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Looking for that one-stop-shop investment solution to tackle all your financial goals, from your kid’s education fund to your retirement nest egg?
Well, let’s face it, finding a single product that can do it all is like hunting for a unicorn in a haystack. Reality check: you’ve got to tailor your investments according to each goal’s timeline and your risk appetite.
So, is HDFC Sampoorna Jeevan Plan the silver bullet for your financial needs?
To figure out let’s analyze HDFC Sampoorna Jeevan Plans advantages (pros) and Disadvantages (cons). This research review help you make those effective financial Decision.
To Discover more on HDFC Sampoorna Jeevan Plan Let’s dive into the details and find out!
Table of Contents
1.)What is HDFC Sampoorna Jeevan plan?
2.)What are the Features of HDFC Sampoorna Jeevan plan?
3.)What are the Eligibility Criteria?
4.)HDFC Sampoorna Jeevan plan Benefits in detail
- HDFC Sampoorna Jeevan plan Death Benefit
- HDFC Sampoorna Jeevan plan Survival benefit and Maturity Benefit
5.)HDFC Sampoorna Jeevan plan Grace period, Lapsation, Reduced Paid-up and Revival
6.)HDFC Sampoorna Jeevan plan Free Look period
7.)Surrendering HDFC Sampoorna Jeevan plan
8.)What are the Advantages of HDFC Sampoorna Jeevan plan
9.)What are the Disadvantages of HDFC Sampoorna Jeevan plan
10.)HDFC Sampoorna Jeevan Plan Research Methodology
- HDFC Sampoorna Jeevan Plan Benefit illustration – IRR analysis
11.)HDFC Sampoorna Jeevan Plan vs Other Investment Products
- HDFC Sampoorna Jeevan Plan vs. Pure Term + PPF / ELSS
12.)Final Verdict on HDFC Sampoorna Jeevan Plan
1.What is HDFC Sampoorna Jeevan plan?
HDFC Sampoorna Jeevan is a Non-Linked Participating Individual Life Insurance Savings Plan. It is a life insurance cum savings plan which provides financial protection to your family in your absence. It also offers survival and/or maturity benefits to fulfill your family’s growing needs.
2.What are the Features of HDFC Sampoorna Jeevan plan?
- Pay premiums for a limited term and enjoy life insurance cover for the entire policy term.
- Option to choose Guaranteed Income Benefit.
- Flexible options to avail income payouts.
- Flexible options to avail the potential upside of benefits through bonuses (if declared).
- Guaranteed Income Benefit is paid on survival during the policy term.
3.What are the Eligibility Criteria?
4.HDFC Sampoorna Jeevan plan Benefits in detail
HDFC Sampoorna Jeevan plan Death Benefit
- Sum Assured on Death +
- Vested Simple Reversionary Bonuses (SRB)/ vested Simple Reversionary Income Bonus (SRIB), excluding already paid, if any declared +
- Cash Bonus (CB), if declared excluding cash bonus already paid, if any +
- Vested Paid-up Additions, as applicable excluding paid-up additions already encashed, if any + Terminal Bonus, if declared
Sum Assured on Death will be high as the following:
- 7/10 times the Annualized premium; or
- Minimum Guaranteed Sum Assured on Maturity; or
- Absolute amount assured to be paid on death; or
- 105% of the total premiums received up to the date of death (excluding rider premium, underwriting extra premium, and taxes, if any).
HDFC Sampoorna Jeevan plan Survival benefit and Maturity Benefit
| Option | Survival benefit | Maturity benefit |
| Option A: Lumpsum option | NIL | 100% of Basic Sum Assured + Applicable Bonus and Terminal Bonus if declared |
| Option B: Income Option | 5% of the Basic Sum Assured annually or frequency as chosen, starting from the first policy anniversary after completion of the premium payment term, till the end of the policy term | Applicable Bonus and Terminal Bonus if declared |
| Option C: Lumpsum with Income Option | 5% / 10% of Basic Sum Assured annually or frequency as chosen, starting from the policy anniversary in which you attain 61 years, till the end of policy term | 100% of Basic Sum Assured at the age of 60 + Applicable Bonus and Terminal Bonus if declared |
| Option D: Income with Lumpsum option | 5% / 10% of Basic Sum Assured annually or frequency as chosen, starting from the policy anniversary in which you attain 61 years, till the end of the policy term | 100% of Basic Sum Assured + Applicable Bonus and Terminal Bonus if declared |
Apart from the survival benefit and Maturity benefit, bonus will be paid based on the bonus option chosen. Following are the Bonus Options offered under this Policy :
Bonus Option 1: Simple Reversionary Bonus (SRB) for Term
Bonus Option 2: Simple Reversionary Income Bonus (SRIB)
Bonus Option 3: Cash Bonus
Bonus Option 4: Simple Reversionary Bonus for Premium Payment Term and Cash Bonus thereafter
Bonus Option 5: Simple Reversionary Income Bonus (SRIB) and Cash Bonus (CB)
5.HDFC Sampoorna Jeevan plan Grace period, Lapsation, Reduced Paid-up and Revival
Grace period:
The grace period for payment of the premium for all types of non-linked insurance policies shall be 15 days, where the policyholder pays the premium every month; and 30 days in all other cases.
Lapsation:
The policy will terminate on the date of the grace period’s expiration if the premiums for at least two full years have not been paid. All benefits under the policy will end when it expires and won’t be renewed for the full amount of benefits.
Reduced Paid-up:
The insurance will become reduced paid, if premiums for at least two full years have been paid, no additional premiums are due, and the policy is not surrendered.
Revival:
The Policy can be revived during the policy term but within a period of 5 years from the date of the first unpaid premium.
6.HDFC Sampoorna Jeevan plan Free Look period
Within 15 days (or 30 days if the policy was obtained by distance marketing) following the date you received the policy document, you may return it to the company for cancellation if you disagree with any of the terms and conditions.
For further clarification, you can refer to HDFC Sampoorna Jeevan Plan Brochure
7.Surrendering HDFC Sampoorna Jeevan
If at least two full year’s premiums are paid by the Policyholder, the policy can be surrendered. The surrender benefits are payable immediately on surrender and upon payment of the surrender value, the Policy will stand terminated with no further benefits payable under the policy.
The surrender benefit is higher than the Guaranteed Surrender Value (GSV) or the Special Surrender Value (SSV), plus the cash value of vested paid-up additions, if any
8.What are the Advantages of HDFC Sampoorna Jeevan plan
- Policyholders can obtain a loan. A maximum of 80% of the Surrender value shall be availed.
- Option to choose from various plan options and bonuses.
- Premium paying terms, policy terms and sum assured can be chosen as per convenience.
9.What are the Disadvantages of HDFC Sampoorna Jeevan plan
- Too many options in choosing the benefits. This leads to confusion.
- Bonuses are non-guaranteed.
10.HDFC Sampoorna Jeevan Plan Research Methodology
In this section, let us analyse the returns of this plan. HDFC Sampoorna Jeevan allows you to select the benefits frequency including Survival benefit, maturity benefit and bonus. Customising the benefits is an added advantage, but this shouldn’t be the deciding factor in investing in this plan. Let us work out the potential return by taking a quote from the portal.
HDFC Sampoorna Jeevan plan Benefit illustration – IRR analysis
A 35-year-old male buys HDFC Life Sampoorna Jeevan with Sampoorna Jeevan 75 maturity age variant. He opts for Guaranteed Benet Option A (Lump sum Option) with Bonus Option 1 which is Simple Reversionary Bonus (SRB) for Term. He pays ₹ 1,50,000 annually for 15 years. The policy term is 40 years.
| Male | 35 years |
| Sum Assured | ₹ 15 Lakhs |
| Policy Term | 40 years |
| Premium paying term | 15 years |
| Annualised premium | ₹ 1,50,000 |
If he pays the premium regularly for 15 years, he is eligible for the deferred cash bonus and maturity benefit after 40 years. The cash bonuses are not guaranteed. The illustrations show two different rates of assumed future investment returns, of 8% p.a. and 4% p.a.
These estimated rates of return are not upper or lower bounds on what you could receive back; rather, the value of your policy is contingent on various things, including the performance of your future investments.
| At 4% p.a. | At 8% p.a. | ||||
| Age | Year | Annualised premium / Maturity benefit | Death benefit | Annualised premium / Maturity benefit | Death benefit |
| 35 | 1 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 36 | 2 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 37 | 3 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 38 | 4 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 39 | 5 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 40 | 6 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 41 | 7 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 42 | 8 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 43 | 9 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 44 | 10 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 45 | 11 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 46 | 12 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 47 | 13 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 48 | 14 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 49 | 15 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 50 | 16 | 0 | 15,00,000 | 0 | 15,00,000 |
| 51 | 17 | 0 | 15,00,000 | 0 | 15,00,000 |
| 52 | 18 | 0 | 15,00,000 | 0 | 15,00,000 |
| 53 | 19 | 0 | 15,00,000 | 0 | 15,00,000 |
| 54 | 20 | 0 | 15,00,000 | 0 | 15,00,000 |
| 55 | 21 | 0 | 15,00,000 | 0 | 15,00,000 |
| 56 | 22 | 0 | 15,00,000 | 0 | 15,00,000 |
| 57 | 23 | 0 | 15,00,000 | 0 | 15,00,000 |
| 58 | 24 | 0 | 15,00,000 | 0 | 15,00,000 |
| 59 | 25 | 0 | 15,00,000 | 0 | 15,00,000 |
| 60 | 26 | 0 | 15,00,000 | 0 | 15,00,000 |
| 61 | 27 | 0 | 15,00,000 | 0 | 15,00,000 |
| 62 | 28 | 0 | 15,00,000 | 0 | 15,00,000 |
| 63 | 29 | 0 | 15,00,000 | 0 | 15,00,000 |
| 64 | 30 | 0 | 15,00,000 | 0 | 15,00,000 |
| 65 | 31 | 0 | 15,00,000 | 0 | 15,00,000 |
| 66 | 32 | 0 | 15,00,000 | 0 | 15,00,000 |
| 67 | 33 | 0 | 15,00,000 | 0 | 15,00,000 |
| 68 | 34 | 0 | 15,00,000 | 0 | 15,00,000 |
| 69 | 35 | 0 | 15,00,000 | 0 | 15,00,000 |
| 70 | 36 | 0 | 15,00,000 | 0 | 15,00,000 |
| 71 | 37 | 0 | 15,00,000 | 0 | 15,00,000 |
| 72 | 38 | 0 | 15,00,000 | 0 | 15,00,000 |
| 73 | 39 | 0 | 15,00,000 | 0 | 15,00,000 |
| 74 | 40 | 0 | 15,00,000 | 0 | 15,00,000 |
| 75 | 68,37,211 | 15,00,000 | 2,17,78,426 | 15,00,000 | |
| IRR | 3.39% | 6.98% | |||
At the 4% scenario, the final maturity benefit including the cash bonus is ₹ 68.37 Lakhs. The IRR for this cash flow is 3.39%.
At the 8% scenario, the final maturity benefit including the cash bonus is ₹ 2.17 crores. The IRR for this cash flow is 6.98%.
After the premium payment period, you get locked to the investment. As per the chosen option, you can receive the benefits. The total policy term is 40 years. For a long-term investment, the rate of return should be able to tackle the inflation rate. Otherwise, your investment will lose its value down the lane.
Here in HDFC Sampoorna Jeevan, both the returns are not favourable for a long-term investor. Investing in this plan will derail your financial plan.
11.HDFC Sampoorna Jeevan plan vs Other Investment Products
In this segment, let us compare the returns calculated in the previous segment with other investment returns. For comparison purposes let us use the same metrics as seen in the above illustration. For ₹ 1.5 lakh premium, we need to look for a life cover and investment avenue as provided by HDFC Sampoorna Jeevan.
HDFC Sampoorna Jeevan plan vs. Pure Term + PPF / ELSS
A pure term life insurance policy for a sum assured of ₹ 15 Lakhs would cost ₹ 23,000 per annum. The premium paying term is 10 years. In the initial 10 years, after paying a pure term life insurance premium, you can invest ₹ 1,27,000 and for the next 5 years, you can invest 1,50,000. And then the investment compounds and fetches you a bigger corpus in the next 25 years.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 15 Lakhs |
| Policy Term | 40 years |
| Premium paying term | 15 years |
| Annualised premium | ₹ 23,000 |
| Investment | ₹ 1,27,000 |
| Term Insurance + PPF | Term insurance + ELSS | ||||
| Age | Year | Term Insurance premium + PPF | Death benefit | Term Insurance premium + ELSS | Death benefit |
| 35 | 1 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 36 | 2 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 37 | 3 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 38 | 4 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 39 | 5 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 40 | 6 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 41 | 7 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 42 | 8 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 43 | 9 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 44 | 10 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 45 | 11 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 46 | 12 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 47 | 13 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 48 | 14 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 49 | 15 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 50 | 16 | 0 | 15,00,000 | 0 | 15,00,000 |
| 51 | 17 | 0 | 15,00,000 | 0 | 15,00,000 |
| 52 | 18 | 0 | 15,00,000 | 0 | 15,00,000 |
| 53 | 19 | 0 | 15,00,000 | 0 | 15,00,000 |
| 54 | 20 | 0 | 15,00,000 | 0 | 15,00,000 |
| 55 | 21 | 0 | 15,00,000 | 0 | 15,00,000 |
| 56 | 22 | 0 | 15,00,000 | 0 | 15,00,000 |
| 57 | 23 | 0 | 15,00,000 | 0 | 15,00,000 |
| 58 | 24 | 0 | 15,00,000 | 0 | 15,00,000 |
| 59 | 25 | 0 | 15,00,000 | 0 | 15,00,000 |
| 60 | 26 | 0 | 15,00,000 | 0 | 15,00,000 |
| 61 | 27 | 0 | 15,00,000 | 0 | 15,00,000 |
| 62 | 28 | 0 | 15,00,000 | 0 | 15,00,000 |
| 63 | 29 | 0 | 15,00,000 | 0 | 15,00,000 |
| 64 | 30 | 0 | 15,00,000 | 0 | 15,00,000 |
| 65 | 31 | 0 | 15,00,000 | 0 | 15,00,000 |
| 66 | 32 | 0 | 15,00,000 | 0 | 15,00,000 |
| 67 | 33 | 0 | 15,00,000 | 0 | 15,00,000 |
| 68 | 34 | 0 | 15,00,000 | 0 | 15,00,000 |
| 69 | 35 | 0 | 15,00,000 | 0 | 15,00,000 |
| 70 | 36 | 0 | 15,00,000 | 0 | 15,00,000 |
| 71 | 37 | 0 | 15,00,000 | 0 | 15,00,000 |
| 72 | 38 | 0 | 15,00,000 | 0 | 15,00,000 |
| 73 | 39 | 0 | 15,00,000 | 0 | 15,00,000 |
| 74 | 40 | 0 | 15,00,000 | 0 | 15,00,000 |
| 75 | 1,99,24,637 | 15,00,000 | 8,37,71,951 | 15,00,000 | |
| IRR | 6.71% | 11.23% | |||
In this comparison, we have chosen a PPF account and ELSS fund for investment. The final maturity value at the end of 40 years is ₹ 1.99 crores in the PPF account. The IRR for pure term and PPF investment is 6.71%.
The final maturity value in the ELSS fund is ₹ 9.29 crores. This is the pre-tax value, as capital gains arise at the time of redemption of units. The tax calculation is given here. The post-tax maturity value is ₹ 8.37 crores. The IRR for pure term and ELSS investment is 11.23%.
| ELSS Tax Calculation | |
| Maturity value after 40 years | 9,29,27,723 |
| Purchase price | 12,70,000 |
| Long-Term Capital Gains | 9,16,57,723 |
| Exemption limit | 1,00,000 |
| Taxable LTCG | 9,15,57,723 |
| Tax paid on LTCG | 91,55,772 |
| Maturity value after tax | 8,37,71,951 |
Under HDFC Sampoorna Jeevan, you get locked to the investment for 40 years. But, here in these alternate, investments, you enjoy liquidity. You can utilise the corpus any time after 15 years. Here in ELSS investment, you get inflation-beating returns as well. Liquidity and returns are not favourable to invest in HDFC Sampoorna Jeevan Plan.
12.Final Verdict on HDFC Sampoorna Jeevan Plan
HDFC Sampoorna Jeevan Plan offers various combinations of benefits to cater to your requirements. You can receive either a survival benefit or maturity benefit or a combination of both along with the bonus. Though customising the plan is an advantage, too many options leave you in confusion.
Analysing the HDFC Sampoorna Jeevan plan reveals that the returns are less than inflation rate and also there is a high agent commission involved in purchasing the plan. If you invest in products that do not beat the rate of inflation, you will have lesser purchasing power in the future, hence less money for your goals. Investing in HDFC Sampoorna Jeevan derails all your financial goals.
Prudent choice of investment products based on your goals helps in fulfilling the goals. Never club insurance and investment. Diversify your investment under various asset classes. Protect your family with a life cover. Life cover sum assured should be adequate to meet all your goals and liabilities in case of uncertainty.
It is not advisable to rely on social media sites like Facebook, Quora, twitter, etc. to make those critical investment decisions.
Consult a Certified Financial Planner for personalised financial planning. A comprehensive financial plan will cater to all your future financial needs.
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