HDFC Life Sanchay Plus Plan

To achieve various milestones in life, it is very important to have proper financial planning. These milestones often come with added expenses and responsibilities. Thus, it is very important to ensure the proper financial security, so that one can achieve the short-term and long-term objectives of life. HDFC Life Sanchay Plus is best suited for individuals who want to gain the benefit of regular return along with the benefit of insurance policy coverage. To help you know more about HDFC Life Sanchay Plus, here we have discussed in detail about everything you need to know about this plan.

Comparison Between

Fixed Deposits, Guaranteed Return Plans & Debt Mutual Fund

Guaranteed Return Plans, Fixed Deposits &
Debt Mutual Fund

Guaranteed Return Plans

Returns Before Tax

7.5% ^(TAX-FREE)

Returns After Tax

7.5%

Guaranteed Returns

Yes

Life Cover

Yes

Tax on Profit

Tax Free*

Risk

No Risk

Still Better than FD’s and Debt Mutual Fund

Fixed Deposits

Returns Before Tax

7% ^(TAXABLE)

Returns After Tax

4.8%

Guaranteed Returns

Yes

Life Cover

No

Tax on Profit

Taxable

Risk

Low Risk

Debt Mutual Fund

Returns Before Tax

8% ^(TAXABLE)

Returns After Tax

5.5%

Guaranteed Returns

No

Life Cover

No

Tax on Profit

Taxable

Risk

High Risk

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*For annual premium upto ₹5 Lacs

Features of HDFC Life Sanchay Plus Plan

Let’s take a look at the salient features of HDFC Life Sanchay Plus.

• Flexibility: Have the flexibility to claim for the guaranteed benefit wherein the insured within the HDFC Sanchay Plus can use it either in a form of regular income or lump sum amount.
• Long-term Income Option: This plan provides the long-term income alternative wherein the insured can obtain guaranteed income for the fixed term of 25 years to 30 years.
• Life-long Income Option: The insured will most likely receive the guaranteed income till 99 years of age under the HDFC Life Sanchay Plus.
• Assured Returns: With this plan, the insured receives the assured returns and remain insulated from any of the market-risks.
• Rider Options: You can enhance the HDFC Sanchay Plus coverage and choose the rider options upon the payment of the additional premium sum.
• Free-look Period: The buyer of the HDFC Sanchay Plus will obtain the free-look period for up to 15 days wherein one can cancel the policy in case it doesn’t suit your requirements.
• Tax Benefits: The HDFC Life Sanchay Plus premium paid remains tax exempted within the Section 80C. The tax benefit is subject to changes in tax laws”

Eligibility For HDFC Life Sanchay Plus

Let’s take a look at the Eligibility For HDFC Life Sanchay Plus Plan

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Benefits of HDFC Sanchay Plus

As HDFC Life Sanchay Plus offers four different plan options, let’s take a look at the benefits offered by it.

• Guaranteed Maturity Option
• Guaranteed Income Option
• Life-Long Income Option
• Long Term Income Option

Guaranteed Maturity Option

• Maturity Benefit- The maturity benefit offered by the policy is equal to the guaranteed sum assured amount on maturity plus accumulated guaranteed additions. The maturity benefit offered by the policy as a guaranteed sum assured is the total yearly premium paid under the policy during the tenure of premium payment.
• Death Benefit- In case of the demise of the insured person during the tenure of the policy, a death benefit equal to the sum assured amount is paid to the beneficiary of the policy. The sum assured amount paid to the nominee is the highest of:
• 10 times of the annualized premium or
• 105% of the total premium paid or
• Total sum assured amount to be paid on death.

Guaranteed Income Option

• Maturity Benefit- In case, the insured survives the entire tenure of the policy, the maturity benefit is paid as a guaranteed income for a fixed tenure of 10 years-12 years, provided all the premiums of the policy are dully paid till date. The guaranteed sum assured on maturity should be the present value of the future payouts, discontinued @9% p.a.
• Death Benefit- In case of the demise of the insured person during the tenure of the policy, a death benefit equal to the sum assured amount is paid to the beneficiary of the policy. The sum assured amount paid to the nominee is the highest of:
• 10 times of the annualized premium or
• 105% of the total premium paid or
• Accumulated premium paid at an interest of 5% per annum compounded annually.
• Total sum assured amount to be paid on death. 

Life-Long Income Option

• Maturity Benefit- In case, the insured survives the entire tenure of policy and all the premium of the policy is dully paid, then the maturity benefit is paid to the insured as guaranteed income up to the age of 99 years and a return of total premiums is paid at the end of the payout period of the policy.

  It is important to note that in case of the demise of the insured person during the payout period, the beneficiary of the policy will continue to receive the guaranteed income according to the benefits option chosen & income payout frequency. The guaranteed sum assured on maturity should be the present value of the future payouts, discontinued @9% p.a.
• Death Benefit- In the event of the uncertain demise of the insured person during the tenure of the policy, a death benefit is paid to the beneficiary of the policy. The death benefit paid is the highest of:
• 10 times of the annualized premium or
• 105% of the total premium paid or
• Accumulated premium paid at an interest of 5% per annum compounded annually.
• Total sum assured amount to be paid on death. 

The sum assured amount payable on death shall be equal to the death benefit multiple times the yearly premium.

Long Term Income option

• Maturity Benefit- In case, the insured survives the entire tenure of policy and all the premium of the policy is dully paid, then the maturity benefit is paid to the insured as guaranteed income for a fixed tenure of 25-30 years and a return of total premiums is paid at the end of the payout period of the policy.

  It is important to keep in mind that, in case of the demise of insured during the payout period, the beneficiary will continue receiving the guaranteed income as per the benefit option chosen till the end of the payout period and income payout frequency. The guaranteed sum assured on maturity should be the present value of the future payouts, discontinued @9% p.a.
• Death Benefit- In the event of the uncertain demise of the insured person during the tenure of the policy, a death benefit is paid to the beneficiary of the policy. The death benefit paid is the highest of:
• 10 times of the annualized premium or
• 105% of the total premium paid or
• Accumulated premium paid at an interest of 5% per annum compounded annually.
• Total sum assured amount to be paid on death.

Tax Benefit

HDFC Life Sanchay Plus offers the benefit of tax exemption to the insured. The maturity process and premium paid towards the policy up to the maximum limit of Rs.1.5 lakh are eligible for tax exemption under section 10(10D) and 80C of Income Tax Act 1961.

Rider Options Offered by HDFC Life Sanchay Plus

HDFC Life Sanchay Plus plan offers additional benefits as riders option to enhance the coverage of the policy. The rider options offered under the policy are:

• HDFC Life Income Benefit in Accidental Disability Rider- Under this option, a benefit equal to 1% of the rider sum assured is paid per month for the next 10 years, in case of accidental total permanent disability of the insured person during the tenure of the policy. Under this rider option, there is no maturity benefit.
• HDFC Life Critical Illness Plus Rider- Under this rider option, a lump-sum benefit equal to the rider sum assured amount is paid to the insured if he/she is diagnosed with any of the 19 critical illnesses and survives 30 days following the diagnosis. This rider option does not provide any maturity benefit.

How Does HDFC Life Sanchay Plus Plan Works?

HDFC Life Sanchay Plus offers 4 different plan options to choose from as per one’s requirement and suitability. Let’s take a look at the tabular description of these plans and how does it work.

Some Other Features of HDFC Sanchay Plus Plan

Apart from the above-mentioned features, some other features offered by the policy are:

• Grace Period

  In case the policyholder fails to pay the premium of the policy within the premium payment date, then a grace period of 30 days is offered to the policyholder to pay the premium of the policy.

• Free-look Period

  A free-look period of 15 days is offered to the policyholder from the date of policy initiation during which the insured can cancel the policy if he/she is not satisfied with the terms and conditions of the policy.

• Policy Surrender Value

  the policy acquires guaranteed surrender value (GSV) in case the premium payment of at least the first two years of the policy is done. The minimum guaranteed surrender value should be the sum of:

• The guaranteed surrender value of the total premium paid
• The surrender value of guaranteed additions, already accrued to the policy, if applicable.

• Policy Loan

  Once the policy acquires the surrender value, the policyholder can avail policy loan up to 80% of the surrender value of the policy, subject to the applicable terms and conditions.

FAQs