A ‘Novel' Traditional Insurance Plan

Flexible payouts, whole-life cover and guaranteed income among the attractions

- Radhika Merwin

With unit-linked products losing some sheen in the current volatile market and falling interest rates hitting returns on fixed-income products, traditional life insurance plans are back in focus.

The HDFC Life Sanchay Par Advantage is the new kid on the block.

Generally, inadequate cover, hidden expenses and uncertain returns are the pitfalls in participating policies. However, the HDFC Life Sanchay Par Advantage boasts some distinguishing features. Here’s a review of the plan.

What it offers

The HDFC Life Sanchay Par Advantage is a participating life insurance plan that provides you with an option to take up cover for your entire life (till the age 100). You can choose between immediate income and deferred income. Under immediate income, you can opt for a premium-paying term of 6, 8, 10, or 12 years. Under the deferred income option, the premium-paying term can be 8, 10 or 12 years. The policy term can be chosen (30-40 years) or is taken as 100 minus the age at entry.

Under the immediate income option, cash bonuses (if declared) are provided from the first policy year until death, or the end of the policy term, whichever is earlier. On maturity, the policyholder gets all the premium paid plus accrued cash bonuses, if any, and also a terminal bonus (if declared). On death during the policy term, the sum assured under the policy along with accrued cash bonuses and terminal bonus (if any) are paid.