HDFC Life Sanchay Par Advantage Plan

What is HDFC Life Sanchay Par Advantage Plan?

HDFC Life Sanchay Par Advantage is a non-linked, participating, money-back policy that lets you save money and participate in the plan. You can get life insurance up to age 100 and a means to make money and save for future aspirations. The plan offers 2 options:

1. Immediate Income Option

   This option delivers you continuous income from the first year of the policy through cash bonuses (if claimed) and a lump payment at maturity. This helps you satisfy your present needs while leaving a financial legacy for your family.

2. Deferred Income Option

   This option gives you Guaranteed Income for a set amount of time, plus cash bonus income (if declared) during the policy term, and a lump payment at the end of the policy term to help you reach your long-term goals and plan for your legacy.

Features of HDFC Life Sanchay Par Advantage Plan

The key features offered by the HDFC Sanchay Par Advantage Plan are mentioned below: 

• You get life insurance cover up to age 100 years, helping protect your family for the long term.
• You can choose between Immediate Income (income starts early) or Deferred Income (income starts later with guaranteed payouts), based on your needs.
• You can defer your survival benefits and let them accumulate instead of taking them immediately.
• You can increase protection by adding optional riders such as Accidental Disability, Health Plus, or Waiver of Premium.

Eligibility Criteria for HDFC Life Sanchay Par Advantage Plan

Benefits of HDFC Life Sanchay Par Advantage Plan - Immediate Income Option

1. Timing of Survival Benefit Payment

   You can choose how your survival benefits are paid. They can be paid either in Advance (at the beginning of the payout period) or in arrears (at the end of the payout period).  This choice must be made when you buy the policy and cannot be changed later.

2. Survival Benefit (Cash Bonus)

   The insured may receive a Cash Bonus (if declared) at the end of every policy year. It starts from the 1st of the policy year and continues until death or policy maturity. 

3. Maturity Benefit

   The insured receives the maturity benefits at the end of the policy term, if all premiums are paid. The benefit includes the Sum Assured on Maturity (total annualised premiums payable) along with unpaid accrued cash bonuses. Interim survival benefit and terminal bonus are added, if applicable.

4. Death Benefit

   If the life assured dies during the policy term, the nominee receives a lump sum as the death benefit. It consists of the Sum Assured on Death, plus unpaid cash bonuses. The interim survival benefit and terminal bonus are added as per applicability. The death benefit will always be at least 105% of the total premiums paid as on the date of death.

Benefits of HDFC Life Sanchay Par Advantage Plan - Deferred Income Option

1. Survival Benefit

   Survival benefits start after the Premium Payment Term ends. The payments begin one year after the last premium is paid. The insured receives Guaranteed Income plus Cash Bonuses, if declared.

2. Guaranteed Income

   Guaranteed Income is a fixed and assured payout. It is calculated as Guaranteed Income Rate × Annualised Premium. It is paid as per the payout schedule chosen at policy start.

3. Cash Bonus

   Cash Bonus is discretionary and depends on insurer performance. It is calculated as Cash Bonus Rate × Annualised Premium and is paid along with survival benefits, if declared.

4. Maturity Benefit

   If all premiums are paid, the maturity benefit is paid at the end of the policy term. It includes the Sum Assured on Maturity, plus unpaid Guaranteed Income and Cash Bonuses. The interim Survival Benefit and Terminal Bonus are added as per applicability.

5. Death Benefit

   If the life assured dies during the policy term, the nominee receives a lump sum consisting of the Sum Assured on Death. It also includes unpaid Guaranteed Income and Cash Bonuses. The Interim Survival Benefit and Terminal Bonus are added, if applicable. 

   The death benefit is always at least 105% of the total premiums paid as on the date of death. If death occurs during the payout period after the Premium Payment Term, the death benefit is not reduced by any survival benefits already paid.

Flexibilities Available under the HDFC Life Sanchay Par Advantage Plan

1. Deferral of Survival Benefits

   The policyholder can defer Guaranteed Income and/or Cash Bonus payouts at any time during the policy term, allow them to accumulate monthly at the RBI Reverse Repo Rate (currently 3.35%), and withdraw them partly or fully anytime, with unpaid amounts paid later on death, maturity, or surrender, even under in-force or paid-up policies, and this option can be opted in or out anytime.

2. Survival Benefit Payout Dates

   By default, survival benefits are paid on policy anniversaries, but the policyholder may choose one fixed payout date, with the first year’s payout pro-rated if the date differs, and this choice must be made at policy inception, cannot be changed later, and cannot be selected if Advance payment timing is chosen.

3. Additional Benefit for High-Premium Policies (Deferred Income Option)

   If your Annualised Premium is ₹1 lakh or more, you become eligible for additional income benefits under the Deferred Income option.

Rider Benefits of HDFC Life Sanchay Par Advantage Plan

This investment plan offers you the following optional rider benefits to enhance your protection:

• HDFC Life Income Benefit for Accidental Disability Rider: This rider pays 1% of the Rider Sum Assured every month for 10 years if the person becomes permanently disabled by accident. There is no maturity benefit.
• HDFC Life Health Plus Rider: This rider pays a lump amount when any of the 60 eligible serious illnesses are diagnosed, or a partial payment for early-stage cancer, depending on the choice made. There is no maturity benefit.
• HDFC Life Waiver of Premium Rider: If the policyholder dies, becomes disabled, or gets one of the mentioned critical illnesses, this rider cancels all future premiums on the basic policy and any connected riders. That means the policy can continue without payment.
• HDFC Life Protect Plus Rider: This rider adds extra coverage against cancer and accidental death or disability, but it does not come with a maturity benefit.

Policy Information for HDFC Life Sanchay Par Advantage Plan

• Grace Period: You have 15 days for monthly premiums and 30 days for other frequencies to pay the premium without penalty. The policy stays in effect with full risk coverage, and if a claim is made during this time, the due payment is taken out of the claim amount.
• Paid-up and Lapse: If the premium isn't paid by the conclusion of the grace period, the policy terminates if there is no surrender value, or it becomes reduced paid-up if there is a surrender value.
• Payout Benefits (when the policy is paid up): When the policy is decreased paid-up, the death and maturity benefits, including guaranteed income under the Deferred Income option, are cut by the same amount as the number of premiums paid compared to the number of premiums that were originally due.
• Surrender Value: You can give up the policy during the policy term, and the payout will be the higher of the Guaranteed Surrender Value (available after two years of premiums) or the Special Surrender Value, plus any unpaid survival benefits and interim survival benefits.
• Revival of Policy: You can revive a lapsed or paid-up policy during the revival period by paying any premiums and fees that are due, as long as you pass a medical underwriting test. Any original benefits, including riders if applicable, will remain.
• Policy Loan Facility: You can borrow up to 80% of the surrender value of your policy once it has a surrender value, as long as you follow the policy's rules.

How Does the HDFC Life Sanchay Par Advantage Plan Work?

The HDFC Sanchay Par Advantage Plan works in the following manner:

1. Immediate Income Option

   • Step 1: Choose the Immediate Income option at policy start.
   • Step 2: Receive Discretionary Cash Bonuses (if declared) every year from the 1st policy year.
   • Step 3: Continue receiving bonuses until policy maturity, death, or surrender, whichever happens first.
   • Step 4: On maturity, receive a lump sum payout consisting of Sum Assured on Maturity, plus any unpaid Cash Bonuses, Guaranteed Income, Interim Survival Benefit (if applicable), and Terminal Bonus (if declared).

2. Deferred Income Option

   • Step 1: Choose the Deferred Income option at policy start.
   • Step 2: Complete the Premium Payment Term.
   • Step 3: After one year from the end of the Premium Payment Term, start receiving Guaranteed Income every year for the chosen guaranteed period.
   • Step 4: Receive Discretionary Cash Bonuses (if declared) every year from the same time.
   • Step 5: Continue receiving income until policy maturity, death, or surrender, whichever occurs first.

HDFC Life Sanchay Par Advantage Plan Suicide Exclusion Criteria

If death occurs due to suicide within 12 months from policy start or revival, the nominee will receive the higher of 80% of total premiums paid or the surrender value, provided the policy is in force.