The biggest contribution you can make, as a parent, in the success of their child is to do proper financial planning of your child’s future. The security of the future is the most precious gift you can give to your child. Child plans from HDFC help you secure the future and career of your child and make them financially independent even after you are gone. The plan aims to create a financially stable future for your child, even in the absence of a parent.
The market is full of numerous child plans that offer great benefits, but HDFC child plans are uniquely designed especially for the child’s benefits. Currently, HDFC offers two types of child plans.
• HDFC SL Young Star Super Premium
• HDFC Life Young Star Udaan Plan.
Features of this plan are stated in the following points:
This Plan of HDFC offers two types of coverage. They are-
Life cover option: This option provides only the death benefits and if in any case the insured dies before the policy tenure, he can avail these benefits.
Life and Health cover option: The plan provides both death and critical illness benefit. If in any case the insured is diagnosed with a critical illness during the policy tenure, this plan covers it all.
The death benefit will be paid according to the chosen benefit payment option. There are two options to choose the payment, namely, saves benefit and save-n-gain benefit. The policyholder will choose the option at the time of buying.
Save benefit option: Under this option, on death or critical illness, the sum assured is paid to the child or beneficiary and all future premiums will be waived off and on maturity, the entire fund value will be paid to the beneficiary.
Save-n-Gain benefit: Under this option, on death or critical illness, the sum assured is paid to the child or the beneficiary and all future premiums will be waived off. Also, 50% of the premium is paid by the company towards the plan and 50% to the beneficiary on every premium due date. On Maturity, the whole fund value will be paid to the beneficiary.
If the policyholder is alive on maturity, then the whole amount will be paid to him.
Insured is given an option to keep his fund value invested with the company for another 5 years. The insured can also avail the fund in installment over those 5 years.
The minimum amount of death benefit is 105% of all premium paid till the date.
The investor gets an option to choose from 4 different funds available. They are Income Fund, Balanced Fund, Blue Chip Fund and Opportunities Fund.
The option of Partial withdrawal is open, but only after 5 years of policy with a minimum value of Rs. 10,000.
Premium redirection is allowed.
Total six critical illnesses are covered under Life and Health option of HDFC child plan.
Eligibility:
Entry Age of the policy is 18 years to 65 years in life option and 18 years to 55 years in Life & Health option
Policy term will be in between 10 to 20 years.
Maximum Maturity age for life option is 75 years, whereas for Life & Health option it is 65 years.
Sum assured may vary depending on the age, but it will be a minimum of 10/7 times the annual premium and maximum of 40 times the annual premium.
The minimum annual premium amount is Rs. 15,000.
This HDFC plan is like any other insurance plan. Features of this plan are stated in the following points:
The plan offers two variants which act as an Endowment plan and a Money Back plan.
The plan offers guaranteed addition in the first five years at the rate of 3% of the sum assured if the policy tenure is below 20 years, and 5% of the sum assures will be added for the policy tenure above 20 years.
Maturity benefits can be availed by three different options:
• Aspiration Option: In this option, the sum assured is paid along with a guaranteed addition that was made in first five years. The total payout amounts to 125% of the sum assured if the Aspiration option is chosen by the policyholder.
• Academia Option: This is a money-back option. Under this option, the money back starts in the last 5 years of the plan. The first four money backs are 15% of the sum assured and 30% of the sum assured will be paid in the last year before maturity. On maturity, 15% of the sum assured is paid along with the additions. The total payout amounts to 130% of the sum assured, if the Academia option is chosen by the policyholder.
• Career Option: It is also a money-back option. Under this option, the money back starts in the last 5 years of the plan. 15% of the sum assured is paid every year in the last five years of the plan and the remaining 40% of the sum assured along with additions is paid on maturity. The total payout amounts to 140% of the sum assured, if the Academia option is chosen by the policyholder.
• Classic option: Under this option, the death benefit will be higher of the sum assured on death or 10/7 times the annual premium depending on the age of insured or 105% of all the premiums paid till the death plus, accrued guaranteed additions, accrued reversionary bonuses, interim bonus (if any) and terminal bonus (if any) would be payable.
• Classic Waiver option: Under this option, the death will be higher of the sum assured or 10/7 times the annual premium, depending on the age of insured or 105% of all the premiums paid till the death and all future premiums will be waived off and paid by the company.
Bonuses like a Reversionary bonus, Interim bonus and terminal bonus are paid under this plan.
You can use this plan as collateral against a loan of a maximum of 80% of the special surrender value.
Eligibility:
| Eligibility Criteria | Death Benefit Options | Maturity Benefit Options | Minimum | Maximum |
|---|---|---|---|---|
| Age at Entry | Classic |
|
|
60 Years 55 Years |
| Age at Maturity |
|
|
|
75 Years |
The minimum premium amount is
| Frequency | Minimum Installment Premiums | Maximum Installment Premiums |
|---|---|---|
| Annual | Rs. 24000 | |
| Half Yearly | Rs. 12000 | |
| Quarterly | Rs. 6000 | |
| Monthly | Rs. 2000 |
Child plans of HDFC offer various benefits-
Financial security: The plan offers financial security to your child. Unaffected by your presence, the plan makes your child financially independent, even in the case of any unfortunate event.
Premium waiver benefit: The inbuilt feature of premium waiver ensures that no matter what the situation, your child will be financially secure.
By investing in this plan, one can also opt the death benefit payment mode whether to get immediate payment or receive it in near future.
The benefits offered by HDFC child insurance plans make it a compulsory requirement in today’s world. The ULIP plan invests a part of the premium in debt and equity instruments that are linked to capital market and are aimed to earn higher returns. The company offers a healthy choice of funds to invest your money. The money is invested as per the risk appetite of an insured person. Fund option may range from 100% debt to 100% equity based on your financial goals.
Both the plans of HDFC life child plans are focused to give maximum returns to the insured and facilities like systematic Transfer plan and dynamic fund allocation safeguard the investment through market fluctuation.
For the ULIP child plan, the parent has to choose the regular premium & level of protection, benefit payment preference & plan option as per their need along with the investment fund. On maturity, the fund value is paid and the policy terminates. In case of death of the parent, Sum Assured is paid immediately to the beneficiary, all future premiums will be paid by the company, and on Maturity the fund value is paid to the beneficiary under the Save Benefit. If the Save-n-Gain Benefit is chosen, 50% of all the future premiums towards the policy will be paid by the company and the balance 50% of the premiums will be paid to the beneficiary as and when due, on an annual basis, rest all benefits remain the same.
What should I do if I want to change my premium paying term?
Premium paying changes are subject to a few terms and conditions; consult your insurance company before taking such decisions. Generally, this is not allowed since the mode once selected cannot be changed. If the plan provides an option for changing the premiums, premium paying term the insurance company will request you to provide a written request before it can act on your request.
Why you should opt for HDFC life child plans?
HDFC life child plans give your child a financially independent future, even in case of any unfortunate event. The company promises to give the best possible service to its investors and assures the financially secure future.
How to pay a premium? What are the modes of payment available?
HDFC life child plans offer the following modes of payment:
ECS system
Bill pay- Electronic Bill Presentment and payment (EPBB)
YES or AXIS bank
Dropbox
Cash/Cheque payment
NEFT
Debit card/ Credit card
Online payment
How can I check policy status for HDFC life child plans?
If you are a registered user, log in to your account using your client ID and Password and check the status of your policy instantly. You can get all the details about your policy at your fingertips.
You can also check your policy status through SMS facility in just a few steps- SMS LIFE to 56161,
SMS FACILITY to 5676727
What is the policy renewal process for HDFC life child plans?
Renewal of your policy can be done by paying the due premiums through the following modes:
Online mode: Login to your account using your Login ID and Password and select the plan that is due for renewal. Click ‘Pay Renewal premium now’ and choose your payment mode and after making payment, your plan will be renewed instantly.
Offline mode: Visit the nearest branch and pay the outstanding premiums to renew the policy.
What is the company’s process to settle a claim for HDFC life child plans?
Fill the claim form, attach the relevant documents and submit at the claims office at any nearest HDFC branch
Call on the toll-free number- 1860 267 999
What is the policy cancellation process for HDFC life child plans?
Submit a duly filed surrender form along with relevant documents at any branch and after verification, the company will refund the applicable amount.
How does HDFC Life Child Plans work?
The plan offers the benefits even in case of the death of the policyholder during the policy term. The future premiums are waived off and the policy, along with the bonuses, will continue to accrue and on maturity, the maturity benefits are paid out to the nominee.
What are HDFC Life Child Plans in India?
The child plans provided by HDFC are the most suitable saving plan. The plans come with variety of convenient ways to invest and receive maturity amount along with benefits. With this investment, the policyholder is assured about the financial security of child’s future.
