HDFC Life Sanchay Legacy

Key Features of HDFC Life Sanchay Legacy

The key features of the HDFC Life Sanchay Legacy are as follows:

• You get the whole life option that helps leave a legacy for your family

• You can choose from two plan options as per your suitability: Life option and Return of Premium RoP option

• The term insurance plan accelerates 100% of the death benefit on the diagnosis of any of the 19 covered critical illnesses

• The plan offers a waiver of premium on diagnosis of critical illness with the WOP on CI option, and waives off the remaining premiums on the Total and Permanent Disability with the WOP on TPD option

• You can choose for your nominee to receive the death benefits in installments

• The plan also offers a special benefit of decreasing your premiums after 5 years

Plan Options Available Under HDFC Life Sanchay Legacy

The two plan options available under HDFC Sanchay Legacy term plan are as follows:

• Life Option: The plan offers death benefit cover for the policyholder’s whole life. In case of the diagnosis of a covered critical illness, the death benefit will be accelerated.

• Return of Premium RoP Option: The term insurance with return of premium plan offers coverage for the policyholder’s whole life, and in case of diagnosis of a covered critical illness, the death benefit will be accelerated as per the policy documents. The option provides early ROP benefit at age 85 years or the option to receive in installments. The policyholder shall also receive the survival benefits on surviving till the end of the milestone year.

Benefits offered under the HDFC Life Sanchay Legacy

Death Benefits

On the death of the policyholder during the policy term, the death benefit is paid in a lump sum. The payable death benefits will be the highest of the following: 

• Sum Assured on Death

• Accumulated Premium Value

• 105% of the Total premiums paid

• Surrender Value on the date of death

Maturity Benefits

There is no maturity benefit payable under this plan.

Survival Benefits

The survival benefits under this plan are offered as follows:

• Life Option: No survival benefits will be paid under this plan option.

• Return of Premium Option: The survival benefit will be payable in case of the policyholder’s survival of the milestone year, provided that all the remaining premiums have been paid, and the policy is not terminated early. Under the Early Return of Premium Option, two options are available:

  • Option 1: Return of Premium at Age 85 years

    100% of the total survival benefits will be paid at the end of the milestone year, where the milestone year is 85 years.

  • Option 2: Return of Premium in Installments

    25% of the total survival benefit shall be payable on survival till the end of the following milestone years:

    • At the end of the 15th policy year

    • At the end of the 20th policy year

    • At the end of the 25th policy year

    • At the end of the 30th policy year

    • Or at the (85 - age at entry) years

      Whichever is earlier

Acceleration of Death Benefits

The death benefit under the plan will be accelerated in case of any of the 19 covered critical illness diagnoses. The benefit is available after the end of the 10th policy year or premium payment term, whichever is later. On the accelerated death benefit payout, the policy will terminate, and no other benefits will be payable. 

Rider Benefits Offered Under HDFC Sanchay Legacy

Income Benefit on Accidental Disability Rider

Under this rider, a benefit amount equal to 1% of the rider sum assured will be paid per month for the next 10 years, in the event of an accidental total and permanent disability.

HDFC Life Protect Plus Rider

A proportion of the rider sum assured is paid on the accidental death or partial/total disability due to an accident or on the diagnosis of cancer, as per the selection made under this rider.

HDFC Life Health Plus Rider

The rider sum assured will be paid if the policyholder is diagnosed with any of the covered 60 critical illnesses, or the benefit as a proportionate of the rider sum assured will be paid on the early-stage cancer diagnosis or major cancer. 

Waiver of Premium on Critical Illness (WOP on CI)

The waiver of premium on Critical Illness is an additional benefit that waives all the remaining premiums in case the policyholder is diagnosed with any of the 60 covered critical illnesses. The base life cover, accidental death cover, and terminal illnesses continue as normal. The option can be chosen at the beginning of the policy term and will be available only for options other than the single pay premium terms. The benefit cannot be changed once selected, and the additional premiums need to be paid to keep the benefit active. 

Waiver of Premium in Total and Permanent Disability (WOP on TPD)

With this option, the remaining premiums will be waived in case the policyholder is diagnosed with a total and permanent disability during the policy term. The base life cover, accidental death cover, and the terminal illness cover will continue as normal. The option can be chosen at the beginning of the policy term for policies without a single premium pay option, and cannot be changed once selected. 

Eligibility Conditions of HDFC Life Sanchay Legacy

Policy Details of HDFC Life Sanchay Legacy

Death Benefits in Installments 

The death benefit in installments option pays the entire or a part of the death benefit in installments to the nominee on the death of the policyholder. The conditions to avail this option are as follows: 

• The option can be selected at the time of policy inception or by the nominee at the time of claiming the death benefit.

• The option can be selected to pay a part or the full death benefit.

• The installments can be selected to pay for 5 to 15 years.

Option to Change Premium Frequency

This HDFC Life insurance plan offers the option to change the premium payment frequency during the premium payment terms.

Option to Decrease Premiums

The plan provides the option to decrease your premiums by up to 50% of the original annualised premiums. Under this option, the death benefit will be decreased as follows:

Revised Sum Assured on Death = Original Sum Assured on Death x Revised total premiums payable / Original total premiums payable

Grace Period

The plan offers a grace period during which the policy remains in force even if the premium is unpaid:

• 30 days for yearly, half-yearly, and quarterly premium payments.

• 15 days for monthly premium payments.
  If a valid claim arises during the grace period, the insurer will honor it. However, the unpaid premium for that policy year will be deducted from the claim amount.

Policy Lapse & Reduced Paid-Up

• A policy acquires paid-up value after payment of at least one full year’s premium. In this case, the policy remains in force but with reduced benefits (Reduced Paid-Up).

• If premiums are discontinued before the minimum requirement, the policy lapses without any value.

• The paid-up value is calculated as:
  Paid-up Value = In-force Value × (Number of Premiums Paid ÷ Total Number of Premiums Payable).

• For reduced paid-up policies, the minimum death benefit will be at least 105% of total premiums paid till the date of death.

Surrender Benefits

• Life Option: Surrender value is available after one full year’s premium is paid for Limited Pay policies, and immediately for Single Pay. Formula:
  Surrender Value = 75% × Accumulated Premium Value ÷ (100 − Age at Entry) × Max (100 − Age at Surrender, 0).

• Return of Premium (RoP) Option: Surrender value will be the higher of:

  • Guaranteed Surrender Value (GSV), or

  • Special Surrender Value (SSV).

  • GSV is acquired immediately for Single Pay, and after 2 years of premiums for Limited Pay. It is calculated as:
    GSV = Max (GSV Factor × Total Premiums Paid − any survival benefits paid till date, 0).

  • SSV is based on the expected present value of guaranteed future benefits and accrued benefits, discounted at the prevailing rate (currently 7.75% p.a., subject to review).

Policy Revival

• A lapsed or discontinued policy can be revived within five years from the due date of the first unpaid premium, and before the policy term expires.

• To revive, the policyholder must:

  • Pay all overdue premiums with interest (currently 9.5% p.a.), and

  • Satisfy the insurer’s underwriting requirements.

• Once revived, all policy benefits are restored as per the original terms.

Waiting Period

The policy has an initial waiting period if 90 days from the date of the policy is issued or the policy revival date. There will be no waiting period applicable if critical illness is registered solely due to an accident.

Survival Period

A Survival Period of 15 days is applicable and refers to the period from the diagnosis and the survival period mentioned under the policy.

Cancellation During the Free Look Period

In case you are unsatisfied with the terms and conditions mentioned in the policy documents, you can return the policy during the 30 day free look period starting from the day of receiving the policy documents.

Exclusions of the HDFC Life Sanchay Legacy 

Understanding exclusions is important to know when benefits under HDFC Life Sanchay Legacy will not be payable. These are designed to protect the insurer and ensure fairness.

Suicide Exclusion

• If the life assured dies by suicide within 12 months from policy start or revival, the nominee receives the higher of:

  • 80% of total premiums paid (excluding taxes, riders, extra charges), or

  • Surrender Value on the date of death.

Age Admitted Exclusion

• Premiums are based on declared age. If age proof is missing or incorrect:

  • Policy may be cancelled and premiums refunded (after expenses), or

  • An alternative plan may be offered, or

  • Premiums revised if the insured remains eligible.

Waiver of Premium on Critical Illness (WOP CI) Exclusions
No benefits if critical illness arises from:

• Unlisted illnesses or pre-existing conditions within 36 months (unless declared and accepted)

• Alcohol, drugs, or narcotic abuse

• Intentional self-injury, suicide, or attempted suicide

• War, civil unrest, or military service

• Radiation, nuclear, or biological events

• Congenital/inherited disorders

• Hazardous/adventure sports (mountaineering, scuba diving, racing, skydiving)

• Non-commercial flying (except as fare-paying passenger)

• Pregnancy-related treatments or complications (except ectopic pregnancy or accident-related)

• Unproven/experimental treatments or unqualified practitioners

• Cosmetic/plastic surgery unless accident, burns, or cancer-related

• Obesity surgery unless BMI thresholds and conditions are met

• Criminal acts or illegal activities

• Infertility, sterility, assisted reproduction

• Critical illness diagnosed within the policy-defined survival period

Waiver of Premium on Total & Permanent Disability (WOP TPD) Exclusions
No benefits for disabilities caused by:

• Pre-existing conditions within 36 months

• Alcohol, drug, or substance abuse

• Intentional self-injury or suicide attempts

• War, rebellion, civil unrest, or military service

• Radiation, nuclear, or biological events

• Hazardous professions (e.g., mining, circus, jockeys)

• Adventure sports (mountaineering, scuba diving, motor racing)

• Pregnancy-related treatments (except ectopic pregnancy)

• Experimental/unproven procedures

• Cosmetic/plastic surgery unless medically necessary

• Obesity surgery without meeting BMI/clinical criteria

• Criminal acts or unlawful activities

• Infertility treatments, contraception, assisted reproductive technology

• Disability not certified by a qualified specialist