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hdfc life sanchy plus

HDFC Life Sanchay Plus: Review-Should You Buy It?

by Holistic 69 Comments | Filed Under: Insurance

Listen to this article


Is this HDFC Life’s Sanchay Plus any different from the previous one?

If this Sanchay Plus is better, if at all, is this worth considering as an investment or insurance option?

This review article will help you come to a conclusion on whether the new HDFC Life Sanchay Plus is good or bad for you.

Table Of Content

1.)Review of HDFC Life: Company Overview

2.)Basic Features of HDFC Life Sanchay Plus

3.)HDFC Life Sanchay Plus: Review of Death Benefit

4.)Practical Review of HDFC Life Sanchay Plus Benefit’s 4 Variants

  • Variant No.1: Guaranteed Maturity Benefit – Analysis and Review
  • Variant No.2: Guaranteed Income Benefit – Analysis and Review
  • Variant No.3: Guaranteed Life-Long Income Benefit – Analysis and Review
  • Variant No.4: Guaranteed Long Term Income Benefit – Analysis and Review

5.)HDFC Life Sanchay Plus: Overall Analysis and Review

6.)HDFC Life Sanchay Plus: How to surrender/cancel the policy?

7.)Is HDFC Life Sanchay Plus Good?

HDFC launched the HDFC Life Sanchay Plus, following the HDFC Life Sanchay endowment insurance plan.

Being the next version, it sure does have some better features and options than the previous one. It is crafted to be appealing and attractive for every single investor to “invest”. Are these appeal and attractiveness is just a perception created or a reality?

We’ll discover that in this article, after we look into the basic features of HDFC Life Sanchay Plus and the small overview of the company “HDFC Life”.

HDFC Life: Company Overview

HDFC Life is providing its services since the year 2000. Now, it’s almost 21 years since its inception.

The company has been an average player in terms of its Claim Settlement Ratio when compared to its other counterparts. But, over the years its Claim Settlement Ratio has experienced a consistent rise.

Still, a long way to go!

For more details on various Term Insurance, you should read the detailed article on “Cheat Sheet to select the best Term Insurance”.

Let us review by diving into a deeper analysis of HDFC Life Sanchay Plus to validate if it is a pro or a con.

HDFC Life Sanchay Plus: Basic Features

HDFC Sanchay Plus is a non-linked savings endowment insurance plan.

It offers four different policy benefit options to choose from. They are,

  • Guaranteed Maturity
  • Guaranteed Income
  • Life-Long Income
  • Long Term Income

The minimum age eligibility for buying of HDFC Life Sanchay Plus policy is 5 years and the maximum age is 60 years.

The minimum age to be eligible for the maturity benefit is 18 years and the maximum age starts from 71 years.

This HDFC Life Sanchay Plus requires a minimum premium installment payment of ₹30,000 a year.

The HDFC Life Sanchay Plus also offers rider options for ‘Accidental Disability’ and ‘Critical Illness Plus’.

To know about these this Features in detail, download – HDFC Life Sanchay Plus Product Brochure

Source – hdfclife.com

These features look attractive, the “Guaranteed” Maturity and Income benefit options in particular.

Of course, the benefit is “Guaranteed”, but you must look into how much is guaranteed. This HDFC Life Sanchay Plus is marketed as a savings insurance plan and hence must offer a return rate on maturity.

Option Premium Paying Term Policy Term Payout Period
Guaranteed Maturity 5 years  10 to 20 years Maturity Benefit paid as lumpsum at the end of policy term
6/7/8/9/10 years  12 to 20 years
Guaranteed Income 7 years 7 to 12 years Maturity Benefit paid as a guaranteed income for a fixed term of 10 or 12 years starting from (Policy Term + 1)th years in arrears.
8 years 8 to 13 years
9 years 9 to 14 years
10 years 10 to 15 years
11 years 11 to 16 years
12 years 12 to 17 years
Life Long Income 5 years 6 years Maturity Benefit paid as a guaranteed income from 7th year in arrears till the individual attains age 99 years
6 years 7 years Maturity Benefit paid as a guaranteed income from 8th year in arrears till the individual attains age 99 years
10 years 11 years Maturity Benefit paid as a guaranteed income from 12th year in arrears till the individual attains age 99 years
12 years 13 years Maturity Benefit paid as a guaranteed income from 14th year in arrears till the individual attains age 99 years
Long Term Income 5 years 5 to 10 years Maturity Benefit paid as a guaranteed income for a fixed term of 25 or 30 years starting from (Policy Term + 1)th years in arrears.
6 years 6 to 11 years
7 years 7 to 10 years
8 years 8 to 11 years
9 years 9 to 11 years
10 years 10 to 12 years
11 years 11 to 12 years
12 years 12 to 13 years

Source – hdfclife.com

A video shown below will give you a brief idea of and a review of various aspects under the HDFC Life Sanchay Plus Plan. Let’s have a look



Let’s see how much they have to offer in return with their four different benefit options with practical examples.

HDFC Life Sanchay Plus: Review of Death Benefit

If the policyholder dies within the policy term, the nominee will receive a death benefit equal to the Sum Assured on Death.

Sum Assured on death is the highest of the following:

  • 105% of the total premiums paid
  • 10 times of the annualized premium
  • Guaranteed Sum Assured on Maturity (total premiums payable under the policy)
  • Premiums paid accumulated at an interest of 5% p.a. compounded annually
  • Sum Assured (Death Multiple times Annualized premium). Death multiple depends on your entry age.

The Death Benefits Multiples applicable for all plans are specified below:

Age* Death Benefit Multiple Age* Death Benefit Multiple Age* Death Benefit Multiple Age* Death Benefit Multiple
5 15.00 19 13.60 33 12.20 47 10.80
6 14.90 20 13.50 34 12.10 48 10.70
7 14.80 21 13.40 35 12.00 49 10.60
8 14.70 22 13.30 36 11.90 50 10.50
9 14.60 23 13.20 37 11.80 51 10.45
10 14.50 24 13.10 38 11.70 52 10.40
11 14.40 25 13.00 39 11.60 53 10.35
12 14.30 26 12.90 40 11.50 54 10.30
13 14.20 27 12.80 41 11.40 55 10.25
14 14.10 28 12.70 42 11.30 56 10.20
15 14.00 29 12.60 43 11.20 57 10.15
16 13.90 30 12.50 44 11.10 58 10.10
17 13.80 31 12.40 45 11.00 59 10.05
18 13.70 32 12.30 46 10.90 60 10.00

The Sum Assured is determined considering your entry age and the Annualized Premium you agree to pay in a policy year.

Let’s see how much they have to offer in return with their four different benefit options with practical examples.

HDFC Life Sanchay Plus: Review of Maturity Options

To enable the review, consider an average person of 30 years old—let’s call him Madhan.

Illustration of  benefit for healthy  male aged  30 years(50 years for Life Long Income option),who pays ₹1lac+Taxes per annum Throughout the premium paying term and survives the policy

Plan Option Sum Assured Death Benefit at Inception* Policy Term (years) Premium Paying Term (years) Maturity Benefit (INR)
Guaranteed Maturity 1,250,000 1,250,000 20 10 ₹22,56,970 paid as a lump sum at Maturity
Guaranteed Income 1,250,000 1,546,711 13 12 Guaranteed income^ of ₹2,16,000 p.a. from 14th year to 25th year(payout period of 12 years)
Life Long Income 1,250,000 1,250,000 11 10 Guaranteed income^ of ₹1,03,250 p.a. from 12th year to 36th year(payout period of 25 years) + ₹10,00,000 at the end of payout period(36th year)
Long Term Income 1,050,000 1,064,141 11 10 Guaranteed income^ of ₹ 96,000 p.a. from 12th year to 99 year(38 years) + ₹10,00,000 at the end of payout period
Plan Option

Benefit

Guaranteed Maturity Guaranteed Income Long Term Income Life Long Income
Guaranteed Lumpsum Amount  ✔ 𝙓 ✔

(In the form of Return of Premiums)

✔

(In the form of Return of Premiums)

Guaranteed Additions ✔ 𝙓 𝙓 𝙓
Guaranteed Income 𝙓 ✔

 (For 10/12 yrs)

✔

(For 10/12 yrs)

✔

(For 10/12 yrs)

Death Benefit ✔ ✔ ✔ ✔

1. Guaranteed Maturity Benefit: Review

Under this benefit option the HDFC Life Sanchay Plus the maturity benefit is paid as a lump sum amount at the end of the policy term.
Guaranteed Maturity at BenefitAmong the three different policy terms as defined below, let’s choose the 20 years policy term, which is the longest. This policy option has a premium payment term of 10 years.

Guaranteed 

Maturity

Premium Paying Term(PPT) Policy Term Payout Period
5 year 10 year Maturity Benefit is paid as a lump-sum at the end of 10 years
6 year 12 year Maturity Benefit is paid as a lump-sum at the end of 12 years
10 year 20 year Maturity Benefit is paid as a lump-sum at the end of 20 years

When the policy matures, Madhan will receive the “Guaranteed Maturity” benefit. The guaranteed maturity benefit is the sum of Guaranteed Sum Assured and the Guaranteed Addition.

The Guaranteed Addition differs with different groups of age. It is higher for the younger age group than the older age group. See the table below.

Source – hdfclife.com

In our example, Madhan will receive a Guaranteed Addition of ₹140, which is the maximum Guaranteed Addition possible.

Age Year Guaranteed Maturity
Premium / Maturity Benefit Death Benefit
31 1 -100000 1250000
32 2 -100000 1250000
33 3 -100000 1250000
34 4 -100000 1250000
35 5 -100000 1250000
36 6 -100000 1250000
37 7 -100000 1250000
38 8 -100000 1250000
39 9 -100000 1250000
40 10 -100000 1250000
41 11 0 1250000
42 12 0 1250000
43 13 0 1250000
44 14 0 1250000
45 15 0 1250000
46 16 0 1250000
47 17 0 1250000
48 18 0 1250000
49 19 0 1250000
50 20 0 1250000
51 21 2256970
52 22
IRR 5.32%

The Catch: If you think it is not bad, keep in mind that you have to pay the GST in addition to the premium you are paying. If we consider that too, the return rate will be even lesser than 5.7%.

Hence, Guaranteed Maturity is not a wise option at all.

Let’s see whether the other benefit options have better returns to offer.

2. Guaranteed Income Benefit: Review

The Guaranteed Income benefit option of the HDFC Life Sanchay Plus will pay you the maturity benefit as a guaranteed income for a select number of years in arrears.
Guaranteed income benefit payout periodIn this example let us choose the policy plan with 13 years policy term.

Premium Paying Term(PPT) Policy Term Payout Period
10 year 11 year Maturity Benefit is paid as a guaranteed income from 12th year to 21st years in arrears
12 year 13 year Maturity Benefit is paid as a guaranteed income from 14th year to 25th years in arrears.

It requires a premium payment term of 12 years. The maturity benefits will be paid as Guaranteed Income in arrears.

Madhan will receive this “Guaranteed Income” for 12 subsequent years after the successful completion of the policy term, i.e. from the 14th year to the 25th year.

See the illustration image of plan from HDFC Life Sanchay Plus Calculator below.

Age Year Guaranteed Income
Premium / Maturity Benefit Death Benefit
31 1 -100000 1546711
32 2 -100000 1546711
33 3 -100000 1546711
… … …
42 12 -100000 1546711
43 13 0 1546711
44 14 0 1546711
45 15 216000
… …
56 26 216000
57 27
IRR 5.65%

In the Guaranteed Income option, you will get an IRR of 5.65%.

If you choose the policy term for 13 years and the Premium Paying term for 12 years, then you will start to get your guaranteed payout from the 14th policy term onwards.

The Catch: If you think it’s fair enough to consider buying this policy plan, remember. We did not include the GST which you will be paying along with the payment of annual insurance premium. If you weigh that in, the IRR must be only a little over 5%.

In addition, your benefit will be the same throughout the payout period as inflation increases during the payout period. Today’s ₹2,16,000 will not have the same value after 10 years in the payout period.

Therefore, this “Guaranteed Income” option is not a better option either. Can the other two benefit options reward you better? See it for yourself below.

3. Guaranteed Life-Long Income Benefit: Review

The HDFC Life Sanchay Plus’ Life-Long Income benefit option will attract the masses for sure.

The maturity benefit is paid as guaranteed income from the end of the policy term in arrears until the insured attains 99 years of age.
Guaranteed Income upto age 99Guaranteed Life-Long Income looks attractive. But, you can buy it only if your age is between 50 years and 60 years old.

Premium Paying Term(PPT) Policy Term Payout Period
5 year 6 year Maturity Benefit is paid as a guaranteed income from 7th year in arrears till the individual attains the age of 99 years.
10 year 11 year Maturity Benefit is paid as a guaranteed income from 12th year in arrears till the individual attains the age of 99 years.
Age Year Life Long Income
Premium / Maturity Benefit Death Benefit
31 1 -100000 1081500
32 2 -100000 1081500
33 3 -100000 1081500
34 4 -100000 1081500
35 5 -100000 1081500
36 6 0 1081500
37 7 0 1081500
38 8 34505
… … …
100 70 34505
34505
500000
IRR 5.65%

Let’s say that Madhan is purchasing the Life Long Income option. Here, he is choosing the Premium Payment Term for 5 years, and he will get his guaranteed payout from the 7th policy term onwards for 99 years. 

Then, at the end of the policy term, he will get an IRR of 5.51%.

“Life Long Guaranteed Income”

Did they just sell the “Financial Independence” in a single insurance policy?

It’s terrifying how words are used to manipulate investors’ decisions to sell products.

Whatever they do, don’t let yourself be fooled.

The Catch: The return on this “Life-Long Income” policy is shy of 5.51%. But think about it, a maximum of 5.51% interest return(IRR) for a period of almost 50 years is ridiculous.

As we have seen in the above reviews, you’re going to pay more as GST. And the inflation will keep reducing the value of your “income” exponentially.

It may appear good in contrast with the previous options. But from a money-smart investor’s perspective, it is also a big let-down.

The last remaining benefit option claims to have some flexibility. Let’s review what it has under its hood.

4. Guaranteed Long Term Income: Review

The Long Term Income benefit option of the HDFC Life’s Sanchay Plus policy promises to pay the maturity benefit in arrears for a select period of time.
Guaranteed Income upto 30 yearsThe payout period of the policy varies based on the policy term. However, it ends on the 36th year from the starting year of the policy term.

Premium Paying Term(PPT) Policy Term Payout Period
5 year 6 year Maturity Benefit is paid as a guaranteed income from 7th year to 36th years in arrears
10 year 11 year Maturity Benefit is paid as a guaranteed income from 12th year to 36th years in arrears.
Age Year Long Term Income
Premium / Maturity Benefit Death Benefit
31 1 -100000 1287500
32 2 -100000 1287500
33 3 -100000 1287500
34 4 -100000 1287500
35 5 -100000 1287500
36 6 0 1287500
37 7 0 1287500
38 8 37080
… … …
62 32 37080
63 33 500000
64 34
IRR 5.50%

Let’s assume Madhan buys the 6-year policy term for which he will be paying 5 years of the policy plan. His plan would look like this, the above calculation

At the end of the policy term, he will get an IRR of 5.50% and a Guaranteed income of Rs. 37,080 p.a from the 8th policy term onwards for 30 years

The Catch: Even a minimum assumption of just 5.50% inflation will reduce your ₹5 lakhs by 4.3 times.

Overall, this “Guaranteed Long Term Income” is capable of providing only 5.50% at the most.

A 5.50% IRR(Internal Rate of Return) for a period of 30 years should not even be an option to consider. And the obvious, you will be paying the GST for your premium payment—reducing the return rate even more.

I must say, this benefit option too is only the same thing in a different wrapper.

Do these plans have anything at all to offer an investor?

Is HDFC Sanchay Plus a definite Con for investors? 

HDFC Life Sanchay Plus: Analysis and Review

As you might have noticed from the above analysis that all the 4 variants have some catch in their offerings. Though they use catchy words like “Guaranteed” or “Life-long Income”, but their ROI is less than 6%, which can’t even beat the inflation rate!

Policy Option IRR
Guaranteed Maturity 5.32%
Guaranteed Income Benefit 5.65%
Guaranteed Life Long Income 5.51%
Guaranteed Long Term Income 5.50%

So BEWARE, If your Financial Advisor recommends you this plan, it’s because they may get 30-40% as commission. for example:If your premium is 1 lakh, your advisor may get 30,000 to 40,000 as commission out of your premium.

A Bank Relationship Manager may also try selling you this product. This is because the bank also gets a commission to do so. Relationship managers also have pressure to sell these kinds of products and meet targets, hence there is also a lot of misselling happening.

The misselling is that these products give around 8 to 9% returns. So before you buy the product, verify the truth on the HDFClife website as to what the actual returns are.

Many think that as the product looks complicated, it must be a good plan, but it is not the case. PPF, Mutual Funds, Term Insurance though are old, simple and boring, have no marketing gimmicks. They are easy to understand and also fulfils its purpose.

Complexity kills transparency. Less transparency makes it easier to mis-sell.

Avoid complicated investment products like HDFC Life Sanchay Plus.

How much is really guaranteed in HDFC Life Sanchay Plus?

Returns are guaranteed only if you stay the course: The policy benefits will reduce if you surrender the policy or miss the premium payment.

They portray it as guaranteed and life long, but how much is guaranteed?

See what is your final returns. Only 5 to 6% is guaranteed.

GST: You will also have to pay the GST on the premium, after that the returns will become even lower.

What should be your next wise step as an investor?

If you are looking for wealth creation, then this is not the right product: PPF would give higher returns.

Liquidity: Investment is locked in this plan until the income period starts.

In life long option, you will receive the same amount throughout your life. How will this even benefit you?

And moreover, HDFC Life is an insurance company and not an investment company.

So, if you want higher returns on your investment you should invest in investment vehicles, such as Stocks or Mutual Funds. Though they have risk factors, they will reward you suitably through their higher returns of 12% – 15% if you keep yourself invested in the long term. (or even equivalent to the HDFC Life Sanchay Plus’ term!!)

And, if you are a risk-averse then it is better to invest in PPF, which will give you the guaranteed returns of around 7.10%! Even FD returns are more respectable than HDFC Life Sanchay Plus.

Always, look for higher returns and less complexity, if you invest any amount of money into any policy.

Therefore, our advice to you is: if you are investing your money for 20 long years, you must consider investing in Mutual Funds. Have a look at the obvious advantages of Mutual Fund as compared to HDFC Life Sanchay Plus:

1. Returns on Investment: HDFC Life Sanchay Plus Vs. Mutual Fund

As we have already discussed returns aspects. Now, let’s look at an example.

In Mutual Funds, the longer you invest, the more power of compounding you will experience! For example, let us say you invest Rs.1,00,000 p.a. in Mutual Funds for the duration of 10. This means, you have invested Rs.10,00,000 Lacs in 10 years.

Your returns will become greater than Rs. 19 Lacs, with a modest interest rate of 12% in Mutual Funds. And, you can withdraw your amount in 11th year.

And, if you want to invest for 20 years, that is total Rs.20 Lacs in 20 years; your returns will become Rs. 80 Lacs, which is approximately 4 times your initial investment with a 12% interest rate!


Whereas with HDFC Life Sanchay Plus as you already saw, its return is even lesser than 6% after the 20-year long term!

2. Lock-in Period: HDFC Life Sanchay Plus Vs. Mutual Funds

Mutual Funds do not have any Lock-in period. If you want to cancel your investment SIPs in the first year, there will be an exit load charge of 1%. After 1 year, there will be no charge, you can cancel your scheme anytime.
Mutual fund returns
HDFC Life Sanchay Plus requires you to pay all your annual premiums on time for 10 years in the first variant and so on. Otherwise, you will not receive your benefits of this policy. So, you are locked in for 10 years for paying your premiums.

There is a free look-in period of 15 days, but even if you cancel within 15 days, you will be charged with fees and tax towards Stamp duty, medical examination, and proportionate risk premium.

3. Who is more goal focused? HDFC Life Sanchay Plus Vs. Mutual Funds

Mutual Funds allows you to list your short term (2-5 years) and long term (7+ years) goals and invest accordingly in the right scheme, where you will be benefitted by Higher Returns as compared to any other policy, including HDFC Life Sanchay Plus.

HDFC Life Sanchay Plus is designed to keep you in the comfort zone towards the expectation of future income security. Truth is, you are only receiving the amount that you have given them over a period of 10 years or so. All the added benefits get automatically levelled by the inflation rate!!

Therefore, there is absolutely no point in achieving any major/minor financial goal with HDFC Life Sanchay Plus.

4. Regulatory Authority: HDFC Life Sanchay Plus Vs. Mutual Funds

Mutual Funds are regulated by a reputed agency called SEBI. Whereas, HDFC Life Sanchay Plus is regulated by IRDA, which  regulate insurance policies.

SEBI ensures greater security and safeguards against all frauds in the Mutual Fund or Stock investments. Whereas, SEBI has no such role to play in such income schemes by HDFC Life or other such companies.

The regulation of IRDA is predominantly focused on Insurance regulation and not on investment regulation. SEBI’s regulation is well evolved in regulating the investments, protecting investor’s interest and proactively taking measures to stop mis-spelling.

So, if you are investing your money in the long term, your first priority is to achieve higher returns. Therefore, it is advisable  you should invest in SEBI-regulated platforms, such as Mutual Funds or Stock Markets.

We hope this information helps you choose whether H If you have any queries until this point, you can ask them in the comment section.

Also read Is it worthwhile to invest in HDFC Sanchay Plus?

How to surrender/cancel HDFC Life Sanchay Plus Policy?

Cancellation during the free look-in period:

You can cancel the plan within the free look in the period of 15/30 days from the day of your receipt. Please note:

The free-look period is 15 days from the date of receipt of the policy in case of face-to-face selling.

The Free-look period for the policies purchased through Distance Marketing will be 30 Days from the date of the receipt. Where Distance marketing refers to the policies sold through telephone or online or any other method which do not involve face to face selling.

Your premium will be refunded but they are subject to deduction of the:

  • Proportionate  risk premium for the period on cover,
  • The expenses incurred by the company on medical examination (if any) and
  • Stamp duty(if any).

Cancellation after the free-Look In Period:

You can submit your cancellation or complaint request in an Online or Offline Format. A written request or an email with the registered email id is mandatory. You can send your e-mail to service@hdfclife.com.

For more details, you should read this current official document of HDFC Life Sanchay Plus.

All grievances (Service and sales) received by the Company will be responded to within the prescribed regulatory Turn Around Time (TAT) of 14 days.

A policy once returned shall not be revived, reinstated or restored at any point in time and a new proposal will have to be made for a new policy.

In case, you are not satisfied with the company’s response, within 14 days, you may approach the Grievance Cell of the Insurance Regulatory and Development Authority of India (IRDAI) on the following contact details:

IRDAI Grievance Call Centre (IGCC)

TOLL-FREE NO:155255

Email ID: complaints@irda.gov.in

Online- You can register your complaint online at https://irda.gov.in/

Address for communication for complaints by fax/paper:
Consumer Affairs Department Insurance Regulatory and Development Authority of India
9th floor, United India Towers, Basheerbagh
Hyderabad – 500 029,
Telangana State (India).

More more updated details you can refer to this Official policy document of HDFC Life Sanchay Plus.

Is HDFC Life Sanchay Plus Good or Bad?

What is our view observation on HDFC Life’s Sanchay Plus endowment plan?

The term “Guaranteed” ultimately seems to be only a marketing plan than a policy plan. A return of 5%-6% in these policy options can never be an investors’ delight but misery. Such returns can’t even beat the inflation for a long duration of 20+ years!!

Instead, you can buy term insurance for life cover at a much lesser price—while you invest the rest of the “premium” in instruments that give better returns.

PPF is also a triple tax Exempt investment instrument that gives return above 8% quarterly.

Or if you are willing to manage risks, there are even better options. You can invest in equity mutual funds for even higher returns, an average of 12% return.

Be money smart and stay away from such low return “savings insurance” plans.

We hope this review helps you choose whether HDFC Life Sanchay Plus is a good or bad investment for your financial needs

You can also book a FREE Complimentary Consultation Call with us to get advice on the best investment and insurance policy for your needs by clicking the link below:

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Comments

  1. Mandar B says

    August 30, 2022 at 8:50 pm

    Thanks for such an amazing review. I also had suspicion regarding it. HDFC Life representative said that, at the end of maturity, the entire amount can be withdrawn by deduction of 9% mentioning below points in the brochure:

    On the maturity date, you shall have an option to receive the Guaranteed Sum Assured on Maturity, which under this option, shall be the present value of future payouts, discounted at a rate of 9% p.a. This interest rate is not guaranteed.
    However, any change in the interest rate will be subject to prior approval of the Authority and will be applicable only to the policies sold after the date of change.
    At any point of time during the Payout Period, you shall have an option to receive the future income as a lump sum, which shall be the present value of future payouts, discounted at a rate which is computed using the prevailing interest rates described below.

    Could you please clarify that?

    Reply
    • Holistic says

      September 26, 2022 at 5:13 pm

      They said that the payout is not guaranteed and can be changed anytime during the policy term. Also, the policy holder has the option to receive this payout as a lumpsum at the discounted rate.

      Reply
  2. Manish Kulkarni says

    August 17, 2022 at 9:12 pm

    My RM told me that the returns are tax free. If thats the case, then 5.5% will become the post tax rate (equivalent of about 8.5% pre tax rate). Is that correct (this tax free part)? Because 8.5% guaranteed for a long term does look attractive.

    Reply
    • Holistic says

      September 9, 2022 at 2:57 pm

      Yes, the return you earn from the insurance plan is tax free. But the bonus you earn from the plan is not a guaranteed one. PPF returns are also tax-free. The post-tax returns from Mutual Fund ELSS will be higher.

      Reply
  3. Manju says

    May 31, 2022 at 4:43 pm

    Thanx a ton for this review. We otherwise would have been taken for a rough ride. They paint pretty picture of returns instead of the reality which pathetic.

    Reply
  4. Amit says

    March 29, 2022 at 2:46 pm

    My SBI agent was pushing me to buy this one. You saved me.
    Thanks much.

    Reply
  5. Aa says

    March 26, 2022 at 4:25 pm

    Read it but you are hiding some points
    The return in this is income tax free while in mutual funds it’s taxable
    There are many mutual funds which don’t give returns even 5-6 % even fir long term
    Everyone cannot choose funds and even if advisor does return is not guaranteed

    Reply
    • Holistic says

      September 9, 2022 at 2:57 pm

      Yes, the return you earn from the insurance plan is tax free. PPF returns are also tax-free.
      The post-tax returns from Mutual Fund ELSS will be higher, if the investor is comfortable with taking risk and selecting good funds are in his / her circle of competence.

      If MF ELSS is not suitable for the investor, he can always choose PPF.

      Reply
  6. kamal says

    January 31, 2022 at 3:22 pm

    Great detail review, very helpful

    Reply
    • Holistic says

      February 2, 2022 at 5:25 pm

      Thank you

      Reply
  7. Kousik says

    December 29, 2021 at 12:23 pm

    This was an eye opener for me.
    One request, if you can explain how/where to invest in mutual funds that will be really helpful.
    Thanks a lot.

    Reply
    • Holistic says

      August 8, 2022 at 3:55 pm

      Please check with your financial planner.

      You can also book a slot with our financial planner for an initial complimentary consultation.
      https://www.holisticinvestment.in/complimentary-financial-plan-consultation/

      Reply
  8. Radhika says

    October 26, 2021 at 9:31 pm

    But which is a good pension plan?

    Reply
    • Holistic says

      September 9, 2022 at 2:58 pm

      Hi!
      For a personalised investment plan, you can contact our certified financial planner. Please click the link and fill out the 30-minute complimentary consultation form to book your appointment.
      https://www.holisticinvestment.in/complimentary-financial-plan-consultation/

      Reply
  9. pushpalatha Balaji says

    October 7, 2021 at 7:51 pm

    Thank you so much. I read your article today, you had saved me from putting my hard earned money into a trap. Your article is an eyeopener not to get carried away by the gimmicks used by agents.

    Reply
    • Holistic says

      October 11, 2021 at 11:51 am

      Your welcome.

      Reply
  10. Jasdeep says

    September 9, 2021 at 6:08 am

    I have bought it yesterday but now I am unhappy with the policy. Kindly guide me to to cancel it. I have not got policy number yet.

    Reply
    • Holistic says

      September 9, 2022 at 2:58 pm

      Hi, Please watch the video to know how to cancel your HDFC insurance policy.
      https://youtu.be/K8rFZLwHjcc

      Reply
  11. Raj Nirmal says

    September 1, 2021 at 4:51 pm

    Can you give a comparison between LIC’s Jeevan Umang Vs Sanchay Plus Guaranteed Income Benefit

    Reply
    • Holistic says

      September 9, 2022 at 2:58 pm

      We have already published a review article on LIC Jeevan Umang. Please read the article here: https://www.holisticinvestment.in/lic-jeevan-umang-review-2022-should-you-buy-it/

      Reply
  12. Manhapra says

    July 19, 2021 at 8:58 pm

    That was a superb review. Saved me a lot of time from calculations. Svaed me from my confusions too. Now that there is no confusion I have decided not to go for it. Thanks a million.

    Reply
    • Holistic says

      January 31, 2022 at 10:50 am

      You are welcome

      Reply
  13. SAMAR VAIDYA says

    July 17, 2021 at 2:22 pm

    Thanks you opened my eyes. I oTHERWISE I WAS NOT GOING IN MUCH DETAILS. IT LOOKS ATTRACTIVE N POLICYBAZAAR IS SAYING IT IS GIVING 3.27 TIMES YOUR MONEY. BTW THANKS

    Reply
    • Holistic says

      January 31, 2022 at 10:50 am

      Your welcome

      Reply
  14. Mustaq says

    June 27, 2021 at 12:19 pm

    Hi Team,

    Very good review of this. I was actually offered similar MAx Life Smart wealth plan scheme and was looking for review.

    You gave a very good detailed evaluation of th variants and helped me to skip this plan (being sold by my BRM)..

    Appreciate your time for this blog.

    Reply
  15. Kishore says

    June 19, 2021 at 9:06 pm

    I am told there are tax benefits, the payout is completely tax free

    Reply
    • Holistic says

      September 9, 2022 at 2:58 pm

      Yes, the payout is tax free. PPF returns are also tax-free. The post-tax returns from Mutual Fund ELSS will be higher.

      Reply
  16. Satheesh says

    May 17, 2021 at 1:22 pm

    But the returns are tax exempted. So for a guy in highest tax brackets returns would be like 9 to 10% and guaranteed. Is it not good.

    Reply
    • Holistic says

      September 9, 2022 at 2:59 pm

      If you are looking for tax benefits then there are other better investment plans available for you. PPF returns are also tax-free. The post-tax returns from Mutual Fund ELSS will be higher.

      Reply
  17. Sukant dolai says

    May 14, 2021 at 3:26 pm

    Thanks for your valuable suggestion and feedback.. I suppose to invest sanchay plus yearly 150000 but now change my mindset after review yours
    . Can you suggest where I need to invest for gurrented retirement plan as my age now 48
    .CaI I go ppf .. thanks

    Reply
    • Holistic says

      September 9, 2022 at 2:59 pm

      Hi!
      For a personalised investment plan, you can contact our certified financial planner. Please click the link and fill out the 30-minute complimentary consultation form to book your appointment.
      https://www.holisticinvestment.in/complimentary-financial-plan-consultation/

      Reply
  18. Poonkodi says

    May 12, 2021 at 4:25 pm

    Very detailed review….superb….you saved me from this plan..Thanks for your efforts.

    Reply
    • Holistic says

      July 14, 2021 at 1:28 pm

      You are welcome.

      Reply
  19. Taseer says

    March 26, 2021 at 10:24 pm

    Appreciate your honest review. RBL Bank representatives are calling frequently to take this plan using 100% returns. I have already invested in Mutual Funds getting good returns.

    Reply
    • Holistic says

      July 27, 2021 at 11:35 am

      Glad to hear that

      Reply
    • Holistic says

      July 27, 2021 at 11:41 am

      Good to know

      Reply
  20. Chhagan chhothra says

    March 13, 2021 at 5:40 pm

    Argument put forward in favor of the plan is: the returns are Tax free. So IRR of 6.5 % is close to 8.75% before tax. I.e. comparing with fixed interest FDs. This plan is much better and FD rates are expected to go down or stay in same range for near future.

    For high networth individual, this argument is appealing as his tax exposure is still high even after using other venues like ppf etc.

    Do you see any merit or lacuna in this sales pitch? Pl advise.

    Reply
    • Holistic says

      September 9, 2022 at 2:59 pm

      Hi!
      As you said, the return is tax free. Also, the return is not guaranteed.
      PPF returns are also tax-free. The post-tax returns from Mutual Fund ELSS will be higher.

      Reply
  21. S v Raghavan says

    February 27, 2021 at 6:12 am

    Is icici guaranteed income plan as bad pl advise

    Reply
    • Holistic says

      September 9, 2022 at 3:00 pm

      Hi! For now, we have not analysed the plan. Once we publish the review article, we will let you know.

      Reply
  22. Varsha says

    February 22, 2021 at 1:47 pm

    Your article is an eye opener. I have unfortunately invested in both the hdfc sanchay plus and sanchay par advantage plans. Its been almost a year since I invested in both, is there any way I can get out of them without losing much of my initial worth?

    Reply
    • Holistic says

      September 9, 2022 at 3:00 pm

      Since you have already taken this insurance plan, then you have two options.
      Option: 1 You can surrender and encash the policy. And reinvest the surrender value and future premium money with better investment plans like PPF or MF.
      Option: 2 You can continue with the insurance plan until the policy matures.
      It is advisable to work out the outcome of both options and proceed with the better option.
      80% of the times, option 1 is better.

      You can consult a financial planner to choose the better option.
      Or
      You can take advantage of our free complimentary financial plan consultation and talk to our financial planners.
      Get your appointment here: https://www.holisticinvestment.in/complimentary-financial-plan-consultation/

      Reply
  23. Prakash says

    February 14, 2021 at 6:50 pm

    Good technical inputs

    Reply
    • Holistic says

      July 14, 2021 at 1:31 pm

      Thank you.

      Reply
    • Holistic says

      July 27, 2021 at 11:36 am

      Thank you

      Reply
  24. Vikas Ashok says

    January 19, 2021 at 4:15 pm

    Many thanks for your valuable review

    Reply
    • Holistic says

      October 12, 2021 at 10:42 am

      You are welcome.

      Reply
  25. Vikas Ashok says

    January 19, 2021 at 4:14 pm

    Many thanks to your much valuable advice.

    Reply
    • Holistic says

      July 14, 2021 at 1:41 pm

      You are welcome

      Reply
  26. SHAMAPRASAD says

    January 7, 2021 at 7:58 pm

    A Great review. Appreciate your efforts in making people like us to know the reality. Thanks

    Reply
    • Holistic says

      July 14, 2021 at 1:44 pm

      You are welcome

      Reply
  27. Subrahmanyam says

    January 1, 2021 at 7:03 pm

    Thanks for the review. It was an eye opener. What about SBI’s pension plans like SBI Smart retire plan.
    I am 53 yrs old. I’am an NRI . I can invest 10 Lacks per annum for next 5 years.
    I need a income of 30,000 per month thereafter for around 20-years.
    What do you suggest ??

    Reply
    • Holistic says

      September 9, 2022 at 3:00 pm

      Please click the link and read, SBI Life Retire Smart Plan Review.
      https://www.holisticinvestment.in/sbi-life-retire-smart-plan-review/
      As for investment suggestions, you can contact our certified financial planner. Please click the link and fill out the 30-minute complimentary consultation form to book your appointment.
      https://www.holisticinvestment.in/complimentary-financial-plan-consultation/

      Reply
  28. Nitin says

    December 23, 2020 at 12:59 pm

    Thanks for providing better insight & understanding. I am 42 years, with investment plan of. Rs 30K PY. If I just keep it aside every year for 10 years it will like 3 Lakhs + some nominal appreciation (Age 52 years). now I invest that 3 Lakhs in Mf for 8 years (my age post 8 years = 60 years) then invest the amount in Senior saving scheme will definitely will give more returns. Or before SSC i can deposit in PPF for 15 years and enjoy more benefits too.. isn’t it.

    Reply
    • Holistic says

      September 9, 2022 at 3:00 pm

      Hi, for personalized investment suggestions, you can contact our certified financial planner. Please click the link and fill out the 30-minute complimentary consultation form to book your appointment.
      https://www.holisticinvestment.in/complimentary-financial-plan-consultation/

      Reply
  29. Sai Prakash says

    December 21, 2020 at 10:46 am

    Hey Pranab, Would this plan be good for someone who might retire in 11 years and currently aged 50 ?

    Specifically , would this plan help in retirement planning , instead of waiting for investing the super superannuation amount at what ever prevailing rates are available at the retirement age ( 10 years from now )

    Reply
    • Holistic says

      September 9, 2022 at 3:01 pm

      Hi, for personalized investment suggestions, you can contact our certified financial planner. Please click the link and fill out the 30-minute complimentary consultation form to book your appointment.
      https://www.holisticinvestment.in/complimentary-financial-plan-consultation/

      Reply
  30. PRANAB says

    December 4, 2020 at 6:19 pm

    SAVED ME FROM EDUCATED HONEST BURGLAR

    Reply
    • Holistic says

      December 8, 2020 at 11:33 am

      Thanks Pranab.

      We are happy that it helped you.

      Reply
  31. MATRIX says

    November 9, 2020 at 4:32 pm

    THANKS FOR HONEST REVIEW. I WAS CONFUSED WHETHER I SHOULD GO FOR IT OR NOT. BUT NOW ITS CLEAR. I SHOULD NOT GO FOR IT.

    Reply
    • Holistic says

      November 11, 2020 at 12:45 pm

      We are glad that, the article gave you clarity.

      Reply
      • sid says

        June 9, 2021 at 9:03 pm

        is this a good plan considering the income tax benefits, and the fact that market product return for fixed income are now around 5%

        Reply
        • Holistic says

          September 9, 2022 at 2:59 pm

          If you are looking for tax benefits then there are other better investment plans available for you. Whereas the return earned from the insurance plan is not a guaranteed one.
          PPF returns are also tax-free. The post-tax returns from Mutual Fund ELSS will be higher.

          Reply
  32. Thiyagarajan r says

    August 30, 2020 at 1:04 am

    But considering the reducing bank fixed deposit interest rates, isnt it worth investing in sanchay plus, which gives an IRR of 6.2% over a period of 36years. May be this is not comparable MF, but comparing to fixed deposit and reducing post office interest rates, i find this a relatively better option over a period of 36 years. Look forward to our comment and suggesstions based on the above feedback

    Reply
    • Holistic says

      September 9, 2022 at 3:01 pm

      Hi! The return earned from the insurance plan is not guaranteed.
      As for investment suggestions, you can contact our certified financial planner. Please click the link and fill out the 30-minute complimentary consultation form to book your appointment.
      https://www.holisticinvestment.in/complimentary-financial-plan-consultation/

      Reply
  33. Thiyagarajan r says

    July 28, 2020 at 2:06 am

    so, among the traditional insurance policy which product gives at least 7 % IRR. KINDLY GUIDE ME ACCORDINGLY. Im willing to invest atleast a 1 lac/annum for a periof 10-12 years. Kindly help me by sugesting some genuine products which would fulfil my requirements

    Reply
    • Holistic says

      October 9, 2021 at 3:24 pm

      Hi,

      For personalized investment suggestions, you can sign up with our 30-minute Complimentary Financial Plan Consultaion.

      Please click the below link to get your appointment to talk with our Certified Financial Planners.

      https://www.holisticinvestment.in/complimentary-financial-plan-consultation/

      Reply
  34. Amrit says

    May 19, 2020 at 3:46 pm

    Eye opening!

    Reply
    • Holistic says

      July 14, 2021 at 2:16 pm

      Thank you

      Reply

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