We, as parents, want to provide our children the comfort to dream big without letting them have second thoughts in terms of finance allocation and Child Plans steps in between to help parents plan systematically. One such child plan is HDFC YoungStar Udaan Plan which ensures that our child achieves his or her dreams and at the time, it doesn’t dent own saving funds. Read this review further to get more information on this plan.
Overview Of HDFC YoungStar Udaan Plan
It is a non-linked participating life insurance plan. Having this traditional participating insurance plan is best for those parents who want to make sure their child academic expenses are taken care of as well as college fees along with further expenses like Marriage. HDFC YoungStar Udaan Plan is a money-back plan which comes with the multiple options.
Features Of HDFC YoungStar Udaan Plan
- Insurance coverage will be provided to the policyholder throughout the policy term provide they pay the premiums for limited period
- HDFC YoungStar Udaan Plan gives flexibility options to the policyholder in terms of choosing policy term and range of premium payment. This helps parents to set different goals for the child.
- One has the option to increase their payouts with the help of Guaranteed Additions accruing in the first 5 years of their policy which will be payable at maturity.
- In one of the classic waiver option, all future installment premiums are not required to be paid.
Benefits
Maturity Benefits: – The policyholder has three options to choose from at the time of inception and following are they
- Endowment Option/Aspiration:- In this option, Lump sum amount will be paid at the time of maturity which the nominee can be used to finance his start up or for further education.
| Pay out Amount | Year Of Pay out |
| 100% of Sum Assured+ GA (25% Of Sum Assured) | Lumpsum amount will at Maturity |
- Money back options (2ndAnd 3rd Option):- In this option, pay outs are offered in the last 5 years before maturity. They are termed as Academia and Career namely
Academia: – These are perfectly timed investment for your child’s education need that will give you assured returns which can be used to fund professional course for 4 years or further education. Furthermore, along with the guaranteed payouts, bonuses shall also be payable at maturity.
| Year Of Payout | How Much? |
| 5th Year Before Maturity | 30% Of SA |
| 4th Year Before Maturity | 15% Of SA |
| 3rd Year Before Maturity | 15% Of SA |
| 2nd Year Before Maturity | 15% Of SA |
| 1st Year Before Maturity | 15% Of SA |
| At Maturity | 15% Of SA+ |
n Career option, you will get funds at the important milestones of your child like in Junior college, Gradation, and for further education.
| Year Of Payout | How Much? |
| 5th Year Before Maturity | 15% Of SA |
| 4th Year Before Maturity | 15% Of SA |
| 3rd Year Before Maturity | 15% Of SA |
| 2nd Year Before Maturity | 15% Of SA |
| 1st Year Before Maturity | 15% Of SA |
| At Maturity | 40% Of SA + GA (25% Of SA) |
The policyholder has an option to receive the survival benefits in monthly instalments other than the final payout.
Death Benefit
If the life insured dies either on or before the maturity date, following death Benefit Payable options are available to choose from
| Classic Death Benefit Option | |
| Death benefit will be higher of sum assured on Death or 105% Of Premiums Paid.
Accrued Guaranteed Additions, Reversionary bonuses, Interim Bonus (If Any) and Terminal Bonus would be payable |
Sum Assured On Death Shall be the Higher Of Sum Assured on Maturity, 10 times the annualised premium. Here, the policy will terminate with no further benefits payable. |
| Classic Waiver Death Benefit Option | |
| Death Benefit shall be the higher of Sum Assured on Death and 105% Of Premiums paid | Sum Assured on Death shall be the higher of Sum Assured on Maturity or 10 times the Annualised premium |
Tax Benefit
All the premiums paid in HDFC YoungStar Udaan Plan are under section 80C of the income Tax Act 1961.
Exclusions
If the policy holder dies within 12 months due to suicide from the date of issue, S/he will be payable 80% of the premiums will be paid. If the insured dies within 12 months from the date of revival of the policy, the policyholder shall be entitled to an amount which is higher of 80% of the premiums paid till the date of death.
Eligibility
| PARAMETERS | MIN | MAX |
| Age at entry | 0 | 60 |
| Age at Maturity | 18 | 75 |
| Policy Term | 15 | 25 |
| Premium Payment Terms | 7, 10 years | |
Dreaming big comes with a cost nowadays. With increasing cost of education and weddings due to inflation, it has become important for parents to plan way ahead if they want to provide security to their child even in their absence.
FAQS
Q1 What is Reversionary Bonus and Terminal Bonus?
Reversionary Bonus: – These bonuses are declared at the end of each financial year and it will be payable either on Death or on maturity.
Terminal Bonus: – They are added to the policy and are paid at the end in the surplus. It is not a guaranteed benefit since it depends on the future experience of the policy.
Q2 What is the minimum premium do I need to pay in HDFC YoungStar Udaan Plan?
HDFC YoungStar Udaan Plan gives the option to the policy holder the option to pay in Annually, Half-Yearly, Quarterly, Monthly. If the insured wants to pay premium annually then then the minimum premium us 24,000 and If S/he chooses Monthly then it is Rs 2,000 excluding taxes
Q3 Can One Avail Loan On the basis of this policy?
Yes, it is possible but only after the HDFC YoungStar Udaan Plan has acquired the surrender value. The policy holder also keep one thing in mind that they can avail a policy loan of upto 80% of the surrender value.
Q4 How many days are provided as a grace period?
Whether you have chosen yearly, half-yearly or quarterly plan, 30 days grace period will be provided to the policy holder. If you choose a monthly plan then 15 days grace period will be provided to the insured from the premium due date.
Q5 What If I don’t find HDFC YoungStar Udaan Plan good?
In case, the insured doesn’t agree with the terms and conditions within 15 days from the issued policy date, they have the option to return and cancel it. If it is bought from the distance marketing then the free look period is of 30 days. In this period, the whole paid premium will be refunded minus the expenses paid by the insurance company for the medical exam.