Kotak Life Child Future Plan Review
Plan Name: Child Future Plan
Insurer: Kotak Life Insurance
Category: Traditional Plan
Objective: Financially Securing Child’s Future
Kotak Child Future plan is traditional plan. It is a participating child plan in which you get bonuses based on the performance of the company. There are periodic payouts so that you can take care different phases of child’s education.
Major USP of Kotak Child Future Plan
Periodic Payouts
Riders
Bonuses
Loan available
Eligibility of Kotak Child Future Plan
Minimum Entry Age: 11 Years (Child), 18 Years (Parent)
Maximum Entry Age: 15 Years (Child), 64 Years
Policy Term: 10-14 years
Premium Payment Term: 25 Years minus Age at entry of child
Maximum Sum Assured: Rs 200,000
Premium Payment Frequency: Yearly, Half Yearly, Quarterly, Monthly
What benefits does Kotak Child Future Plan offer?
Periodic Maturity Benefit
There are two payouts equivalent to 15% and 110% of Sum Assured which are paid when your child attains age of 23 and 25.The total amount is equal to 125% of Sum Assured plus bonuses.
Death Benefit
If the life insured passes away, 200% of Sum Assured is paid immediately. The future premiums are waived off and the maturity benefits will be paid as per the schedule. The bonuses are also paid on maturity.
Accidental Disability
If the life insured suffers disability due to accident, future premiums are waived off and the payouts will be paid as per the schedule. The bonuses will be paid on maturity.
Bonus
Child Edu plan is a participating plan and as such bonuses are provided depending upon the performance of the company.
Riders
There are a few riders available with the plan- Kotak term benefit, Kotak accidental death benefit and Kotak permanent disability benefit rider.
Discount
For Sum Assured equal and above Rs 5 lacs, discount on premium will be made.
Loan
You can apply for loan against the policy after the policy has acquired surrender value. The maximum loan amount would be limited to 80% of the surrender value.
Are there any tax benefits?
Under Section 80C you can avail tax benefit, yearly premium (not more than 1lac) will be deducted from taxable income.
Under Section 10(10D) death claim is completely tax free.
What else?
Surrender: The policy acquires guaranteed surrender value after completion of 3 years and will be equal to 30% of all premiums paid excluding the first years premium.
Revival: In case the policy has lapsed, you can still revive it by paying due premium within 2 years.
What’s Policybazaar opinion on Kotak Child Future Plan?
Child Future Plan is a good plan with plenty of options. There are periodic payouts at different stages as well as discount on large Sum Assured. The riders add extra bit of security and available riders are quite essential. You can also avail of loan facility as well.
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