Insurance Plans 262 views April 14, 2020

HDFC Life YoungStar Udaan Plan

HDFC Life YoungStar Udaan is a traditional participating life insurance plan for children which ensure guaranteed returns in the form of pay-outs at the insured’s child key milestones. It is an ideal life insurance plan for the child of those parents who want to ensure provision for academic cost and expenses that may occur prior to the college education of the child, to ensure specific goals in the child’s life such as college fees and expenses and marriage expenses as well as all the miscellaneous cost and expenditure that occurs during the phase of schooling or college.

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Features of HDFC Life YoungStar Udaan Plan

YoungStar Udaan is participating money back and endowment insurance plan with wide options. The key features offered byHDFC Life YoungStar Udaan plan are as follows:

  1. It offers three options of maturity benefits which help to match the key milestones of your child.
  2. It provides insurance coverage to the insured throughout the term of the policy by paying the premiums for the plan for a limited period.
  3. It offers a wide range of options of premium payment and policy term than ensure flexibility to the policyholder to plan for the goals of your child aspirations.
  4. Option to boost the pay-outs under this plan with guaranteed additions which accrue to the insured in the first five years of the policy and payable at maturity.
  5. The holder of the policy has an option to select waiver of premium in the future option to ensure to fulfil the child’s dreams even in their absence.
  6. You can choose the premium paying frequency as per your ease. You can pay the premium either annually, monthly, half-yearly or quarterly.
  7. This insurance plan is available to be brought with a Short Medical Questionnaire which is based on underwriting of the plan
  8. It offers participation in the profits of the company by way of simple reversionary bonuses ( % of sum assured on the maturity of the policy) and terminal bonus ( if any). These bonuses are paid with maturity or death benefit as the case may be. However, under the classic waiver death benefit option, the simple reversionary bonus is paid only on maturity of the policy and not with the death benefit.
  9. You can also avail the facility of the loan after acquiring the surrender value of the policy. Loan up to 80% of the surrender value can be availed.

Eligibility Conditions of HDFC Life YoungStar Udaan Plan

It is necessary to fulfil the eligibility conditions before buying the insurance plan. Based on the death and maturity benefit options offered under the plan you can easily assess your eligibility for buying this policy. The eligibility criteria ofHDFC Life YoungStar Udaan plan are as follows:

ParametersMinimumMaximum
Entry AgeClassic- 0 years for Aspiration option and 8 years for Academic and Career option
Classic Waiver- 18 years for all the three options of Aspiration, Academic and Career option.
Classic- 60 years
Classic Waiver- 55 years
Age at MaturityClassic- 18 years for Aspiration option and 23 years for Academic and Career option
Classic Waiver- 33 years for all the three options of Aspiration, Academic and Career option.
Classic- 75 years
Classic Waiver- 75 years
Term of the policy15 years25 years
Premium Paying Terms7 years or 10 years or policy term minus 5 years
Premium AmountAnnually- Rs 24,000
Half-yearly- Rs 12,000
Quarterly- Rs 6,000
Monthly- Rs 2,000
No maximum limit
Premium Paying FrequencyAnnually or Half-yearly or Quarterly or Monthly

Benefits of HDFC Life YoungStar Udaan plan 

Benefits offered byHDFC Life YoungStar Udaan are as follows:

Maturity Options

There are two options maturity benefit offered in the plan to be selected at the inception of the plan based on the financial goals of your child. These options offered are of two kinds which include Endowment option and Money back option.

  1. Endowment Option- In this option, a lump sum amount is payable at the maturity of the plan. It is termed as Aspiration option which provides instant support for larger life responsibilities.
  2. Money-Back Option- The options are based on the pay-out amount offered to the life insured in the last five years of the plan before its maturity. These options are termed as Career and Academic Options which are planned and perfect investment with the added advantage to start the child’s career.

Maturity Benefit

Maturity benefit is paid to the policyholder on the maturity of the term of the plan. The maturity benefits under the three options are different.

  1. Aspiration Option- The maturity benefit is paid in lump sum amount which is 100% of the sum assured along with 25 % of sum assured as guaranteed additions. Bonuses will also be payable on maturity along with guaranteed pay-outs. This lump sum amount received can be used for the marriage of the child or to finance any start-up business venture.
  2. Academic Option- The maturity benefit is 15% of the sum assured along with 25% of the sum assured as guaranteed additions and bonuses if declared by the insurance company. It can be used for further education of the child or for add-on course.
  3. Career Option- The maturity benefit is 40% of the sum assured along with 25% of the sum assured as guaranteed additions and bonuses if declared by the insurance company. It can be used to make the child’s career such as higher studies or further education abroad or for the marriage of the child.

Money-Back Benefit

Money back benefit is paid before the last 5 years of the policy term. The money-back benefits are paid under the Academic and Career option.

  1. Academic Option- Money back benefits start from the end of the last 5 years of the policy term. 30% is paid on the 5th year before the maturity of the plan and 15 % is paid in the last 4 years before the maturity of the plan.
  2. Career Option- Money back benefits start from the end of the last 5 years of the policy term. 15% is paid on the last 5 years before the maturity of the plan

Death Benefit

On the death of the life assured during the term of the plan, the death benefit is paid to the nominee of the plan. The death benefit will be higher of the sum assured on death or 105% of the premiums paid for the policy. However, under the classic death benefit option, accrued guaranteed additions, interim bonus (if any) and accrued simple reversionary bonuses would also be payable. The sum assured on the death will be higher of the sum assured or 10 times (for entry age up to 50 years) /7 times (for entry age greater than 50 years) of annualised premium paid for the plan.

Guaranteed Additions

Additional boosters are offered in form of guaranteed additions for policies with 10 years or more premium payment term. The guaranteed additions accrue at the end of each policy year and are paid at the maturity of the insurance plan. For premium paying term less than or equal to 19 years, guaranteed addition of 3% per annum of sum assured on the maturity is offered for the first five years of the policy. For premium paying term of 20 years or more, guaranteed addition of 5% per annum of sum assured on the maturity is offered for the first five years of the policy.

Rebate

Rebates on the rates of premium are also offered to the policyholder on the higher sum assured on the maturity of Rs 4 Lakhs and above.

Grace Period

30 days grace period for annual, half-yearly and quarterly premium paying frequency and 15 days grace period for monthly premium paying frequency is offered to pay all the due premium of the policy after which the policy will lapse if the due premiums are not paid.

The revival of lapsed policy

You have the option to revive your lapsed policy within 2 years of its first unpaid premium date.

HDFC Life YoungStar Udaan Plan is an ideal insurance plan for those who are looking forward to securing their child’s future and ensure financial stability. This insurance policy ensures reliability and flexibility to the policyholder with its money back benefits and wide options of maturity benefits to choose from as per your need and requirements. It also offered a rebate for higher sum assured and loan facility thereby providing liquidity. YoungStar Udaan helps you to systematically plan and invest in your child’s goals to support them financially throughout their journey.

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