HDFC Life Sampoorn Samridhi Plus Plan

HDFC Life Sampoorn Samridhi Plus is a traditional ‘with profit’ plan that also provides life insurance coverage. This limited premium endowment plan has an option to extend the life coverage up to 100 years, as well. The plan also offers the flexibility to select a policy term between 15 and 40 years, and a premium payment frequency, i.e., monthly, quarterly, semi-annually, or annually. Additionally, the beneficiary of the policyholder receives an extra sum assured in the event of accidental death during the term of the policy. The plan also participates in the profit of the associated funds through bonuses starting from the first year.

Eligibility - Who is the HDFC Life Sampoorn Samridhi Plus Plan for?

There are certain eligibility conditions that should be met for a customer to be able to purchase the HDFC Life Sampoorn Samridhi Plus plan. These factors are based on his/her age and the number of years of insurance that he/she would like to avail. These eligibility conditions are detailed below:

Eligibility	Minimum	Maximum
Entry age	30 days	60 years
Maturity age	18 years	75 years

All ages mentioned above are with respect to the last birthday of the life insured.

If the life assured is a minor, the policy vests when he/she attains 18 years of age.

Sum Assured and Premium Range - What you Get and What it Costs?

Sum Assured at Maturity is the amount of benefit that is guaranteed to be payable to the policyholder when the policy matures. At the start of the policy, the customer chooses the Sum Assured at Maturity. Based on the parameters of the policy, the premium amount required to accumulate this sum assured is determined. The limits on the Sum Assured at Maturity are as defined below:

	Minimum	Maximum
Sum Assured at Maturity	Rs.65,463	No limit, subject to satisfactory underwriting

Alternatively, the customer can decide on the premium he/she pays towards the policy. The Sum Assured at Maturity will be calculated based on that amount. Premiums can be paid annually, semi-annually, quarterly, or monthly. The limits on the premium are as follows:

Premium Payment Frequency	Minimum Instalment Premium	Maximum Instalment Premium
Annually	Rs.12,000	No limit
Semi-annually	Rs.6,000
Quarterly	Rs.3,000
Monthly	Rs.1,000

Plan Coverage - What the HDFC Life Sampoorn Samridhi Plus Plan Covers?

The HDFC Life Sampoorn Samridhi Plus plan is a savings-cum-protection plan that provides guaranteed additions and bonuses for the first five years of the policy. It also offers a choice between the following plan options:

1. Endowment - Lump sum amount is payable at the end of the term of the policy
2. Endowment with Whole Life - Lump sum amount is payable at the end of the term of the policy + Sum Assured at maturity is payable when the life assured survives till 100 years of age or death, whichever comes earlier

The coverage of the HDFC Life Sampoorn Samridhi Plus plan includes the following:

• Guaranteed Additions - The insurance provides guaranteed additions during the first five years of the policy, as long as it is in-force. These guaranteed additions are paid to the policyholder at policy maturity or at death, whichever comes earlier. The rate at which these guaranteed additions are accrued depends upon the term of the policy.

Policy Term	Guaranteed Additions (Percentage of Sum Assured at Maturity)
15 to 19 years	3% per annum
20 to 24 years	4% per annum
Greater than or equal to 25 years	5% per annum

 

• Bonuses - The policyholder can avail Reversionary Bonus or Terminal Bonus under the policy.
  • Reversionary Bonus - A simple reversionary bonus, that is a percentage of the sum assured at maturity, is declared at the end of the financial year. Once this bonus is added to the policy, it is guaranteed to be payable at policy maturity or at death, subject to all due premiums being paid. This bonus is a discretionary benefit and is declared on the basis of expected future experience. If the policyholder surrenders the policy or faces death during the inter-valuation period, the policy will receive the Interim Bonus, based on the existing rates.
  • Terminal Bonus - A terminal bonus is added to the policy, and this enables the insurer to pay a share of the surplus when the policy term ends. The terminal bonus is paid as a lump sum amount, and is based on the future experience of the policy. This bonus is not a guaranteed benefit.
• Maturity Benefit - If all due premiums have been paid, at the end of the policy term, the life assured receives the sum of the following:
  • Sum Assured at Maturity
  • Accrued Guaranteed Additions
  • Accrued Reversionary Bonuses
  • Interim Bonus, if applicable
  • Terminal Bonus, if applicable

As mentioned above, if the policyholder has chosen the Endowment Option, his/her policy terminates after the maturity benefit is paid. If the policyholder has chosen the Endowment with Whole Life Option, then in addition to the maturity benefit, a whole life cover that is equivalent to the Sum Assured at Maturity is paid. This whole life benefit is payable either at the death of the life assured after the maturity of the policy or when the life assured survives till 100 years of age, whichever comes earlier.

• Death Benefit - In the event of death of the policyholder during the policy term, if all due premiums have been paid, the nominee will receive the highest amount among the following:
  • Sum Assured at Death + Accrued Reversionary Bonuses + Accrued Guaranteed Additions + Interim Bonus (if applicable) + Terminal Bonus (if applicable)
  • 105% of paid premiums, till date

In the above case, the Sum Assured at Death is the highest among the following:

• Sum Assured at Maturity, which is the absolute guaranteed benefit paid at policy maturity
• An absolute amount guaranteed to be paid at death
• 10 times the annualised premium when the entry age is up to 50 years and 7 times the annualised premium when the entry age is greater than 50 years.

• Accidental Death Benefit - If the life assured dies in an accident during the policy term, an amount equal to the sum assured at death will be paid. This amount is payable if the policyholder is 18 years of age or above, at the time of death. For this benefit to be paid, the death should take place within 180 days of accidental bodily injury.
• High Sum Assured Rebate - This is a discount offered on the premiums if the policyholder selects the option of high ‘Sum Assured at Maturity’. The rebates offered under the policy are as follows:

Sum Assured at Maturity	Discount on the premium rate (per 1000 Sum Assured at Maturity)
Rs.150,000 to below Rs.300,000	4.5
Rs.300,000 to below Rs.500,000	6
Rs.500,000 and above	7.5

Add-On Plans – Additional Coverage under the HDFC Life Sampoorn Samridhi Plus Plan:

The HDFC Life Sampoorn Samridhi Plus plan can be enhanced by opting for the HDFC Life Critical Illness Plus Rider. This add-on coverage provides a Rider Sum Assured if the policyholder is diagnosed with any of the pre-defined critical illnesses.

Exclusions - What the HDFC Life Sampoorn Samridhi Plus Plan doesn’t Cover?

If the policyholder faces death due to suicide within 12 months:

• From the start of the policy, the nominee is eligible to receive 80% of the paid premiums as long as the policy is still in-force.
• From the revival date of the policy, the nominee is eligible to receive an amount that is the highest among the following:
  • 80% of the paid premiums till the date of death
  • Surrender value of the policy as on the date of death

The Accidental Death Benefit will not be paid to the nominee in the following scenarios:

• Intentional injury or suicide, whatever may be the mental condition of the policyholder.
• Administration of solvents, drugs, or alcohol, except when prescribed by a registered doctor.
• Participation in a hazardous hobby or race, unless previously communicated and agreed upon with the insurer.
• Invasion, hostilities, war, revolution, rebellion, etc.
• Participation in a flying activity, except as a passenger in a commercial aircraft.
• Participation in an anti-social activity with criminal intent.

Other Key Features – Freelook Period, Surrender Values, Grace Period etc.

Grace Period:

Grace period is the time after the premium payment due date when the policy is in-force with risk cover. The HDFC Life Sampoorn Samridhi Plus plan has a grace period of 30 days for policies with yearly, half-yearly, and quarterly frequencies. The grace period for policies with monthly frequency is 15 days. If a valid claim arises during the grace period before the due premiums are paid, HDFC Life will still honour the claim. However the due and unpaid premiums will be reduced from the payable benefits.

Lapsation:

If due premiums under the policy are left unpaid beyond the grace period, the policy will lapse if it has not reached a guaranteed surrender value. At this point, the risk cover ceases and no benefits will be paid. It is possible to reinstate lapsed policies.

Paid-Up:

If the policyholder stops paying premiums post the acquisition of the guaranteed surrender value, the policy will move into paid-up status when the grace period ends. When the policy becomes paid-up:

• The Sum Assured at Maturity or Death will be reduced. The revised value will be:

Revised Sum Assured at Maturity or Death = (Original Sum Assured at Maturity or Death) * (Paid premiums) / (Total premiums payable)

• Guaranteed Additions under the policy are also reduced, and the revised value is calculated as follows:

Revised Guaranteed Additions = (Original Guaranteed Additions) * (Paid premiums) / (Total premiums payable)

• The simple reversionary bonus accumulated on the policy as on the date of paid-up will remain attached to the policy. Future bonuses will however, not be accrued on the policy.
• The Accidental Death Benefit is an additional sum that is equivalent to the Sum Assured at Death.

The maturity or death benefit under a paid-up policy is based on the paid-up sum assured at maturity or death, guaranteed additions, and bonuses accumulated till the policy moves into paid-up status. It is possible to reinstate a paid-up policy.

Revival:

The policyholder can revive a paid-up or lapsed policy within the revival period, provided that all terms and conditions are adhered to. In order to revive a policy, it is necessary to pay all due and unpaid premiums, corresponding interests, and taxes. The policyholder will be charged Rs.250 for the revival processing. The current revival period is two years; however this is subject to change from time to time. When a policy is revived, all contractual benefits are reinstated.

Surrender:

In order to enjoy the complete benefits of the policy, it is advisable to continue on the plan till the end of the policy term. However, this may not be possible in all cases. If a policyholder is required to surrender the policy, the Guaranteed Surrender Value (GSV) will be the sum of the following:

• Percentage of all paid premiums
• Percentage of accrued bonuses and accumulated guaranteed additions

When the Surrender Benefit is paid out, the policy terminates with no further benefits.

Free-Look Period:

If the policyholder does not agree to the terms and conditions stated in the policy documentation, he/she can return the same to the insurance company, citing the relevant reasons. The return should be made within 15 days from the date of receipt of the policy documentation. This interval is referred to as the free-look period. The free-look period for policies that were purchased through distance marketing is 30 days. When HDFC Life receives the letter with the returned policy from the policyholder, they will initiate the process for refunding the premium.

Tax Benefits – How you can save with the HDFC Life Sampoorn Samridhi Plus Plan?

Premiums paid under the HDFC Life Sampoorn Samridhi Plus policy are eligible for tax benefits as per Section 80C of the Income Tax Act, 1961. The benefits received from the policy are also exempt from tax, as specified in Section 10(10D) of the Income Tax Act, 1961.

These regulations are subject to change from time to time. So, it is recommended to consult a tax advisor to understand the updated tax rules.

Other Benefits – How you can save with the HDFC Life Sampoorn Samridhi Plus Plan?

HDFC Life is a leading insurance provider in the country with a dedicated customer service cell that clarifies all claim-related queries and provides assistance to customers throughout their claim journey. The insurance company also had a competitive claim settlement ratio of 99.41% in the financial year 2013-14.

Why you should Buy the Sampoorn Samridhi Plus Plan from HDFC Life?

HDFC Life has an extensive network of 398 offices and 9,000 touch-points across the country. This ensures that their products are always accessible to customers. The insurance company also has an excellent financial consultancy team that provides solutions to the varied needs of customers in India and abroad.

HDFC Life Sampoorn Samridhi Plus Plan FAQs:

Q. Can I avail loans on the policy?

A. Once the HDFC Life Sampoorn Samridhi Plus policy has acquired a surrender value, you can take a policy loan, as per the terms and conditions of the policy.

Q. What alterations can be made on the premium after the purchase of the policy?

A. After the HDFC Life Sampoorn Samridhi Plus policy has been purchased, it is only possible to alter the premium frequency. This is however, subject to certain terms and conditions.

Q. When does the HDFC Life Sampoorn Samridhi Plus policy reach a Guaranteed Surrender Value?

A. The HDFC Life Sampoorn Samridhi Plus policy acquires a Guaranteed Surrender Value when the premiums for two full years have been paid.

Q. What is the coverage of the HDFC Life Critical Illness Plus Rider?

A. The HDFC Life Critical Illness Plus Rider provides financial protection to the policyholder and his/her family. The rider provides a lump sum amount when the policyholder is diagnosed with any of the 19 critical illnesses. This amount can be used to cover expenses related to the illness. However, the life assured should survive for a period of 30 days after the diagnosis of the disease for this benefit to be payable. The minimum rider sum assured is Rs.25,000, and the current maximum rider sum assured is equal to the sum assured of the base policy.

Q. What are the critical illnesses covered under the rider?

A. The critical illnesses covered under the HDFC Life Critical Illness Plus Rider are as follows:

• Cancer of pre-defined severity
• Stroke resulting in permanent complications
• Open Chest CABG
• Kidney failure with a requirement for regular dialysis
• First heart attack of pre-defined severity
• Apallic syndrome
• Major bone marrow or organ transplant
• Coma of pre-defined severity
• Final stage lung disease
• Benign brain tumour
• Open heart replacement or repair of heart valves
• Loss of independent existence
• Final stage liver disease
• Major burns
• Permanent paralysis of limbs
• Loss of limbs
• Surgery of aorta
• Loss of sight
• Major head injury

Q. What taxes are applicable on the policy?

A.

• Indirect Taxes - The Service Tax and other statutory levies will be charged on the HDFC Life Sampoorn Samridhi Plus policy. In the future, if any additional taxes become applicable, the policyholder is required to pay the same.
• Direct Taxes - Direct taxes, as applicable will be deducted at the prevailing rates from the payments made towards the policy.

Q. Can I buy more than one policy from HDFC Life?

A. Yes, it is possible to purchase more than one policy from HDFC Life. However, you will have to receive the necessary approval from the insurer for the same.

Q. How long does HDFC Life take to process claims?

A. When HDFC Life receives all the relevant documentation from the claimant, they make the necessary payouts within 30 days. If the claim needs to be investigated further, the insurer will initiate the same at the earliest. The payout in this case will be made after the investigation.

Q. What are the conversion factors for determining instalment premiums?

A. For policies with premium payment frequencies other than the annual mode, the instalment premium is calculated by multiplying the annual premium with the conversion factors, as tabulated below:

Premium Payment Frequency	Annually	Semi-annually	Quarterly	Monthly
Conversion Factor	1	0.51	0.26	0.0875

Q. What is Distance Marketing?

A. Distance marketing refers to the sale of insurance policies through modes that do not involve face-to-face interactions. Policy sales through the telephone, internet, etc. are all examples of distance marketing.

Q. What is a whole life insurance plan?

A. A whole life insurance plan is a contract between the insurer and the customer, where the insurance payout is made to the beneficiaries of the policyholder at death, subject to all premiums being paid. This type of insurance is also called straight life insurance or ordinary life insurance.