Investment Plans 13968 views April 8, 2020

HDFC Life Sanchay Par Advantage

HDFC Life Sanchay Par Advantage Plan is a non-linked life insurance policy with participation benefits. It ensures lifelong regular income to the holder of the policy along with the flexibility of the option of pay-out and cover for a whole life. It also offers flexibility to accrue the pay-outs of survival benefits. The option of deferred income is also offered along with guaranteed benefits. Tax benefits are also available under this plan under the prescribed sections of the Income Tax Act, 1961. Sanchay Par Advantage plan provides an option to receive cover for the entire life of the insured (till 100 years of age). It helps to build a huge corpus for achieving the goals that you have planned and in order to secure your family’s future without any compromises.

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Features of HDFC Life Sanchay Par Advantage

Key features offered by HDFC Sanchay Par Advantage plan are as follows:

  1. Sanchay Par Advantage offers life cover to the insured up to as long as the insured lives or as high as 100 years of age
  2. It offers the insured to choose from immediate or deferred income options according to their needs and requirements.
  3. It offers flexibility to choose to accrue the pay-outs of survival benefits under the plan. This life insurance plan can be brought only on a single life basis.
  4. The risk under the policy starts from the first policy anniversary when the age is less than a year and for other ages, the risk under the policy starts from the date of the contract’s inception.
  5. If the life insured is a minor individual, the policy will vest on him/her when he/she attains 18 years of age and the income pay-outs of the plan should be used for the minor’s benefits.
  6. The policyholder can choose to pay the premium either annually, semi-annually, monthly or quarterly as per his/her needs. The holder of the policy can also change the premium paying frequency at any time during the term of the insurance plan.
  7. The policyholder also gets the benefit to choose to receive the pay-outs in the future either annually, semi-annually, monthly or quarterly.
  8. The policy offers participation benefit to the policyholder. Cash bonus and the terminal bonus will be paid to the policyholder, in the end, the following financial year in which the profits were declared.
  9. The option of acquiring a surrender value is available under this plan upon the payment of the initial two years premium for the plan.
  10. The plan offers two rider options to be added with it to enhance its coverage. The two-rider options that can be added to the plan include HDFC Life Income Benefit on Accidental Disability rider and HDFC Life Critical Illness Plus Rider.
  11. This policy offers a loan facility to the policyholder which can be maximum of 80% of the surrender value of the insurance policy. This provides liquidity to the holder of the policy when he /she is in need of funds.
  12. The premiums paid for the plan by the policyholder and the benefits required under the plan are eligible for tax exemptions under the prescribed section of the Income Tax Act, 1961.
  13. In case the insured commits suicide within 12 months of the date of commencement of the risk under the plan, 80% of the premium paid till the date of death will be refunded to the nominee of the insurance plan.

Eligibility Criteria of HDFC Life Sanchay Par Advantage

The eligibility conditions required to purchase the HDFC Life Sanchay Par Advantage are stated as follows:

ParametersMinimumMaximum
Entry ageImmediate Income option- 0 years ( 30days)
Deferred Income Option- 0 years ( 30 days)
Immediate Income Option- 65 years
Deferred Income Option- 55 years ( for PPT 8 years)
60 years ( for PPT 10, 12 years)
Age at Maturity 100 years
Term of Premium PaymentImmediate Income Option- 6 years, 8 years, 10 years and 12 years
Deferred Income Option- 8 years, 10 years and 12 years
Sum assured on MaturityRs 3,00,000No Limit
Policy Term100 years minus the age at entry
A fixed term of 30 years – 40 years can be selected
Premium AmountAnnually- Rs 25,000
Half Yearly- Rs 12,750
Quarterly- Rs 6,500
Monthly- Rs 2,188
No Limit

Benefits of HDFC Life Sanchay Par Advantage

The benefits offered by Sanchay Par Advantage plan of HDFC Life Insurance are as follows:

Income Options

It offers two options of income which includes Immediate Income and Deferred Income.

  1. Immediate Income is an option which provides regular and steady income by cash bonus from the first policy year and pays lump-sum amount at the maturity of the plan.
  2. Deferred Income is an option that pays guaranteed income for a guaranteed time period along with regular and steady income in the form of cash bonus throughout the term of the policy. It also pays a lump sum maturity benefit on the maturity of the plan.

Survival Benefit-

  1. Immediate Income Option: Cash bonus is paid as a survival benefit at the end of every policy year. It is paid from the very first year of the policy until the death of the insured or the end of the term of the policy, whichever is earlier.
  2. Deferred Income Option: Under this option, the guaranteed income plus the discretionary cash bonus is paid in arrears 1 year after the end of the term of premium payment.

Maturity Benefit

  1. Immediate Income Option: Maturity benefit is paid at the end of the term of the policy if the insured survives until the end of the term of the policy. The sum assured on maturity under the plan along with accrued cash bonus, terminal bonus and interim survival benefit are paid as maturity benefit. The sum assured on maturity is the total annualised premium amount which is payable under the insurance policy.
  2. Deferred Income Option: Under this option, the maturity benefit is as same as under the immediate income option. However the maturity benefit under this option also includes accrued guaranteed income, if not already paid to the policyholder.

Death Benefit

  1. Immediate Income Option: Death benefit is paid to the nominee of the policy on the death of the insured individual during the term of the plan. The death benefit is paid as a lump sum amount which is the sum assured on death under the insurance plan in addition to interim survival benefit (if any), accrued cash bonus (if not earlier paid) and terminal bonus (if declared by the insurance company). The sum assured on death will be highest of 10 times of the annualised premium amount or 105% of the total premium paid by the policyholder or sum assured on the maturity of the policy or death multiple × the annualised premium.
  2. Deferred Income Option: Death benefit under this option is as same as immediate income option but in addition to an accrued guaranteed income.

The option of Deferral of survival benefits

The holder of the policy at any time during the term of the plan can defer the survival benefit that arises to him/her out of the declared cash bonuses or guaranteed income. The policyholder can accrue the benefit and receive it in a lump sum at a later stage. The policyholder also has the option to opt-in or opt-out of this facility during the term of the policy.

Additional Benefit

Additional benefit up to 1.2 % of the annualised premium is offered for those policies which have annualised premium of more than Rs 1 Lakh.

Grace period

30 days grace period is allowed to the policyholders to pay all the due amount of premiums to ensure that the policy does not lapse. For a monthly premium payment option, 15 days grace period is allowed.

Free Look Period

A period of 15 days is allowed from the date of inception of the policy within which the policyholder if not satisfied with the plan can return the policy to the insurance company. The premiums paid are refunded subject to certain deductions as may be provided.

Conclusion

HDFC Life Sanchay Par Advantage is an ideal insurance plan for those who are looking for wider coverage and benefits along with participation in the bonuses declared by the insurance company. This plan helps the policyholder to accumulate a corpus for their family’s future. The rider options enhance its benefit and provide wider assurance and coverage and you can choose to add it as per your needs and requirements. With whole life cover, survival benefits and guaranteed income Sanchay Par Advantage plan of HDFC Life Insurance is worth buying.

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