HDFC Child Plan Fixed Deposit

Planning for financial goals has become crucial today - be it for wealth creation, retirement, or your child’s future. HDFC Life offers products that not just help you plan your child’s future goals but also provide your family with a corpus, in your sunset years or the event of your absence.

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Investing in your child's future:A wise decision & a loving choice
  • Insurer pays premium in case of loss of life of parent

  • Create wealth for child’s aspirations

  • Tax Free maturity amount+

  • 12+ plans available

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  • Insurer pays premium in case of loss of life of parent

  • Create wealth for child’s aspirations

  • Tax Free maturity amount+

  • 12+ plans available

Nothing Is More Important Than Securing Your Child's Future

Invest ₹10k/month your child will get ₹1 Cr Tax Free*

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In this article, we are discussing three HDFC insurance plans for children, which shall help you in achieving your financial goals.

HDFC Life Click 2 Wealth

It is a unit-linked plan that provides you with three plan options to choose from depending on your investment needs:

  1. Invest Plus

    This option provides life coverage and takes care of your investment requirements by providing accrued fund value when the policy matures.

  2. Premium Waiver

    This is an option that takes care of all your financial responsibilities in your absence. In the event of your unfortunate death, all future premiums shall be waived, and it shall be ensured that your fund does not stop growing so that your dependents continue to build the corpus on your behalf for the dreams you have nurtured for your beloved ones. 

  3. Golden Years Benefit

    Retirement marks the beginning of one’s life where an individual prefers spending quality time with loved ones. This plan option provides you with the solution to build a corpus while also having life cover for the rest of your life (till 99 years of age). 

    In addition, you may choose systematic withdrawals to generate regular income for your retirement stage from your accrued fund.

    The plan option, once chosen, cannot be altered throughout the policy term, and charges will vary as per the plan option selected. However, you may now decide how you want to manage your investment portfolio from 10 different fund options.

People also read: Child Education Plan

Eligibility Criteria, Premium Amount, Premium Paying Term, and Policy Term

Parameters Invest Plus Premium Waiver Option Golden Years Benefit Option
Age at entry Life Assured: 0 years (30 days) to 60 years
- Proposer: 18 years to 65 years -
Age at maturity 18 years to 75 years 18 years to 75 years 99 years
Minimum premiums Single: Rs.24,000
Annual: Rs.12,000
Half-yearly: Rs.6,000
Quarterly: Rs.3,000
Monthly: Rs.1,000
Maximum premiums No limit, subject to HDFC Life Underwriting Policy
Policy term 10 to 40 years 99 minus entry age
Premium payment term Single pay,
Limited: 5, 7, and 10 years
Regular: 10 to 40 years
Limited pay: 10 to 70 minus
entry age

Sum assured

You have the option to choose the sum assured under the policy as follows:

Boundary Conditions
Parameters Minimum  Maximum
 Sum Assured  Single Pay 1.25 x Single Premium Maximum Sum Assured shall be as per HDFC Life Underwriting Policy 
Regular & Limited Pay 10 x Annualized Premium

Benefits available under the policy

  1. Maturity benefit

    On maturity of the policy, you will receive your fund value, which will be computed by multiplying balance units in your fund by the prevailing unit price. 

  2. Death benefit

    For a valid policy, the death benefit shall be:

    On death of the life assured, highest of the following:

    • Total sum assured subject to adjustments

    • Fund value

    • 105% of total premiums paid.

    On the death of proposer - This is applicable for Premium Waiver Option only, where the proposer is different from life assured. All future premiums shall be waived, and on each scheduled premium due date, an amount equivalent to the modal premium will be added to the fund value. 

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  3. Additional benefits

    1. Minimum number of charges

      There are no charges applicable in this product other than fund management charge (ranging from 0.8% p.a. to 1.35% p.a. of fund value depending on the investment plan) and mortality charge (ranging from 0.10% p.a. to 1.23% p.a. of the death benefit less fund value).

    2. Return of mortality charges (ROMC)

      The total amount of deducted mortality charges for the insurance cover of the insured throughout the policy is added to the fund value when the policy matures.

    3. Special addition

      Under this facility - which is available under all the 3 Plan options - for the first 5 policy years, 1% of the annualized premium or single premium shall be added to the fund value at the time of allocation of premium.

      This HDFC Insurance Plan for Children helps to build a corpus for yourself and your loved ones in the unfortunate event of your death.

YoungStar-Super-Premium

The plan gives:

  • Financial security for your child.

  • Annual payments to your family in the event of your demise.

  • Flexible payment options.

  • Option to invest in various funds.

There are just 3 easy steps to build your own YoungStar Super Premium plan.

You can choose your protection level and premium as per the limits mentioned below. Things cannot be changed during the policy period.

Premium Sum Assured
Age less than 45 years Age 45 years & above
Minimum Rs.15,000 10 x Annualized premium 7 x Annualized premium
Maximum No limit 40 x Annualized premium

You may opt for one of the following two plan options, which will determine how your beneficiary will get the benefits in case of a claim:

  • Death benefit – by selecting the life option

  • Death benefit plus critical illness benefit - by selecting the life and health option.

The nominee will not have the right to request any fund switch, partial withdrawal, surrender, settlement option, premium redirection, etc. 

You have the freedom to choose your investment fund from any of the following four funds designed to meet your risk appetite:

  • Income Fund

  • Opportunities Fund

  • Blue Chip Fund

  • Balanced Fund

You may also modify your investment fund choices by switching or by premium redirection, as per your need.

Eligibility criteria

Eligibility Life option Life & health option
Minimum entry age 18 years
Maximum entry age 65 years 55 years
Maximum maturity age 75 years 65 years
Minimum policy term 10 years
Maximum policy term 20 years
Invest More Get More
Invest ₹10K/Month YOU GET ₹1 Crores* For Your Child View Plans
Invest ₹8K/Month YOU GET ₹80 Lakhs* For Your Child View Plans
Invest ₹5K/Month YOU GET ₹50 Lakhs* For Your Child View Plans
Standard T&C Apply *

Benefits under the plan

  1. On maturity

    You may use your balance units at the prevailing unit price, in a lump sum or periodic instalments over a maximum period of 5 years, the first instalment falling on the date of maturity. The risk cover shall be maintained at 105% of the total premiums paid during the settlement period. 

  2. On death

    On your demise during the policy period, the benefit payable shall be determined based on the payment preference chosen by you. The death benefit will be 105% of the total paid premiums. 

  3. On critical illness

    If you are diagnosed with any critical disease before the policy tenure ends, the payable benefit will be determined based on the payment preference chosen by you. 

  4. By partial withdrawal

    While you will not be able to withdraw or surrender the money invested in the plan partially or completely till the end of the 5th year, after that, you can withdraw money if you feel the need.

    While this HDFC Insurance Plan for Children provides you with the freedom to invest the premium amount paid, there are a plethora of charges, which effectively reduce the corpus invested.

YoungStar-Udaan

  1. Eligibility criteria

    Eligibility criteria Death benefit options Maturity benefit options Minimum Maximum
    Age at entry Classic Option 1 – Aspiration 0 years (30 days) 60 years
    Option 2 –Academia 8 years
    Option 3 – Career
    Classic waiver All options 18 years 55 years
    Age at maturity Classic Option 1 – Aspiration 18 years 75 years
    Option 2 –Academia 23 years
    Option 3 – Career
    Classic waiver All options 33 years 75 years
  2. Premiums

    Frequency Minimum instalment premium Maximum instalment premium
    Annual Rs.24,000 No limit
    Half-yearly Rs.12,000
    Quarterly Rs.6,000
    Monthly Rs.2,000
  3. Premium payment terms

    Minimum policy term Maximum policy term Premium payment terms
    15 years 25 years ·         7 years
    ·         10 years
    ·         Policy term minus 5 years

You may choose from 3 maturity benefit options at policy inception based on your child's financial goals. These 3 options have been illustrated below for a policy with a term of 20 years or more and a premium paying term of 10 years or more. 

Guaranteed additions (calculated as a % of sum assured) for policy term <=19 years is 3% p.a. for first 5 policy years, nil thereafter, and guarantee additions for policy term > = 20 is 5% p.a. for the first 5 policy years, nil thereafter.

  1. Option 1: Aspiration

    Year of payout How much? Financial goal Guaranteed payout amount for Rs.5 lakh of SA
    Lump-sum at maturity 100% of SA + GA (25% of SA) Wedding expenses or starting a new venture Rs.6.25 lakh
    Total 125% of SA Rs.6.25 lakh
    In addition to GA, bonuses shall also be paid on maturity.

    SA: Sum Assured on maturity, 

    GA: Guaranteed Additions

  2. Option 2: Academia

    Year of payout How much? Financial goal Guaranteed payout amount for Rs.5 lakh of SA
    5th year before maturity 30% of SA To join a professional course Rs.1.50 lakh
    4th year before maturity 15% of SA Course fees for the next 4 years or hostel expenses for your child Rs.0.75 lakh
    3rd year before maturity 15% of SA Rs.0.75 lakh
    2nd year before maturity 15% of SA Rs.0.75 lakh
    1st year before maturity 15% of SA Rs.0.75 lakh
    At maturity 15% of SA + GA (25% of SA) Further education or add on course Rs.2.00 lakh
    Total 130% of SA Rs.6.50 lakh
  3. Option 3: Career

    Year of payout How much? Financial goal The guaranteed payout amount for Rs.5 lakh of SA
    5th year before maturity 15% of SA Higher secondary or junior college Rs.0.75 lakh
    4th year before maturity 15% of SA Rs.0.75 lakh
    3rd year before maturity 15% of SA Graduation Rs.0.75 lakh
    2nd year before maturity 15% of SA Rs.0.75 lakh
    1st year before maturity 15% of SA Rs.0.75 lakh
    At maturity 40% of SA + GA (25% of SA) Higher post-graduate studies or further education abroad or can be used to fund your child's wedding expenses. Rs.3.25 lakh
    Total 140% of SA Rs.7.00 lakh

Loan under the policy

You may avail of a loan based on the surrender value of your policy subject to applicable terms and conditions:

  • The policyholder should be 18 years or older.

  • The loan amount is available subject to a maximum of 80% of the surrender value.

  • The interest rate applicable is 14% p.a.

  • Before any benefits are paid out, the outstanding loan along with interest thereon shall be deducted.

  • The loan outstanding and interest is more than 90% of the surrender value for a reduced paid-up policy, then the policy will be foreclosed, and the balance paid off.

This HDFC Insurance Plan for Children is ideal for parents who wish to set aside money for academic expenses that occur before college education, for specific goals such as college education or wedding expenses, and for any miscellaneous expenses that occur during school or college. 

In Conclusion

If you are looking for a plan that is required to fund your child's future, HDFC Life Click 2 Wealth and YoungStar-Udaan are better suited for you from amongst the above explained three HDFC Insurance Plans for Children. 

While these plans are expected to provide you with lower returns than an index fund or an equity mutual fund, they come with an added death cover, which will provide your near and dear ones with financial stability.

FAQ's

  • What are top-up premiums?

    A top-up facility allows the policyholder to increase the sum assured in return for an additional premium. The policyholder may opt to pay top-up premiums in the above plans subject to certain conditions.
  • Do the above plans qualify for income tax benefits?

    Yes. All the above plans qualify for the deduction under Section 80C of the Income Tax Act, 1961.
  • Are the investments in the above plan options safe?

    Yes. The investments, however, would be subject to market risks, and the unit prices of the funds may rise or fall, reflecting changes in the market scenario. You may also opt for a systematic transfer plan which gives you the benefits of cost averaging and avoiding the market risk associated with lump-sum investing.
  • What if I delay the payment of the premium?

    A grace period of 30 days is provided after the premium due date, during which the policy is considered to be in force with the risk cover. Therefore, you can comfortably pay your premium during this period.
  • Can I revive a lapsed insurance policy?

    Yes. You can revive a lapsed insurance policy within the revival period of 5 years from the date of the first unpaid premium, subject to terms and conditions applicable from time to time.

*All savings are provided by the insurer as per the IRDAI approved insurance plan.
*Tax benefit is subject to changes in tax laws. Standard T&C Apply
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
#The lumpsum benefit is calculated if policyholder invested ₹10000 monthly for 10 years in the fund with a policy term of 20 years. This Point To Point past performance data of last 10 years has been used to illustrate a scenario for the customers benefit. It is assumed that the past 10 years returns would have also been delivered in last 20 years. This is not guaranteed and not in anyway indicative of what the customer may actually get 20 years from now. The investment is subject to market risk and the risk is borne by the policyholder.
+Returns Since Inception of LIC Growth Fund
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.

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