HDFC Life Child Plans

HDFC Child Plans

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

Plans that offer Critical Illness Rider

The following five plans come with the option of additional benefits of Critical Illness Riders:

• HDFC SL Young Star Super Premium

  • The HDFC child plan provides two types of insurance 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 this HDFC child 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 under this HDFC child plan 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 in this HDFC child plan. 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 under this HDFC child plan
  • Switching is also allowed to switch between the available funds in this HDFC child plan
  • A total of 6 Critical Illnesses are covered under the Life & Health Option in this HDFC child plan which include cancer, CABG, heart attack, kidney failure, major organ transplant and stroke.
    
    HDFC Child Plan – HDFC SL Young Star Super Premium 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

  This HDFC child plan is 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 this HDFC child 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 this HDFC child plan.
  • 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 under this HDFC child plan
  • There are two options for availing the death benefit under this HDFC child 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 HDFC child plan.
  • Loans can be availed against this HDFC child 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.
    
    

    HDFC Child Plan – HDFC Life Young Star Udaan Plan 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

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 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 

Intermediaries

HDFC child 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