As a parent, you wish to give the best for your children. ...Read More
With investment plans from HDFC Life you can opt for market linked returns or guaranteed1 returns as per your financial goals -
Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.
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Vishal Subharwal heads the Strategy, Marketing, E-Commerce, Digital Business & Sustainability initiatives at HDFC Life. He is responsible for crafting and ensuring successful implementation of the overall organisation strategy.
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Child Savings Plans are plans that help build a corpus to fund your child’s education, marriage, and other expenses related to the child. These plans offer the dual benefit of savings and life insurance. In the event of the death of the parent, the child will receive a lump sum amount, which can be utilised to pursue higher education.
There are an array of child savings plans with different features and benefits. You can choose the best saving plan for child with a 10 to 20-year term and with a host of benefits. While choosing a child savings plan, it is recommended to choose a long-term plan and play the premium regularly to keep the policy active.
Shaping your children’s future depends on the quality of education they get and the financial backing they have if they decide to establish a business. With the rising costs due to inflation, it is important to have robust financial planning now to secure the future of your child. A children savings plan helps provide the best education and financial backing for any venture that your children wish to start. Providing financial security builds a strong foundation for your children and will bolster their confidence.
A child savings plan provides dual benefits. It helps save funds for your children’s education children’s marriage, and other major expenses. It is also a financial safety net for your children in case of eventualities. This is how the children savings plan works:
If you purchase a child savings plan and pay the premium regularly throughout the policy term, you can use the maturity amount for your child’s higher education. In case of any eventuality during the policy term, the death benefit ensures that your child can pursue his/her higher education and fulfil his/her dreams.
The main objective of buying a children savings plan is to fund their future expenses like higher education, marriage, and establishing a start-up. It also provides financial security to your children in your absence. The key benefits of a child savings plan are:
It provides the benefit of savings as well as life insurance. It secures your child’s future and provides financial security to him/her in your absence.
This child saving scheme comes in handy in emergencies. You can make part withdrawals whenever you need funds.
In case of an eventuality, your children get a lump sum payment by way of a death claim. Also, the plan continues to be live, and the future premium payments are taken care of by the insurance companies. At the end of the policy term, they receive a payout that will ensure they fulfil their dreams at any cost.
The premiums paid for a child savings plan are eligible for deductions up to Rs. 1.50 lakhs under Section 80C of the Income Tax Act, 19613. The payout received also has tax benefits under Section 10(10D) 3.
At HDFC Life, we understand the significance of securing your child’s future. We have meticulously crafted our Child Investment Plans to address the diverse financial needs of parents. With a range of options, from ULIPs to endowment plans, we offer flexibility, transparency, and the assurance of a financially secure future for your child.
In this policy,the investment risks in the investment portfolio is borne by the policyholder
A unit linked plan to finance your child’s big moments.
UIN: 101L068V03
Choose to invest in any or a combination of funds
Option to choose between Save and Save-n-Gain benefit options.
Secure yourself against unfortunate demise and diagnosis of critical illness.
Option to withdraw from your funds after 5 years of your policy to plan for the various needs of your child.
A traditional money back plan with customizable payout options for your child’s various life goals.
UIN: 101N099V04
3 payout options designed to suit your child’s various goals in life.
Get a lump sum payout of up to 140% of sum assured and additional bonuses (if declared) on maturity.
Pay premiums for limited period and enjoy coverage throughout the policy term.
Under Classic Waiver Death Options, your nominee receives lump sum on death, all future premiums are waived and receives all survival as planned.
Policy loan available.
The key investment targets you should aim for while choosing a child saving scheme are:
With the fees of top schools being expensive, you need to plan for your child’s school education if you wish the best for your child.
Specialised courses like engineering and medicine are expensive. If your children choose to go for higher studies abroad, you will need to have a financial plan to support their ambition.
This is one of the most emotional milestones in one’s life. If your children choose to marry at the beginning of their careers, they may need your financial support to cover the marriage expenses. So, children’s marriage should be one of the goals in your financial planning.
Some of the tips to save money for your children’s future are:
A long-term plan provides better returns. If you start early, you can invest small amounts to suit your pocket for longer periods.
Putting aside small amounts regularly helps accumulate money that can come in handy for your child’s future.
Look for additional benefits that will enhance your maturity proceeds while purchasing a life insurance plan.
The amount you save should be adequate to fulfil your child’s financial needs and should not exceed your budget. You should be able to pay premiums regularly to keep the policy alive.
The inflation rate is not the only factor in deciding investment plans for your child. Other factors given below are equally important when choosing the best child savings plan.
Determine your financial goals concerning your child and choose a plan that aligns with the goals. You will be able to choose between a plan that has life cover or one with both savings and investment components.
Choose a plan with an affordable premium and flexible frequency so that you will not miss out on any premium payments.
The plan should have flexibility in premium-paying terms and policy terms. These terms should suit your budget as well as your financial goals.
The life cover offered is of great importance, The death benefit should be adequate to cover the future financial needs of your child.
Check the claim ratio of the insurance company, which decides the insurer's credibility.
Some of the lucrative plans can be Systematic Investment Plan (SIP), ULIP, or National Savings Certificates.
Choose plans that are tax-exempt under Section 80C3 as well as Section 10(10D)
Some of the factors you need to consider while buying a child savings plan are:
The goals or the reason for savings. If an education plan is the primary goal, then be prepared and plan for heavier expenses if your child intends to pursue higher studies abroad.
Assess how much you want to save and choose a plan with the flexibility of premium payment and policy terms to suit your budget.
If you are going for a term insurance plan, choose a plan with life cover along with the option for riders as well. If you choose a fund option, then check if the fund aligns with your risk appetite.
The policy term depends on the goals of the child. For some, the term could be 15 years, whereas for others, it could be 20 years.
Some of the best child savings plan to secure your child’s future are:
Sukanya Samnridhi Scheme is a government-backed scheme designed specially for a girl child. It is a low-risk investment that matures when the child turns 21 and can be used to fulfil her goals.
SIP allows you to invest in a mutual fund scheme of your choice and at the frequency chosen. You can build a corpus for your child’s future over a period.
It is a government-backed scheme with low risk. With the power of compounding interest in PPF, your investment will grow exponentially in 15 years. The part withdrawal facility after 7 years provides funds to cater to your child’s expenses.
The investment by debt funds is in fixed-income securities like bonds. They are less riskier than equity mutual funds. According to SEBI, there are 16 types of debt funds, and you can choose any.
Investment in gold offers high liquidity, and the funds are immediately available during emergencies. The investment can be in gold coins, gold bonds, gold jewellery or in gold Exchange Traded Funds (ETFs).
A term insurance plan is a common plan chosen for securing a child’s future. Look for a plan with life cover for financial security.
A child savings policy is a savings plan that helps fund the goals of your child at different life stages.
Determine the goals and budget your savings accordingly. Start early so that you can invest less for higher returns.
You would require submitting a duly filled Proposal form along with KYC of the child and the parent/guardian. You might need to submit other documents, only on specific request, during the application process.
Here are some of the documents you might have to submit:
The premium payments have tax benefits under Section 80C3, and the maturity/death payout has tax benefits under Section 10(10D)3.
The minimum amount for investing in a child savings plan is Rs. 250/-
The maximum tenure for a plan to receive maximum value is 5 years but can vary with the institution.
Yes. Children's savings plans provide partial withdrawal.
Yes. A minor can be a nominee in a savings plan for children but should be represented by a guardian.
It is recommended to start early, as long-term investments provide higher returns.
We help you to make informed insurance decisions for a lifetime.
1. Provided all due premiums have been paid and the policy is in force.
2. Save 46,800 on taxes if the insurance premium amount is Rs.1.5 lakh per annum and you are a Regular Individual, Fall under 30% income tax slab having taxable income less than Rs. 50 lakh and Opt for Old tax regime.
3. The above tax benefits are subject to conditions specified u/s 80C and u/s 10(10D) of the Income tax Act, 1961. The afore stated views are based on the current Income-tax law. Tax Laws are also subject to change from time to time. The customer is requested to seek tax advice from his Chartered Accountant or personal tax advisor with respect to his personal tax liabilities under the Income-tax law.
HDFC SL YoungStar Super Premium (Form No. P 501 UIN : 101L068V03) is a Unit Linked Non Participating Life Insurance Plan. Life Insurance Coverage is available in this product.
HDFC Life YoungStar Udaan (101N099V04) is a Non-Linked, Participating, Life Insurance Plan. Life Insurance Coverage is available in this product
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