HDFC Life Sanchay Plans

The life-long income option in an insurance policy calls for paying its maturity benefit in a fixed amount in regular intervals for the entire life span of the policyholder. In the case of HDFC Life Sanchay Plus, the life-long income option offers the policyholder a spectrum of guaranteed regular income till 99 years of age. It also provides the return of total premiums paid after the payout period is over.

The Sanchay Plus and Sanchay Par under HDFC Life Sanchay Plans differ in terms of the nature of maturity benefit payouts. The HDFC Life Sanchay Plus policy offers steady retirement income in the life-long payout option. The HDFC Life Sanchay Par Advantage policy on the other hand offers guaranteed income for a stipulated income period where the payout amount increases every year. Moreover, the Sanchay Par plan offers both immediate income and deferred income format which is not the case in Sanchay Plus.

The entry age is crucial for any life insurance plan as it’s commonly believed, an individual is more prone to health issues and diseases as his age increases. Thus, the premium amount, policy term and sum assured are calculated based on the age of the applicant. On similar grounds, the entry age for HDFC Life Sanchay Plus is 5-60 years, beyond which one can’t be eligible for buying the policy. 

For any life insurance plan, the premium payment has to be done in a pre-defined schedule where due dates are specified. If one fails to pay the premium on the due date, a grace period is available depending on the nature of the policy and the premium payment cycle. In the case of HDFC Life Sanchay Plus, the grace period for the monthly premium payment is 15 days from the due date.  

A minimum investment amount is stipulated by every life insurance policy so that the policyholder is eligible to earn maximum benefits. For HDFC Life Sanchay Plus, the minimum investment amount is Rs 30000 per annum if he chooses the annual premium payment schedule. If the policyholder chooses to pay monthly, quarterly or half-yearly premiums, the minimum investments required are Rs 2500, Rs 7500 and Rs 15000 respectively. 

The rate of interest is immensely important in a life insurance plan as it determines the amount of returns one would earn from it. For HDFC Life Sanchay Par Advantage plans, there are two separate rates of interest available: 8% and 4% per annum. These are applicable in all of the three benefits offered- survival, death and maturity benefits. 

The HDFC Life Sanchay Fixed Maturity Plan is a non-linked, non-participating, individual savings life insurance plan offering single or joint life cover and lumpsum maturity benefits. With an option to choose the premium payment term as per the policyholder’s convenience, the plan offers guaranteed and fixed returns and is devoid of any market risk element.

Like any other life insurance or traditional endowment plan, HDFC Life Sanchay Plus also offers tax benefits to its policyholders. The maturity process and the premiums paid for the policy are eligible for tax exemption under sections 80C and 10 (10D) of the Income Tax Act, 1961 if the total amount is less than or equal to Rs 1.5 lakhs per annum. 

Fixed Maturity Plans (FMP) offer guaranteed and fixed returns and have no market risk element in them. Thus, FMP is a worthy plan if one is looking forward to safety and stability in his investments. If you have a low-risk appetite, investing in an FMP can surely be the ideal choice for you. 

Yes, fixed maturity plans are close-ended as they are primarily a kind of debt-based mutual fund. Simply put, in the case of fixed maturity plans, you invest in a debt-based mutual fund that has a fixed term. The fund invests the money mostly in fixed-income instruments that have their maturity period aligned with that of the fund.     

Yes, The HDFC Life Sanchay Fixed Maturity Plan is a non-linked, non-participating individual savings plan that offers single and joint life covers as well as guaranteed and fixed returns. It’s an ideal plan for individual savings as it provides benefits such as risk-free steady income and allows the policyholders to choose the premium payment term according to their convenience.   

Similar to other life insurance plans, the death benefit in the HDFC Life Sanchay Plus plan is available to the nominee in case the policyholder dies within the policy term. The death benefit is a lumpsum amount which the nominee can choose to receive in a single payment or regular payouts for a specified period. The amount is the highest of 

• 10 times the annual premium amount
• 105% of the total premiums paid
• Guaranteed sum assured on the maturity of the policy
• An absolute amount payable on the death of the policyholder which is equal to the sum assured

Like any other life insurance plan, the HDFC Life Sanchay Plus offers accrued bonuses along with pre-specified lumpsum benefits. This accrued amount is Compound Reversionary Bonus (CRB) in nature and is payable as a cash bonus. Here CRB is calculated as a percentage of the sum assured by the policy and increases with time due to the compounding effect.