Insights

Free personal accident insurance cover with HDFC Children’s Gift Fund

July 11, 2013 . Vidya Bala

If you’re saving for your child’s future, a personal accident insurance cover would be a prudent way to provide a back up for your financial commitments, in case of unforeseen events. HDFC Children’s Gift fund offers this essential cover free of cost along with its schemes.

I had, in my fund reviews, recommended both HDFC Children’s Gift – Investment Plan as well as HDFC Children’s Gift – Savings Plan at different points in time. But I missed mentioning about this free and valuable benefit. Thanks to our investor, Amit Tamhankar, who brought this to our notice. Hence this post.

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The cover
If you invest in HDFC Children Gift Fund, then you as the parent/legal guardian of the minor unit holder will receive a free personal accident insurance cover. The insurance will cover the parent/legal guardian upto the age of 80 years (during the course of holding the fund).
You need not pay any premium towards this policy.

The policy will commence from the time HDFC Children’s Gift units are allotted, until the unit holder (your child) turns 18 or till the units are redeemed, whichever occurs early. The cover is available for HDFC Children’s Gift equity-oriented scheme (called the investment plan) as well the debt-oriented scheme (called the Savings Plan).

The sum assured will be 10 times the cost value of your units outstanding, subject to a maximum of Rs 10 lakh. That would include dividend reinvested units as well as any bonus units. Suppose the cost of your outstanding units was Rs 75,000 at the time of any unfortunate event, then the sum assured will be Rs 7.5 lakh. The policy will cover the outstanding units whether bought as lump sum investments or as SIPs.

Death of the parent/legal guardian due to accident as well as various kinds of permanent and partial disablement (read pg 51 of the fund’s SID for details on this) will be covered under the policy. The legal representative of the unit holder can directly file a claim with the designated insurance company.

Please read the scheme information document for rights of the AMC with regard to the policy.

Comments

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17 thoughts on “Free personal accident insurance cover with HDFC Children’s Gift Fund

  1. Dear Madam,

    What is your opinion about UTI Dividend yield fund for long term investment.

    UTI Dividend yield fund or uti opportunities fund which is best for long term?

    1. Hello, Both the funds mentioned by you are good long-term funds. Their characteristics vary as dividend yield funds looks for for stocks with such characteritics as high cash, value, high dividend yield etc. UTI Opportunities is an opportunity fund with a large-cap bias at present. Given their different strategy and objectives, they are not strictly comparable. If you have queries on funds you hold with your FundsIndia account or wish to build a portfolio, you may use the ‘Ask Advisor’ feature in your activated account – where you can either mail or schedule a call back from our advisors, stating your requirements. Thanks, Vidya

  2. Dear Madam,

    If i invest in UTI Retirement Benefit pension plan up to 58 years age.The corpus will be Tax free?

    1. Hi Sajith,

      The investment under UTI Retirement Benefit Pension will be eligible for deduction under Sec 80C upto Rs 1 lakh .
      The said fund is debt-oriented. Hence any capital gains on sale of the fund will be taxed at 10% without indexation or 20% with indexation.
      Tks
      Vidya

      1. Dear Madam,

        Thank you for your reply.

        I contacted UTI Office.They told me the retirement corpus will full tax free.I have doubt about their reply that’s why i asked you.

        Thanks
        SAJITH.KG

          1. Thank you .

            I did not asked UTI Customer support.UTI office staff told me like that,
            definitely i will ask to their customer support through mail.

            Thank you for your reply.

            Regards
            SAJITH

  3. Hi Vidya,

    Thanks for your informative articles – I find them valuable as an online investor.
    I had started a SIP @fundsindia for my minor daughter right after reading your recommendation about HDFC Childrens Gift Fund (Investment). However I did not receive any communication from the Mutual Fund office regarding this insurance cover. I would have expected a policy document detailing all the terms. Do I need to contact them to get this?

    1. Hello Santosh,

      I suppose you invested through FundsIndia. shall forward your query to my customer support dept. and they will let you know what needs to be done.

      Tks
      Vidya

      1. dear mam,

        i have three SIPs with fundsindia…SBI FMCG-Rs. 1000 – 1 Yr, SBI Emerging bsnss -500 and quantum LT Equity- 500 both for 10 yrs horizon..also am investing in franklin bluechip of 1000 for 10 yrs..i have 6 yrs old son 1.9 yrs old daughter..plz suggest me some good funds to plan for their education and marriage…i want to invest trhough SIP @ fundsindia…

        thanx n regards,,

        satya

        1. Hello Satya Prakash, I request you to kindly use the ‘Ask Advisor’ feature in your FundsIndia account (click help tab to see this) and give your requirement and time frame and risk appetite. This feature will help us track all investor queries and our own responses in a systematic manner rather than answering through a public blog.
          Meanwhile, you may also want to check our smart solutions series for education and marriage. http://www.fundsindia.com/smartsolutions
          These are a portfolio of hand-picked funds which will be monitored by us, through the time of your goal and suggestions for changes automatically sent to you.Tks, Vidya

  4. Dear Madam

    What is your opinion about LT EQUITY FUND ,Frankline bluechip fund,HDFC MIDCAP FUND,HDFC TOP 200,ICICI FOUCS BLUECHIP FUND I HAVE INVEST REGULAR SIP THRUE 1000 PER MONTH. WHICH IS BEST FOR LONG TERM. PLS SUGEST ANY NEW FUND.

    Regds Pankaj

    1. Hello Pankaj,

      All fund/portfolio related queries on the funds you hold/wish to hold in your FundsIndia account may pl be asked using the ‘Ask Advisor’ feature (clikc the help tab to see this) in your account. Our advisor shall respond to it through email or you can opt for a callback using the feature. This is a free service and helps us track and deal with customer queries in a systematic manner. Tks, Vidya

  5. Hi Vidya,

    This is quite an old post, not sure if it is wise to ask you here. But, I will take my chances.
    Speaking about the personal accident insurance, there are quite a few in the market – but I need your help in zeroing in on a good one. I am 33 and work for a private organization.
    I have decided on Bajaj Alliance and Apollo Munich – can you help me?

    Regards,
    Praveen

    1. Praveen, I discussed on policy in the context of this fund. We do not provide recommendations on policies as we do not track them actively. thanks, Vidya

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