HDFC Life Child Plans

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What do you mean by a child insurance plan?

Almost every insurance company in the market today offers a child insurance plan which is a unique plan designed specifically for the child’s benefit. This plan aims to create a stable future of the child in terms of finance which will remain unaffected by the presence of the parent. These plans have some common features and promise some unique benefits which are highlighted in the following points:

  • The plan can be bought only by a parent who has a minor child for whom he would like to plan. Other individuals cannot buy the plan.
  • These plans cover the life of the parent and he is also the person responsible for paying the premiums. Some plans, however, also cover the life of the child while the parent is supposed to pay the premiums and is called the policyholder.
  • Child insurance plans can be offered as a traditional plan where the benefits payable on death or maturity is fixed or a unit linked insurance plan where the benefits payable will depend on the growth experienced in the capital market. This is because the premiums are invested in funds representing the capital market and so the growth is market related.
  • Unlike other plans of insurance, a child plan will have an inbuilt benefit of the waiver of premium rider. This rider ensures the continuation of premium even after the policyholder who is responsible for premium payments dies. So, the child, who might be the life insured or the beneficiary will not have to worry about paying premiums if the parent dies because the company will take care of the same.
  • Normal maturity benefits are payable if the policyholder survives till maturity. However, on death two things happen. One, an immediate death benefit is paid to the nominee. Two, the plan still continues and the premiums are paid by the insurance company on every due date. When the plan matures, the maturity benefit is paid again to the nominee and then the plan is completed.
  • If the child’s life is insured, the insurance company does not take the risk immediately since inception. There is a few years’ wait which is called the deferment period during which the Sum Assured cover is not provided on the child’s life. If the child dies only the total premiums paid till the child’s death are returned to the policyholder, i.e. the parent.
  • Another feature in case where the child is covered is the vesting of the policy. Vesting means transfer of ownership of the policy. Since, the child being a minor cannot have the title to the policy, the parent acts as the policyholder. But, after the child attains 18 years of age, he is legally matured and then the policy ownership transfers in his name automatically making him the policyholder.

Why do you require a child plan?

The plan comes with various features which ensure the financial stability of the child and as such becomes very important. For instance, the premium waiver benefit which is inbuilt takes care of the crisis faced in the absence of the parent. Though in other plans of insurance, one can opt for this rider additionally, it would involve extra payment of premium which is not applicable in a child plan. By paying benefits twice in the case of death of the parent, the plan also provides the needed funds both for the immediate use and also for the future use. These features make the plan a compulsory requirement.

HDFC Standard Life Insurance Company is a joint venture between Housing Development Finance Corporation Limited (HDFC) and Standard Life plc based out of UK. While HDFC holds 74.60% of the company’s stake, Standard Life (Mauritius Holding) Limited holds 26% while the remaining is held by others. With the expertise of HDFC and Standard Life together under one umbrella, HDFC Standard Life has become a market leader in the insurance sector offering a wide range of products at competitive rates. Moreover, the company boasts of a strong foundation of sales force which helps to increase the company’s market share in the insurance sector. The range of products offered by HDFC include Protection plans in the form of term plans, Child Plans, Savings and Investment Plans which are available in both conventional or ULIPs form and pension plans. With a wide range of products, the company strives to meet every individual’s insurance related requirement at a single source.

HDFC Child Plans

HDFC Life Insurance Company currently offers two types of Child Plans to its customers. The plans are discussed below for a clear understanding with detailed features and benefits.

HDFC SL Young Star Super Premium

A unit linked child plan which has the following features:

  • The plan provides two types of coverage options of Life Option and Life & Health Option.
  • Life Options provides only the death benefit in case of death of the insured during the tenure of the plan while Life & Health Option provides for both death benefit and critical illness benefit if the insured dies or is diagnosed with a critical illness during the plan tenure.
  • There are two preferences of payment of death benefit under the plan which are Save Benefit and Save – n – Gain Benefit and the death benefit will be paid as per the Benefit Payment Preference chosen by the policyholder at the time of buying the plan
  • If the policyholder chooses the Save Benefit under any of the plan option, then on death or critical illness, the Sum Assured is paid to the beneficiary who is the child, all future premiums are waived off and paid for by the company and the plan continues. On maturity, the available fund value is again paid to the beneficiary and the plan terminates.
  • If the chosen Benefit Payment Preference is Save-n-Gain under any of the plan option, in case of death or critical illness suffered by the insured during the tenure of the plan, the Sum Assured is paid to the beneficiary who is the child, all future premiums are waived off and 50% of the premiums are paid by the company towards the plan and 50% to the beneficiary on every premium due date and the plan continues. On maturity, the available fund value is again paid to the beneficiary and the plan terminates.
  • The death benefit under any case shall not be lower than 105% of all premiums paid till the date of death.
  • On maturity, if the policyholder is alive, the available fund value is paid to him and the policy terminates. The policyholder has the option to choose the Settlement Option on maturity wherein the fund value can be kept invested with the company for a further 5 years and the policyholder will avail of the funds in instalments over those 5 years.
  • The policyholder has an option to choose from 4 available funds for investing the premium. The funds available are Income Fund, Balanced Fund, Blue Chip Fund and Opportunities Fund
  • Partial withdrawals can be made after 5 years with a minimum value of Rs.10, 000
  • Premium redirection is allowed to redirect future premiums to a different fund than that currently chosen
  • Switching is also allowed to switch between the available funds
  • A total of 6 Critical Illnesses are covered under the Life & Health Option which include cancer, CABG, heart attack, kidney failure, major organ transplant and stroke.

Eligibility Details

 

Minimum

Maximum

Entry Age

18 years

Life Option - 65 years

Life & Health Option – 55 years

Maturity Age

-

Life Option - 75 years

Life & Health Option – 65 years

Policy Term

10 years

20 years

Sum Assured

10 / 7 times the annual premium depending on age

40 times the annual premium

Annual Premium Amount

Rs.15, 000

No limit

Premium Payment Term

Equal to the policy term

Premium Payment Frequency

Yearly

 

HDFC Life Young Star Udaan Plan

A traditional life insurance plan with the following features and benefits:

  • The plan is a participating plan which earns bonuses and combines the benefits of an Endowment Plan and a Money Back Plan
  • Guaranteed Additions accrue in the first five years of the plan at a rate of 3% of the Sum Assured every year if the policy tenure is lower than 20 years or 5% of the Sum Assured every year if the policy tenure is more than 20 years.
  • For receiving the maturity benefit, the policyholder has the option to choose from three different options of Aspiration, Academia and Career.
  • Under the Aspiration Option, on maturity, the chosen Sum Assured is paid along with the Guaranteed Additions accrued in the first five years of the plan. Thus, 115% or 125% of the Sum Assured is paid in case of the Aspiration option.
  • The Academia Option is a money back option wherein money backs start from the last 5 years of the plan. The first money back is paid at 30% of the Sum Assured in the fifth last year of the plan. Thereafter, 15% of the Sum Assured is paid in every consecutive year. On maturity, 15% of the Sum Assured is paid along with the Guaranteed Additions accrued in the first five years of the plan which may be a total of 15% or 25% of the Sum Assured. Thus, a total of 120% or 130% of the Sum Assured is paid under the plan including the Guaranteed Additions
  • The Career Option also behaves like a money-back option wherein money backs start in the last 5 years of the plan. 15% of the Sum Assured is paid in every year in the last 5 years and on maturity, 40% of the Sum Assured is paid along with the Guaranteed Additions accrued in the first five years of the plan which may be a total of 15% or 25% of the Sum Assured. Thus, a total of 140% or 130% of the Sum Assured is paid under the plan including the Guaranteed Additions
  • The policyholder may avail of the money back benefits monthly which will be paid @8.5% of the annual payout amount every month for 12 months
  • There are two options for availing the death benefit under the plan which are Classic Death Benefit Option and Classic Waiver Death Benefit Option.
  • Under the Classic option, the death benefit will be higher of the Sum Assured on Maturity or 10 / 7 times the annual premium depending on the age of the policyholder or 105% of all premiums paid till the date of death.
  • Under the Classic Waiver option, the death benefit will be higher of the Sum Assured on Maturity or 10 / 7 times the annual premium depending on the age of the policyholder or 105% of all premiums paid till the date of death. Moreover, all future premiums are waived off and paid for by the company while the plan continues and earns bonuses.
  • Reversionary Bonus, Interim Bonus and Terminal Bonus are paid under the plan.
  • Loans can be availed against the plan which will be for a maximum of 80% of the Special Surrender Value applicable under the plan
  • Rebates are allowed in premiums for higher Sum Assured ranges of Rs.4 lakhs and above.

Eligibility Details

 

Minimum

Maximum

Entry Age

30 days

60 years

Maturity Age

18 years

75 years

Policy Term

15 years

25 years

Sum Assured

Depends on age, term , premium and premium paying term

Annual Premium Amount

Rs.24, 000

No limit

Premium Payment Term

Limited Pay for 7, 10 or Term minus 5 years

Premium Payment Frequency

Yearly, half-yearly, quarterly, monthly

 

Sample Rates of Premium

The following table shows sample rates of premium by individuals aged 30 years and under different maturity benefit options

Sum Assured

Aspiration

Academia

Career

Rs.1 lakh

Rs.16, 733

Rs.18, 825

Rs.19, 046

Rs.2.5 lakhs

Rs.41, 833

Rs.47, 063

Rs.47, 615

Rs.5 lakhs

Rs.83, 665

Rs.94, 125

Rs.95, 230

 

Applying for a Child Plan from the company:

Online

The company offers specific plans which are available online only. The customer only needs to log into the company’s website, choose the required plan, choose the coverage and provide the details. The premium will be determined using the filled details. The customer then needs to pay the premium online through credit card, debit card or net banking facilities and the policy will be issued

Intermediaries

Plans which are not available online can be purchased from agents, brokers, banks, etc. where the intermediaries help with the application process.

HDFC Life Child Plans - FAQs

1. How to pay premium? What are the modes of payment available?

You can pay your HDFC Life Insurance premium through ANY these following methods:

  • ECS SYSTEM
  • Bill Pay – EBPP (Electronic Bill Presentment and Payment)
  • Drop box
  • YES /AXIS Bank debit card
  • Bill pay-EBPP(Electronic bill presentment and payment)
  • Cash/Cheque Payments
  • NEFT

For paying premium online, please visit e-portal.

Step 1: Enter your policy details – policy number and policyholders date of birth

Step 2: Pay from your debit/ credit card or select your online bank account to make the payment

Step 3: Authenticate and confirm your payment details and receive online premium payment receipt


2. How can I check policy status for HDFC Life child plans?

You can check policy status online, if you are a registered user. Simply log into the e-portal with your Client ID and password to check the policy status.

Alternatively, you can check the status via the SMS facility, provided you are a registered user.

SMS LIFE to 56161

SMS FACILITY to 5676727

Alternatively, inquire at toll free 1800 266 9777 / 1800 227227 (Monday-Sunday, 9:00 AM-9:00 PM).


3. What is the policy renewal process for HDFC Life child plans?

Renew your policy online. Here are the steps;

Step 1: Login with your customer ID and password on

Step 2: Select the policy due for renewal payment. Click Pay Renewal Premium Now

Step 3: Choose payment option- Credit/Debit Card or NEFT

Step 4: Authenticate and confirm your payment details and print the payment receipt


4. What is the company’s process to settle claim for HDFC Life child plans?

For HDFC Life Insurance policyholders, Cashless facility is permitted in case of hospitalization or surgery. For others the process is as follows;

Step 1: Duly fill the claims form

Step 2: Attach the relevant documents- medical bills, reports, accident report- with your claims form

Step 3: Submit the documents at the Claims Office at any of your nearest HDFC branch in your city

Alternatively, you can post it at their registered headquarter:

HDFC Standard Life Insurance Company Ltd.Lodha Excelus, 13th Floor Apollo Mills Compound, N.M. Joshi Marg, Mahalaxmi, Mumbai – 400011, Maharashtra, India.Telephone–(022)67516666

Call toll-free for more information: 1860 267 9999


5. What is the policy cancellation process for HDFC Life child plans?

Policyholders must attach all the relevant policy documents along with a duly filled surrender form at any of the branch locations in their city. Within 72 hours, the refund will be made into your bank account, post deducting cancellation charges, stamp duty (if any), and medical tests.

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