HDFC Insurance Plans For Children

We had earlier covered HDFC Life Insurance Protection Plans. Here we will cover the HDFC Insurance Plans For Children.

Unlike the previous generations, children of this era grow in a different atmosphere. The environment is very very competitive and demanding and as a result their dreams and aspirations are sky high. To meet these demands, it is very essential to give them good economic support at the right time. With the rising costs of education and rising inflation, parents need to plan their finances such that they are available to their wards at the right time. HDFC Standard Life Insurance has Children plans specially designed for this purpose. The Children plan have been broadly divided into two. They are as follows:

  • 1) Conventional Plans
  • 2) Unit Linked Plans

Conventional Plans

Conventional Plans are traditional plans of insurance where the company takes all the investment decisions on your behalf throughout the policy term. On maturity, you will be paid bonus. There is only one plan in this category called HDFC Children Plan.

HDFC Children Plan

In this plan, the company takes the investments decision on your behalf and bonus is paid at the bonus is paid on maturity based on the performance of the underlying investment. In this plan you can choose the Sum and policy term according to your the saving needs for your child.

Term: Min 10 years Max 25 years

Age: Min 18 yrs Max 60 years (max age limit at maturity 75yrs)

Plan options:

  • 1) Accelerated Benefit Plan
  • 2) Maturity Benefit Plan
  • 3) Double Benefit Plan – in case of unfortunate death, company will pay sum assured to the child and there is no need to pay any further premiums and the policy will continue. Also on maturity, the company will pay you the sum assured along with the bonus declared

Maturity : Sum assured and bonus payable at maturity

Premium payment options : Annually, Half yearly, Quarterly

Tax Benefits : Under 80C and 10(10D) of the Income Tax Act, 1961

Unit Linked Plans

Unit Linked Plans are plans where decisions of investment of the money lies with the investor according to his/her need and risk appetite. All the returns in these plans are based on NAV (Net Asset Value), declared periodically. There are four plans in this category. The following are the plans:

  • 1) HDFC YoungStar Super
  • 2) HDFC Unit Linked Young Star II
  • 3) HDFC Unit Linked Young Star Plus II
  • 4) HDFC Unit Linked Young Star Champion

HDFC Young Star Super

As this and the plans to follow are unit linked plans, you can decide where your money can be invested. For this, there is a whole range of options. You can insure up to a minimum of 5 times and max of 40 times of annual premium. You can customize your plan by choosing premium and sum assured based on your needs.

Term : Min 10 years Max 25 years

Plan options :

  • 1) Life option (Death Benefit only)
  • 2) Life & Health Option (Death Benefit + critical illness benefit)

Age:

  • 1) Life option – Min 18 yrs Max 65 years (max age limit at maturity 75yrs)
  • 2) Life & Health option – Min 18 yrs Max 55 years (max age limit at maturity 65yrs)

Fund options – Depending on your risk appetite you can choose from any one of the following fund options:

  • 1) Liquid fund II
  • 2) Stable Managed Fund II
  • 3) Secure Managed Fund II
  • 4) Defensive Managed Fund II
  • 5) Balanced Managed Fund II
  • 6) Equity Managed Fund II
  • 7) Growth Fund II

Payment Preferences:

  • 1) Double Benefit
  • 2) Triple Benefit – The triple Insurance benefit is in case of your unfortunate death or critical illness the sum assured will be paid to child. Further premiums need not be paid. 50% of the premiums will be paid by the firm and 50% of the premiums will be paid to the child as and when due. Death Benefit or critical illness cover terminates.

Premium payment options : Annually, Half yearly, Quarterly
Tax Benefits : Under 80C and 10(10D) of the Income Tax Act, 1961

Maturity: Fund value will we returned along with “Bumper Addition” which is the percentage of original annualized premium and term.

HDFC Unit Linked Young Star II

You can insure up to a minimum of 5 times and max of 40 times of annual premium. You can customize your plan by choosing premium and sum assured based on your requirement.

Term : Min 10 years Max 25 years

Plan options:

  • 1) Life option (Death Benefit only)
  • 2) Life & Health Option (Death Benefit + critical illness benefit)

Age:

  • 1) Life option – Min 18 yrs Max 65 years (max age limit at maturity 75yrs)
  • 2) Life & Health option – Min 18 yrs Max 55 years (max age limit at maturity 65yrs)

Fund options – Depending on your risk appetite you can choose from any one of the following fund options:

  • 1) Liquid fund II
  • 2) Stable Managed Fund II
  • 3) Secure Managed Fund II
  • 4) Defensive Managed Fund II
  • 5) Balanced Managed Fund II
  • 6) Equity Managed Fund II
  • 7) Growth Fund II

Payment Preferences:

  • 1) Double Benefit
  • 2) Triple Benefit – The triple Insurance benefit is in case of your unfortunate death or critical illness the sum assured will be paid to child. Further premiums need not be paid. 50% of the premiums will be paid by the firm and 50% of the premiums will be paid to the child as and when due. Death Benefit or critical illness cover terminates.

Premium payment options: Annually, Half yearly, Quarterly

Tax Benefits: Under 80C and 10(10D) of the Income Tax Act, 1961

HDFC Unit Linked Young Star Plus II

You can insure up to a minimum of 5 times and max of 40 times of annual premium. You can customize your plan by choosing premium and sum assured based on your requirement. This plan gives loyalty units (i.e increase the number of units by 0.10% at the end of every year of the policy) therefore boosting the final maturity value.

Term : Min 10 years Max 25 years

Plan options :

  • 1) Life option (Death Benefit only)
  • 2) Life & Health Option (Death Benefit + critical illness benefit)

Age:

  • 1) Life option – Min 18 yrs Max 65 years (max age limit at maturity 75yrs)
  • 2) Life & Health option – Min 18 yrs Max 55 years (max age limit at maturity 65yrs)

Fund options – Depending on your risk appetite you can choose from any one of the following fund options:

  • 1) Liquid fund II
  • 2) Stable Managed Fund II
  • 3) Secure Managed Fund II
  • 4) Defensive Managed Fund II
  • 5) Balanced Managed Fund II
  • 6) Equity Managed Fund II
  • 7) Growth Fund II

Payment Preferences:

  • 1) Double Benefit
  • 2) Triple Benefit – The triple Insurance benefit is in case of your unfortunate death or critical illness the sum assured will be paid to child. Further premiums need not be paid. 50% of the premiums will be paid by the firm and 50% of the premiums will be paid to the child as and when due. Death Benefit or critical illness cover terminates.

Premium payment options : Annually, Half yearly, monthly
Tax Benefits : Under 80C and 10(10D) of the Income Tax Act, 1961

HDFC Unit Linked Young Star Champion

You can insure up to a minimum of 5 times of annual premium (max Rs.5,00,000). There are no need for medical examination for this policy.

Term : 15 years

Age : Min entry age 18 yrs and max 50 years (max age limit at maturity 65yrs)

Fund options: Depending on your risk appetite you can choose from any one of the following fund options:

  • 1) Liquid fund II
  • 2) Stable Managed Fund II
  • 3) Secure Managed Fund II
  • 4) Defensive Managed Fund II
  • 5) Balanced Managed Fund II
  • 6) Equity Managed Fund II
  • 7) Growth Fund II

Premium payment options :Min for annual policies Rs.20,000 and monthly Rs.3000.

Tax Benefits : Under 80C and 10(10D) of the Income Tax Act, 1961

Maturity : A bumper addition which is a percentage addition to the annualized premium will added to the fund value at maturity.

Does the above HDFC Insurance Plans suit your needs?

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