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:
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
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.
Becoming a parent is one of the high points in the life of any individual. Every parent wants to ensure that the transformation of their child from an infant into a confident young adult is smooth, without any breaks and roadblocks. They want to provide the best education to their child and offer the best facilities so that their child can become whatever he or she desires to be in life.
A child plan helps in providing much required funds at key milestones in a child’s life. This insurance-cum-investment product even works in the unpleasant scenario of the parent not being around to personally take care of the child. It takes care of the child’s needs when he or she grows up.
HDFC child plan serves the dual purpose of insurance and investment. The following tips help in short listing and buying an appropriate child insurance plan, including HDFC child plans:
The importance of saving and investing early cannot be stressed enough. The earlier one starts, greater are the chances of having a bigger corpus for the child’s needs. One will be able to reap higher returns due to power of compounding and greater returns in the capital market over a long period of time. HDFC child plans start early; for instance the HDFC child plan, HDFC Life Young Star Udaan Plan, allows entry from the age of 30 days for the child
The sum assured amount of the HDFC child plan should be adequate, such that it can provide for the child’s future needs and accommodate inflation and other factors. Proper thought should be given while deciding on the sum assured amount.
Due attention should be paid to the terms and conditions mentioned in fine print of the HDFC child plan. Each HDFC child plan has unique features and serves different needs of people. The policy document of these HDFC child plans helps in understanding the features and benefits in detail so that there is no confusion and disappointment later on. This also helps in choosing an appropriate plan.
Most child plans have an inbuilt premium waiver feature or self-funding of premium which allows the policy to continue even after the death of the applicant / policyholder (parent), where the insurance company waives future premiums, allowing the child to receive complete maturity benefit. The policy does not lapse with the death of the parent and the family, especially the child, is not burdened for payment of remaining premiums. If a policy does not come built with this option, it can be taken as an add-on.
The HDFC child plans provide premium waiver of future premiums on the death of the parent.
A child plan which offers the provision to partially withdraw money is useful as emergencies and unplanned expenses can be take care of easily without disturbing regular income.
Child plans invest part of the premium in debt and equity instruments linked to capital markets to earn higher returns. Insurance companies provide a choice of funds with varying levels of exposure to debt and equity to suit different risk appetites. Funds options can range from 100% debt to 100% equity. The HDFC child plan, HDFC SL Young Star Super Premium, is a ULIP plan that helps maximise growth potential.
Both HDFC child plans provide a choice of funds to suit a policyholder’s risk appetite.
Facilities like Systematic Transfer Plan and Dynamic Fund Allocation help in safeguarding investments against market volatility.
HDFC Life Insurance Company currently offers two types of Child Plans to its customers. Details of both HDFC child plans are discussed below with their respective features and benefits in both summary and detailed format.
HDFC Child Plan – Summary
|HDFC Child Plan||Features||Eligibility Details|
|HDFC Child Plan – HDFC SL Young Star Super Premium||
This HDFC child plan provides two types of cover: Life and Life & Health
|Entry Age: From 18 years to 65 years in Life Option and to 55 years in Life & Health Option
Maturity Age: Life Option – 75 years; Life & Health Option – 65 years
Policy Term: 10 to 20 years
Sum Assured: From 10/7 times the annual premium depending on age to 40 times the annual premium
Annual Premium: From Rs. 15,000 onwards
|HDFC Child Plan – HDFC Life Young Star Udaan Plan||
This HDFC child plan is a traditional participating life insurance plan.
|Entry Age: 30 days to 60 years
Maturity Age: 18 to 75 years
Policy Term: 15 years to 25 years
Sum Assured: As per age, term, premium, etc.
Annual Premium Amount: From Rs. 24,000 and upwards
The following five plans come with the option of additional benefits of Critical Illness Riders:
|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|
This HDFC child plan is a traditional life insurance plan with the following features and benefits:
HDFC Child Plan – HDFC Life Young Star Udaan Plan Eligibility Details
|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|
The following table shows sample rates of premium by individuals aged 30 years and under different maturity benefit options
|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|
The company offers specific plans which are available online only. The customer only needs to log into the company’s website, choose the required HDFC child 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
HDFC child plans which are not available online can be purchased from agents, brokers, banks, etc. where the intermediaries help with the application process.
For paying premium online, please visit e-portal and select your choice of HDFC child plan.
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 for the selected HDFC child plan
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).
Step 1: Login with your HDFC child plan customer ID and password on
Step 2: Select the HDFC child plan 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 for your HDFC child plan
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