 (10D) of Income Tax Act, 1961 would apply. Premiums paid for

Critical Illness Benefit qualify for a deduction under Section 80D. You are advised to consult

your tax advisor for details.

Fund management charge

The annual fund management charge is a percentage of the fund value and is towards managing

your money efficiently to earn you handsome returns. The charge varies depending on the fund and

currently are: Dynamic Money Market Fund – 0.6%, Dynamic Gilt Fund – 1.0%, Dynamic Floating

Rate 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 of the

funds offered under this contract do not in any way indicate the quality of these funds, their future

prospects and returns.

Administration charge

For annual premiums below Rs. 1 lakh, a flat fee of Rs. 75 per month is charged in year 1 and

Rs. 40 per month from year 2 onwards is recovered by liquidation of units (reduced to Rs. 30 for

policies made paid-up prior to maturity). There is no administration charge for annual premiums

of Rs. 1 lakh and above.

Full surrender / Partial withdrawal chargeThere is no surrender / partial withdrawal allowed in the first 3 policy years. Thereafter the

surrender charge (expressed as a % of fund value) / partial withdrawal charge (expressed as a

% of amount withdrawn) is 3% in year 4, 2% in year 5, 1% in year 6, 0% from year 7 onwards.

No surrender / partial withdrawal charges apply to the Top-up Accounts. For the 3rd and

PoLICY TERM oF 15 YEARS & ABoVE

Annual 15,000 to 25,001 to Above Premium 25,000 1,50,000 1,50,000 (Rs.)

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

Annual 15,000 to 25,001 to Above Premium 25,000 1,50,000 1,50,000 (Rs.)

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%.

Charges Premium allocation charge

There is an initial advice and distribution charge related to policy issue that is a percentage of the

premium received. The net premium % invested is as per the following table:

His wedding

7

subsequent partial withdrawals from the Main Account in any policy year an additional Rs. 500

per withdrawal will be charged.

Switching charge

The first four switches in a year are free. Rs. 500 will be charged for every additional switch.

Mortality charge

This is the cost of life cover and will be levied by cancellation of units on a monthly basis.

Rider charge

In return for providing the additional booster benefits (“riders”), the respective charges will be recovered by cancellation of units on a monthly basis.

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

The administration charges will not be increased from their initial level by more than 5% per annum.

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

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

Any increase in charges will only be made after clearance by the Insurance and Regulatory Development Authority.

other terms

Loans

No loan facility.

Lapses

Where the premiums for the first 3 policy years are not paid within the grace period, the policy together with the rider benefits shall lapse from the due date of unpaid premiums.

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

Policy revivals

The policy may be revived within 2 years from the date of the first unpaid premium by making payment of the arrears of premiums and a revival charge of Rs. 500. Any revivals after six months from the due date of unpaid premium will require production of evidence of good health.

Start preparing

8

About usKotak Life Insurance is a joint venture between Old Mutual plc. and Kotak Mahindra.

old Mutual plc. is a London-listed Fortune 500 international financial services group focusing on asset gathering and asset management. On 31st December 2005, Old Mutual plc. had more than 7 million life assurance policies, 3.6 million banking customers and over 550,000 general insurance policies. Its funds under management exceeded $310 billion. The Group has a substantial presence in the UK, US and South African markets. It further expanded its European presence through the acquisition of Skandia in early 2006.

Established in 1984, the Kotak Mahindra group has long been one of India’s most reputed financial organizations. Kotak Mahindra today is one of India’s leading financial institutions, offering complete financial solutions that encompass every sphere of life. The Group has net worth of over Rs. 2,900 crore, employs around 8,800 people in its various businesses and has a distribution network of branches, franchisees, representative offices and satellite offices across 282 cities and towns in India and offices 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 international expertise in insurance, advice and fund management with an understanding of the local market.

Risk factors• Unit Linked Life Insurance products are different from the traditional insurance products and are subject to the risk

factors. • The premium paid in Unit Linked Life Insurance policies are subject to investment risks associated with capital markets

and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his / her decisions.

• Kotak Mahindra Old Mutual Life Insurance Ltd is only the name of the Insurance Company and Headstart Future Protect is only the name of the unit linked life insurance contract and does not in any way indicate the quality of the contract, its future prospects or returns. The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these plans, their future prospects and returns.

Please know the associated risks and the applicable charges from your Insurance agent or the Intermediary or policy document of the insurer.

General exclusionIn case the life insured commits suicide during the first year of the plan, the beneficiary would receive the prevailing fund value in the Main and Top-up Account.

Prohibition of rebatesSection 41 of the Insurance Act, 1938 states: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.

Any person making default in complying with the provision of this section shall be punishable with fine, which may extend to Rs. 500.

Contact Details

Form No: HFP01

Kotak Mahindra Old Mutual Life Insurance Ltd. Regn. No.: 107 Regd. Office: 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 leaflet gives only the salient features of the plan. For detailed terms and conditions, please refer to the specific policy document.

Anand656801/03/05/07

Ahmedabad• Ellisbridge 66315000-04• Satellite 66061637

Aurangabad6610251-75

Bangalore • Rajaji Nagar 66628050-54• Residency Road 66188365-71

Baroda6675000

Bharuch645247

Bhavnagar6451057-58

Bhopal4008800-05

Chandigarh5076451-54

Chennai• Ceebros Centre 42101122• Teynapet 42000100

Cochin2377611-14

Coimbatore6502211-16

Delhi• Bhikaji Kama 41595000• K. G. Marg 41795000• Laxmi Nagar 43043000• Pitampura 65195000-04

Gandhidham654902-05

Gurgaon 4025000-30

Guwahati2340672-75

Hyderabad• Begumpet 23412929/39

• Secunderabad 66205000

Indore4027181-85

Jaipur2371627-30

Jamnagar6545902-04

Jamshedpur6450993

Jodhpur2632901/02

Jorhat2309073/74

Kanpur2331211-15

Karnal2268671/73

Kolhapur6685000

Kolkata• 15 Park Street 22093000• Chowringhee Road 22881799

• Gariahat Road 24617711• Kakurgachi 23648606-09

Lucknow2625770/59

Ludhiana5089643-47

Mumbai• Andheri 66765000• Borivali 64510882/90• Chembur 67995000• Churchgate 66541000• Lower Parel 66635353

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

CustomerContactCenter6050 5000

•TollFree1800-22-8081

•SMS KLIFE to 676788