HDFC Life Savings Assurance Plan
HDFC Savings Assurance Plan is a Traditional Participating Endowment Plan. Thus, it is a non-linked Insurance Plan with Bonus facility.
Key Features
This is a Traditional Endowment Plan with Bonus facility
This is a 10 year plan with Regular Premium Payment
On Policy Maturity, the basic Sum Assured + the Reversionary Bonus would be paid to the Life Insured as Maturity Benefit
On unfortunate Death of the Life Insured within the Policy Tenure, all premiums paid till date + compound interest at 6% p.a. would be paid to the nominee as Death Benefit and the policy would be terminated.
If the Life Insured dies in the first policy year, only 80% of the premium would be paid as Death Benefit.
Benefits
If the Life Insured dies within the Policy Tenure:
In the first Policy Year, 80% of the premium paid would be paid back to the nominee as Death Benefit and the policy would be terminated
After the first Policy Year, 100% of the Premiums paid till date + Compound Interest at 6% p.a. would be paid to the nominee as Death Benefit and the policy would be terminated.
On maturity, the basic Sum Assured + the Reversionary Bonus would be paid to the Life Insured as Maturity Benefit and the policy would be terminated. Interim or Terminal Bonus may also be paid.
Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C and the Maturity Benefit is tax fee under section 10(10)D subject to fulfilment of terms and conditions.
How it works
In this plan, premium needs to be paid till the end of the policy tenure, i.e. for the entire period of 10 years. This policy accrues Simple Reversionary Bonus compounded annually. When the policy matures, the basic Sum Assured + the Reversionary Bonus would be paid to the Life Insured as Maturity Benefit. Interim or Terminal Bonus may also be paid.
However, if the Life Insured meets with an unfortunate death within the first Policy Year, then 80% of the premium would be paid to the nominee as Death Benefit and the policy would be terminated. However, if the Life Insured dies after the first Policy Year but within the Policy Tenure, all premiums paid till date would be returned as Death Benefit along with Compound Interest calculated at 6% per annum.
Eligibility
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Minimum
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Maximum
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Policy Term (in years)
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10
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Premium Payment Term (in years)
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10
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Entry Age of Life Insured (in years)
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18
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60
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Age at Maturity (in years)
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-
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70
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Payment modes
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Yearly, Half-Yearly, Quarterly and Monthly
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FAQs
What happens if you stop paying the premiumThe policy will lapse if the premium stops. However, it can be revived within 3 years from the date of first unpaid premium.
What happens if you stop paying the premiumIf premiums for 3 years have been paid up, then surrender of policy is allowed. There is a minimum Guaranteed Surrender Value available with this plan.
What happens if you want a loan against your policyThere is no Loan available under this plan.
Is rider available in this plan?There are No Additional Riders available with this policy
