The HDFC Sanchay Plus review focuses on the features of this investment plan. It offers tax-free payouts, high surrender value, and a long-term investment plan. However, the plan does not adjust for inflation over time. This is a concern for some investors. Let’s examine its pros and cons to help you make an informed decision about this investment plan. Here are a few of the most important features of this plan.
High surrender value
The HDFC Life Sanchay Plus is an investment product that offers a 5-to-5.5 percent IRR over 30 years. The policy is a long-term income option allowing you to withdraw the funds before retirement. For example, a 30-year-old can start drawing income at the end of his 12th year after paying Rs1 lakh a year for 10 years. For a 50-year-old, the payout will be tax-free till the end of his/her 99th year.
The high surrender value of the HDFC Life Sanchay Plus plan benefits individuals who want a fixed income while having a large corpus. The plan can be renewed up to five years after it has expired, and you can pay all the pending premiums and interest. You should consult a tax advisor before you opt for this type of plan. This is because tax rules are subject to change.
HDFC Sanchay Plus policyholders can avail of a loan facility to repay the premiums if they have to surrender the policy. The loan amount is based on the premium paid and the surrender value factor. It is important to consider the financial implications of surrendering the policy before taking the plunge. While it may be tempting, you might lose a substantial amount of money. A loan against the surrender value of your policy will help you cover some expenses.
The HDFC Life Sanchay Plus plan is a non-linked savings life insurance plan, but it offers guaranteed income. The benefits of the HDFC Life Sanchay Plus plan are not dependent on investment returns. Rather, you can choose a term of coverage that fits your financial situation. In addition, the HDFC Life Sanchay Plus plan offers a high surrender value and guarantees maturity sums at a specified date.
Non-participating plan
The HDFC Life Sanchay Plus is an easy-to-understand regular income plan. It has a guaranteed surrender value, and it offers good returns. It is also a tax-free investment vehicle. However, you should be careful while buying this plan. The policy can lapse if you miss payments, so you should pay all the due premiums. It is important to remember that the policy can be revived after five years of the last premium payment date.
The HDFC Life Sanchay Plus plan is a non-participating non-linked insurance plan. It has guaranteed payouts, so the policyholder doesn’t have to worry about market fluctuations or varying annual bonuses. The plan also provides a flexible option for paying benefits, offering either a lump sum or regular income. In addition, it is a deferred payout plan, meaning you will receive the maturity value over a specified period.
If you’re looking for a non-participating savings insurance plan, the HDFC Life Sanchay Plus is a solid choice. The plan offers a guaranteed benefit upon maturity, tax benefits, and guaranteed income, but it also has some important changes to its features. You can choose from four different plans. All four offer the same benefits but may differ slightly in terms of premiums. The best part is choosing a plan that works for you.
Unlike annuities and Government Bonds, the HDFC Life Sanchay Plus offers long-term interest rate locks. Its guaranteed rate is six to seven percent p.a., but it is not sky-high. If you want higher rates, you can purchase PMVVY or SCSS, but you will have to accept a certain amount of reinvestment risk. But, the HDFC Life Sanchay Plus offers a guaranteed payout for five to ten years so that you can be assured of a steady income stream.
Tax-free payouts
The HDFC Sanchay Plus has a 5.50% internal rate of return over a 30-year lock-in. However, you must pay GST on premium payment, which makes the plan a bit more expensive. The three variants have the same features but differ in one key way: they have a lower ROI than the Sanchay Plus. They also require the investor to surrender the premium at an early date, which means they don’t adjust for inflation over time.
HDFC Life Sanchay Plus has many advantages. The plan’s non-linked, non-participating structure means that the returns are not based on the market and are guaranteed by HDFC Life. It’s a savings-cum-insurance plan, which means that it includes a life insurance component as well as a return. It also offers flexible payment options, with premiums payable annually, quarterly, or monthly, depending on the investor’s circumstances.
The HDFC Life Sanchay Plus Plan also includes a Critical Illness Rider. The plan will pay a lump-sum benefit if the insured survives a critical illness. However, the Critical Illness Rider doesn’t offer a maturity benefit. The Sanchay Plus plan features four plans. In addition, the policy features a lump-sum maturity benefit at the end of the 10th year.
Inflexible plan
The Inflexible HDFC Life Sanchay Plus plan has a 5.4% to 5.7% annual return. It offers predictable cash flows and tax-free income. Since the plan is an insurance scheme, you are not subject to tax on the interest. You can even make premium payments on a pretax basis. It is important to know that this plan is unsuitable for those planning to make their money last for twenty years or more.
The Inflexible HDFC Life Sanchay Plus plan comes with a guaranteed surrender value. This guarantees that you will receive a payout when you need it. The premium amount will be deducted before you need to make a claim. However, after the grace period, the plan will lapse. You can revive it by paying dues within five years of the last premium payment. However, this option may not be suitable for those who want to invest a large sum of money in the stock market.
The HDFC Life Sanchay Plus plan offers a tax exemption for the insured. Premiums can be tax-deductible up to Rs.1.5 lakh. In case of accidental disability, you can get an Income Benefit from an Accidental Disability Rider. This policy pays you 1% of the monthly sum for the first ten years. You will receive no maturity benefit. There are four plan options to choose from.
The HDFC Life Sanchay Plus plan has four benefits. You can choose to pay the premiums annually, quarterly, or monthly. You can also select the Lifelong Income option if you are below 50. HDFC Life Sanchay Plus policy is a good option for those who want to earn assured returns in the long run. So, you can invest a small amount now and reap the benefits later.
