Listen to this articleIs the HDFC Life Sanchay Aajeevan Guaranteed Advantage Plan your key to lifelong income, or just another overhyped promise?
Is locking into the HDFC Life Sanchay Aajeevan Plan a wise move for long-term stability, or a missed opportunity for growth?
Is this HDFC Life Plan the future of worry-free retirement, or should you be cautious before committing?This review breaks down the plan’s key features, benefits, and limitations to help you decide if it aligns with your long-term financial needs.
Table of Contents
What is the HDFC Life Sanchay Aajeevan Guaranteed Advantage?
HDFC Life Sanchay Aajeevan Guaranteed Advantage is a Non-Linked, Non-Participating, Individual, Savings Pension Plan.
It will help you build a financial corpus to achieve your goals while also ensuring a lifelong guaranteed stream of income with rates locked at the inception of the HDFC Life Sanchay Aajeevan Guaranteed Advantage Plan policy.
What are the features of the HDFC Life Sanchay Aajeevan Guaranteed Advantage?
- Lock in your income rate at the time of purchase to enjoy guaranteed income after maturity.
- Life coverage is available for both single and joint life options.
- Guaranteed additions enhance your maturity corpus over time.
- Premium waiver on death of the primary life assured in joint life policies—ensuring continued benefits.
- Customizable death benefit options to suit your financial protection needs.
- Improved liquidity through policy loans and partial withdrawal options.
Who is eligible for the HDFC Life Sanchay Aajeevan Guaranteed Advantage?
| Particulars | Without Guaranteed Income Variant | With Guaranteed Income Variant | ||
| Minimum | Maximum | Minimum | Maximum | |
| Entry Age | 18 years | 70 years for Future Ready Future Option and65 years for the Future Secure option | 40 years | 70 years for Future Ready Future Option and65 years for the Future Secure option |
| Maturity Age | 40 years | 80 years | 45 years | 80 years |
| Policy Term (PT) | Single: 5 yearsRegular/Limited pay: 10 years | 30 years | Single: 5 yearsRegular/Limited pay: 10 years | 30 years |
| Premium Payment Term | Single Pay, Regular/Limited Pay (5 to 12 years) | |||
| Premium Payment frequency | Single, Annual, Half-yearly, Quarterly, Monthly | |||
What are the plan options in the HDFC Life Sanchay Aajeevan Guaranteed Advantage?
Future Ready
This is a single life option where, on maturity at the end of the HDFC Life Sanchay Aajeevan Guaranteed Advantage Plan policy term, provided all due premiums have been paid, the Maturity value shall be payable as per the variant options chosen at inception.
Future Secure
This is a joint Life option, where there is Waiver of Premium and 105% of total premiums paid on the first death of primary life or 105% of total premiums paid on the first death of secondary life and death benefit on second death.
In case of maturity at the end of the Policy Term, provided all due premiums have been paid, the maturity benefit shall be payable as per the variant option chosen at inception.
Each plan option has two variants:
Variant 1 -Without Guaranteed Income:
There is no guarantee on the future rate. Complete flexibility is provided to the HDFC Life Sanchay Aajeevan Guaranteed Advantage Plan policyholder to utilise his maturity benefit as mentioned in the section ‘Annuitization Provisions’ (utilisation of maturity benefit).
Variant 2 – With Guaranteed Income Variant:
At inception, the policyholder can choose to convert a proportion of their maturity benefit into a guaranteed lifelong income at a predetermined rate under the same product. This proportion can either be 40%, 60% or 80% of the maturity benefit.
What are the benefits of the HDFC Life Sanchay Aajeevan Guaranteed Advantage?
Death benefit
Future Ready (Single Life Option):
The Death Benefit payable shall be the highest of:
- Total Premiums paid till the date of death are accumulated at a guaranteed rate of return compounded annually
- Assured Benefit on Death equal to 105% of Total Premiums Paid
- Surrender Value on the date of death
The guaranteed rate of return can either be 5% p.a. or 7% p.a. and shall be chosen by the HDFC Life Sanchay Aajeevan Guaranteed Advantage Plan policyholder at inception.
Future Secure (Joint Life Options):
First Death:
In case of the first death of the Primary Life, Waiver of Premium (WOP) benefit and 105% of the Total Premiums Paid till date of death of the Primary life will be provided to the secondary life, and the policy continues thereafter as per the HDFC Life Sanchay Aajeevan Guaranteed Advantage Plan policy terms and conditions.
In case of the first death of the secondary life, 105% of the Total Premiums Paid till the date of death of the secondary life will be provided to the Primary Life, and the Primary Life will continue to pay the future premiums, and the policy continues thereafter as per the policy terms and conditions.
Second death: The Death Benefit payable shall be the highest of:
Total Premiums paid till the date of death are accumulated at a guaranteed rate of return compounded annually
- Assured Benefit on Death equal to 105% of Total Premiums Paid
- Surrender Value on the date of death
The guaranteed rate of return can either be 5% p.a. or 7% p.a. and shall be chosen by the HDFC Life Sanchay Aajeevan Guaranteed Advantage Plan policyholder at inception.
Utilisation of Death benefit
- Withdraw the entire proceeds of the policy.
- Utilise the proceeds of the policy or part thereof for purchasing an immediate annuity or deferred annuity at the then prevailing annuity rate.
Maturity Benefit
On survival till the end of the HDFC Life Sanchay Aajeevan Guaranteed Advantage Plan policy term, an Assured Benefit on Maturity shall be payable, provided all due premiums have been paid. Assured Benefit on Maturity shall be the sum of
- Sum Assured on Maturity
- Accrued Guaranteed Additions
Guaranteed Addition% = 8%
Utilisation of Maturity benefit
On maturity in the ‘Variant 1 – Without Guaranteed Income’ Variant
- To utilise the entire proceeds to purchase immediate annuity or deferred annuity from the same insurer at the then prevailing annuity rate.
- To commute up to 60% and utilise the balance amount to purchase immediate annuity or deferred annuity at the then prevailing annuity rate.
- Every policyholder shall be given an option to purchase immediate annuity or deferred annuity from another insurer, at the then prevailing annuity rate, by utilising not more than 50% of the proceeds of the HDFC Life Sanchay Aajeevan Guaranteed Advantage Plan policy net of commutation.
On maturity in the ‘Variant 2 – With Guaranteed Income’ Variant
- To utilise the entire proceeds to purchase immediate annuity or deferred annuity from the same insurer at the then prevailing annuity rate.
- To commute up to 60% and utilise the balance amount to purchase immediate annuity or deferred annuity at the then prevailing annuity rate.
- Every policyholder shall be given an option to purchase immediate annuity or deferred annuity from another insurer, at the then prevailing annuity rate, by utilising not more than 50% of the proceeds of the policy net of commutation.
- Policyholder shall have an option to utilise 40%- 80% of maturity/surrender proceeds to purchase a built-in guaranteed annuity as detailed in section ‘Built-in Guaranteed Income’ in the same product at a rate which will be guaranteed at inception.
Guaranteed Additions
The Guaranteed Additions equal to 8% of the Sum Assured on maturity accrue at the end of each completed policy year during the HDFC Life Sanchay Aajeevan Guaranteed Advantage Plan policy term, starting from
- 2nd policy year in case of Single Pay,
- 5th policy year in case of Premium Paying Term 5 to 12
Grace Period, Discontinuance and Revival of the HDFC Life Sanchay Aajeevan Guaranteed Advantage
Grace Period
The grace period for payment of the premium shall be fifteen days, where the HDFC Life Sanchay Aajeevan Guaranteed Advantage Plan policyholder pays the premium on a monthly basis and 30 days in all other cases.
Discontinuance
Lapsed policy: If a due premium is unpaid upon the expiry of the grace period, the policy shall lapse if the HDFC Life Sanchay Aajeevan Guaranteed Advantage Plan policyholder has not paid premiums for one full year.
No benefit will be paid on lapse of the policy. All the benefits shall cease once a policy lapses.
Reduced paid-up policy: On discontinuance of premiums, the policy shall become reduced paid-up if the HDFC Life Sanchay Aajeevan Guaranteed Advantage Plan policyholder has paid premiums for one full year.
The Paid-Up Sum Assured on maturity shall be the Sum Assured on maturity multiplied by the ratio of the premiums paid to the premiums payable under the policy.
Revival
The revival period for regular pay and limited pay contracts is a Period of five consecutive complete years from the date of the first unpaid premium.
Free Look Period for the HDFC Life Sanchay Aajeevan Guaranteed Advantage
In case the HDFC Life Sanchay Aajeevan Guaranteed Advantage Plan Policyholder is not agreeable to any policy terms and conditions under this Policy, the Policyholder shall have the option of returning the Policy within 30 days from the date of receipt of the Policy.
Surrendering the HDFC Life Sanchay Aajeevan Guaranteed Advantage
Surrender value shall be the maximum of Guaranteed Surrender Value (GSV) and Special Surrender Value (SSV).
The HDFC Life Sanchay Aajeevan Guaranteed Advantage Plan policy shall acquire a Guaranteed Surrender Value (GSV) immediately on the payment of a Single Premium in case of Single Pay and upon the payment of at least two consecutive years’ premiums in case of Limited/Regular Pay.
Special Surrender Value shall become payable immediately on the payment of Single Premium in case of Single Pay and after completion of the first policy year, provided one full year’s premium has been received in case of Limited/Regular Pay.
Utilisation of Surrender benefit
For both Variants
- To utilise the entire proceeds to purchase immediate annuity or deferred annuity from the same insurer at the then prevailing annuity rate.
- To commute up to 60% and utilise the balance amount to purchase immediate annuity or deferred annuity at the then prevailing annuity rate.
- Every policyholder shall be given an option to purchase immediate annuity or deferred annuity from another insurer, at the then prevailing annuity rate, by utilising not more than 50% of the proceeds of the policy, net of commutation
What are the advantages of the HDFC Life Sanchay Aajeevan Guaranteed Advantage?
- With Variant 2 – Guaranteed Income, you have the flexibility to lock in both the commutation percentage and the annuity amount right at the inception of the policy.
- You can avail a loan of up to 80% of the surrender value, providing some degree of liquidity during the HDFC Life Sanchay Aajeevan Guaranteed Advantage Plan policy term.
What are the disadvantages of the HDFC Life Sanchay Aajeevan Guaranteed Advantage?
- At the end of the HDFC Life Sanchay Aajeevan Guaranteed Advantage Plan policy term, while the plan benefits vest, they are not fully accessible for immediate withdrawal, limiting your control over the funds.
- The sum assured offered is relatively low, especially when compared to traditional term insurance plans, making it less effective as a pure protection tool.
Research Methodology of HDFC Life Sanchay Aajeevan Guaranteed Advantage
The HDFC Life Sanchay Aajeevan Guaranteed Advantage Plan is marketed as a long-term savings solution, allowing you to start building your retirement corpus early.
By committing to regular payments, you aim to create a steady income stream for your retirement years. However, it’s important to note that the accumulated corpus is not fully accessible upon maturity.
To truly assess the plan’s suitability, let’s look at its returns through the Internal Rate of Return (IRR).
Benefit Illustration – IRR Analysis of HDFC Life Sanchay Aajeevan Guaranteed Advantage
Consider the case of a 35-year-old male investing ₹1,00,000 annually for 10 years under the plan, with a policy term of 25 years. The Sum Assured is ₹13,54,463, and he chooses Variant 1 – Without Guaranteed Income
| Male | 35 years |
| Sum Assured | ₹ 13,54,463 |
| Policy Term | 25 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 1,00,000 |
The Maturity Value (at the end of 25 years) is ₹36.29 lakhs, with an IRR of 6.41% as per HDFC Life Sanchay Aajeevan Guaranteed Advantage Plan Maturity calculator,. Though the IRR appears to match inflation, it’s largely notional because you do not receive the maturity amount directly.
| Age | Year | Annualised premium / Maturity benefit | Death benefit |
| 35 | 1 | -1,00,000 | 13,54,463 |
| 36 | 2 | -1,00,000 | 13,54,463 |
| 37 | 3 | -1,00,000 | 13,54,463 |
| 38 | 4 | -1,00,000 | 13,54,463 |
| 39 | 5 | -1,00,000 | 13,54,463 |
| 40 | 6 | -1,00,000 | 13,54,463 |
| 41 | 7 | -1,00,000 | 13,54,463 |
| 42 | 8 | -1,00,000 | 13,54,463 |
| 43 | 9 | -1,00,000 | 13,54,463 |
| 44 | 10 | -1,00,000 | 13,54,463 |
| 45 | 11 | 0 | 13,54,463 |
| 46 | 12 | 0 | 13,54,463 |
| 47 | 13 | 0 | 13,54,463 |
| 48 | 14 | 0 | 13,54,463 |
| 49 | 15 | 0 | 13,54,463 |
| 50 | 16 | 0 | 13,54,463 |
| 51 | 17 | 0 | 13,54,463 |
| 52 | 18 | 0 | 13,54,463 |
| 53 | 19 | 0 | 13,54,463 |
| 54 | 20 | 0 | 13,54,463 |
| 55 | 21 | 0 | 13,54,463 |
| 56 | 22 | 0 | 13,54,463 |
| 57 | 23 | 0 | 13,54,463 |
| 58 | 24 | 0 | 13,54,463 |
| 59 | 25 | 0 | 13,54,463 |
| 60 | 36,29,961 | ||
| IRR | 6.41% |
Upon vesting, the proceeds must be fully or partially used to purchase an annuity, and the annuity rate at vesting is not guaranteed (under variant 1).
Even under variant 2, there is a compulsion to invest a certain percentage in an annuity plan.
This restriction on fund usage significantly reduces flexibility, making the plan less favourable compared to alternatives where you have complete control over your corpus.
In essence, while the HDFC Life Sanchay Aajeevan Guaranteed Advantage plan offers disciplined savings and life cover, its limited liquidity and lack of control over the matured corpus diminish its appeal as a robust retirement solution.
HDFC Life Sanchay Aajeevan Guaranteed Advantage Vs. Other Investments
The HDFC Life Sanchay Aajeevan Guaranteed Advantage Plan restricts how you can utilise your accumulated retirement corpus, as the maturity benefit must be fully or partially used to purchase an annuity.
To avoid this limitation, a more flexible alternative is to separate insurance and investment. Using the same parameters from the earlier example, let us explore two scenarios.
HDFC Life Sanchay Aajeevan Guaranteed Advantage Vs. Pure-term + PPF/ELSS
A 35-year-old male can purchase a pure-term life insurance policy with a sum assured of ₹13.5 lakhs for an annual premium of ₹15,600 over 10 years. This leaves ₹84,400 each year available for investment.
Based on risk tolerance, one can choose between equity mutual funds or debt instruments like the Public Provident Fund (PPF).
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 13,54,463 |
| Policy Term | 25 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 15,600 |
| Investment | ₹ 84,400 |
| Term Insurance + PPF | Term insurance + Equity Mutual Fund | ||||
| Age | Year | Term Insurance premium + PPF | Death benefit | Term Insurance premium + Equity Mutual Fund | Death benefit |
| 35 | 1 | -1,00,000 | 13,54,463 | -1,00,000 | 13,54,463 |
| 36 | 2 | -1,00,000 | 13,54,463 | -1,00,000 | 13,54,463 |
| 37 | 3 | -1,00,000 | 13,54,463 | -1,00,000 | 13,54,463 |
| 38 | 4 | -1,00,000 | 13,54,463 | -1,00,000 | 13,54,463 |
| 39 | 5 | -1,00,000 | 13,54,463 | -1,00,000 | 13,54,463 |
| 40 | 6 | -1,00,000 | 13,54,463 | -1,00,000 | 13,54,463 |
| 41 | 7 | -1,00,000 | 13,54,463 | -1,00,000 | 13,54,463 |
| 42 | 8 | -1,00,000 | 13,54,463 | -1,00,000 | 13,54,463 |
| 43 | 9 | -1,00,000 | 13,54,463 | -1,00,000 | 13,54,463 |
| 44 | 10 | -1,00,000 | 13,54,463 | -1,00,000 | 13,54,463 |
| 45 | 11 | 0 | 13,54,463 | 0 | 13,54,463 |
| 46 | 12 | 0 | 13,54,463 | 0 | 13,54,463 |
| 47 | 13 | 0 | 13,54,463 | 0 | 13,54,463 |
| 48 | 14 | 0 | 13,54,463 | 0 | 13,54,463 |
| 49 | 15 | 0 | 13,54,463 | 0 | 13,54,463 |
| 50 | 16 | 0 | 13,54,463 | 0 | 13,54,463 |
| 51 | 17 | 0 | 13,54,463 | 0 | 13,54,463 |
| 52 | 18 | 0 | 13,54,463 | 0 | 13,54,463 |
| 53 | 19 | 0 | 13,54,463 | 0 | 13,54,463 |
| 54 | 20 | 0 | 13,54,463 | 0 | 13,54,463 |
| 55 | 21 | 0 | 13,54,463 | 0 | 13,54,463 |
| 56 | 22 | 0 | 13,54,463 | 0 | 13,54,463 |
| 57 | 23 | 0 | 13,54,463 | 0 | 13,54,463 |
| 58 | 24 | 0 | 13,54,463 | 0 | 13,54,463 |
| 59 | 25 | 0 | 13,54,463 | 0 | 13,54,463 |
| 60 | 35,09,566 | 80,65,956 | |||
| IRR | 6.24% | 10.50% | |||
If the amount is invested in PPF, the maturity value after 25 years is ₹35.09 lakhs, with an IRR slightly lower than the HDFC plan, but with the key benefit of complete accessibility.
On the other hand, investing in an equity mutual fund yields a pre-tax value of ₹90.79 lakhs, and after accounting for capital gains tax, the post-tax value stands at ₹80.65 lakhs—translating to a post-tax IRR of 10.50%.
| Equity Mutual Fund Tax Calculation | |
| Maturity value after 25 years | 90,79,807 |
| Purchase price | 8,44,000 |
| Long-Term Capital Gains | 82,35,807 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 81,10,807 |
| Tax paid on LTCG | 10,13,851 |
| Maturity value after tax | 80,65,956 |
This clearly shows that separating insurance and investment not only provides higher returns but also gives you full control over your money.
Unlike the HDFC Life Sanchay Aajeevan Guaranteed Advantage Plan, which restricts fund usage by mandating annuity purchase, this alternative approach offers superior liquidity and flexibility—making it a far better choice for building your retirement corpus.
Final Verdict on HDFC Life Sanchay Aajeevan Guaranteed Advantage
The HDFC Life Sanchay Aajeevan Guaranteed Advantage Plan presents itself as a retirement-oriented savings option, allowing you to choose a specific variant at the HDFC Life Sanchay Aajeevan Guaranteed Advantage Plan policy’s inception.
While these variants define how your accumulated corpus is utilised, they all share a common limitation: restricted access to the corpus.
Regardless of the variant selected, you’re required to use the maturity proceeds to purchase an annuity plan—limiting your freedom to deploy the funds as per your financial goals.
Though the plan offers guaranteed benefits, it does not provide the flexibility many investors seek in their retirement strategy. This lack of control over the mature corpus makes the plan less appealing as a long-term investment vehicle and it also has a high agent commission.
A more effective alternative would be to secure a suitable term insurance policy for life protection and separately build a retirement investment portfolio tailored to your risk appetite.
Whether you prefer low-risk instruments or high-growth equity investments, starting early and staying consistent with your contributions can help you accumulate a substantial retirement corpus and achieve financial independence on your terms.
Ultimately, retirement planning is highly personal—what works for one may not work for another. Hence, for a well-structured and personalised strategy, consulting a certified financial planner is always a wise step.
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