Compare HDFC Life Young Star Udaan Plan

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HDFC Life Young Star Udaan Plan

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.

Key features of the plan

  • The plan comes in three variants in terms of maturity benefit payable – Aspiration, Academia and Career. While Aspiration variant pays a lump sum benefit, Academia and Career variants are money-back plans.
  • The death benefit under the plan has two options – Classic and Classic Waiver. The Classic Waiver option waives the future premiums if the insured dies while the plan continues.
  • Premiums are required to be paid for a limited tenure only.
  • Guaranteed Additions also accrue under the plan besides bonus declarations. Both these additions increase the benefit payable.

How does the plan work?

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.

Example

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.

Plan benefits

  • Death benefit – the death benefit would depend on the death benefit option selected from Classic and Classic Waiver and is as follows:
  • Classic option – the death benefit would be higher of the Sum Assured on Death or 105% of premiums paid till death.
  • 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.

    • Maturity Benefit – The maturity benefit under the plan depends on the plan option selected from Aspiration, Academia and Career and is as follows:
    • Aspiration – on maturity, 100% of the Sum Assured, accrued bonus and Guaranteed Additions are paid.
    • Academia –the Sum Assured is paid in instalments in the last 5 years of plan maturity. The payouts are as follows:
      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
    • Career – for the career option too, Sum Assured is paid in instalments in the following manner:
      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.

    • Guaranteed Additions – Guaranteed Additions are paid if the policy term is 10 years or more and is added on maturity. The rate of additions would be 3% if the policy term is up to 19 years and 5% if the term is 20 years and above. Guaranteed Additions are added in the first 5 years of the plan.
    • Bonus – simple reversionary bonuses are declared under the plan every year if the plan is in-force. The rate of bonus depends on the performance of the company. A Terminal Bonus might also be paid on death or maturity.
    • Premium discounts – a discount is allowed in premium if the Sum Assured choses is Rs.4 lakhs and above. The rate of discount is Rs.0.5 per Rs.1000 of Sum Assured for Sum Assured up to Rs.10 lakhs and Rs.1 per Rs.1000 of Sum Assured for Sum Assured Rs.10 lakhs and above.
    • Loan – 80% of the policy’s acquired Surrender Value can be taken as loan.

    Eligibility Criteria

      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

    What is not covered in the policy?

    • In case of suicide committed within 12 months of inception, 80% of the premiums paid are refunded.
    • If suicide is committed within 12 months of revival, higher of 80% of the premiums paid or the surrender value under the plan is paid.

    Premium Illustration

    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.

    HDFC-Life-Young-Star-Udaan

    FAQs

    Does the plan have additional riders?

    No, there are no additional riders in the plan.

    What are the available premium paying frequencies?

    Premiums can be paid yearly, half-yearly, quarterly or monthly.

    What is the grace period?

    30-day grace period is allowed for yearly, half-yearly and quarterly premium paying modes and 15 day grace period is allowed for monthly mode.

    How can the plan be bought?

    The plan is easily available through the underwriting of a Short medical Questionnaire.

    Can a lapsed policy be revived?

    Yes, the company allows 2 years to revive a policy which has lapsed.

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