Fixed Deposit for Child in HDFC

HDFC Life Click 2 Wealth – Premium Waiver Option

A unit-linked insurance plan with market-linked returns and life protection for you and your family. 

Key features of the plan:

• Two charges, one for the fund's management and the second as mortality charge towards life cover.

• Multiple premium options of single pay, regular pay, and limited pay. 

• Premium waiver benefit

• Three plans to choose from (a) Invest Plus Option for Insurance cum Investment, (b) Premium Waiver Option to protect milestones for dependents, and (c) Golden Years Benefit Option for Retirement Planning with Whole Life Cover.    

Premium payments and policy term 

Sum assured: 

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HDFC SL YoungStar Super Premium

Valuable financial protection for your child, with yearly payouts to your family in the event of your unforeseen death. It allows investing in various funds and also provides flexible payment preferences as enumerated underneath: 

Choice of premium and level of protection

Minimum: Minimum of INR 15,000/- as premium and a minimum sum assured of 10^annualized premium in case the age is less than 45 years; whereas 7^annualized premium in case of age equal to 45 years and above. 

Maximum: No limit on premium payments and a maximum sum assured of 40^ annualized premiums.

Plan options

• Life option for death benefits

• Life & health option for the death benefit in addition to critical illness benefit

Benefit payment preference:

Choose your investment funds: You can choose among the Income, Balanced, Blue Chip, and Opportunities Fund. Furthermore, you can move your accumulated funds from one fund to another available fund anytime or choose to put your premiums in future in a different fund as per your needs. 

Eligibility: 

Receipt of your money:

• On maturity: The policy matures at the end of the policy term you have chosen, and all your risk cover ceases. You can redeem your balance units at the then prevailing unit price and take the fund value. You can take your fund value in periodical instalments over a period that may extend to a maximum of 5 years.  

• On death: In case of your demise during the policy term, the benefit payable to your beneficiary will be determined by the benefit payment preference chosen by you. The minimum death benefit will be at least 105% of the total premiums paid.   

• On critical illness: In case you are diagnosed with any critical illness covered before the end of the policy term, the benefit is determined based on the benefit payment preference.  The death benefit protection ceases immediately.  

• By partial withdrawal: You can withdraw lump sum amounts from the fund after 5 years of the policy provided, 

  • The minimum withdrawal amount is INR 10,000/-

  • The maximum amount which can be withdrawn is 300% of the original regular premium.

  • After the withdrawal, the fund value should not be less than 150% of the original premium.   

• On discontinuance: The plan has a grace period of 30 days. You are expected to pay your annual premium throughout the policy term. During the grace period, the policy is considered to be active without any interruption along with the risk cover.

HDFC Life Youngstar Udaan 

A plan designed for parents who are keen to vouch for the academic expenses of their children before a college education or have specific goals in mind like college fees or marriage expenses. 

It has the following features:

• It is readily available with a short medical questionnaire-based underwriting.

• The insurance coverage is available throughout the policy term, even after paying premiums for a limited term. 

• Three distinct maturity options are available.

• Manifold premium options.

• Participating in a money-back and endowment plan with multiple options.

Premiums: Multiple premium options are available annually, half-yearly, quarterly, or monthly. The minimum limits specified are as under: 

Policy Term: The minimum policy term is 15 years with a maximum of 25 years. Furthermore, the term can range from 7 years, 10 years, or the policy term minus 5 years. 

Eligibility criteria: 

Death benefits: The policy offers two different options as per your requirements; the same has been enumerated underneath: 

Classic death benefit option: The death benefit shall be higher of (a) Sum assured on death and (b) 105% of the total premium paid.

• Where the sum assured on death shall be higher of (a) Sum assured on maturity and (b) 10 times annualized premium for entry age up to 50 years and 7 times annualized premium for entry age greater than 50 years.  

• Furthermore, accrued guaranteed additions, accrued reversionary bonuses, interim bonuses, and terminal bonuses would be payable. 

Classic waiver death benefit option: The benefit shall be higher of (a) Sum assured on death and (b) 105% of the total premium paid.

• Where the sum assured on death shall be the higher of (a) sum assured on maturity and (b) 10 times annualized premium for the entry age up to 50 years and 7 times annualized premium for entry age greater than 50 years.     

Maturity Benefits: At the time of maturity, the policy provides benefits such as reversionary bonus, interim bonus, and terminal bonus, along with accrued guaranteed additions, last guaranteed payout for money-back options, or sum assured on maturity for endowment option.     

Maturity benefits options: There are three maturity benefit options available which are of   two types: 

(a) Endowment option (Option 1) – whereby a lump sum is paid at maturity. The option is termed Aspiration.

(b)Moneyback options (Option 2 & 3) – These options are termed as Career and Academia, whereby the payouts are offered in the last 5 years before maturity.      

1. Option 1: Aspiration

   Year of Payout	Lump-Sum Paid at maturity
   How Much?	100% of sum assured + GA (25% of sum assured)
   How can the payouts be used?	A lump sum that can be used to pay for marriage expenses or starting up a business venture.
   Guaranteed payout amount for INR 5 Lakhs of sum assured on maturity	INR 6,25,000/-

2. Option 2: Academia

   Year of payout	How much?	How can the payouts be used?	The guaranteed payout amount for 5 Lakhs of sum assured on maturity
   At maturity	15% of SA + GA (25% of SA)	Further education	INR 2,00,000/-
   1st year before maturity	15% of SA	Course fee or hostel expenses	INR 75,000/-
   2nd year before maturity	15% of SA	Course fee or hostel expenses	INR 75,000/-
   3rd year before maturity	15% of SA	Course fee or hostel expenses	INR 75,000/-
   4th year before maturity	15% of SA	Course fee or hostel expenses	INR 75,000/-
   5th year before maturity	30% of SA	For professional course	INR 1,50,000/-

3. Option 3: Career 

   Year of payout	How much?	How can the payouts be used?	Guaranteed payout amount of INR 5,00,000/- of sum assured on maturity
   At maturity	40% of sum assured + GA (25% of SA)	Further education abroad, marriage expenses, or higher post-graduation studies	INR 3,25,000/-
   1st year before maturity	15% of sum assured	Graduation	INR 75,000/-
   2nd year before maturity	15% of sum assured	Graduation	INR 75,000/-
   3rd year before maturity	15% of sum assured	Graduation	INR 75,000/-
   4th year before maturity	15% of sum assured	Higher secondary or junior college	INR 75,000/-
   5th year before maturity	15% of sum assured	Higher secondary or junior college	INR 75,000/-