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Child Education Plans from HDFC Life

by Aaron Finch

It is a fact that children grow up faster than we realize and, therefore, start making decisions about their lives at an early age. This Fabulous Story makes it all the more important to make informed decisions about their future and take care of them.

HDFC Life understands the importance of your child’s education and has designed a range of child education plans to suit all requirements and budgets.

Choice gives you the flexibility to make the right decision for your child’s future as per your needs and aspirations.

The investment for your child’s education will be locked in for the chosen tenure and, hence, there are no chances of the child’s assets being locked in if they are still studying.

The plan will mature early upon completion of education qualification, but can be extended to finance higher studies or professional education such as a post-graduation, MS etc

The maturity amount can also be used to take care of other contingencies such as marriage, housing and emergencies.

HDFC Life offers flexible plans to ensure that you get value for your money and save tax efficiently :

1. HDFC Life Choice Child Education Plan : 

This plan provides a lump sum payment at the end of the selected tenure. The plan can be extended to finance higher studies or professional education such as a post-graduation, MS etc. The maturity amount can also be used to take care of other contingencies such as marriage, housing and emergencies.

2. HDFC Life Child Education Plan + Flexi :

This option provides a lump sum payment at the end of the selected tenure which can be extended to finance higher studies or professional education such as a post-graduation, MS etc. 

The maturity amount can also be used to take care of other contingencies such as marriage, housing and emergencies.

HDFC Life has launched a structured settlement in partnership with Canada Pension Plan Investment Board’s Custodian Trust Corporation (CTC) – an independent trust company dedicated solely to managing structured settlements across Canada.

Structured settlements are the most trusted and reliable solution to provide long-term income to those who suffer from chronic conditions and those dependent on a parent or family member’s income.

This is HDFC Life’s first structured settlement product which allows policyholders to receive a stream of monthly payments for a specified period of time. The amount of each individual monthly payment is known at the outset with no surprises as it depends only on the life expectancy of the insured.

With a structured settlement, an individual can design their own retirement plan by purchasing a plan that keeps their money safe and lets them live comfortably in their old age while supporting any needs of dependents.

3. HDFC Life Regular Child Education Plan :

This option provides a lump sum payment at the end of the selected tenure which can be extended to finance higher studies or professional education such as a post-graduation, MS etc. 

The maturity amount can also be used to take care of other contingencies such as marriage, housing and emergencies. 

It is Tax Exempt under Section 80CCD (1)(a) of the IT Act.Any person above 18 years of age and below 60 years of age who is insured under your policy is eligible for cover. Every person up to 25 years of age will automatically be covered under your plan for medical expenses till Rs. 20 lakhs, irrespective of whether they are listed as insured or not.

The premiums are payable on an annual or quarterly basis depending upon the plan chosen by you to fund your child’s future. The premium is deducted from your Savings/Current Account.

For every Child Education Plan you purchase, you will be eligible for one Education Loan of only up to Rs 10 lakhs with attractive interest rates from HDFC Bank for meeting emergencies, higher education and marriage. 

4. HDFC Life Education Loan Facility :

In addition to the child education plan, you can also opt for an HDFC Education Loan facility to meet your child’s higher education and professional education requirements. 

The loan will allow you to borrow a lump sum amount (up to Rs 10 lakhs) to meet any short-term expenses such as school fees, computer equipment, tuition fees and books. 

The amount of educational loan is tax free under Section 80CCD (1)(a) of the IT Act. The monthly repayment will be charged at the prevailing Bank Rate of HDFC Bank for a tenor ranging from five years up to 35 years. The loan can be repaid in monthly or quarterly installments.

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