Sanchay Plus Plan
Sanchay Plus Plan
  • Free Look Period
  • Lifelong Income Option
  • Tax Benefits Under 80C
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HDFC Life Sanchay Plus Plan

HDFC Life Sanchay Plus is a non-participating, non-linked savings life insurance plan. It provides its insured with numerous coverage and benefits. The plan offers guaranteed returns to the insured and his/her family. All the important facts about the plan have been mentioned below for an easy understanding of the insured.

Features Of HDFC Life Sanchay Plus

The features of HDFC Life Sanchay Plus have been explained below:

  • Guaranteed Benefits: A Under this, the insured gets rest assured of the returns.
  • Tax Benefits: The premiums paid under the policy are exempted from income tax under section 80C of the income tax act.
  • Flexibility: When the insured under Life Sanchay Plus policy claims for guaranteed benefit, he gets the flexibility to use it either in the form of the lump-sum amount or as regular income.
  • Life-Long Income Option: The insured under this gets a guaranteed income until the age of 99 years.
  • Long Term Income Option: Life Sanchay Plus policy provides long term income options under which the insured can get guaranteed income for a fixed term of 25 to 30 years.
  • Optional Riders: It also enhances the protection coverage of the insured with rider option on payment of additional premium.
  • Free Look Period: The policy buyer of Life Sanchay Plus policy gets a free look period of 15 days under which he/she can finalize the policy and in case of any dissatisfaction can cancel the policy too.

Eligibility

All the eligibility required to buy Life Sanchay Plus plan have been mentioned in tabular form for easy referral:

Criteria Plan OptionMinimumMaximum
Minimum Entry Age (Years)
  • Guaranteed Income
  • Guaranteed Maturity
  • Life-Long Income
  • Long Term Income
  • 5*
  • 5*
  • 50*
  • 5*
60
Age Of Maturity (Years)
  • The guaranteed Income
  • Guaranteed Maturity
  • Life-Long the Income
  • Long Term Income
  • 18
  • 18
  • 56
  • 18
  • 73
  • 80
  • 71
  • 71
Criteria Plan OptionPremiums
Minimum Installment PremiumAll Options are IncludedAnnual: Rs 30,000
Half-yearly: Rs. 15,000
Quarterly: Rs. 7,500
Monthly: Rs. 2,500
Maximum Installment PremiumAll Options are IncludedThere is no limit. Its subject to board approved underwriting policy. (BAUP)
RidersAll Options are Included.
  • HDFC Life Income Benefit on Accidental Disability Rider.
  • HDFC Life Critical Illness Rider.

** In case of minor life the policy will vest on the life assured on the attainment of the 18 years of age

HDFC Life Sanchay Plus Premium Calculation

Under HDFC Life Sanchay Plus Policy those who opt for premium payment at other than annual frequency can calculate it by multiplying the annual premium by the conversion factor which has been mentioned below:

FrequencyConversion Factor
Half-yearly0.5100
Quarterly0.2600
Monthly0.0875

Benefits of HDFC Life Sanchay Plus

  • Grace Period

    The insured under Life Sanchay Plus policy gets the grace period benefit under which the insured gets 15 days for the monthly frequency of premium payment and 30 days for other frequencies to pay the premium without any penalty. In case the insured missed the date of renewal premium payment then also he/she has a grace period of 30 days to make the payment.
  • Lapse, Paid-up, and Surrender

    According to the terms of the Life Sanchay Plus policy, the surrender value must be met on at least two years of policy premium payment.
    In case the due premium is not paid even after expiry of the grace period then the policy is subjected to lapse:
    • If guaranteed surrender value is not acquired.
    • Become reduced paid-up in case it has acquired the guaranteed surrender value.
  • Revival

    The revival period for a lapsed/ paid-up Life Sanchay Plus policy is for 5 years. In case of a lapsed policy, the insured needs to pay all the pending premium along with interest levied on the premiums for the revival of the policy. The rate of interest varies with the year and can be consulted from the insurance company.
  • Policy Loan

    The insured can avail loan facility under the Life Sanchay Plus plan. This can be done after the insured has acquired the surrender value limit and the insured can get a loan up to 80% of the surrender value under the policy subjected to a set of terms and conditions of the insurance company.
  • Death Benefits

    Under Guaranteed Maturity, Guaranteed Income, Life-Long Income, and Long Term Income, in case of the death of the insured during the policy tenure, the accumulated death benefits are provided to the nominee under LIFE Sanchay Plus Policy.
    Death Benefit = Insured sum on death + Accumulated Guaranteed Additions
    The insured sum on death can not be more than 10 times the Annualized Premium or 105% of the Total Premium Paid or guaranteed sum assured on maturity.
    Under Life Sanchay Plus Plan the absolute amount to be paid on the death of the insured is equal to the sum assured.
    After the payment of the death benefit, the policy is subject to termination and no further benefits are payable.
  • Enhanced Benefit For High Premium

    Annual premium paid by the insured is more than 1.5 lakhs then he is open to special benefits termed as enhanced benefits.
  • Alterations

    The insured is permitted to change the premium payment frequency and income payout frequency. A plan chosen at the time of buying the policy can not be changed.
    • As a benefit, the insured has an option to receive the Guaranteed Sum Assured on Maturity. It is the present value of future payouts.
    • The present value of future payouts is discounted at a rate of 9%.
    • The nominee has an option to receive future income as a lump-sum. It shall be the present value of future payouts and it is discounted based on prevailing interest rates.

How The HDFC Life Sanchay Plus Policy Works?

Life Sanchay Plus plan provides several options concerning the age at the time of buying the policy subjected to the condition that once purchased there can be no changes brought in the plan. Here are the options explained:

OptionsPremium Payment TermPolicy TermPayout Period
Guaranteed Income
  • 5 years
  • 6 years
  • 10 years
  • 10 years
  • 12 years
  • 20 years
  • Maturity benefits paid as a lump-sum at the end of the 10th year.
  • Maturity benefit paid as a lump-sum at the end of the 12th year.
  • Maturity benefits paid as a lump-sum at the end of the 20th year.
Guaranteed Maturity
  • 10 years
  • 12 years
  • 11 years
  • 13 years
  • Maturity benefits paid as a guaranteed income from 12th year to 21st year in arrears.
  • Maturity benefits paid as a guaranteed income from 14th year to 25th year in arrears.
Life-Long Income
  • 5 years
  • 10 years
  • 6 years
  • 11 years
  • Maturity benefits paid as a guaranteed income from the 7th year in arrears till the individual attains the age of 99 years.
  • Maturity benefits paid as a guaranteed income from the 12th year in arrears till the individual attains the age of 99 years.
Long Term Income
  • 5 years
  • 10 years
  • 6 years
  • 11 years
  • Maturity benefits paid as a guaranteed income from the 7th year to the 36th year in arrears.
  • Maturity benefits paid as a guaranteed income from the 12th year to the 36th year in arrears.

Benefits In Detail

All the benefits utilized by the insured under the policy term and payout period as per the chosen option, have been detailed under this section. The premiums paid excluding taxes and other statutory levies, the extra premium on account of underwriting or frequency of the payment, and rider premium if any.

  • Guaranteed Maturity

    A guaranteed maturity benefit is offered to the insured in the form of the lump-sum amount at the end of the tenure of the policy subjected to the condition that the insured has cleared all the due premiums as well as he survives the policy term.
    Guaranteed Maturity

    Maturity Benefit = guaranteed sum assured on maturity + Accrued Guaranteed Additions
    Here, the guaranteed sum assured on maturity is the total annualized premium payable under the policy during the premium payment tenure.
    The Guaranteed Additions (GA) will be accumulated after each policy year after the premium payment term (PPT), where PPT is 5 years and 6 years. In case PPT is 10 years, GA will accrue starting the 8th policy anniversary.
  • Guaranteed Income

    Under this option, the insured gets maturity benefits in the form of guaranteed income which is fixed for 10 years or 12 years after all due premium payment and survival of the insured person.
    Guaranteed Income

    The amount of guaranteed income depends on premium payment term shown in the table:
    Premium Tenure Guaranteed Income Payable each year during the payout periodGuaranteed Income Payable each year during the payout period
    Age Of Entry: 5 to 50 yearsAge Of Entry: 51 to 60 years
    10 Years188% of Annualized Premium179% of Annualized Premium
    12 Years209% of Annualized Premium194% of Annualized Premium
  • Life-Long Income

    Benefit of guaranteed income is offered till the age of 99 years under this option. There is also a return of premium at the end of the payout period after payment of all due premiums and in case the insured survives the policy tenure.
    Life-Long Income

    The guaranteed income amount shall depend upon the premium payment terms chosen as per the table mentioned below:
    Premium TenureGuaranteed Income Payable each year during the payout periodGuaranteed Income Payable each year during the payout period
    Policy TermAge Of Entry: 50 to 60 years
    5 Years6 Years31% of Annualized Premium
    10 Years11 Years89% of Annualized Premium
  • Long Term Income

    A benefit of guaranteed income for a fixed duration of 25 years to 30 years is provided under this, subjected to the condition that all premium payments are done and the policyholder survives the policy tenure.
    Long Term Income

    The guaranteed income amount shall depend upon the premium payment terms chosen as per the table mentioned below:
    Premium TenureGuaranteed Income Payable each year during the payout periodGuaranteed Income Payable each year during the payout period
    Policy TermAge Of Entry: 5 to 60 years
    5 Years6 Years32.5% of Annualized Premium
    10 Years11 Years93.5% of Annualized Premium

HDFC Life Sanchay Plus Policy Riders

There are few rider options available under the plan. The same has been explained below:

RiderUINScope Of Benefits
HDFC Life Income Benefit Rider on Accidental Disability Rider101B013V02In the case of Accidental Permanent Disability, a benefit equal to 1% of the rider sum assured per month for the next 10 years is provided. There is no maturity benefit under this rider
HDFC Life Critical Illness Plus Rider101B014V01In case the insured is diagnosed with any of the 19 critical illnesses and survive for 30 days following the diagnosis then a lump sum benefit equal to the rider sum assured is paid to the insured.

NOTE: For more information relating riders, you can refer rider brochures available on the HDFC official site.

Illustration

Here is an illustration presented about HDFC Life Sanchay Plus Plan for a better understanding. The table explains the benefits withdrawn by a 30-year-old healthy male (50 years for Life-Long Income Option), who pays INR 1 Lacs along with taxes annually throughout the premium paying term and survives during the policy term.

Plan OptionSum AssuredDeath Benefit Inception#Policy Term(Years)Premium Paying Term(Years)Maturity Benefit (INR)
Guaranteed Maturity1,250,0001,250,00020102,202,300 paid as a lump sum at Maturity
Guaranteed Income1,250,0001,496,5861312Guaranteed Income of 2,09,000 p.a. From 14th year to 25th year(payout period of 12 years).
Long Term Income1,250,0001,250,0001110Guaranteed Income of 93,500 p.a. From 12th year to the 36th year(payout period of 25 years) + 10,00,000 at the end of the payout period (36th Year).
Life-Long Income1,050,0001,050,0001110Guaranteed Income of 89,000 p.a. From 12th year till the age of 99 years (38 years) + 10,00,000 at the end of the payout period.

Exclusions

In case the insured commits suicide within 12 months:

  • The nominee is entitled to 80% of the premiums paid subjected to the condition that the policy is running, from the date of commencement of risk of the policy.
  • From the policy revival date, the beneficiary is entitled to amount which is more than 80% of the premiums paid till the date of death/ surrender value as available on the date of death.

HDFC Life Sanchay Plus Plan Review

Life Sanchay Plus plan has been excessively liked by policy buyers for its guaranteed payouts. The no market risk factor of the plan is the root cause for the policyholder to buy this plan. Insureds have appreciated the deferred payout plan i.e. maturity value paid over some time. It is a must-buy-plan if you are planning to buy a non-participating traditional life insurance plan.

FAQs

The minimum installment premium under Life Sanchay Plus plan is of Rs. 2,500 every month.

The minimum entry age for guaranteed maturity is 5 years whereas there is no maximum entry age limit for the same.

Yes, the availability of riders for critical illness and accidental disability mentioned in the above plan. Other than this you can refer to the rider brochures available on the official site of the HDFC Life Sanchay Plus plan.

There is no maximum premium limit under the Life Sanchay Plus plan, subject to Board Approved Underwriting Policy (BAUP).

Yes, the premiums paid are tax exempted under section 80C of the Income Tax Act. it is subject to change as per changes brought in the income tax laws.

The maturity age for Life-long Income is 71 years.

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Last updated on 18-12-2019