HDFC Life Sanchay Plus Vs LIC Jeevan Umang Policy

HDFC Life Sanchay Plus Vs LIC Jeevan Umang

An Investment Plan is not just a financial product; it is a crucial tool to safeguard your family’s future, provide for your retirement, and achieve long-term financial goals. One of the optimal benefits of investing in a savings plan is that it encourages you to build a habit of financial discipline in your life while also providing protection. As the savings insurance plan is essentially an insurance plan at its core, it will provide you with insurance coverage if ever the need arises.

LIC (Life Insurance Corporation of India) and HDFC Life are two of the most renowned names in the insurance industry, and they offer different types of investment plans to cater to different needs. LIC Jeevan Umang and HDFC Sanchay Plus are both savings plans that offer a blend of insurance coverage, savings, and guaranteed payouts. If you are a first-time investor or looking for long-term savings, understanding the differences between LIC Jeevan Umang and HDFC Sanchay Plus can be the key to securing your financial future. So, here you go.

Comparison Between HDFC Life Sanchay Plus and LIC Jeevan Umang

The following table gives you a brief idea about these two plans and their differences.

ParametersHDFC Life Sanchay PlusLIC Jeevan Umang
Type of planA Non-Participating, Non-Linked Savings Insurance PlanNon-linked, participating, individual, whole life assurance plan
Entry age

Guaranteed Income: 30 Days to 65 Years

Guaranteed Maturity: 30 Days to 60 Years

Life Long Income: 50 Years to 65 Years

Long-Term Income: 3 Years to 60 Years

Minimum: 90 days (completed)

Maximum: 55 years (nearer birthday)

Maturity age

Guaranteed Income: 18 Years to 85 Years

Guaranteed Maturity: 18 Years to 80 Years

Life Long Income: 55 Years to 85 Years

Long-Term Income: 18 Years to 75 Years

100 years
Policy term range5 Years to 20 Years(100 – age at entry) years
Premium installments

Minimum:

Single Pay: Rs. 30,000

Annual: Rs. 30,000

Half-yearly: Rs. 15,000

Quarterly: Rs. 7,500

Monthly: Rs. 2,500

Maximum:

Monthly: Rs. 5,000

Quarterly: Rs. 15,000

Half-Yearly: Rs. 25,000

Yearly: Rs. 50,000

Premium payment frequencyMonthly, Quarterly, Half-yearly, and YearlyMonthly, Quarterly, Half-Yearly, yearly
Premium payment termSingle Pay, 5, 6, 7, 8, 9, 10,11, and 12 Years15, 20, 25 and 30 years
Riders
  • HDFC Life Income Benefit on Accidental Disability Rider
  • HDFC Life Critical Illness Plus Rider
  • HDFC Life Protect Plus Rider
  • HDFC Life Health Plus Rider – Non-Linked
  • Accidental Death and Disability Benefit Rider
  • Accident Benefit Rider
  • New Term Assurance Rider
  • New Critical Illness Benefit Rider
  • Premium Waiver Benefit Rider
Loan facilityAvailable, subject to terms and conditionsAvailable
Tax benefitAvailable, under Income Tax Act, 1961.Available
Plan variants
  • Guaranteed Income
  • Guaranteed Maturity
  • Life Long Income
  • Long Term Income
No variants are available
Maturity benefitAvailable, depends on the plan variantSum Assured on Maturity along with different bonuses, where “Sum Assured on Maturity” is equal to Basic Sum Assured.
Long Term Income optionGuaranteed Income for a fixed term of 25 to 30 yearsNo such facility is available
Return of total Premium(s)Return of total Premium(s) paid at the end of the Payout Period available, for life-long and long-term income options.Not available
Death benefitDeath Benefit equal to the Sum Assured on Death plus Accrued Guaranteed Additions shall be payable.

On death before the commencement of Risk: Return of premium/s paid without interest shall be payable.

On Death after the commencement of Risk: Sum Assured on Death (the higher of 7 times of annualized

Premium or Basic Sum Assured) will be paid.

Let’s Know About Sanchay Plus Plan by HDFC Life

HDFC Life Sanchay Plus is a plan that offers guaranteed returns for you and your family. While there are many opportunities that come with respective benefits, the assurance and convenience that a life insurance plan with guaranteed benefit offers is irreplaceable, and HDFC Life Sanchay Plus is one of them. It allows you to choose from four benefit options depending on your life stage and your priorities in life. The option once chosen cannot be altered. A higher deferment period of up to 10 years, and Shorter Premium Paying Terms for income options are available with this plan.

Major Benefits of The Life Sanchay Plus Policy

Here are the mentions of important benefits of this plan.

Guaranteed Returns: HDFC Sanchay Plus typically offers guaranteed returns on your investment, ensuring that you receive a predetermined amount at maturity.

Tax Benefits: Policyholders can enjoy tax benefits under Section 80C of the Income Tax Act for the premiums paid. Additionally, the proceeds from the plan may be tax-free under Section 10(10D) if certain conditions are met.

Flexible Premium Payment Options: You can choose between single premium or limited premium payment options based on your financial preferences and needs.

Life Long Income option: HDFC Sanchay Plus Plan Provides guaranteed income till the age of 99 years.

Riders: You may have the option to enhance the plan with additional riders such as accidental death benefit, critical illness rider, or disability rider for added protection.

Maturity Benefit: The plan provides a lump-sum maturity benefit at the end of the policy term. This amount is predetermined and known in advance.

Death Benefit: In the unfortunate event of the policyholder’s demise during the policy term, the nominee receives a death benefit.

Loan facility: The Policyholder can avail Loan under the policy provided the policy has acquired a Surrender Value and is subject to terms and conditions as the company may specify from time to time.

Surrender Value: You can surrender the policy and receive the surrender value, which is a portion of the total premiums paid.

What is LIC Jeevan Umang Plan?

LIC’s Jeevan Umang is a non-linked, participating, individual, whole-life assurance plan that offers a combination of income and protection to your family. This plan provides for annual survival benefits from the end of the premium paying term till maturity and a lump sum payment at the time of maturity or on the death of the policyholder during the policy term. In addition, this plan also takes care of liquidity needs through a loan facility. LIC Jeevan Umang provides a combination of insurance coverage, savings, and regular income in the form of guaranteed payouts.

Key Highlights of Jeevan Umang Policy

Here are some of its key features and benefits:

Whole Life Coverage: LIC Jeevan Umang provides coverage for the entire lifetime of the insured. This means that the policy continues to provide protection even after the premium payment term is over.

Survival Benefits: This plan offers guaranteed survival benefits, which means that the policyholder receives a percentage of the Sum Assured as a survival benefit at specific intervals during the policy term.

Maturity Benefit: At the end of the policy term, when the insured reaches a predetermined age, they receive the Sum Assured along with any accrued bonuses as a lump sum.

Death Benefit: In the unfortunate event of the policyholder’s demise during the policy term, the nominee receives the Sum Assured, along with any accumulated bonuses, as a death benefit. This ensures financial security for the family and loved ones.

Premium Payment Term Options: Policyholders can choose their premium payment term from a range of options, making it flexible and suitable for their financial capacity and goals.

Tax Benefits: Premiums paid under LIC Jeevan Umang are eligible for tax benefits under Section 80C of the Income Tax Act. Additionally, the payouts are tax-exempt under Section 10(10D), making it a tax-efficient investment.

High Liquidity: The policy can be surrendered at any time during the policy term, providing a certain surrender value and liquidity if the need arises.

Sum assured options: For this policy term sum assured starts from as low as Rs. 2 lakhs, and the maximum sum assured option is not fixed. It depends on the terms and conditions of the company.

Option to take Death Benefit in installments: This is an option to receive Death Benefit in installments over the chosen period of 5 10 or 15 years instead of a lump sum amount under an in-force as well as paid-up policy.

Comparison Between Maturity Benefits of HDFC Life Sanchay Plus and LIC Jeevan Umang

Suppose, Mr. Sharma, a businessman wants to calculate the maturity benefits of these two plans. He is a healthy, non-smoker male. Let us find out how much maturity benefit he will reap for the given credentials.

Policy nameAgeSum assuredPolicy termPremium paying termMaturity benefit
HDFC Life Sanchay Plus (Guaranteed Maturity variant)30 yearsRs. 10 lakhs20 years10 yearsRs. 23,84,240 paid as a lump sum at Maturity
LIC Jeevan Umang25 yearsRs. 5 lakhs100 minus entry age = 75 years30 yearsRs. 5 lakhs plus bonuses

HDFC Life Sanchay Plus, or LIC Jeevan Umang, Which one to go for?

Choosing between Sanchay Plus and Jeevan Umang is a tough job because both insurers have made the policies keeping in mind the needs of the customers. LIC Jeevan Umang, offered by LIC, is renowned for its whole-life coverage, guaranteed survival benefits, and tax advantages. This plan is an excellent choice for those looking for a lifelong financial safety net, regular income, and tax-efficient investment. On the other hand, HDFC Sanchay Plus, provided by HDFC Life, offers competitive features such as multiple premium payment options and flexibility in choosing the payout mode. This policy suits individuals seeking a balance between insurance coverage and savings, with an option to customize the plan according to their specific needs.

Ultimately, your choice between LIC Jeevan Umang and HDFC Sanchay Plus should align with your financial aspirations, risk tolerance, and preferences. It is important to perform a detailed online comparison by getting quotes to secure your family’s future, provide for your retirement, and work toward long-term financial goals.

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