As a parent, you need to plan for your child’s education expenses keeping their dynamic aspirations and rising cost of education.
Secondary education to children aged 12-18 in a government school for 6 years costs approx Rs. 30,600 whereas the same education in a private school will cost about Rs. 3,96,000. It is striking that for private unaided institutions, expenses are very high for higher secondary schooling, almost as high as post-graduate.
And with the current mindset of children when parents don’t know what career they might pursue even after class 12 or they might drop out of college to pursue their dreams. It’s more than important to plan things in the right direction.
Here’s a smart way for parents to secure their child’s financial future and let their dreams take flight.
HDFC Life YoungStar Udaan
, a participating endowment and money back life insurance plan
can help you plan your child’s education considering factors like inflation and education costs.
Assuming an increase in education cost at 6 percent, parents need to be better prepared to save sufficient corpus for their child’s education needs 15 years from now, to make sure their child doesn’t give up on his/ her dreams and settle for the second best option in career.
With this policy, you can systematically plan and invest for your child’s goals so that they get the right financial support when they embark on their glorious careers.
Key Features of HDFC Life YoungStar Udaan
- Flexible Payouts: The Plan is available with 3 maturity benefit options to match key milestones of your child’s aspirations. Under the Endowment Option named Aspiration, lumpsum is paid at maturity. Under Moneyback Options termed as Academia and Career, the payout is made in tranches in the first 5 years before maturity and can be used for joining a professional course, hostel expenses, further education, etc.
- Guaranteed Additions: Payouts can be boosted with Guaranteed Additions calculated as a percentage of Sum Assured on Maturity. For policy term less than or equal to 19 years, Guaranteed Additions are 3 per cent pa and for policy term more than or equal to 20 years Guaranteed Additions are 5 percent pa accruing in the first 5 policy years payable on maturity, considering the policy is in force.
- Limited Premium Payment Term: Can avail insurance coverage throughout the policy term by paying premiums for a limited period.
- Tax Benefits: As per Section 80C provisions under the Income Tax Act.
- Additional Benefits: In addition to the guaranteed payouts, bonuses (if declared) shall also be payable at maturity. A simple Reversionary Bonus may be declared at the end of each financial year. Same will be expressed as a percentage of the Sum Assured on maturity. Terminal Bonus may be added to the policy, based on the actual experience over the policy term and allowing for the reversionary bonuses, if declared, already attached.
- Death Benefits: On death of the life assured on or before maturity, provided all due premiums have been paid, nominee to receive sum assured or 105 percent of total premiums paid.
Eligibility and Other Criteria
This plan is ideal for parents who wish to make provision for academic expenses that occur prior to college education. Or specific goals like college fees or even marriage expenses. All miscellaneous and extracurricular expenses that occur during college/school can also be covered with this insurance plan.
Anyone with a minimum age of 18 years and maximum 55-60 years can choose to buy the plan available in 3 options: Aspiration, Academia and Career. The minimum policy term is 15 years with a premium payment term of 7 years. The 25 year term comes with a premium payment term of 10 years minus 5 years of policy term.
Since the birth of the child parents make all efforts to ensure that the child can dream big without having second thoughts and hence work towards accomplishing their dreams. Choose the right plan to empower your child’s dreams in the right direction. For more details,