HDFC Life Youngster Udaan-A Good Plan for the Future of Your Child

Did HDFC agents approach you with a child plan by name Young Star Udaan with a promise to secure the future of your child? They certainly told you that by investing in child education plan you can set aside all your worries. This HDFC Child plan will take care of marriage, education, and even a new venture of your child. So, did you get persuaded by the plan? Ae you all set to fill the form? But please hold on.

 

Features of HDFC Life Youngster Udaan

•    The policyholder has the privilege of taking guaranteed1payouts during the latter 5 policy years or total benefit at the end of policy term

•    Choice of premium waiver advantage, wherein premiums are surrendered due to unfortunate death during the policy term

•    One has the convenience of choosing the policy tenure from 15 to 25 years depending on your child’s future needs

•    Definite Additions1 through first 5 policy years, if relevant

•    Participating plan wherein accrued bonuses will be paid on maturity

•    Possibility to opt for this policy by filling a Small Medical Questionnaire

 

Positive aspects of Young Star Udaan Policy

1.    Scheme promises to take care of all the financial requirements of your child (education, marriage, new venture.)

2.    It has an organized redemption plan.

3.    It offers the flexibility of Pay-out.

4.    Investment can be made at a very early age of your child.

5.    If you are no longer there, the premium will be waived.

6.    The Scheme is for the risk-averse investors.

7.    You have the option to choose from three maturity benefit options

 

•    Aspiration - It’s like Endowment benefit wherein the Lump sum is paid on maturity

•    Academia – It’s like money back benefit wherein pay-outs are done during last 5 policy years

•    Career - Pay-outs are done during last 5 policy years wherein the last pay-out is higher than the previous ones

 

Two Death Benefit

The following are the two options to choose

•    Classic: The policy terminates after the payment is made after the death of the insured

•    Classic Waiver: Policy after the payment is made for death benefit along with future premiums waived

 

Negatives of Young Star Udaan Policy

1.    It is an expensive policy which might not be everybody’s cup.

2.    The minimum amount of investment should be at least 24,000 per year.

3.    Fewer returns. Unexpectedly, the guaranteed amount is far less than the total premium. It means guaranteed return is negative.

4.    HDFC Child Plan will not be able to fight inflation.

5.    Service charge will have to be borne by the policy holder.

6.    Surrender charges are very high if you plan to surrender the policy. Hence, even if the person wishes to discontinue he/she will have to think twice because of the heavy charges that will have to be paid.

7.    Premium charges cannot be changed during policy years. This again hinders people to opt for the policy because during the tenure the policy holder may either wish to increase or decrease the premium amount as per his convenience. This policy locks a certain amount that cannot be changed making it at little inconvenient for policy holders.

8.    The policy does not invest in any equity. Hence, you will not be entitled to any additional benefits or bonus.

 

To sum it all, HDFC Life Youngster Udaan has more advantage than disadvantages. It is safe, and one can rely on them for a comfortable return. Do consult your financial advisor before investing in any of the policies for better and profitable returns. After all, your child’s financial security is of utmost importance.