headstart assure wealth brochure

8/14/2019 Headstart Assure Wealth Brochure

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Zindagi se ek kadam aagey

Kotak

Headstart Assure Wealth

Bring alive your childs dreams. Start preparing.


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At A glAnce - Beneits 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 reer to the rider brochure.

For 5 years ater maturity

Withdraw any amount on maturity or your children

The balance, i any, can be taken in pre-specied 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 lie insured, or the lattero both lives insured, i joint lie optionselected (parent, grandparent or legalguardian)

Higher o sum assured or Fund value payable as a lump sum

To boost protection, you have a choiceo riders (additional premiums levied)

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

Installments on admission o a claim on becoming disabled,

through our Permanent Disability Benet

Lump sum benet paid on accidental death, through ourAccidental Death Benet


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Zindagi se ek kadam aagey

KOTAK HEADSTART ASSURE WEALTHBring alive your childs dreams. Start preparing.

Every child is different. Each has their own set of dreams and aspirations. As a parent,you would like to provide your child with all the building blocks that could develop his

or her potential to the fullest. This could mean extra coaching or tuition for talented

children, special training or equipment for natural athletes or professional training for

born singers. Today nothing is certain and you have to be prepared.

Introducing Kotaks Headstart Assure Wealth - a specially tailored, cost effective plan that

aims to give your child the financial means to pursue his or her dreams - and to live them.

Note

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

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His first steps


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2

How does this plan benefit my children?

Protection and growth of childs investment

The plan provides cover in case of demise of the parent (life insured). The standard sum assured

(life cover) on the parent will be the higher of (5 x Total Annual Premium) and (0.5 x Policy Term

x Total Annual Premium). In the event of death of the parent, the higher of the sum assured or

the fund value would be paid.

You can opt for additional booster 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. These

benefits will be charged for by way of extra premiums.

Investments to maximize wealth & protect capital

The costs of fulfilling your childrens dreams, be it education, setting up a business, getting

married or paying a deposit on a house, are likely to increase exponentially over a period of 15

or 20 years. To meet these costs, its really 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. You have 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 both risk and return.

Understanding this requirement, 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 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 dependingon the advice of others.

His first gift

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


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3

ivm objv Rk Rur equy db cah &op Pr My

Mark

60%-

100%

40%-

80%

30%-

60%

0%-

75%

_

0%-

20%

0%-

20%

0%-

20%

0%-

20%

0%-

20%

100%

0%-40%Kotak Aressivegrowth

Kotak dynamicgrowth

Kotak dynamicBalance

Kotak dynamicfloor

Kotak dynamicBon

Kotak dynamicfloatin Rate

Kotak dynamicgilt

Kotak dynamicMoney Market

Aims or a high level o capital growth byholding a signicant portion in equities.

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

Aims or moderate growth by holdinga diversied mix o equities and xedinterest instruments.

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

Aims to provide stable long-terminfation beating growth over the mediumto longer term, and deend capitalagainst short-term capital shocks.

Is likely to out-perorm traditional balancedor equity unds during sideways or allingmarkets and shadow the rising equitymarkets.

Returns will be in line with those o xedinterest instruments, and may provide little

protection against unexpected infationincreases.

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%

In short, you can select over time which unds 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

behal, by investing in the Dynamic Floor Fund.

For those who would like to manage their portolio, weve provided a choice o und options that

will allow you to balance your risk prole with the tenure o your investment. Your premiums will

be invested net o all initial charges.

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ivm tm HrzRmm u

p & aa

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 Fund

50% 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 beore you actually require the money, it is advisable to

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

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

My bak pha 5 yar ar maury

Your childrens uture expenses dont all come at once. Oten there might be a large initial outlay,

with extra expense over the ensuing years. On maturity, you will receive the accumulated und

value or the benet o your children. A portion o this corpus may be utilized to pay or their

admission to a premier institute and the balance amount could be used to und tuition ees

during the next 5 years. Or you may choose to support your childrens entrepreneurial initiatives

and wedding expenses with the accumulated und.

With this plan, you can also access the investment ater completion o the 3rd policy year, with

no partial withdrawal or surrender charges rom year 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 by way o pre-specied installments, or up to 5

years ater maturity.

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His frstachievement


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^ The policyholder must be the primary lie insured.#

These will be invested in separate Top-up Accounts, each with a lock-in o 3 years romthe date o Top-up, except during the last 3 policy years.

* May require underwriting.

ohr B da

Aa aur ha fxby

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

child, there are benets that you could use.

5

Hassle-ree, cost eective 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 to theminimum amount i aordability becomes an issue. The Top-up acility allsaway though.

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

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 ater paying 3 ull regular annual premiums.

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 qualiying 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 ater payment o premiums or 3 completed policy years.All rider benets all away. The policy will terminate i it is not revived or thepolicyholder does not elect to retain the policy in ACM mode post the revivalperiod.

Saving or 2 children

Survival units

Top-up premiums#

Flexible premiums

Partial withdrawals

Switching

Automatic covermaintenance

Joint lie option available^(Primary & Joint LieInsured)

Both parents can be covered where death benet is paid on the second death.This helps minimize your mortality cost.

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 direct

debit only).

Convenient premiumpayment modes

His frstproduct design


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How do I apply for this plan?

Step 1: Decide the amount you will save regularly to secure your childs 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: Select your fund options.

Step 4: 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 childs current

age, whichever is greater

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.

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u maam harThe annual und management charge is a percentage o the und value and is towards managing

your money eciently to earn you handsome returns. The charge varies depending on the und 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 o the

unds oered under this contract do not in any way indicate the quality o these unds, their uture

prospects and returns.

Amra harFor annual premiums below Rs. 1 lakh, a fat ee o Rs. 75 per month is charged in year 1 and

Rs. 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 premiums oRs. 1 lakh and above.

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

u urrr / Para whrawa harThere is no surrender / partial withdrawal allowed in the rst 3 policy years. Thereater, the surrender

charge (expressed as a % o und value) / partial withdrawal charge (expressed as a % o amount

PolicY teRM o 15 YeARs & ABoVe

Aua 15,000 25,001 AbvPrmum 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

Aua 15,000 25,001 AbvPrmum 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%.

char Prmum aa harThere is an initial advice and distribution charge related to policy issue that is a percentage o the

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

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His dream come true


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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 third and subsequent partial withdrawals

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

Mray harThis is the cost o lie cover and will be levied by cancellation o units on a monthly basis.

Rr harIn return or providing the additional booster benets (riders), the respective charges will be

recovered by cancellation o units on a monthly basis.

Please note, in the event o 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 rom their initial level by more than

5% 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 ater clearance by the Insurance and

Regulatory Development Authority.

ohr rm la

No loan acility.

lapWhere the premiums or the rst 3 policy years are not paid within the grace period, the

policy together with the rider benets 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.

Py rvvaThe policy may be revived within 2 years rom the date o the rst unpaid premium by

making payment o the arrears o premiums and a revival charge o Rs. 500. Any revivals

ater six months rom the due date o unpaid premium will require production o evidence

o good health.

Start preparing

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Abu uKotak Lie Insurance is a joint venture between Old Mutual plc. and Kotak Mahindra.

o Muua p. is a London-listed Fortune 500 international nancial services group

ocusing on asset gathering and asset management. On 31st December 2005, Old Mutual

plc. had more than 7 million lie assurance policies, 3.6 million banking customers and over

550,000 general insurance policies. Its unds under management exceeded $310 billion.

The Group has a substantial presence in the UK, US and South Arican markets. It urther

expanded its European presence through the acquisition o Skandia in early 2006.

Established in 1984, the Kak Mahra group has long been one o Indias most

reputed nancial organizations. Kotak Mahindra today is one o Indias leading nancialinstitutions, oering complete nancial solutions that encompass every sphere o lie. The

Group has net worth o over Rs. 2,900 crore, employs around 8,800 people in its various

businesses and has a distribution network o branches, ranchisees, representative oces

and satellite oces across 282 cities and towns in India and oces 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 und management with an understanding o the local market.

Rk ar Unit Linked Lie Insurance products are dierent rom the traditional insurance products and are subject to the risk

actors. The premium paid in Unit Linked Lie 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 perormance o und and actors infuencing the capitalmarket and the insured is responsible or his / her decisions.

Kotak Mahindra Old Mutual Lie Insurance Ltd is only the name o the Insurance Company and Headstart FutureProtect is only the name o the unit linked lie insurance contract and does not in any way indicate the quality o thecontract, its uture prospects or returns. The various unds oered 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.

gra xuIn case the lie insured commits suicide during the rst year o the plan, the beneciary would receive the prevailing undvalue in the Main and Top-up Account.

Prhb rba

Section 41 o the Insurance Act, 1938 states:No person shall allow or oer 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 deault 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. 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 policydocument.

Customer Contact Center

6050 5000

Toll Free 1800-22-8081

SMS KLIFE to 676788

Anand656801/03/05/07

Ahmedabad Ellisbridge

66315000-04 Satellite

66061637

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

Hyderabad

Begumpet23412929/39

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

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