HDFC Life Young Star Udaan is a traditional child insurance plan which participates in bonus declarations done by the company. The plan comes in three different variants and can be taken as an endowment plan or a money-back plan. While the former pays a lump sum benefit on maturity the latter pays a portion of the Sum Assured at regular intervals.
Step 1 – The policyholder chooses the Sum Assured, the maturity benefit variant, the death benefit variant and the premium paying term.
Step 2 – The premium is then calculated using the above parameters and the insured’s age.
Step 3 – In case of death, the death benefit would be paid according to the death benefit option selected.
Step 4 – If the insured survives the plan tenure, the maturity benefit is paid according to the chosen maturity benefit payout variant.
Rishi, aged 35 years, buys the plan for a Sum Assured of Rs.5 lakhs, policy term of 15 years and premium paying term of 10 years.
Option 1 – if Rishi chooses the Classic death benefit option and dies during the plan term, higher of the Sum Assured on Death or 105% of premiums paid would be paid to the nominee. If the Classic Waiver option is selected, higher of the Sum Assured on Death or 105% of premiums paid would be paid to the nominee. Thereafter, no premiums would be required but the plan would continue and the maturity benefits would be paid as per the variant selected.
Option 2 – when the plan matures and Aspiration benefit is selected, Rs.5 lakhs + Guaranteed Additions + accrued bonuses are paid on maturity in lump sum.
Option 3 – If Academia variant is selected, 30% of the Sum Assured, Rs.1.5 lakhs, is paid 5 years before maturity. Thereafter, 15% of Sum Assured, Rs.75, 000, is paid every year till maturity. On maturity, Rs.75, 000 and all guaranteed additions with accrued bonuses is paid.
Option 4 – For Career variant, 15% of Sum Assured, Rs.75, 000, is paid every year in the last 5 years of plan maturity. On maturity, 40% of Sum Assured, Rs.2 lakhs, is paid along with guaranteed additions and accrued bonus.
Classic Waiver Option – on death, higher of the Sum Assured on Death or 105% of premiums paid till death is paid as death benefit. Thereafter, future premiums would be waived off and the plan would continue. Maturity benefit would be paid as per the plan variant selected.
The Sum Assured on Death under both the options is defined as higher of the Sum Assured on maturity or 10/7 times the annual premium paid depending on the insured’s age.
In the 5th year before maturity | 30% of Sum Assured |
In the 4th year before maturity | 15% of Sum Assured |
In the 3rd year before maturity | 15% of Sum Assured |
In the 2nd year before maturity | 15% of Sum Assured |
One year before maturity | 15% of Sum Assured |
On maturity | 15% of Sum Assured + Guaranteed Additions and bonus |
In the 5th year before maturity | 15% of Sum Assured |
In the 4th year before maturity | 15% of Sum Assured |
In the 3rd year before maturity | 15% of Sum Assured |
In the 2nd year before maturity | 15% of Sum Assured |
One year before maturity | 15% of Sum Assured |
On maturity | 40% of Sum Assured + Guaranteed Additions and bonus |
The survival benefits can be taken in monthly instalments too. In that case, 8.5% of the instalment would be paid for 12 months.
Minimum | Maximum | |
Age at entry (in completed years) | Classic Plan: Aspiration – 30 days Academia and Career – 8 years Classic Waiver Plan (all options) – 18 years |
Classic Plan (all options) – 60 years Classic Waiver Plan (all options) – 55 years |
Age at maturity (in completed years) | Classic Plan: Aspiration – 18 years Academia and Career – 23 years Classic Waiver Plan (all options) – 33 years |
Classic Plan (all options) – 75 years Classic Waiver Plan (all options) – 75 years |
Term of the plan | 15 years | 25 years |
Premium paying options | Limited pay | |
Premium Paying term | 7,10 or (Term – 5) years | |
Premium amount | Yearly – Rs.24,000 Half-yearly – Rs.12,000 Quarterly – Rs.6000 Monthly – Rs.2000 |
No limit |
Sum Assured | 10 times the annual premium | |
Guaranteed Maturity Benefit | Rs.1 lakh | No limit |
Below are the sample rates of premium (exclusive of taxes) payable by a non-tobacco user male for different combination of plan options and Sum Assured. The insured is aged 30 years. The policy term is 15 years and the premium paying term is taken to be 7 years.