HDFC Life Sampoorn Samridhi Plus Plan Review (2024): Good or Bad?

On the journey of life, unpredictable things happen.

Sometimes it may adversely affect your Financial Plans.

Will HDFC Life Sampoorn Samridhi Plus Plan protect your life financially from unexpected turns?

HDFC Life Sampoorn Samridhi Plus Plan claims that it has 2 key elements Viz. Life Protection & Savings gives you more control over your Financial Life.

This detailed review will help you figure out whether this plan helps you to build wealth while enjoying a life cover.

Table of Contents:

1.)What is HDFC Life Sampoorn Samridhi Plus Plan?
2.)Features of the HDFC Life Sampoorn Samridhi Plus Plan
3.)Eligibility Criteria of the HDFC Life Sampoorn Samridhi Plus Plan
4.)Benefits under the HDFC Life Sampoorn Samridhi Plus Plan

• • Death Benefit
  • Accidental Death Benefit
  • Maturity Benefit
  • Bonuses
  • Guaranteed Additions

5.)A Grace period, Lapse, Paid-up & Revival of the HDFC Life Sampoorn Samridhi Plus Plan
6.)Free look Period of the HDFC Life Sampoorn Samridhi Plus Plan
7.)Surrendering the HDFC Life Sampoorn Samridhi Plus Plan
8.)Advantages of the HDFC Life Sampoorn Samridhi Plus Plan
9.)Disadvantages of the HDFC Life Sampoorn Samridhi Plus Plan
10.)Research Methodology
11.)IRR Analysis of the HDFC Life Sampoorn Samridhi Plus Plan
12.) HDFC Life Sampoorn Samridhi Plus Plan Vs Other Investment Products
13.)HDFC Life Sampoorn Samridhi Plus Plan Vs. Pure Term Insurance + PPF/ELSS
14.) Final verdict on the HDFC Life Sampoorn Samridhi Plus Plan

What is HDFC Life Sampoorn Samridhi Plus Plan?

It is a Non-Linked, Participating, Life Insurance Plan.

Under the endowment whole life option, you have the flexibility to opt for life cover up to the age of 100 years. At the end of the policy term, you get a lump sum amount.

Features of the HDFC Life Sampoorn Samridhi Plus Plan

• Under this plan, the policyholder must pay regular premiums for a specific period, which can be 10, 15, or 20 years.
• You have the option to extend the life cover up to the age of 100 years.
• The bonuses (if declared) increase your final payment.
• Guaranteed Addition of 3% – 5% p.a. of Sum Assured on Maturity for the first 5 years (in addition to declared bonuses).
• In case of death of the life assured due to accident, you get an additional benefit.

Eligibility Criteria of the HDFC Life Sampoorn Samridhi Plus Plan

The basic information we need to know to be eligible to enter this plan is mentioned at a glance below;

	Minimum	Maximum
Age at Entry	30 days	60 years
Age at Maturity	18 years	75 years
Policy Term	15 Years	40 Years
Premium Paying Term	Policy Term Less 5 years
Sum Assured on Maturity	65463	No Limit
Frequency of premium payment
Annual	12,000	No Limit
Half-Yearly	6,000
Quarterly	3,000
Monthly	1,000

Benefits under the HDFC Life Sampoorn Samridhi Plus Plan

Death Benefit

On the death of the life assured during the policy term, provided all due premiums have been paid; the nominee would receive the highest of the following:

• Sum Assured on Death + Accrued Guaranteed Additions + Accrued Reversionary Bonuses (if declared) + Interim bonus (if declared) + Terminal bonus (if declared)
• 105% of total premiums paid to date

Where Sum Assured on Death, shall be the highest of:

• Sum Assured on Maturity
• Sum Assured on Maturity to be paid on death.
• 10 times Annualized Premium for entry age up to 50 years and 7 times Annualized Premium for entry age greater than 50 years.

Accidental Death Benefit

In case of death of the life assured due to an accident during the term of the policy, an additional Sum equal to Sum Assured on Death is payable.

Maturity Benefit

At the end of the policy term, provided all due premiums have been paid; you will receive the aggregate of:

• Sum Assured on Maturity
• Accrued Guaranteed Additions
• Accrued Reversionary bonuses (if declared)
• Interim bonus (if declared)
• Terminal bonus (if declared)

Endowment option: Your policy will terminate on payment of the Maturity Benefit

Endowment with Whole life option: Apart from maturity benefit, whole life cover equal to the Sum assured shall be payable on the death of the life assured after the policy term or upon the life assured surviving to 100 years of age, whichever is earlier.

Bonuses

Revisionary Bonus: It is declared as a percentage of the Sum Assured at the end of each financial year. Once added to the policy, the bonus is guaranteed to be payable on maturity or death, provided all due premiums are paid.

In case of death or surrender during the inter-valuation period, the policy will be eligible to receive the Interim Bonus based on the bonus rates declared by the company.

Terminal Bonus: It will be payable as a lump sum at the end of the policy term. As the Terminal Bonus depends on the actual future experience, it is not a guaranteed benefit.

Guaranteed Additions

The Guaranteed Additions are payable at maturity or death, whichever is earlier. The rate of Guaranteed Additions will depend upon the policy term and will accrue during the first 5 years of the policy.

Policy Term	Guaranteed Additions (% of Sum Assured on Maturity)
15 years to 19 years	3%
20 years to 24 years	4%
>=25 years	5%

A Grace period, Lapse, Paid-up & Revival of the HDFC Life Sampoorn Samridhi Plus Plan

Grace period:

This plan has a grace period of 30 days for yearly, half-yearly, and quarterly frequencies from the premium due date. The grace period for policyholders who have chosen the monthly frequency of premium payment is 15 days from the premium due date.

Lapse:

In the event of non-payment of the premium amount due under the policy within the grace period, the policy will lapse if the policy has not acquired a guaranteed surrender value.

Paid-up:

If you stop paying premiums after the policy has acquired a guaranteed surrender value, your policy will be made a paid-up policy at the end of the grace period. The Sum Assured on Death / Maturity shall be reduced by multiplying the Sum Assured on Death / Maturity by the ratio of the total premiums paid to the premiums payable under the policy.

Revival:

The current revival period is of ­five years. Once the policy is revived, you are entitled to receive all contractual benefits.

Free look Period of the HDFC Life Sampoorn Samridhi Plus Plan

In case you do not agree with any of the terms and conditions of the HDFC Life Sampoorn Samridhi Plus Policy, you have the option of returning the policy to the corporation within 15 days from the date of receipt of the policy.

The free-look period for policies purchased through distance marketing will be extended up to 30 days.

Surrendering the HDFC Life Sampoorn Samridhi Plus Plan

The policy will acquire a Guaranteed Surrender Value (GSV) provided at least 2 full years’ premiums have been paid. The GSV shall be the aggregate of:

Percentage of total premiums paid percentage of subsisting bonuses (if declared) & guaranteed additions, already attached to the policy.

Advantages of the HDFC Life Sampoorn Samridhi Plus Plan

• You can opt for any one of the plan options: Endowment or Endowment with Whole life option.
• Premium paying term is limited.
• Guaranteed additions & Bonuses (Non-guaranteed) will increase your maturity value.
• Riders will enhance the cover.
• If you select a high “Sum Assured on Maturity”, then the discount is offered on your premium.
• You can avail loan under the policy provided the policy has acquired a surrender value.

Disadvantages of the HDFC Life Sampoorn Samridhi Plus Plan

• To avail loan facility or to surrender your policy, the lock-in period is 2 years.
• The maturity amount is not guaranteed, as the bonus rate varies year after year.
• The Sum Assured is too low to meet your family’s future financial needs.

For further details, you can refer to the HDFC Life Sampoorn Samridhi Plus Policy Brochure.

Research Methodology

HDFC Sampoorn Samridhi Plus Plan has a limited premium paying term & you will receive the maturity benefit only at the end of the policy term.

So, as an investor, we need to figure out the Internal Rate of this policy. The IRR will provide better insight & also help to compare with other investment avenues. Let us get started with the calculation with the figures given in the policy brochure.

IRR Analysis of the HDFC Life Sampoorn Samridhi Plus Plan

A 35-year-old male opts for this plan for a Sum Assured of Rs.10 Lakhs. The premium paying term is 15 years, the policy term is 20 years & and the annual premium is Rs.82,580. The maturity benefit depends on the bonus rate declared each year.

The illustration given below will show two different rates of assumed future investment returns. These assumed rates of return are not guaranteed as the value of your policy is dependent on several factors including future investment performance.

The Assumptions for Comparison:

Male	35 years
Sum Assured	Rs. 10 Lakhs
Policy Term	20 Years
Premium Paying Term	15 Years
Annual premium	Rs. 82,580

		At 4% p.a.		At 8% p.a.
Age	Year	Annualized premium / Maturity benefit	Death benefit	Annualized premium / Maturity benefit	Death benefit
35	1	-82,580	10,00,000	-82,580	10,00,000
36	2	-82,580	10,00,000	-82,580	10,00,000
37	3	-82,580	10,00,000	-82,580	10,00,000
38	4	-82,580	10,00,000	-82,580	10,00,000
39	5	-82,580	10,00,000	-82,580	10,00,000
40	6	-82,580	10,00,000	-82,580	10,00,000
41	7	-82,580	10,00,000	-82,580	10,00,000
42	8	-82,580	10,00,000	-82,580	10,00,000
43	9	-82,580	10,00,000	-82,580	10,00,000
44	10	-82,580	10,00,000	-82,580	10,00,000
45	11	-82,580	10,00,000	-82,580	10,00,000
46	12	-82,580	10,00,000	-82,580	10,00,000
47	13	-82,580	10,00,000	-82,580	10,00,000
48	14	-82,580	10,00,000	-82,580	10,00,000
49	15	-82,580	10,00,000	-82,580	10,00,000
50	16	0	10,00,000	0	10,00,000
51	17	0	10,00,000	0	10,00,000
52	18	0	10,00,000	0	10,00,000
53	19	0	10,00,000	0	10,00,000
54	20	0	10,00,000	0	10,00,000
		17,00,000	10,00,000	26,60,000	10,00,000
	IRR	2.42%		5.81%

At 4% assumed future investment return for the worst-case scenario, the IRR works out at 2.42% & for the 8% return at the best-case scenario, the IRR works out at 5.81%. The IRR which ranges from 2% to 5% in the HDFC Life Sampoorn Samridhi Plus Plan is less than the rate of return we can get from a Bank FD.

This return will not help you to attain your life’s financial goals. To build wealth, the return on investment should be over & above the inflation rate.

HDFC Life Sampoorn Samridhi Plus Plan Vs Other Investment Products

HDFC Life Sampoorn Samridhi Plus Plan is not beneficial from an Investment Perspective. Let us compare the HDFC Life Sampoorn Samridhi Plus Plan with other investment avenues.

The main idea of comparison is to get a clear picture of what you would have gained if you had invested the same amount in other investment avenues. So, let us take the same scenario as in the illustration & assume that we invest it in another Investment Instrument.

HDFC Life Sampoorn Samridhi Plus Plan Vs. Pure Term Insurance + PPF/ELSS

The Assumptions for Comparison:

Pure-term Insurance policy
Sum Assured	Rs. 10 Lakhs
Policy Term	20 Years
Premium Paying Term	10 Years
Annual premium	Rs. 8700
Balance Amount for Investment	Rs. 73,880

The Annual premium amount of Rs. 82,580 can be utilized to buy a Pure Term Insurance Plan & also to build wealth. Term Plan for a sum assured for Rs. 10 Lakhs would cost an annual premium of Rs. 8700 & the balance amount of Rs. 73,880 can be invested in PPF or ELSS. Here in the pure term plan, the premium paying term is 10 years, so in the last 5 years, the whole amount can be utilized for investment.

		Term Insurance + PPF		Term insurance + ELSS
Age	Year	Term Insurance premium + PPF	Death benefit	Term Insurance premium + ELSS	Death benefit
35	1	-82,580	10,00,000	-82,580	10,00,000
36	2	-82,580	10,00,000	-82,580	10,00,000
37	3	-82,580	10,00,000	-82,580	10,00,000
38	4	-82,580	10,00,000	-82,580	10,00,000
39	5	-82,580	10,00,000	-82,580	10,00,000
40	6	-82,580	10,00,000	-82,580	10,00,000
41	7	-82,580	10,00,000	-82,580	10,00,000
42	8	-82,580	10,00,000	-82,580	10,00,000
43	9	-82,580	10,00,000	-82,580	10,00,000
44	10	-82,580	10,00,000	-82,580	10,00,000
45	11	-82,580	10,00,000	-82,580	10,00,000
46	12	-82,580	10,00,000	-82,580	10,00,000
47	13	-82,580	10,00,000	-82,580	10,00,000
48	14	-82,580	10,00,000	-82,580	10,00,000
49	15	-82,580	10,00,000	-82,580	10,00,000
50	16	0	10,00,000	0	10,00,000
51	17	0	10,00,000	0	10,00,000
52	18	0	10,00,000	0	10,00,000
53	19	0	10,00,000	0	10,00,000
54	20	0	10,00,000	0	10,00,000
		28,99,147	10,00,000	51,16,071	10,00,000
	IRR	6.46%		10.72%

By inferring the table, you get the idea of what yield you get from an alternate investment. Term Insurance + PPF combo yields 6.46% and the Term Insurance + ELSS combo yields 10.72% (Post tax).

Investing in the HDFC Life Sampoorn Samridhi Plus Plan could not yield this much return which could comfortably beat inflation in the long run. So, from a return perspective, it is not beneficial to invest in HDFC Life Sampoorn Samridhi Plus Plan for the long term.

Final verdict on the HDFC Life Sampoorn Samridhi Plus Plan

Overall, HDFC Sampoorn Samridhi Plus Plan seems to be a good option for those who want a guaranteed return on their investment along with life insurance coverage.

However, it is important to carefully consider that the maturity benefit includes non-guaranteed Bonuses. This makes the internal rate of return of HDFC Life Sampoorn Samridhi Plus below the inflation rate. So, pay attention to the potential return of the policy before making the purchase decision.

Any insurance policy that provides insurance coverage along with investment opportunities couldn’t help in building a corpus for the long term. Consult your Financial Advisor before making any investment decision for better results.