Every parent wants to do the best for their child and in midst of this, one cannot overlook the benefits of having a child plans by their side. It doesn’t just help parents to systemically plan funds for their children but also gives them piece of mind that they don’t need to depend on anyone else for the financial help when the times comes. One such plan we will be talking about here in this review is HDFC SL Youngstar Super Premium Plan. It is drafted to help parents support their child dreams and future needs so that the former doesn’t have to depend on anyone else be it for anything.
Overview Of HDFC SL Youngstar Super Premium Plan
HDFC SL Youngstar Super Premium Plan is a unit linked insurance product that provides life insurance coverage to the policyholder. Being a unit linked plan, all the premiums you pay are subject to investment risks. The policyholder in this plan needs to choose their premium amount and choice of investment funds. In turn, the insurer will invest the premium in your chosen funds that will make up for the accumulated fund which the policyholder will receive at the end of the policy term.
This insurance plan has the following features
- Provides valuable financial protection to your child
- In case of the demise of a policyholder, the family will be getting yearly payouts
- Comes with two benefit payment preferences- One is Save benefit and another one is Save-n-Gain Benefit
- Comes with a choice of funds like Income, Balance, Blue Chip, Opportunities fund to increase your savings
Benefits
Settlement option: – In this, the policyholder have an option to take their fund value in the instalments over a period which can extend up to 5 years. However, one should know that their money will remain invested in the funds. And the value of investment on the specified date shall be subject to investment risk that means, it can go up and down.
Death Benefit: – In case of the untimely death of the policyholder, the benefit payable will depend upon the benefit payment preference chosen by the Policyholder. The minimum death benefit will be at least 105% of the premiums paid.
All the paid premiums are exempted from tax deductions under section 80C of 1961
Eligibility
Below are the term limits of HDFC SL Youngstar Super Premium Plan
| ELIGIBLITY CONDITIONS OF HDFC SL Youngstar Super Premium Plan | ||
| PARAMETERS | MIN | MAX |
| Entry Age | 18 Years | 55 (Life & Health Option), 65 (Life Options) |
| Maturity Age | NA | 65 (Life & Health Option), 75 (Life Options) |
| Policy Term | 10 | 20 |
| Sum Assured | 15,000 Rs Premium
Less than 45 Years- 10* Annualised Premium Age Equal to 45 years an above- 7* Annualised Premium |
Premium- No limit
Sum Assured will be 40* Annualised Premium |
Exclusions of this HDFC Child Plan
No Critical Illness Benefits shall be paid to the policyholder if the diagnosis occurs within 6 months of inception of the policy term. Also, if a duly filled claim form is not received by the company within 3 years of diagnosis of critical illness, befitting benefits again shall not come into force.
If the critical illness is caused by intentional actions, self-harming injuries or suicidal attempts, then also the benefits shall stand void.
In following cases also, critical illness benefits won’t be applicable:
- Alcohol consumption, drug abuse
- War-like situation, invasions, etc.
- Taking part in any flying act (except for travelling in a commercially licensed aircraft)
- If the policyholder takes part in any of the criminal activities and suffers injuries or succumbs to the same.
Who will be the Beneficiary in this HDFC child plan?
Beneficiary, as per the meaning of it, is the sole person who is entitled to receive the benefits of the policy. Since this is a child plan, beneficiary here would be the child of the policy holder. In case the beneficiary (I.e. child) is a minor (below 18 years of age), then the amount of the insurance policy shall be paid to the appointed nominee.
Though, HDFC allows its customers to take this policy for someone other than their child. In such a case, the insurability interest must be proved to the company and supported documents must be produced.
Are there any risk factors involved in this HDFC SL YoungStar Super Premium?
Unfortunately, yes. Since this is not merely a protection plan, the money you invest in this HDFC child plan is invested in market instruments too, thus inclusion of risk factors is an inevitable phenomenon. There are certain market risks that can’t be avoided and customer is requested to properly go through all the guidelines of the policy document along with market conditions.
FAQS
Q1 What are the steps to own HDFC SL Youngstar Super Premium Plan?
It is very easy to own this plan and it can be done in the following steps
- First one needs to choose the premium amount and level of protection they are looking for. The policy holder must keep in mind that the amount of premium cannot be changed anytime during the policy term.
- Then choose the benefit payment preference between Save Benefit and Save-N-Gain Benefit from the above two options and plan options as per your need
Plan Options
Death Benefit by choosing the life option
Death Benefit + Critical Illness Benefit by choosing the life and health
- Choose the investment funds and premium allocation.
Q2 Can One Make Partial Withdrawal from HDFC SL Youngstar Super Premium Plan?
The policyholder should know that Partial withdrawals are only allowed after 5 years from the date of issue from your funds provided the following conditions are fulfilled.
- The minimum withdrawal limit should be 10000Rs
- Maximum amount anyone can withdraw from their policy should be 300% of the original regular premium.
Q3 What do we mean by Save Benefit and Save-N-Gain Benefit?
In Save benefit, insurer pay the sum assured to the beneficiary and in case of untimely demise of the policyholder, the insurance company will pay the rest of the premiums and on maturity, fund value will be paid to the beneficiary.
In save-N-Gain Benefit, in this, sum assured will be paid to the beneficiary. However, in case of untimely demise of a policy holder, insurance company will pay 50% of the premiums and the balance 50% of the premiums will be beneficiary. Just like in the Save benefit, even in this benefit, the beneficiary will get the fund value on maturity.
Q4 Can the nomine switch funds and surrender the policy in my absence?
While claiming, the beneficiary is not allowed to do partial withdrawal, or switch funds, settlement option or surrender their policy. They will be entitled to receive the fund value at the end of the original policy term.
Q5 what will happen to the policy if the insured gets diagnosed with critical illness?
The death benefit cover will terminate immediately and the benefit payable will be calculated based on the benefit payment Preferences
Q6 Can I take a loan on the basis of this policy?
No, it is not allowed. HDFC SL Youngstar Super Premium Plan is a unit linked plan and in this case, policy loans are not allowed.