Required expert analysis of HDFC Life Super Income Plan returns

POSTED BY sadeesh.r ON April 19, 2014 9:46 pm COMMENTS (26)

Hi

I have been suggested to invest in HDFC Life Super Income Plan by a friendly agent (who is our family friend :D).  As per his explanation, The plan is for 16 years. I need to pay premium of Rs.72,200 for first 8 years. From 9-15 years, I will get payout of Rs.50,000 every year and at the end of maturity (16th year) I might get a lump sum of amount with bonuses, totaling around Rs.15 Lakhs.

I seriously doubt the agent’s illustration, as I gone through product brochure it clearly stats final maturity is my last pay out+bonuses, which is too less and in total I will get only around 7.5 Lakhs (with rough assumptions of bonus rates.). I need some expert advise with illustration on choosing this policy, if i can go ahead with this or not. The agent is behind me to push me into this 🙂 I really don\’t want to waste my investment amount, for 16 years with low return of investment. Kindly advise.

26 replies on this article “Required expert analysis of HDFC Life Super Income Plan returns”

  1. Balaji says:

    Anyone can tell the sum assured will provide in the last year on maturity in the Super Income Plan.

    1. Hi Balaji

      This is very specific query which you should follow up with the concerned authority only. We wont be able to comment on that

      Manish

  2. Abhinav says:

    I hv done hdfc sl progrowth flexi n I hv been told dat I wil get 6.5 lakh at maturity in my annual payment of 50000 for 10yrs…is it advisable??

    1. One cant comment like this. Ask your agent, what is your IRR

  3. Vijay says:

    Already I have taken super income plan but I have some suspission about it, that it good or not.

    1. Its not a great policy !

      1. Sai Sunil says:

        It would be great if you could please suggest any alternative plan to HDFC super income plan policy

        1. Hi Sai

          I would recommend mutual funds for long term investments. If you want, you can invest into that with our help. Our team will support you on this fully.

          Just fill up this (no charges) http://www.jagoinvestor.com/pro#schedule-call

          Manish

  4. Alok Dash says:

    Pls add your revisionary bonus @5℅, the guaranteed payout for the 8 years, and terminal bonus of 30℅. Every thing would be calculated on sum assured which in your case would be 6 to 7 times the annual premium that u will pay. This is what you get in total. Calcualte your annual payout@12.5℅ of sum assured.
    The returns will all be tax free and life cover would be there for 16 years. This would be the benefit other than the return. The revisionary bonus would be atleast @5℅ as if you see the past figures it has never gone below 4.5℅. taking into consideration the merger of Max life co and last declared bonus of 5℅ you can be rest assured this company will give u atleast 5℅ as rev bonus every year. Let’s talk about the illustration, pls ignore it completely as that is seen only incase of ULIP plans. This being a traditional plan would not promise you very high returns but promises you decent return which would be a little better than your fd if u in a 10℅ tax bracket and good if u r in a 30℅ tax bracket.
    If you need more clarification, pls contact me @ krish.alok21@gmail.com

  5. AlokDash says:

    Pls add your revisionary bonus @5℅, the guaranteed payout for the 8 years, and terminal bonus of 30℅. Every thing would be calculated on sum assured which in your case would be 6 to 7 times the annual premium that u will pay. This is what you get in total. Calcualte your annual payout@12.5℅ of sum assured.
    The returns will all be tax free and life cover would be there for 16 years. This would be the benefit other than the return. The revisionary bonus would be atleast @5℅ as if you see the past figures it has never gone below 4.5℅. taking into consideration the merger of Max life co and last declared bonus of 5℅ you can be rest assured this company will give u atleast 5℅ as rev bonus every year. Let’s talk about the illustration, pls ignore it completely as that is seen only incase of ULIP plans. This being a traditional plan would not promise you very high returns but promises you decent return which would be a little better than your fd if u in a 10℅ tax bracket and good if u r in a 30℅ tax bracket.
    If you need more clarification, pls contact me @. alok.dash21@gmail.com

  6. Karthikeyan says:

    The positive aspect of the plan is the life insurance that would continue to exist till the end of 16 years, though you pay premium for only 8 years. Even I have invested but a very minimum amount, but knowing that I may not get a good returns. Insurance products won’t always yield a good returns. In the illustration you would have seen the death benefit more than the total premium that you pay for 8 years. That’s the actual benefit you get out of this plan.

    1. Thanks for your comment Karthikeyan

  7. Praveen says:

    Can anyone suggest about Maturity and death benefits of the HDFC Super income plan with example. Plssss…..

  8. Sachin says:

    There are two columns 4% and 8%. If you consider worse case also you will get 4% and if you include all bonus :
    4% + 4.5% (Bonus as per past few years history) + (Terminal bonus+Int. bonus ) = ~ 11% (minimum)

  9. Rag says:

    The Super Income Plan is a farce.. If you took the first 8 year payment, and put it in a bank FD or RD, you would get a post tax return of 6%. If you did a yearly payment of 3 lakhs for 8 years, you get back 37 lakhs at the end of 16 years( Assuming 8% reversionary bonus + interim bonus) from Super Income plan.

    But if you took the same money, and cumulatively invested in a BANK FD, then the interest rate for which, you get Rs 37 lakhs at the end of 16 years = 3.8% per annum..

    Thats the biggest joke, I have heard.. you can get 3.8% rate of return in a Savings bank account. Even if you assume interest rates will soften, a 3.8% interest is a simple waste..

    I recommend, blocking the yearly payment of 3 lakhs into a bank FD or NSC for 9 years… Thats safe, and you dont have to get a headache trying to understand all the mumbo jumbo. !!

    1. Thanks for sharing that Rag

  10. Manu says:

    Mostly the illustrations will be shown with bonuses in two different rates (4% and 8%) and the 15 lakhs is based on 8% bonus every year which is super optimistic (last three years bonus rates 4.5, 4.5, 5 respectively) So check the illustration for the bonus amount shown for 4% prediction. Your return will be slightly more than that hoping the same bonus as previous years. Apart from that, decision is yours.

    1. Thanks for your comment Manu

      1. I already taken super income plan , in last month but now I don’t want to continue this policy. I want to cancel. Please tell me that I’ll get back my full amount or half?….

  11. santhosh says:

    Super income plan is one of the best plan across industry.Go ahead and take it. I too had taken this plan.It is very best plan.Trust me.

  12. ashalanshu says:

    Dear Sadeesh, a Stich in time (NO), saves nine. Old say but very effective even today. 🙂

    Thanks

    Ashal

  13. Hemanth Chandra says:

    Supposing u will get 7.5L in final year also, then the ROI is just around 6 % which is very less.

    Use XIRR function in excel to calculate.

    Regards,
    Hemanth.

  14. ashalanshu says:

    Dear Sadeesh, A plain NO is all what you require. If you can not say NO, there is no need to discuss. As simple as that. Mathematically also this NO can be proved but you already know this NO, hence not forcing the calculation part. 🙂

    Thanks

    Ashal

    1. sadeesh.r says:

      @Ashalanshu, I am already standing by my “NO” 🙂 Just to say it more kind and pleasant way to my friend, I am looking for some illustrative calculation to support my NO.

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