Young Star Advantage Plan
A forwardlooking, nonlinked, ULIP designed for young professionals who want to secure their future while building a substantial corpus for longterm goals.
Plan Overview
The Young Star Advantage Plan by IDBI Federal Life Insurance combines life cover with marketlinked growth. It is aimed at individuals aged 1835 years and offers a flexible premium structure, optional riders, and a range of investment choices across equity, corporate debt and balanced funds.
Key highlights include:
- Minimum entry age: 18 years
- Maximum entry age: 35 years
- Policy term: 2030 years (flexible)
- Premium payment term: 515 years
- High suminsured options up to INR 1crore
Why Choose Young Star Advantage?
- Dual benefit: Life cover + marketlinked returns.
- Low entry premium: Designed for firsttime investors.
- Partial withdrawal: Up to 25% of fund value after 5 policy years, without jeopardising life cover.
- Tax savings: Premiums qualify for deduction under Section 80C; taxfree maturity under Section 10(10D).
- Flexible fund switches: Change allocation between equity, corporate bond, and balanced funds up to 4 times a year.
- Rider options: Critical illness, accidental death and disability riders at discounted rates.
Plan Features & Benefits
| Feature | Details |
|---|---|
| Sum Insured Options | INR 5lakhs 1crore (choice of multiple of 5lakhs) |
| Premium Payment Term | 5, 7, 10, 12, 15 years (paying period can be less than policy term) |
| Fund Choices | Equity (70% max), Corporate Bond (70% max), Balanced (up to 50% equity) |
| Partial Withdrawal | 25% of accrued fund value after completion of 5 policy years, max 2 withdrawals per annum |
| Loan Facility | Loan up to 90% of fund value after 3 policy years |
| Death Benefit | Basic Sum Assured + Fund Value (if fund > SA) |
| Maturity Benefit | Fund Value (taxfree under 10(10D) if premiums < INR 1.5lakhs per year) |
| Riders | Critical Illness, Accidental Death & Disability, Waiver of Premium |
How the Plan Works
1. **Choose your sum insured and policy term** Decide the coverage amount and the number of years you want protection for.
2. **Select a premium payment term** Shorter payment terms reduce the overall outlay but increase the premium per year.
3. **Allocate funds** Distribute your premium among the available funds based on your risk appetite.
4. **Monitor performance** The policyholder can log in to the IDBI Federal portal or mobile app to view fund performance and make switches.
5. **Utilise benefits** After 5 years, start partial withdrawals or take a policy loan for emergencies without losing the life cover.
Frequently Asked Questions
Who is eligible for the Young Star Advantage Plan?
Any Indian resident aged between 18 and 35 years at the time of application, meeting the standard medical underwriting criteria.
Is the plan suitable for firsttime investors?
Yes. The low starting premium (as low as INR 3,500 per annum) and the ability to start with a modest sum insured make it ideal for young professionals.
Can I switch between funds after I have invested?
Fund switches are allowed up to four times a year, subject to a minimum switch amount of INR 5,000.
What happens if I miss a premium payment?
The policy offers a grace period of 30 days. If the premium is not paid within this period, the policy may lapse unless a revival option is exercised with an additional charge.
Are the returns guaranteed?
No. As a ULIP, the fund value depends on market performance. However, the plan guarantees the death benefit (basic sum insured plus fund value if higher).
How is tax treatment applied?
Premiums up to INR 1.5lakhs per annum are deductible under Section 80C. The maturity proceeds are taxfree under Section 10(10D) provided the premium condition is met.
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