HDFC Life Sanchay Par Advantage Plan
HDFC Life Sanchay Par Advantage is a life insurance policy that allows you to live a life without dependencies or compromises whilst securing the future of your family and, ensuring you leave behind a legacy for them. An option to purchase whole-life coverage is offered by the participating life insurance plan HDFC Life Sanchay Par Advantage (till the age of 100 years). With no compromises, the plan offers a comprehensive way for you to earn a consistent income, accumulate wealth, and safeguard the futures of your loved ones.
Read on to know more about HDFC Life Sanchay Par Advantage, its eligibility criteria, its inclusions, exclusions, premium illustration, and more.
Here is the eligibility criteria for HDFC Life Sanchay Par Advantage.
|Entry Age (In Years)|
Minimum: 0 years (30 days)
Maximum: • Immediate Income-
· 50 years (For PPT 5 years)
· 65 years (For PPT 6, 7, 8, 9, 10, 12 years)
• Deferred Income –
· 55 years (for PPT 7, 8 years)
· 60 years (for PPT 9, 10, 12 years)
Premium Payment Term
• Immediate Income – 5,6,7,8,9,10,12 years
• Deferred Income – 7,8,9,10,12 years
|Age at Maturity (years)||100 years (maximum)|
|Policy Term (years)|
· 100 minus Age at Entry or
• A ‑fixed policy term in the range of 25-40 years can be chosen
Minimum Sum Assured
Maximum Sum Assured
|No limit, subject to Board Approved Underwriting Policy (BAUP)|
HDFC Life Sanchay Par Advantage Coverage Details
Here is the list of the major details covered under HDFC Life Sanchay Par Advantage.
|Survival Benefit Payouts from as early as 1st Policy year||Available|
|Life cover to protect the family’s future||Available|
|Cash Bonus (if any) payouts from as early as 1st policy year. Applicable for Immediate Income option only||Available|
|Annual Premium Limit||Rs. 25,000|
|Immediate Income||This option offers a lump sum payment at maturity and offers regular income in the form of cash bonuses (if declared), starting in the first policy year.|
|Deferred Income||This option provides regular income in the form of cash bonuses (if declared) during the policy term, as well as Guaranteed Income for a guarantee period.|
|Half-Yearly Premium Limit||Rs. 12,750|
|Quarterly Premium Limit||Rs. 6,500|
|Monthly Premium Limit||Rs. 2,188|
Features & Benefits of HDFC Life Sanchay Par Advantage
The following are the salient features and benefits of HDFC Life Sanchay Par Advantage.
- Maturity Benefit- Once the policy has reached maturity after the policy term and all outstanding policy premiums have been paid in full, the maturity benefit is paid. The Maturity Sum Assured plus accrued Cash Bonuses (if not paid earlier), plus the interim Survival Benefit (if applicable), plus Terminal Bonus will make up this benefit (if stated). It will rely on the available options for revenue.
- Surrender Benefit– The HDFC Life Sanchay Par Advantage Plan offers a surrender benefit option. Regardless of the policy’s payment term, this insurance plan can only be relinquished once the first two years premiums have been paid in full.
- Tax Benefit- According to the Income Tax Act of 1961, all benefits and premium payments made under the HDFC Life Sanchay Par Advantage Plan are tax-exempt.
- Loan Benefit- Once the policy has developed a surrender value, the policyholder may apply for a loan. A maximum of 80% of the surrender value of the insurance policy may be borrowed. The loan’s interest rate will be 8.5% per annum.
- Revival Benefit: Within the revival period (described below), you may renew your expired or paid-up policy provided that you adhere to the terms and conditions we may from time to time set. You must pay all past-due premiums, interest on past-due premiums, and any relevant taxes and levies to be reinstated. Interest rates will fluctuate depending on market conditions. 8.5% per year is the current interest rate for resurrection.
- Grace Period: Concerning paying your premium without incurring any penalties, you have a grace period of 15 days for monthly frequency payments and 30 days for other frequencies. The policy is regarded as continuing uninterruptedly throughout the grace period with the risk cover. The policy will expire or be paid up if a premium is not paid by the conclusion of the grace period. If a legitimate claim is made during the grace period, before payment of the required premium, the claim will be paid after the required modal premium has been deducted.
- Death Benefit: If all due premiums are paid upon the death of the life assured within the policy term, the nominee will be given a lump sum death benefit equivalent to the following upon the death of the life assured:
- Plus the Sum Assured on Death
- If not already paid, accrued cash bonuses and guaranteed income.
- If applicable, Interim Survival Benefit +
- End-of-Term Bonus (if declared) The death benefit must at least equal 105% of the total premiums paid as of the death date.
What is Not Included Under HDFC Life Sanchay Par Advantage
Suicide Exclusions: The nominee or beneficiary of the policyholder shall be entitled to at least 80% of the total premiums paid up to the date of death or the surrender value available as on the date of death, whichever is higher, provided the policy is in force, in the event of death by suicide within 12 months from the date of commencement of risk under the policy or the date of revival of the policy, as applicable.
HDFC Life Sanchay Par Advantage Premium Calculation
Mr. Subhash Kumar, a 30-year-old software engineer at Cognizant in Gurgaon, is looking to purchase a plan that exactly fits his financial objectives for retirement. He wants to protect his family’s financial future because he works for a private company. He then came across HDFC Life Sanchay Par Advantage online while looking for the best retirement plan. He even sought his friends, family, and relatives for advice, and several in his circle advised him to purchase HDFC Life Sanchay Par Advantage for the best possible financial security after retirement.
Let’s take an example to understand!
He pays an annual premium of INR 1 Lac plus taxes for the 8 years leading up to the 70-year insurance term.
|Plan Option||Sum Assured on Maturity||Survival Benefit payout||Maturity Benefit|
|Cash Bonus^||Guaranteed Income||Assured Investment Return|
|at an assumed rate of 8%||30,000||N/A||at an assumed rate of 8% p.a.||1,67,34,000|
|at an assumed rate of 4%||14,500||N/A||at an assumed rate of 4% p.a.||18,31,000|
|at an assumed rate of 8%||42,600||28,400||at an assumed rate of 8% p.a.||61,60,000|
|at an assumed rate of 4%||1,100||at an assumed rate of 4% p.a.||23,22,000|
Frequently Asked Questions
Yes, the Survival Benefit payouts can be deferred. The monthly Reverse Repo rate at which the accrued Survival Benefit payouts will be accumulated will be reassessed at the start of each month.
There is no limit to the number of times the deferral option can be used.
If the policy has accrued a surrender value, the policyholder may be eligible for a loan under the policy, subject to the terms and circumstances that the Company may from time to time designate.
Yes, the company offers extra benefits for plans with an annual premium of at least 1.0 lakh rupees. It only applies to the Deferred Income Option. Please see the Product Brochure’s “Additional Benefit for High Premium Policies” section for further information.
If the insurance’s first two years’ worth of premiums has been paid, the policy will obtain a Guaranteed Surrender Value (GSV).