Why is a Savings Life Insurance Plan the Smart Way to Build Wealth and Live a Stress-Free Life?

Life has a habit of throwing googlies at us when we least expect them. Most of us like to plan for these unforeseen events by putting money aside for emergencies. But life also has a few set goals that we work hard to achieve. Marriages, children’s education, a larger home, and a secure retirement fund are all goals that require our investments to grow steadily in order to be realized.

Having a diverse portfolio helps you balance your desire to grow your wealth exponentially while remaining financially stable. Today, you can park your surplus earnings in a variety of fixed deposit and other banking instruments, equities, real estate, gold, and other assets and earn dividends over time.

However, not all investments provide guaranteed returns, and to protect yourself from market volatility, it is prudent to have a plan in your portfolio that not only provides guaranteed returns at maturity, but also provides the security of adequate life insurance coverage. A Savings Life Insurance plan is exactly what you need to supplement your finances.

What exactly is a Savings Life Insurance Plan?
A Savings Life Insurance Plan, such as the HDFC Life Sanchay Fixed Maturity Plan, ensures you and your loved ones are financially protected at all stages of life while also providing guaranteed returns on savings at maturity.

This means that, in addition to allowing you to choose your premium payment options and policy terms, this flexible insurance plan also provides you with the benefit of maturity benefits payable at the end of the policy term. These benefits, which are equal to the annualised premium / single premium multiplied by the guaranteed maturity multiple (GMM), imply that you will reap a good harvest at the end of the term, allowing you to fulfil your life goals, whether it is your child’s higher education plan, a grand destination wedding for your child, or a retirement income that will allow you to travel and indulge your passions in your later years. In the event of your death, the lump sum payment assists your beneficiaries.

Why choose the HDFC Life Sanchay Fixed Maturity Plan?

Aside from the advantage of guaranteed returns at maturity, the HDFC Life Sanchay Fixed Maturity Plan is a flexible plan. It gives you the option of making a single, annual, half-yearly, quarterly, or monthly premium payment. A wide range of policy terms, up to 40 years, makes it an appealing investment opportunity for anyone, from those just starting out in their careers to those nearing the end of their working lives. The option of joint life cover in the HDFC Life Fixed Maturity Plan gives you an added layer of security: with two members covered by life insurance, your dependents can live worry-free lives, as payouts are guaranteed in the event of the death of one of the members.

How do maturity advantages help?
The HDFC Life Sanchay Fixed Maturity Plan provides a guaranteed maturity benefit payable as a lump sum at the policy’s end. The maturity benefit is equal to the Sum Assured on Maturity, which is equal to (Annualized Premium or Single Premium) x Guaranteed Maturity Multiple (GMM). The GMM varies according to age and premium payment term.

The Death Benefit Multiple, which is available under the Single Premium variant, is an additional feature of this plan. Policyholders can select the Death Benefit Multiple (DBM) in one of two ways: Beneficiaries of single life insurance policies receive 1.25 to 1.5 times the death benefit for those who choose the single premium option.

The DBM is set at 10, multiplied by the annual premium for the plan’s regular/limited pay variant. If the joint life insurance option is selected, death benefits are paid to the beneficiaries following the death of each joint policyholder. After the death of one holder, the policy continues for the surviving life assured.

Plan carefully in order to achieve your objectives.
While the HDFC Life Sanchay Fixed Maturity Plan alleviates your concerns about unforeseen events, it also assists you in laying a solid foundation for achieving your life objectives.

You can ensure that you have a good corpus accumulated by the time you need to use it to realise your dreams by selecting the right policy term and premium payment option for you. In the event of an emergency, HDFC Life Sanchay FMP allows you to surrender the policy and access your funds. The policy receives a Guaranteed Surrender Value immediately upon payment of the Single Premium and at least the first two years’ premium in the case of a Regular/Limited Pay policy. You can also change the frequency of premium payments with a flexible plan, such as the HDFC Life Sanchay Fixed Maturity Plan, to meet your changing needs.

While diversifying your investment portfolio is recommended, you should not overlook the importance of choosing a plan that provides you with the dual benefits of making your life secure while also growing your wealth!


The information contained in this post is for general information purposes only. The information is provided by the author and while INFLUNCD endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.


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