HDFC Life Sanchay Savings is a non-participating traditional insurance plan that provides you guaranteed benefits and a great level of flexibility to choose your investment goals. The plan is associated with premium payment terms of 5, 8, or 10 years. The customer also has the flexibility to choose a policy term ranging from 15 to 25 years. The policy can be purchased through EMI by HDFC Bank credit card holders. Optional riders are available to enhance the plan, if required.
For a customer to be able to purchase the HDFC Life Sanchay Savings plan, he/she would have to satisfy certain eligibility criteria. These factors include limits on his/her age and the number of years of insurance that he/she would like to avail. The eligibility conditions of the plan are tabulated below:
|Minimum Entry Age||30 days|
|Maximum Entry Age||45 years|
|Minimum Maturity Age||18 years|
|Maximum Maturity Age||70 years|
All ages mentioned above are with respect to the last birthday of the policyholder.
You can choose to buy the policy with a term ranging between 15 and 25 years. This is however, subject to meeting the maturity age limits.
The policy offers multiple benefits in the form of Guaranteed Addition, Maturity Benefit, and Death Benefit that are elaborated in the coverage section below. Policyholders can avail Guaranteed Additions of 8% or 9% of the sum assured to the maturity benefit. The total guaranteed maturity benefit is between 220% to 325% of the sum assured at maturity, subject to all premiums being paid.
The Minimum Sum Assured at Maturity is Rs.105,673. There is no limit on the Maximum Sum Assured at Maturity, subject to underwriting guidelines.
The premium can be chosen as per the needs of the customer. The premium frequency also varies between annual, semi-annual, quarterly and monthly. The limits on premium are as shown in the table below:
|Frequency||Minimum Installment Premium (Rs.)||Maximum Installment Premium|
Note: The minimum premium amounts are not inclusive of the education cess and applicable service tax.
If the policyholder opts for the monthly payment mode, the insurer will accept premiums corresponding to three months in advance, prior to the initiation of the monthly mode of premium payment.
HDFC Life Sanchay Savings is an insurance plan that offers you substantial savings through guaranteed returns. The plan is quite flexible with various options for premium payment and customisation of coverage.
The HDFC Life Sanchay Savings plan offers the following coverage:
|Policy term||GA as percentage of sum assured at maturity|
|15 to 19 years||8%|
|20 to 25 years||9%|
The maturity benefit for varying policy terms are as follows:
|Policy Term||Maturity Benefit, as a percentage of the Sum Assured at maturity|
When the maturity benefit is paid, the policy will terminate with no additional benefits. If the life insured is a minor, the policy will automatically vest when he/she attains 18 years of age.
The premium amount considered for determining the death benefit will not include any underwriting extra premiums, taxes paid like the education cess and service tax, and loadings for modal premiums. When the death benefit is paid, the policy will terminate with no further benefits.
The HDFC Life Sanchay Savings plan can be enhanced with the HDFC Life Critical Illness Plus Rider and the HDFC Life Income Benefit on Accidental Disability Rider.
If the life insured commits suicide within 12 months:
If the policyholder is not satisfied with the terms and conditions included in the policy documentation, he/she can return the policy to the insurer, stating relevant reasons. The return should be made within 15 days from the receipt date of the policy. The free-look period for policies that are bought through distance marketing is 30 days. When the insurer receives the returned policy with the letter from the customer, they will initiate a refund of the premium. After the policy is returned, it cannot be reinstated, revived, or restored again.
This is the time period following the premium due date when the policy is considered to be in-force with risk coverage. The HDFC Life Sanchay Savings plan has a grace period of 30 days from the premium due date when the premium payment frequency is annual, semi-annual, and quarterly. The grace period for policies with monthly frequency is 15 days from the premium due date. If the policyholder raises a valid claim within the grace period, the insurer will honor the claim after deduction of the due and unpaid premiums.
If the due premium is not paid within the grace period and the surrender value has not been acquired, the policy lapses. Lapsed policies will not have a risk cover and no benefits are payable. It is possible to revive a lapsed policy.
If the policyholder stops paying premiums after the policy reaches a guaranteed surrender value, it will be made reduced paid-up when the grace period ends. Once the policy moves to reduced paid-up status:
Paid-up Sum Assured at Maturity/Death = (Original Sum Assured at Maturity/Death) * (Premiums Paid) / (Total Premiums Payable)
The death benefit for a Reduced Paid-up Policy will be the highest amount among:
After the payment of maturity or death benefit under a reduced paid-up policy, it will terminate without any further benefits. It is possible to revive a paid-up policy.
In order to enjoy all benefits of your policy, you should continue on it till the end of the policy term. However, it may not be possible to do so always, and you may be required to surrender your policy.
A policy acquires a Guaranteed Surrender Value (GSV) when:
The minimum GSV is the aggregate of the following:
When the Surrender Benefit is paid, the policy terminates with no further benefits.
Premiums paid towards this plan are eligible for tax benefits under Section 80C of the Income Tax Act, 1961. Under Section 10 (10D), the benefits received from the policy are exempt from tax as well. These rules are subject to change in the future, and you are advised to consult your tax advisor for updated tax rules.
HDFC Life is a leading insurance company in India, offering a bouquet of individual and group insurance schemes. The solutions provided by them include insurance policies for the purpose of Pension, Protection, Health, and Investment. The insurer is known to have a great claim settlement ratio and claim settlement timeline. They also have an efficient customer service cell that offers guidance to policyholders on all issues related to claims.
HDFC Life has a wide network across the country with 398 branches and 9,000 touch-points. This ensures that their products are always available to one and all. The insurance company also has an efficient financial consultancy wing that offers solutions to customers within the country and abroad.
A. When your policy has reached surrender value, you can avail a policy loan of upto 80% of the surrender value. This is however, subject to certain terms and conditions.
A. Once the policy has been purchased, it is not possible to change the premiums, premium paying term, sum assured at maturity, and policy term. However, it is possible to alter the premium frequency. This may lead to a change in the premium, though.
A. The policyholder will receive a 3% discount on premium rate if the policy was purchased through a channel which does not require the payment of commission. Examples of this include worksite marketing, tele-assisted marketing, online sales, and branch walk-ins.
A. The HDFC Life Sanchay Savings policy may be assigned or transferred partly or in whole. The instrument of transfer should indicate the reasons for the transfer or assignment. A fee will have to be paid for the assignment or transfer. Once the fee has been received by the insurer, they may accept or decline the request.
A. In this scenario, the policyholder can prefer a claim to IRDAI within 30 days of receipt of the refusal from HDFC Life.
A. The taxes applicable on the policy are as below:
A. Savings plans can be of the traditional endowment type or unit-linked type. You can choose a plan based on your risk appetite, your understanding of the financial market, and your ability to track the movements in your investment. So, individuals who can bear investment risks for higher returns should look to purchase unit-linked products. The converse is true for traditional savings plans as well.
A. A savings and investment plan has a totally different purpose, when compared to a pension plan. Retirement plans are designed to provide you a steady source of income post retirement. On the other hand, a savings plan is configured to provide you guaranteed savings during the years you are employed. This type of plan helps you build a financially secure life for your loved ones by fulfilling your financial needs.
A. Yes, you can buy more than one policy from HDFC Life. However, the approval for this will be subject to underwriting regulations.
A. If your claim has been rejected by the insurer, you will be notified through a letter that includes the reason for rejection.
A. After HDFC life receives all relevant information from the claimant, they make the claim payout within 30 days. In case the claim needs to be investigated further, the insurance company will initiate the investigations at the earliest. The claim payout will depend upon the investigation results.