Kotak

Headstart Assure Wealth

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, or the latter Higher of sum assured or Fund value payable as a lump sum
of both lives insured, if joint life option
selected (parent, grandparent or legal
guardian)

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

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

KOTAK HEADSTART ASSURE WEALTH

Bring alive your child’s 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 Kotak’s 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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 How does this plan benefit my children?

Protection and growth of child’s 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 children’s 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, it’s 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 depending
on the advice of others.

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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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

Kotak Aggressive Aims for a high level of capital growth by 60%-

0%-40%
Growth holding a significant portion in equities. 100%
Kotak Dynamic Aggressive
May experience high levels of shorter 40%- 0%- 0%-
Growth term volatility (downside risk). 80% 40% 20%

Aims for moderate growth by holding

a diversified mix of equities and fixed
Kotak Dynamic interest instruments.
Balanced Moderate 30%- 20%- 0%-
May also be susceptible to moderate levels 60% 70% 20%
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.
0%- 0%- 0%-
Kotak Dynamic Is likely to out-perform traditional balanced Cautious 75% 100% 20%
Floor or equity funds during sideways or falling
markets and shadow the rising equity
markets.

Returns will be in line with those of fixed

Kotak Dynamic interest instruments, and may provide little 0%- 0%-
Bond protection against unexpected inflation 100% 20%
Kotak Dynamic increases.
Conservative –
Floating Rate Will preserve capital and minimize downside
risk, with investment in debt and government 80%- 0%-
Kotak Dynamic instruments.
Gilt 100% 20%

Kotak Dynamic Will protect capital and not have downside _

Money Market risks Secure – 100%

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.

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

Recommended fund
Investment Time Horizon
options & allocation

75% in Aggressive Growth

If your child is below the age of 7, you
Fund or Dynamic Growth Fund
will probably not require the money for
another 15-20 years. 25% in Dynamic Growth Fund

If your child is between the age of 8 and 50% Dynamic Growth Fund
12, you are likely to save for the next
10-15 years. 50% Dynamic Floor Fund

If your child is between the age of 13 and

15, you may require the amount within 100% in Dynamic Floor Fund
7-10 years.

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.

Money back phase of 5 years after maturity

Your children’s future expenses don’t all come at once. Often there might be a large initial outlay,
with extra expense over the ensuing years. On maturity, you will receive the accumulated fund
value for the benefit of your children. A portion of this corpus may be utilized to pay for their
admission to a premier institute and the balance amount could be used to fund tuition fees
during the next 5 years. Or you may choose to support your children’s entrepreneurial initiatives
and wedding expenses with the accumulated fund.

With this plan, you can also access the investment after completion of the 3rd policy year, with
no partial withdrawal or surrender 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.

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 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 Details

Saving for 2 children Hassle-free, cost effective saving through a single plan for one or two children.

Joint life option available^ Both parents can be covered where death benefit is paid on the second death.
(Primary & Joint Life This helps minimize your mortality cost.
Insured) Boost the accumulation amount at maturity for your children, where you may
already have insurance to cover them along the way.

Survival units 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.
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.
Available after paying 3 full regular annual premiums.

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.

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

Automatic cover In case you miss your premium payment, this facility will ensure that whilst you
maintenance 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.
All rider benefits fall 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.

Convenient premium Pay your premiums annually, half-yearly, quarterly or monthly (through direct
payment modes 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.

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 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: 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

Entry Age Min – 18 years

Term
Limited Premium Payment Term
Maturity Age
Regular Annual Premium
Limited Premium Payment
Max – 60 years
Min – 10 years or 18 minus the younger child’s current
age, whichever is greater
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

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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:

POLICY TERM LESS THAN 15 YEARS POLICY TERM OF 15 YEARS & ABOVE
Annual 15,000 to 25,001 to Above Annual 15,000 to 25,001 to Above
Premium 25,000 1,50,000 1,50,000 Premium 25,000 1,50,000 1,50,000
(Rs.) (Rs.)

Year 1 68% 72% 80.50% 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
For Top-up premiums, the allocation will be 99%.
Year 2 86% 91% 93%
Year 3 93% 95% 96%
Year 4-10 99% 99% 99%
Year 11 100% 100% 100%
onwards

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.

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

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

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

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.

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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 Chennai • Secunderabad • Gariahat Road Pune

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

Customer Contact Center

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

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.