Kotak Rising Star

What is Kotak Rising Star?

Kotak Rising Star is a child insurance plan offered by Kotak Mahindra Bank. It's designed to help you secure your child's future financially, for various milestones like education and marriage. The plan offers financial security through investment growth, guaranteed death benefit (a lump sum payout in case of the parent's demise), and a monthly income for the family to bridge the financial gap. Even in the unfortunate event of the parent's passing, all future premiums are waived, yet the policy continues till maturity. This ensures a steady flow of funds and a guaranteed yearly increase in the corpus, ultimately providing a planned lump sum amount upon maturity to help your child achieve their long-term goals.

Features of Kotak Rising Star

Here are its key features:

• Financial Security: The invested amount grows over time, maximizing returns for your child's future needs.

• Guaranteed Death Benefit: In case of your unfortunate passing, a lump sum amount (Basic Sum Assured) is paid to your child (beneficiary) or appointee (if the child is a minor).

• Regular Income: Following your demise, the plan provides a monthly income for a period of 3 to 10 years, ensuring a steady flow of funds for your family.

• Continued Policy: Kotak waives off all future premiums, yet the policy continues till maturity, with guaranteed yearly additions continuing to grow the corpus.

• Maturity Benefit: Upon policy maturity, the accumulated corpus is paid to your child, helping them achieve their long-term goals.

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Kotak Rising Star offers a triple protection benefit:

• Lump sum payout in case of parent's death.

• Monthly income to bridge the financial gap.

• Policy continuation till maturity to ensure a planned corpus for your child's future.

Eligibility Criteria for Kotak Rising Star

Investment

Secure

Secure your child’s future with or without you

Start Investing

₹10,000/Month

& Get

₹1 Crore^*

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*Standard T & C Apply

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Benefits of Kotak Rising Star

The benefits of Kotak Rising Star are:

1. Maturity Benefit:

   • Receive the fund value accumulated throughout the policy term, including yearly additions, upon maturity.

   • This benefit is paid irrespective of your survival as long as premiums are paid on time. This offers peace of mind, knowing your loved ones will receive a payout even if you pass away before the policy matures.

2. Death Benefit:

   • In case of your unfortunate demise during the policy term, your beneficiary will receive a lump sum amount. This amount is the higher of:

     • Basic Sum Assured

     • 105% of total premiums paid until death

   • This benefit is reduced by any partial withdrawals made from the policy.

3. Additional Income for Your Beneficiary:

   • Along with the lump sum amount, your beneficiary will receive a regular monthly income. This income starts from the month following the lump sum payment and continues for the remaining policy term.

   • The monthly payout is 1% of the Basic Sum Assured.

   • This benefit ensures your loved ones have a steady income stream to manage their finances in your absence. The minimum payout term is 3 years (36 installments), and the maximum is 10 years (120 installments).

4. Flexibility for Beneficiary:

   • Your beneficiary can receive the future monthly income as a lump sum amount. This lump sum will be discounted at a rate of 5% per annum (subject to change by the company with regulatory approval).

5. Tax Benefits:

   • The Kotak Rising Star plan may offer tax benefits under the Income Tax Act, 1961. However, tax laws are subject to change. It's recommended to consult a tax advisor for personalized advice on your potential tax savings.

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Policy Details of Kotak Rising Star Plan

1. Grace Period:

   • 30 days for annual, half-yearly, and quarterly payments.

   • 15 days for monthly payments.

   • Policy remains in force during the grace period.

2. Partial Withdrawals:

   • Allowed after 5 years (lock-in period).

   • Minimum withdrawal: ₹5,000 in multiples of ₹1,000.

   • Minimum fund value after withdrawal: 105% of total premiums paid.

   • Reduces death benefit for withdrawals in the past 2 years.

   • Not allowed during policy discontinuation or settlement.

   • Allowed during reduced paid-up status.

   • Cannot be used to terminate the policy.

3. Policy Loans:

   • Not available under this plan.

4. Free Look Period:

   • 15 days (30 days for electronic/distance marketing policies) to review the policy and get a refund if not satisfied.

   • Refund includes non-allocated premium, fund value, minus charges.