Features of HDFC Life Youngstar Udan plan

This plan is a unit linked insurance plan (ULIP) and is a children insurance plan, to help build your savings for a better future for your children, when it comes to their further education, their wedding, new home or vehicle. This HDFC Life insurance plan has the parent who is the to address the needs of the family and a lump sum. The future premiums would be paid by towards a fund account and this will be paid on maturity of the policy.

The Key Features of the HDFC YoungStar Udaan Plan

• You can choose between the 2 options available for this plan, Life Option with only Death Benefit or Life and Health Option with Death Benefit + Critical Illness Benefit
• You can choose to invest your money between 4 different fund option:

1. Income Fund - this fund has high returns and higher duration, credit exposure.
2. Balanced Fund - this has dynamic exposure to equity and enhances your returns. It also reduces your volatility with debt allocation.
3. Blue chip Fund - with this fund you can make your investment in large cap equities
4. Opportunities Fund - with this fund you can make your investment in mid cap equities
5. You have the flexibility to choose your own premium amount with no maximum limit

• You can also choose the tenure of your policy from 10, 15 or 20 years.
• Choose the sum assured you would like have on your policy
• A 15 days free look period of from the date of receipt of the policy, is given to the policyholder to return the policy if she/he does not agree with the terms and conditions. A period of 30 days is given if the policy is purchased through distance marketing.
• A grace period of 30 days from the date your premium is due.
• Partial withdrawals can be made with this plan, but is allowed only after the policy is in effect for 5 years, the minimum amount that can be withdrawn will be Rs. 10, 000.
• You can even switch between funds from the available options at anytime, you can move your accumulated funds from one to another as per your choice
• If the policy is discontinued due to non-payment of premium the it can be revived within a 2 year period from the last default of premium
• Premium redirection is also allowed with this policy, you can also reallocate your future premiums to a fund of your choice.
• The minimum premium amount to be paid will be Rs. 15, 000 and there is no cap on the maximum. Once the amount has been decided upon, this cannot be changed during the policy term.

The Key Advantages or Benefits from This Plan 

• You can customize a policy best suited for you, by choosing a plan best suited to your needs, with a premium you would like to pay, for a term you would like to pay it for.
• You can manage the investments made in the different fund options available and also have the ability to switch and redirect them to funds you like best.
• No medical test, all you need to do is fill in a small questionnaire
• Enjoy tax benefits as well under section 80C and 10(10D) as per the Income Tax Act 1961
• Make premium payments through cash, credit card, internet banking, cheque, auto debit facility
• Maturity benefit, on the maturity of the policy term you’ve chosen you can opt for your balance at the prevailing rate per unit and take the fund value
• Death benefit in the case of the policyholder’s demise during the policy term the death benefit will be paid out as per the benefit payment option chosen.
• Choose your benefit payment option from the below

1. Save benefit
2. Save and Gain benefit

Conclusion

The rider available with is the Critical illness rider. With this rider in case the life assured is diagnosed with any illness before the policy term ends, the benefit payout will happen as per the benefit payment preference chosen by him/her. The Critical illness rider covers Cancer, Coronary Artery Bypass, Heart Attack, Kidney Failure, Organ Transplant and Stroke.

Also read: Child Plans By SBI

How Does Child Insurance Plan Works