Whoever said wishes don’t come true hasn’t explored our offers!

HDFC Life ProGrowth Plus

 0.0 / 5.0   by 0 users
Used this product? Write a review >>

Overview

A unit linked insurance plan offering life insurance coverage and options to invest in different funds based on the risk appetite of the policyholder. In addition to the life cover that the plan provides, it offers a choice of funds that can steadily add to the growth of investment. This is a regular premium paying plan meant for people wishing to build a corpus through investing their annual savings in mutual funds.

Eligibility Conditions for HDFC Life ProGrowth Plus Plan

The plan comes with two options and as per those, the eligibility conditions for availing this policy can be depicted in the table mentioned below -

Parameter

Minimum

Maximum

Policy Term (Years)

10

30

Entry Age Life Option

14 years

65 years

Entry Age Extra Life Option

18 years

55 years

Maturity Age Life Option

N/A

75 years

Maturity Age Extra Life Option

N/A

70 years

Key Features of HDFC ProGrowth Plus Plan

This plan meant for wealth creation has the following salient features -

Parameters

Details

   

Plan Type

Unit-linked insurance plan

   

Basis

Individual policy

   

Policy Term

10 years to 30 years

   

Policy Validity

Will be for the chosen policy term in case all premiums have been paid

   

Basic Sum Assured

 

Minimum

Maximum

 

Age < 45 years

Greater of 10x annualised premium or half the product of annualised premium times policy term

40 times the annualised premium subject to a maximum of Rs. 40,00,000

 

Age >= 45 years

Greater of 7x annualised premium or a quarter of the product of annualised premium times policy term

 

Coverage

Maturity Benefit = Fund value of all balance units at the end of the policy term.

   
 

Death Benefit

Before insured life reaches 60 years

On or after insured life reaching 60 years

   

Greater of Sum Assured (minus withdrawals made for 2 years preceding death, Total Fund Value, 105% of the premiums paid

Greater of Sum Assured (minus withdrawals after the age of 58), Total Fund Value, 105% of the premiums paid

 

Accidental Death Benefit = Death Benefit + Additional Sum Assured

   
 

Surrender Benefit

Before completion of 5 years

After completion of 5 years

   

Fund value minus discontinuation charges moved to Discontinued Policy Fund and paid out with accrued interest after 5 years’ completion

Fund value paid out immediately

Free look Period

30 days in case of online purchase. 15 days otherwise

   

Grace Period

15 days for monthly payment, 30 days for all other premium payment frequencies

   

Partial Withdrawals

Allowed after a period of 5 policy years, provided the following terms are met -

  • Life assured is 18 years old or more

  • The withdrawal amount is Rs. 10,000 or more

  • Less the withdrawal value and associated charges, the fund value is not less than 150% of the annualized premium

  • Maximum withdrawal throughout the policy term is subject to 300% of the original regular annualized premium

   

Fund Choice Selection

Is allowed through -

  • Switching - Moving accumulated funds from one fund to another

  • Premium Redirection - Changing the premium allocation into a different set of funds

   

Settlement Option

Allows the Maturity Benefit to be availed in installments over a period of five years

   

Nomination and Assignment

Nomination and assignment facility available but only one can be chosen at a time

   

Reinstatement or revival

Policy, if not surrendered, can be revived within two years from the date of last unpaid premium

   

Benefits and Advantages of ProGrowth Plus Plan

This plan from HDFC Life utilizes different investment funds in order to aid in the growth of wealth and can be opted for by anyone aiming to garner greater returns on planned savings. Life insurance provided by this policy throughout the policy term is an added benefit. The key advantages in opting for this plan can be mentioned in the following points -

  1. Life cover is present throughout the policy term
  2. Flexible long term policy tenures for an investment portfolio with variable risk and returns
  3. Applicable tax benefits can be availed as per Section 80C and 10(10D) of the Income Tax Act
  4. Multiple fund options and unlimited switches to and from different fund options

The key benefits under this policy can be explained as below -

  1. Maturity Benefit - Paid once the policy reaches the maturity age, after the completion of the policy term, this amount can be paid to the policyholder or nominee. This amount includes the fund value of all the balance units in the account
  2. Death Benefit - In case of the death of the insured life, Death Benefit will be payable to the nominee. This will be less the withdrawals made by the policyholder made 2 years prior to the date of death or post 58 years of age as the case may be
  3. Accidental Death Benefit - In case of an accidental death, the nominee would receive an additional sum assured along with the death benefit that is applicable
  4. Surrender Benefit - Policy has a lock-in period of 5 years. If surrendered within the lock-in period, funds move to Discontinuance Policy Fund and get paid after 5 years are complete. In case surrender is done after 5 years, fund value is paid out immediately
  5. Tax Benefit - The contributions made towards the premiums of this policy can be tax deductible as per Section 80C and the received benefits can fall under Section 10(10D). Though these benefits are dependent on the prevailing tax laws

Investment of Funds under HDFC Life ProGrowth Plus

This unit-linked plan from HDFC Life come with four fund options that offer a variable mix of risk and return. The premiums paid could be used over all of the fund options, a specific few as chosen by the policyholder or even in a single one. The details about such funds have been mentioned in the table below -

Fund Name

Details

Asset Categories

     

Risk and Return Rating

   

Money Market Instruments, Cash & Deposits

Liquid Mutual Funds

Govt. Securities, Fixed Income instruments & Bonds

Equity

 
   

Fund Ratios

       

Income Fund

Potentially higher returns

0-20%

 

80-100%

N/A

Moderate

Balanced Fund

Dynamically higher returns

0-20%

 

0-60%

40-80%

Moderate to High

Blue Chip Fund

Large-cap equities

0-20%

 

N/A

80-100%

Very High

Opportunities Fund

Mid-cap equities

0-20%

 

N/A

80-100%

Very High

Charges in HDFC ProGrowth Plus Policy

Being an insurance plan that relies on various funds to generate wealth on the investment made, the policy entails charges on quite a few aspects of itself. The applicable charges on this policy are as follows -

Charge

Particulars

 

Premium Allocation Charge

On Premium paid - 2.5% for Year 1, 2% for Year 2, 0% for Year 3 onwards

 

Fund Management Charge

1.35% per annum of fund value, chargeable daily

 

Policy Administration Charge

On annualised premium per month - 0.42% for Years 1-5, 0.83% for Years 6-10, 0% for Years 11-15 and 0.83% for Year 16 onwards

 

Mortality Charge

Dependent on policyholder’s age and level of cover

 

Miscellaneous Charges

Rs. 250 for policy alteration

 

Partial Withdrawal Charges

Rs. 250 per request, Rs. 25 per request if made online

 

Switching Charges

Rs. 250 per request, Rs. 25 per request if made online

 

Premium Redirection

Rs. 250 per request, Rs. 25 per request if made online

 

Policy Discontinuance Charge (calculated on Annual Premium or Fund Value (APFV) and for the first four years only, zero from fifth year onwards)

Annual Premium <= Rs. 25,000

Annual Premium > Rs. 25,000

 

Lower of 20% of APFV <= Rs. 3000

Lower of 6% of APFV <= Rs. 6000

 

Lower of 15% of APFV <= Rs. 2000

Lower of 4% of APFV <= Rs. 5000

 

Lower of 10% of APFV <= Rs. 1500

Lower of 3% of APFV <= Rs. 4000

 

Lower of 5% of APFV <= Rs. 1000

Lower of 2% of APFV <= Rs. 2000

Premium Payment for HDFC Life ProGrowth Plus Policy

The details of premium payment for this plan can be summarised in the table below -

Premium Parameter

Details

Premiums

Rs. 24,000, Rs. 10,000 and Rs. 2500 are the minimum limits and Rs. 1,00,000, Rs. 50,000 and Rs. 8333 are the maximum limits on the yearly, half-yearly and monthly modes of payment respectively

Premium Paying Term (PPT)

Regular premium payment term and is equal to the policy term

Premium Paying Frequency

Premiums can be paid in monthly, half-yearly and annual frequencies

Premium Paying Modes

ECS, debit cards, credit cards, cheques and other acceptable modes

Premium Discontinuation Scenario for ProGrowth Plus

Post the mentioned grace period, if in case premiums for the policy are not paid and the policy lapses, the risk cover will cease to exist after the policy discontinuation and the fund value (as on the date of policy discontinuance) minus the discontinuance charge will be shifted into a Discontinued Policy Fund and the interest rate applicable on this fund is 4% per annum as of September 2015. This fund shall attract an FMC of 0.50% per annum. If this scenario happens within the first five policy years, the funds shall be paid out at the end of the lock-in period of five years. If the discontinuance happens after 5 policy years, one can convert the policy into a paid-up policy or ask for a time extension of up to 2 years to revive the policy, else one can withdraw from the policy without any risk cover and the fund value will be paid out immediately.

 

GST of 18% is applicable on life insurance effective from the 1st of July, 2017

reTH65gcmBgCJ7k
This Page is BLOCKED as it is using Iframes.