Sanchay Legacy

What this product is

A non-linked whole-life savings plan aimed at legacy planning, paying a guaranteed death benefit for life with an option to also get your premiums back at age 85 or in staggered instalments.

You might need this if…

• You might need this if you're 40+ and want to guarantee a lump sum for your heirs whenever you die, rather than a plan that expires after a fixed term.
• You might need this if you want your premiums returned to you later in life (a lump sum at age 85, or in four instalments from ages 60/65/70/75) while still keeping death cover active.
• You might need this if you want the option to accelerate 100% of the death benefit early on diagnosis of a serious critical illness (after the 10th policy year or end of premium term).
• You might need this if you're specifically planning for estate or legacy transfer rather than income replacement during your working years.

How it actually works

• Entry age minimum 40; no maturity - the plan runs for whole of life; premium paying term is Single Pay, or 5-6, 7-10, or 11-15 years depending on entry age.
• Two benefit options: Life Option (pure death benefit, no survival payout) and Return of Premium (RoP) Option, either as a lump sum at age 85 or in four 25% instalments at policy years 15/20/25/30.
• Death benefit is the highest of the sum assured, accumulated premium value, 105% of total premiums paid, or the policy's surrender value at the time.
• Sum assured is set as a multiple (1.25x to 10x) of annual premium, called the Death Benefit Multiple, which varies with premium paying term and premium size.
• Four optional riders are available: Income Benefit on Accidental Disability, Protect Plus, Health Plus, and Waiver of Premium (on critical illness or total permanent disability).
• The death benefit can also be taken as instalments over 5-15 years instead of a lump sum.

Worked example

Worth knowing before you decide

• There is no maturity benefit under the Life Option - if you want money back during your lifetime, you need the RoP variant, which costs more.
• Minimum entry age is 40, so this isn't designed for younger buyers looking for term-style protection.
• Surrender value calculations are complex (a formula based on accumulated premium value and age), and early surrender in the first year yields little to nothing.
• Revival after a lapse is only possible within 5 years, at a current interest rate of 9.5% p.a.

Official source

⌟ Official product brochure

Learn about this category

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