Investment plans help you to invest and save systematically so that you can build a corpus and live your retirement life worry-free. Apart from financial support, an investment plan also helps to safeguard your family’s future as it also offers insurance coverage whenever it is necessary. When it comes to investment plans, we cannot overlook two names, HDFC and LIC investment plans as both companies have been there in the insurance market for a long time and have come up with different savings and investment plans to address the needs of the customers. HDFC Life Sanchay Plus and LIC Jeevan Umang, both plans are amalgamation of savings, investment and guaranteed payouts and insurance coverage. Both the plans are long-term plans though you will have the opportunity to select your policy term. To know more about these two plans, have a look at the following mentions.
Comparison Between HDFC Life Sanchay Plus and LIC Jeevan Umang
The following table offers an idea about HDFC Life Sanchay Plus and LIC Jeevan Umang plans and their differences.
| Parameters | HDFC Life Sanchay Plus | LIC Jeevan Umang |
| Type of plan | A Non-Participating, Non-Linked Savings Insurance Plan | Non-linked, participating, individual, whole life assurance plan |
| Death benefit | Death 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 annualised Premium or Basic Sum Assured) will be paid. |
| 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 Maximum: 55years |
| Policy term | 5-20 years | (100-entry age) years |
| 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 |
| Premium payment frequency | Monthly, Quarterly, Half-yearly, and Yearly | Monthly, Quarterly, Half-yearly, and Yearly |
| Premium instalments | 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 term | Single Pay, 5, 6, 7, 8, 9, 10,11, and 12 Years | 15, 20, 25 and 30 years |
| Loan facility | Available, terms and conditions applied | Available |
| Riders |
|
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| Tax benefit | Available, under Income Tax Act, 1961. | Available |
| Maturity | Available , depends on the plan variant | Sum Assured on Maturity along with different bonuses |
| Plan variants |
| No variants are 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. | NA |
| Long Term Income option | Guaranteed Income for a fixed term of 25 to 30 years | No such facility is available |
What is HDFC Life Sanchay Plus?
HDFC Life Sanchay Plus plan offers guaranteed returns. One can choose from four benefit options available with the plan depending on the life stage and requirements of the policy-seeker. Once you choose the benefit option, you cannot change it later. This policy offers a higher deferment period of 10 years. One can also short premium paying terms for income options under this plan.
Major Benefits of The Life Sanchay Plus Policy
Here are the important mentions.
- It offers guaranteed returns at the time of maturity.
- Premium payout options are flexible. One can choose a single or limited payout option based on his/her necessity.
- Till the age of 99 years, one can get lifelong income with this plan.
- Under Section 80D, this plan offers tax benefits on the premiums paid towards the policy. There is also a provision to get tax benefits under Section 10D under certain conditions.
- One can get a lump sum amount as a maturity benefit once the policy matures. This amount is fixed and therefore, predetermined.
- To strengthen your policy, one can also choose rider(s) such as accident rider, critical illness rider, disability rider, etc.
- Once the policy acquires the surrender value, one can avail of the loan facility under this plan. This is subject to the terms and conditions of the policy and the company.
- If the policyholder receives an untimely and unfortunate death within the policy term of an active policy, then the beneficiary will receive a death benefit.
- One can also surrender this policy if required. The surrender value is a portion of the premiums paid to the policy, subject to terms and conditions.
What is LIC Jeevan Umang Plan?
It is a whole-life assurance plan offered by LIC which is a non-linked, non-participating plan. It comes with the admixture of income and protection benefits. At the time of maturity, one can get a lump sum benefit from this plan. It also offers death benefits in case of untimely demise of the policyholder. One does not have to worry about financial emergencies as this plan offers a loan facility. Guaranteed payouts are one of the striking features of this policy.
Key Highlights of Jeevan Umang Policy
The important benefits are as follows.
- Whole life coverage is a unique feature of this policy. Even if your premium payment term is over, this policy continues to provide you benefits.
- In case of the untimely demise of the insured person within the policy period of an active policy, this policy ensures the death benefit to the beneficiary which is sum assured and accrued bonus.
- A percentage of sum assured is offered to the policyholder as a survival benefit at specific intervals.
- Once the insured person reaches the predetermined age, the maturity benefit is provided to him/her which is sum assured along with the accrued bonus.
- The minimum sum assured option for this policy is Rs. 2 lakhs. There is no upper limit. It depends on the terms and conditions of the policy.
- There are multiple premium payment terms available. The insured person can choose according to his/her convenience.
- If necessary, the policy can be surrendered at any time during the policy term once the policy acquires a certain surrender value.
- Under Section 80C of the Income Tax Act of India, the policy is eligible to offer tax benefits.
- Instead of taking the death benefit as a lump sum, one can avail of the benefit in instalments over the chosen period of 5 years, 10 years, or 15 years.
Comparison Between Maturity Benefits of HDFC Life Sanchay Plus and LIC Jeevan Umang
For better understanding here is an example. Suppose, Mr. Bose, a 30-year-old businessman, wants to invest in an investment plan. He has selected HDFC Life Sanchay Plus and LIC Jeevan Umang. Now, he wants to compare the premium amount of these two plans for the given credentials.
| Policy name | Age | Sum assured | Policy term | Premium paying term | Maturity benefit |
| HDFC Life Sanchay Plus (Guaranteed Maturity variant) | 30 years | Rs. 10 lakhs | 20 years | 10 years | Rs. 23,84,240 paid as a lump sum at Maturity |
| LIC Jeevan Umang | 25 years | Rs. 5 lakhs | 100 minus entry age = 75 years | 30 years | Rs. 5 lakhs plus bonuses |
HDFC Life Sanchay Plus, or LIC Jeevan Umang, Which one to go for?
When it comes to the choice between HDFC Sanchay Plus and LIC Jeevan Umang Plans, it becomes difficult because both the plans are very popular among the customers as both of them are designed keeping in mind the needs of the insured persons. If someone is looking for an investment cum savings plan with regular income along with lifelong financial support, then LIC Jeevan Umang is an ideal one for him/her. On the other hand, if you are looking for an investment plan that will offer you the flexibility to customise your plan according to your needs along with multiple unique benefits, then Sanchay Plus of HDFC Life is an excellent choice. It is visible in the premium table that the HDFC plan offers more maturity benefits. However, it depends on multiple factors. Ultimately, the choice depends on various parameters such as risk appetite, your budget, financial needs, etc.
