HDFC Life HDFC Life
Moneycontrol Moneycontrol
Saved money on movie tickets and eating out? Here's how you can turn it into profit

INVESTMENT

Saved money on movie tickets and eating out? Here's how you can turn it into profit

The COVID-19 pandemic and subsequent lockdown have led to the entire country being stuck at home for months together. All of our regular outdoor activities, from travelling to watching live matches or even going to work, have come to a halt.

Being relegated to the four walls of our homes for such a long time has led to a lot of people being able to save up the money they'd have otherwise spent on leisure activities. This presents us with the opportunity to smartly invest this money for further long term gains.

If this year has taught us anything, it is that life can change in an instant, be it losing your job with a regular income or being in an unfortunate accident that impairs your ability to secure your family financially. It has become even more imperative now to invest in an insurance plan and ensure you and your family are protected from, and prepared for, life's ups and downs. So an insurance plan should be first on your list of investments. When looking for a life insurance plan, consider which insurance provider you trust to provide you with the best possible benefits. HDFC Life's Sanchay Plus Plan for instance is a reliable option as it gives you flexibility in terms of how you can invest your money.

HDFC Life's Sanchay Plus Plan is a reliable option as it gives you flexibility on how to invest your money.

shutterstock_1573350688

A Traditional Insurance Plan With Guaranteed Returns

To start with, this is a non-participatory, non-linked saving insurance plan that offers you guaranteed returns, while also providing an assured regular income. A non-participatory plan is one in which you do not share the profits of the insurance company. The minimum age for buying the HDFC Life Sanchay Plus policy is five years, while the maximum is as high as 60 years. The minimum age to avail the maturity benefits starts at18 years, while the maximum age is 71 years.

Four Plan Options Available

This policy offers four plans for you to choose from. You can decide which plan to select based on which stage of life you're in and your commitments in the long term. Based on three important factors: the policy term, the Premium Paying Term (PPT) and the payout period, you can choose from one of the following options.

1. Guaranteed Maturity Option

The Guaranteed Maturity option offers a guaranteed benefit payable as a lump sum at maturity. This plan gives you three policy term options: 10 years, 12 years and 20 years with a PPT of five years, six years and 10 years respectively. The maturity amount will be paid at the end of the policy term.

2. Guaranteed Income Option

This option offers you the maturity benefit in the form of Guaranteed Regular Income for a fixed term of either 10 or 12 years. There are two policy terms to choose from: 11 years or 13 years with a term of 10 and 12 years, respectively. As per the 10-year PPT, the payouts start at the end of the 12th and continue until the end of the 21st year. On the other hand, as per the 12-year PPT, the payouts start at the end of the 14th and continue until the end of the 25th year. In the unfortunate event of the death of the policyholder, the payouts continue to be given to the nominee.

3. Long Term Income

This plan offers the maturity benefit in the form of a guaranteed income for a fixed term of 25 or 30 years and also a return of the total premium paid by the end of the payout period. The policy terms on offer are either six years (with a five-year PPT) or 12 years (with a 10-year PPT). Once again, in the event of the death of the policyholder, the payments will continue to the nominee.

4. Life-Long Income Option

This plan offers the maturity benefit in the form of a guaranteed income till the age of 99 along with a return of the total premiums paid at the end of the policy term. This plan gives you the option of two PPTs of five years and 10 years, with their respective policy terms of six years or 11 years.

This plan gives you the highest returns when compared to the others, as you receive a percentage of the annualised premium every year from the end of the PPT till you turn 99. In addition to this, the premiums paid will also be returned.

Easy to Understand With Great Flexibility

What one will most appreciate about this plan is that it's unaffected by market fluctuations and is easy to comprehend, so you know what you're getting into. The highlight, however, is that it guarantees tax-free income and returns at maturity.

If you're looking to multiply your wealth, there are plenty of investment options out there. But an investment and insurance scheme like this is a great start, offering you both a regular tax-free income, and the peace of mind that comes with ensuring your family is cared for.

This is a partnered post.

Recommended Articles

INSPIRING & INSIGHTFUL STORIES