Sid financial services analyze all these plans to length and breadth before recommending them to its customers. This blog and all upcoming blogs will be a byproduct of the same so that we ensure our customers understand what they are putting their money into. Every insurance company has its own set of endowment plans which they claim as the best investment or savings plan in the world. In this post, we shall walk you through the aspects of HDFC Sanchay plus a savings cum insurance plan from HDFC life insurance.
What is HDFC Sanchay plus basically?
HDFC Sanchay plus is an endowment policy offered by HDFC life insurance company that promises guaranteed returns in the form of regular income. HDFC Sanchay plus has 4 plan options namely
1. Guaranteed Maturity
2. Guaranteed Income
3. Life-Long Income
4. Long Term Income
1. Guaranteed Maturity plan
In the HDFC life Sanchay plus guaranteed maturity plan, you pay an annual premium per year for 5 years or 6 years or 10 years and get a guaranteed maturity at 10 years or 12 years or 20 years respectively. Please refer to the below illustration for a detailed understanding.
CLICK HERE TO BUY HDFC SANCHAY PLUS
Let's see the effective returns in the below table for 4 examples in the above table.
If a person is 35 years of age and he takes this policy by paying an annual premium of 1 Lakhs pre-tax, he would end up with a maturity of 22 Lakhs approx at a return of 5%.
He would get the same maturity amount post-tax if he had juggled with FDs and RDs for 20 years at an interest rate of around 6.25% if he is in the 20% tax slab.
He would get the same maturity amount post-tax if he had juggled with FDs and RDs for 20 years at an interest rate of around 7% if he is in the 30% tax slab.
2. Guaranteed Income
In the HDFC life Sanchay plus guaranteed income plan, you pay an annual premium per year for 12 years or 10 years and get a guaranteed annual income from 12th year for 10 years and 14th year for 12 years respectively. Please refer to the below illustration for a detailed understanding.
If a person is 35 years of age and he takes this policy by paying an annual premium of 1 Lakhs pre-tax for 10 years, he would end up with an annual income of 1.88 Lakhs per annum for 10 years from the 12th policy year. This would give him a return of 4.77%.
He would get the same income amount post-tax if he had juggled with FDs and RDs for 21 years at an interest rate of around 6% if he is in the 20% tax slab.
He would get the same maturity amount post-tax if he had juggled with FDs and RDs for 21 years at an interest rate of around 6.85% if he is in the 30% tax slab.
CLICK HERE TO BUY HDFC SANCHAY PLUS
3. Life-Long Income
In the HDFC life Sanchay plus Life long income plan for people in the age group 50 to 60, you pay an annual premium per year for 5 years or 6 years or 10 years or 12 years and get a guaranteed annual income from the 7th year (Pay the premium for 5 years and wait one year), or 8th or 12th or 14th year respectively until the age of 99 or death of insured. Post which the entire premium paid is returned back. Please refer to the below illustration for a detailed understanding.
Let's see the effective returns in the below table for 4 examples in the above table.
If a person is 55 years of age and he takes this policy by paying an annual premium of 1 Lakhs pre-tax for 5years, he would end up with an annual income of Rs.31,000 per annum up to 99 years of age from the 7th policy year. Also, the entire premium paid in the 100th year. This would give him a maximum return of 5.05%. Please note in this plan if the insured dies before he reaches 99 years, he will get the death sum assured (illustrated at the end of the post). In that case, the returns will be lesser than the above table.
He would get the same income amount post-tax if he had juggled with FDs and RDs for the rest of his life at an interest rate of around 6.3% if he is in the 20% tax slab.
He would get the same maturity amount post-tax if he had juggled with FDs and RDs for the rest of his life at an interest rate of around 7.2% if he is in the 30% tax slab.
4. Long Term Income
In the HDFC life Sanchay plus long term income plan for people in the age group 5 to 60, you pay an annual premium per year for 5 years or 6 years or 10 years or 12 years and get a guaranteed annual income from the 7th year (Pay the premium for 5 years and wait one year), or 8th or 12th or 14th year respectively until the age of 25 years or 30 years or death of insured. Post which the entire premium paid is returned back. Please refer to the below illustration for a detailed understanding.
Let's see the effective returns in the below table for 4 examples in the above table.
If a person is 25 years of age and he takes this policy by paying an annual premium of 1 Lakhs pre-tax for 5years, he would end up with an annual income of Rs.33,000 per annum for 25 or 30 years from the 7th policy year. Also, the entire premium paid in the last year. This would give him a maximum return of 5.25%.
He would get the same income amount post-tax if he had juggled with FDs and RDs for the plan term at an interest rate of around 6.6% if he is in the 20% tax slab.
He would get the same income amount post-tax if he had juggled with FDs and RDs for the plan term at an interest rate of around 7.55% if he is in the 30% tax slab.
Death Benefit
Sum Assured on Death is the highest of:
- 10 times the Annualized Premium, or
- 105% of Total Premiums paid, or
- Premiums paid accumulated at an interest of 5% p.a. compounded annually, or
- Guaranteed Sum Assured on Maturity, or an absolute amount assured to be paid on death, which is equal to the Sum Assured
- Higher returns than current fixed rate interest especially with a long-term income plan that offers 6.2% approx.
- Highest return among other guaranteed endowment plans across all life insurers.
- Tax exemption under Section 10(10D) of the Income Tax Act, 1961 can be availed for all life insurance payouts
- You get insurance on your life.
- 100% safety as insurance companies cannot go insolvent in India due to IRDA regulations.
- People with higher tax rates such as 20% and 30% can get the same return only if they invest in FD/RD at 7 or 8%.
- All the benefits are mentioned in the policy document unlike other plans across endowment insurance and the benefits are 100% guaranteed.
- No liquidity with a poor surrender value.
- You cannot rebalance or follow asset allocation rules here.
That's gives clear view.. Thank you
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