Kotak Headstart Future Protect

Bring alive your child’s dreams. Start preparing.

Zindagi se ek kadam aagey

At A glAnce - BeneFits to tHe cHild

On maturity - Fund value will be paid

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 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

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.

Zindagi se ek kadam aagey

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.

His first steps


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.

His first birthday

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

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 Option
Kotak Aggressive Growth Kotak Dynamic Growth


Risk Return Profile



Cash & Money 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 shortterm capital shocks.


60%100% 40%80%

0%40% 0%20%

Kotak Dynamic Balanced





Kotak Dynamic Floor

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.





Kotak Dynamic Bond Kotak Dynamic Floating Rate Kotak Dynamic Gilt

0%100% Conservative – 80%100%



Kotak Dynamic Money Market

Will protect capital and not have downside risks




His first day at school


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. Some suggestions on how you might allocate your savings are illustrated in the chart below:
investment time Horizon Recommended fund options & allocation

If your child is below the age of 7, you will probably not require the money for another 15-20 years.

75% in Aggressive Growth Fund or Dynamic Growth Fund 25% in Dynamic Growth Fund

If your child is between the age of 8 and 12, you are likely to save for the next 10-15 years.

50% Dynamic Growth Fund 50% Dynamic Floor Fund

If your child is between the age of 13 and 15, you may require the amount within 7-10 years.

100% in Dynamic Floor Fund

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.

His first achievement


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.
other Benefits
Saving for 2 children Joint life option available^ (Primary & Joint Life Insured) Survival units

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

Top-up premiums#

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.

Flexible premiums

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 sum assured is adjusted to ensure the cover is equal to the greater of 5 x Altered Premium and 0.5 x Term x Altered Premium.

Partial withdrawals

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.

Automatic cover maintenance

Convenient premium payment modes

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

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.


His graduation


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.

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.

Entry Age Term Min – 18 years Max – 60 years Min – 10 years or 18 minus the younger child’s current age, whichever is greater Max – 25 years 3 – 10 years Max – 70 years (older policyholder) Min – 18 years (younger beneficiary) Min – Rs.15,000 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

Limited Premium Payment Term Maturity Age Regular Annual Premium Limited Premium Payment

His first day at work



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: PolicY teRM less tHAn 15 YeARs
Annual Premium (Rs.) Year 1 Year 2 Year 3 Year 4-10 Year 11 onwards 15,000 to 25,000 68% 86% 93% 99% 100% 25,001 to 1,50,000 72% 91% 95% 99% 100% Above 1,50,000 80.50% 93% 96% 99% 100%

PolicY teRM oF 15 YeARs & ABoVe
Annual Premium (Rs.) Year 1 Year 2 Year 3 Year 4-10 Year 11 onwards 15,000 to 25,000 64% 86% 93% 99% 100% 25,001 to 1,50,000 68.5% 91% 95% 99% 100% Above 1,50,000 79% 93% 96% 99% 100%

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

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 charge
There 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

His wedding


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
No loan facility.

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


About us
Kotak 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 exclusion In 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 rebates Section 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
Anand 656801/03/05/07 Ahmedabad • Ellisbridge 66315000-04 • Satellite 66061637 Aurangabad 6610251-75 Bangalore •Rajaji Nagar 66628050-54 •Residency Road 66188365-71 Baroda 6675000 Bharuch 645247 Bhavnagar 6451057-58 Bhopal 4008800-05 Chandigarh 5076451-54 Chennai • Ceebros Centre 42101122 • Teynapet 42000100 Cochin 2377611-14 Coimbatore 6502211-16 Delhi •Bhikaji Kama 41595000 •K. G. Marg 41795000 • Laxmi Nagar 43043000 •Pitampura 65195000-04 Gandhidham 654902-05 Gurgaon 4025000-30 Guwahati 2340672-75 Hyderabad •Begumpet 23412929/39 • Secunderabad 66205000 Indore 4027181-85 Jaipur 2371627-30 Jamnagar 6545902-04 Jamshedpur 6450993 Jodhpur 2632901/02 Jorhat 2309073/74 Kanpur 2331211-15 Karnal 2268671/73 Kolhapur 6685000 Kolkata •15 Park Street 22093000 • Chowringhee Road 22881799 • Gariahat Road 24617711 •Kakurgachi 23648606-09 Lucknow 2625770/59 Ludhiana 5089643-47 Mumbai •Andheri 66765000 •Borivali 64510882/90 • Chembur 67995000 • Churchgate 66541000 • Lower Parel 66635353 Nadiad 2561042 Nagpur 2525848 Nashik 6605005 Palanpur 261184 Pune • Aundh 30284315-22 • Sasoon Road 56055073 Rajkot 6625000 Surat • Adajan 6555550 • Dumas Road 6589200-03 Thane 67925000 Tinsukhia 2336037/56-58 Trichy 4002010/55/66 Valsad 645822/23 Vapi 6545821/22 Vashi 67905003

Customer Contact Center

6050 5000
Toll Free 1800-22-8081 SMS KLIFE to 676788

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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: lifeexpert@kotak.com This product leaflet gives only the salient features of the plan. For detailed terms and conditions, please refer to the specific policy document.