HDFC Life Sampoorn Nivesh Plus Calculator

HDFC Life Sampoorn Nivesh Plus Calculator

HDFC Life Sampoorn Nivesh Plus is a unit-linked insurance plan (ULIP) — part of your premium buys life insurance cover and the rest is invested in market-linked funds. Unlike a traditional endowment plan, the maturity amount is not guaranteed: it depends on fund performance, which is reduced every year by a set of charges (premium allocation, fund management, policy administration, and mortality charges).

This calculator projects the fund value at maturity under one of the two investment-return scenarios insurers are required to illustrate (4% and 8% p.a., as mandated by IRDAI for ULIP benefit illustrations), along with your life cover, total premiums paid, total charges deducted, and an approximate effective annual yield. It models Regular Pay only (premiums paid for the full policy term) and uses illustrative charge and mortality assumptions modeled on typical ULIP structures — it does not reproduce HDFC Life's official benefit illustration. Always confirm exact figures with your policy document or an HDFC Life advisor before making a purchase decision.

Life cover (Sum Assured)

IRDAI's minimum sum assured norms for regular-premium ULIPs depend on your age at entry:

$$\text{Age} < 45: \quad SA = \max(10 \times AP,\ 0.5 \times PT \times AP)$$ $$\text{Age} \geq 45: \quad SA = \max(7 \times AP,\ 0.25 \times PT \times AP)$$

where AP is your Annual Premium and PT is the Policy Term in years. This calculator uses the higher of the two applicable multiples as your Sum Assured, which stays fixed for the whole policy term. The amount paid to your nominee on death during the term is the higher of the Sum Assured and the fund value at that time.

Charges deducted from the fund

Every policy year, before the year's growth is applied, the fund is reduced by:

• Premium Allocation Charge — a percentage of that year's premium deducted before it is invested: 5% in year 1, 3% in years 2–5, 1.5% from year 6 onward.
• Policy Administration Charge — a flat ₹500 per year, charged only in years 1–5.
• Mortality Charge — the cost of the life cover, applied to the Sum at Risk (the gap the insurer is actually on the hook for):

$$\text{Sum at Risk} = \max(SA - \text{Fund Value},\ 0)$$ $$\text{Mortality Rate (per mille)} = 0.30 \times 1.09^{(\text{Age} - 20)}$$ $$\text{Mortality Charge} = \text{Sum at Risk} \times \frac{\text{Mortality Rate}}{1000}$$

The mortality rate rises with age, so this charge grows over the policy term even as the Sum at Risk shrinks with a growing fund.

• Fund Management Charge (FMC) — 1.35% per annum (the IRDAI-prescribed cap for ULIP funds), applied to the fund value for the year.

Fund growth

After the year's charges are deducted, the remaining fund value is grown at your selected illustrative rate (4% or 8% p.a.), then the Fund Management Charge for the year is deducted:

$$\text{Fund Value}_{\text{year end}} = \text{Fund Value}_{\text{after charges}} \times (1 + r) - \text{FMC}$$

where r is the selected gross return scenario (4% or 8%).

Effective annual yield

The calculator also estimates an effective annual yield (an approximate internal rate of return) by treating your premiums as yearly outflows and the projected maturity fund value as a single inflow in the final policy year, then solving for the constant annual rate that makes the discounted cash flows net to zero. Because charges are front-loaded and mortality charges grow with age, this yield is usually noticeably lower than the assumed gross return — most visibly at the 4% illustration, where charges can consume a large share of the growth and leave the effective yield only slightly above zero.

How to use this calculator

1. Enter your Age at Entry.
2. Enter the Annual Premium you plan to pay.
3. Choose a Policy Term (10, 15, 20, or 25 years) — premiums are assumed payable for the full term (Regular Pay).
4. Choose an Assumed Return Scenario — 4% p.a. (conservative) or 8% p.a. (optimistic), the two rates ULIP illustrations are required to show.
5. Submit to see your Sum Assured, total premiums paid, total charges deducted, projected maturity fund value, effective annual yield, and a year-by-year fund value schedule.

Worked example

Suppose you are 30 years old, pay an Annual Premium of ₹1,00,000, choose a 20-year Policy Term, and select the 8% p.a. return scenario.

• Sum Assured: max(10 × ₹1,00,000, 0.5 × 20 × ₹1,00,000) = ₹10,00,000
• Total Premiums Paid over 20 years: ₹1,00,000 × 20 = ₹20,00,000
• Each year, ~5% (year 1) or ~1.5–3% (later years) of that year's premium is deducted as allocation charge before investment, plus a small mortality charge on the Sum at Risk and a 1.35% p.a. fund management charge on the invested balance
• The projected fund value at the end of year 20 reflects 20 years of 8% gross growth net of these charges — typically several times the total premiums paid, though the exact figure depends on how the fund value (and therefore the Sum at Risk and mortality charge) evolves year to year