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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 100% of the sum assured payable immediately
option selected
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, Additional death benefit cover, equal to basic premium x
if joint life option selected (parent, number of outstanding installments, is paid into the Main
grandparent or legal guardian) 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 100% of the sum assured payable immediately
insured, if joint life option selected
Policy balance available immediately or in equal installments
(parent, grandparent or legal guardian)
payable semi-annually over 5 years

To boost protection you have a choice Portion of sum assured (max 75%) payable on admission of a
of riders (charges will be deducted from claim on a critical illness, through our Critical Illness Benefit
the fund)
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.

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

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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
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 Objective Risk Return Equity Debt Cash &

Option Profile Money

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

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

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.
Floating Rate Conservative –
Will preserve capital and minimize downside
Kotak Dynamic risk, with investment in debt and government 80%- 0%-
Gilt instruments.
100% 20%

Kotak Dynamic Will protect capital and not have downside

risks Secure _ – 100%
Money Market

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:

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.

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.

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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 sum assured is paid on the second death.
(Primary & Joint Life Boost the accumulation amount at maturity for your children, where you may
Insured) 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.
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.

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

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. 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.

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.

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 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

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:

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 2 86% 91% 93%
Year 3 93% 95% 96% Year 3 93% 95% 96%
Year 4-10 99% 99% 99% Year 4-10 99% 99% 99%
Year 11 100% 100% 100% Year 11 100% 100% 100%
onwards onwards
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
• 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
• Satellite Cochin 2625770/59 Rajkot
66061637 2377611-14 6625000
Aurangabad Coimbatore 5089643-47 Surat
6610251-75 6502211-16 • Adajan
Jamshedpur 6555550
Bangalore Delhi •Andheri
6450993 • Dumas Road
•Rajaji Nagar •Bhikaji Kama 66765000
66628050-54 41595000 Jodhpur •Borivali
•Residency Road •K. G. Marg 2632901/02 64510882/90 Thane
66188365-71 41795000 • Chembur 67925000
• 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
• Chowringhee Road
•Begumpet Palanpur
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: Email:
This product leaflet gives only the salient features of the plan. For detailed terms and conditions, please refer to the specific policy