Is HDFC Life Sanchay Plus a good plan to invest in?

Mohammed
Jun 17, 2019
HDFC Life Sanchay Plus offers 8% to 9% of Guaranteed Addition and also the guaranteed maturity benefit of 220% to 325% of the Sum Assured depending upon the policy term
2 Answers
Jun 18, 2019

I would provide a quick response.  All the investment-cum-insurance products are bad in both counts - they typically have very low insurance coverage and give suboptimal returns.  You can read a longer response in a related question: https://dhanwise.com/ask-the-expert/9/are-endowment-plans-lics-jeevan-anand-good-investment-option/

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Jun 19, 2019

"HDFC Life Sanchay Plus offers 8% to 9% of Guaranteed Addition and also the guaranteed maturity benefit of 220% to 325% of the Sum Assured depending upon the policy term" ???

It is a typical endowment plan which is selling with wrong claims. First of all, the IRR of this product will not cross more than 6.5%. Hence, I am not sure how you arrived at 8% to 9% returns values. 

Regarding 220% to 325% GUARANTEED maturity benefit, you have to understand when they pay. If we consider this benefit also, (actually it is a return of premium of what you paid but not 220% to 325% returns), the returns will not cross more than 7%.

Hence, better you stay away from such products. Meanwhile, I have written a detailed post on this product. I have done a illustrative examples also. Hence, suggest you to refer my recent blog post HDFC Life Sanchay Plus - A GUARANTEED TRAP!!

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