HDFC childrens policies review

When some one speaks about Children Insurance plans, one company that comes to my mind is the HDFC Standard Life. After all, it’s the advertisements that we see in the Televisions that stay longer than the stuff we read from books. Remember the Advertisement of HDFC where a small girl says she wants to become an Astronaut?

Ads aside, HDFC has two main categories in Children plans, one is the conventional Insurance plan where HDFC takes cares of your policy and does all the investment decisions by itself and pays the bonus on maturity as the return and the other is the Unit Linked Insurance plans (ULIPS) where you have the option of monitoring and changing the funds allocated to different sectors. The return for ULIP depends on the NAV of the Insurance plan taken.

HDFC Children’s Plan comes under the Conventional plan and

HDFC unit linked Young Star II, HDFC Unit linked Young Star plus II, HDFC Unit linked Young star Champion plans come under the ULIP category.

1. In the HDFC Children’s plan, you have the option of selecting the amount of targeted savings and also the policy term.

The minimum term of the policy is 10 years and maximum is 25 years.

The minimum age of your child to enter this policy should be 18 years and maximum is 60 years (Maximum maturity age is 75 years)

This plan is eligible to receive simple reversionary bonuses every year and at times a terminal bonus may also be added depending on the performance of the Investment.

The Maturity benefit includes the Sum Assured value and the Bonuses declared.

Tax benefits are applicable as per sections 80C and 10 (10D) of IT Act, 1961.

For HDFC Unit Linked Young star II, the minimum term of the policy should be 10 years and maximum is 25 years.

2.  If you choose the Life Option as a rider in this plan, the Minimum entry age is 18 years and Maximum age is 65 years (Max maturity age is 75 years).

If you choose the Life and Health Option as a rider, the minimum entry age is 18 years and maximum entry age is 55 years (Max maturity age is 65 years).

A Life option rider only gives you a death benefit and a Life and Health Option gives you Death benefit along with critical illness benefit.

In this plan you can choose the amount of Sum assured from any value which is at least 5 times the annual premium you choose to pay up to maximum of 40 times the annual premium.

Since this a Unit Linked Plan, you have the option of allocating funds in any of the 7 funds viz, Liquid fund II, secure managed fund II, Stable Managed Fund II, Balanced Managed fund II, Equity Managed fund II, Defensive managed fund II and Growth Managed fund II.

To know more about these plans and other Children plans, you can request an Advisor to visit you or call the toll free number 1800 227 227 from any BSNL or MTNL phone.

Compare with LIC’s Children plans.

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