Insurance Plans 678 views April 14, 2020

In a world of financial inclusion, it is pivotal to secure us, our loved ones, and our dependent family members financially to be able to meet future needs and uncertainties indefinitely. It is, therefore, an obvious fact that financial corpus and monetary strength play a primary role in meeting future goals, responsibilities, needs and unforeseen events. Consequently, investing in credible options and optimal modes of fund-growth are utilized to do so. There are several linked and non-linked options to invest in. Linked plans though offer higher rates of return are unpredictable due to market-linked risks. Furthermore, it has limited scope of assured benefits in comparison to non-linked plans.

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So, to cater to the needs of policyholders wanting assured returns, HDFC Life Sanchay Plus plan has been designed to provide guaranteed benefits. This non-linked plan has minimal risk and ensures promised benefits are provided to you and your loved ones.

Features of HDFC Life Sanchay Plus-

This plan comes with the following features:

  1. HDFC Life Sanchay Plus plan is a non-linked policy that is insulated from market investment risks and assures guaranteed returns.
  2. This policy comes with a Grace Period of 15 days and 30 days for monthly frequency of premium payment and the grace period and for other frequencies of premium payment respectively. After the Grace period passes the policy will lapse if the premium is not paid.
  3. Moreover, in case of a valid claim during the grace period before the premium is paid for the next term the claim shall be payable but only after having deducted the due modal, as the risk cover of HDFC Life Sanchay Plus plan remains in-force during the grace period.
  4. The revival of a lapsed policy can be done within the revival period. This period is subject to terms and conditions and is revised from time to time. A payment to cover outstanding premiums and interest on those premiums as well as taxes and other levies must be done. The current rate of interests for revival is of 9.5%
  5. This plan acquires a Guaranteed Surrender Value upon the payment of at the least two years’ premiums.
  6. Furthermore, there is also the facility to avail enhanced benefits for policy terms that have premiums over Rs. 1.5 lakhs in any policy term.
  7. The premium payable frequency is flexible and can be chosen by the policyholder between monthly, quarterly, half-yearly and annual modes. However, change in the frequency cannot be done during a policy term but can be at the inception of the next policy term.
  8. Tax benefits are also provided under this plan as per the prevailing tax laws of Income Tax Act, 1961. Under Section 80(C) and Section 10(10D) tax benefits are provided and are subject to change.
  9. If the policyholder dies due to suicide within the first 12 months of the date of commencement of the risk cover, either revival or initial purchase, the nominee shall be entitled to a death benefit but only of 80% of the total premiums paid till the day of death or the surrender value on the date of death whichever is higher when the policy is active.
  10. HDFC Life Sanchay Plus plan has several options for add-ons or riders. These offer increased coverage and additional benefits. The riders offered: HDFC Life Income Benefit on Accidental Disability Rider and HDFC Life Critical Illness Plus Rider, supplement the main plan benefits provided.
  11. This plan allows you to choose from four benefit options in accordance to your stage of life and your needs: Guaranteed Life Long Income, Guaranteed Long-term income option, Guaranteed Maturity option, and Guaranteed Income Option.
    • Guaranteed Life Long Income: This is when a policyholder is entitled to guarantee pay-outs and regular income till the policyholder attains 99 years of age.
    • Guaranteed Long-term Income: As per this option, a fixed income is ensured for a policyholder, in addition to the reimbursement of the premium paid, at the maturity of the plan.
    • Guaranteed Maturity Option: Under this option there is a provision of a lump-sum payout which is of the accumulated benefits on the matured policy.
    • Guaranteed Income Option: This provision offers periodic payouts given out regularly to the policyholder for a fixed period of 10 to 12 years.

Eligibility Parameters of HDFC Life Sanchay Plus

Eligibility ParameterPlan Type Minimum Maximum
Entry Age
Life Long Income5 years

60 years
Long Term Income5 years
Guaranteed Maturity50 years
Guaranteed Income5 years
Maturity AgeLife Long Income18 years 73 years

Long Term Income
18 years 80 years
Guaranteed Maturity56 years 71 years
Guaranteed Income18 years 71 years
Minimum Premium Payable
For all Plan options
Monthly: Rs. 2,500
Quarterly: Rs. 7,500
Half-Yearly: Rs. 15,000
Annual: Rs. 30,000
Maximum Installment of Premium
For all plan options

There is no maximum installment of premium yet and is subject to Board Approved Underwriting Policy.
Premium Paying Term and Policy Term
Guaranteed Maturity
Premium Paying Term Policy Term
5 years 10 years
6 years 12 years
10 years 20 years
Rider Option HDFC Life Income Benefit on Accidental Disability Rider:
Under this rider, there is no maturity benefit available, a benefit equal to 1% of the Rider Sum Assured each month of policy term is provided. It is done in case of Total Permanent Disability due to an accident.

HDFC Life Critical Illness Plus Rider:
A lump sum benefit shall be payable in case you are diagnosed with any of the 19 critical illnesses diagnosed and survive for a period of 30 days following the diagnosis. The Lump sum amount will be equal to the Rider Sum Assured only in case of diagnosis and no maturity benefit is provided.

Benefits of HDFC Life Sanchay Plus

The various benefits to his plan are as follows.

Death Benefits-

The death benefit provided for all four types of benefits—Guaranteed Maturity, Income, Life-Long, and Long-term options are the same; the death benefits are:

In case of the unfortunate demise of the life assured, a death benefit equal to the sum assured on death, including the accumulated guaranteed additions shall be payable to the benefactor of the policy.

The sum assured paid out on death will be the highest of:

  1. 10 times the Annualized Premiums, or
  2. Guaranteed Sum Assured on Maturity, or
  3. 105% of the Total Premiums paid, or
  4. The total sum assured to be paid on death as equal to the Sum Assured.

The sum assured shall be equal to the payable Death Benefit multiple times the Annualized Premium.

Maturity Benefits-

The maturity benefits provided for the four options are given below:

Guaranteed Maturity:

  1. This option offers a lump sum at the end of the policy term as a guaranteed maturity benefit. But the benefit is only provided if the policyholder survives the policy term and has duly paid all premiums during the policy term.
  2. The payable Maturity Benefit is equal to the Guaranteed Sum Assured on Maturity, addition to the accumulated Guaranteed Additions.
  3. The Guaranteed Sum Assured on Maturity is total Annualized Premium Payable under the policy during the premium payment term.

Guaranteed Income:

  1. This provision provides the benefit paid in the form of regular income for a fixed term of 10 to 12 years. Upon due payment of premiums by the life assured as well as surviving past the policy term.
  2. At any moment of the Payout Period, the life assured will have an option to receive future maturity benefits in lump sum which shall be the present value of future payouts. The lump sum amount paid will be discounted at a rate which is computed using current, prevailing interest rates.
  3. The guaranteed income payable for 10 yearsFrom 5 to 50 years-
    179% of Annualized Premium
    From 51 to 60 years-
    170% of Annualized Premium
    The guaranteed income payable for 12 yearsFrom entry age of 5 to 50 years-
    170% of Annualized Premium
    From entry age of
    51 to 60 years-
    183% of Annualized Premium

Life-Long Income:

  1. This option provides a maturity benefit of a guaranteed income till the age of 99 years, i.e., the life assured will be provided regular income until 99 years of age.
  2. This benefit will be provided to the surviving policyholder in case all due premiums have been cleared.
  3. Guaranteed income for
    5 year Premium Payment Term, and
    6 year Policy Term
    From entry age of 50 to 60 years-
    29.5% of Annualized Premium
    Guaranteed Income for 10 year Premium Payment Term and 11 year Policy TermFrom entry age of 50 to 60 years 84.5% of Annualized Premium

Long Term Income:

  1. Long Term Income offers a benefit wherein the guaranteed income is provided for a term of 25 years or 30 years.
  2. In addition, a return of premium is provided at the end of payout when all due premiums are paid by the surviving policyholder.
    For a Premium Paying Term of 5 years, and
    6 years of Policy Term
    For Entry ages of 5 to 60 years the Guaranteed Income payable each year is 30.5% of Annualized Premium
    For Premium Paying Term of 10 years and 11 years of Policy Term For Entry ages of 5 to 60 years the Guaranteed Income payable each year 88.5% of Annualized Premium.

HDFC Life Sanchay Plus is a plan formulated to address the various investment needs that matches the diverse requirements of investors. This non-linked plan has been curated to suit your requirements for guaranteed returns as well as life insurance security. Hence, the basic plan comes with many benefits that can be rightly enjoyed if the premiums are duly paid; however, they are subject to change. Make sure to go through the terms and conditions thoroughly.

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