HDFC Life ProGrowth Plus Plan

HDFC Life ProGrowth Plus is a type of Unit Linked Insurance Plan (ULIP) which is a good way to enjoy life cover alongside acquiring wealth to build a financial corpus. This simple savings-cum-insurance plan will enable you to benefit from returns on market-linked investments in addition to life cover. This plan provides valuable financial protection as well as an opportunity to choose where your money is invested, i.e. your choice of funds.

What is HDFC Life ProGrowth Plus plan?

This Unit Linked Insurance Plan provides you with the choice to choose your regular premium and the investment fund(s). The regular premium paid will be invested by the insurance provider, net of premium allocation charges in the chosen fund or funds in accordance with the proportion specified by you. You will receive the accrued benefits and value of fund or funds at the end of each policy term, as chosen; in case of your unfortunate demise then the fund value will be given out to the benefactor. It is to be noted that under this policy the investment risk is borne by the policyholder from the investments in an investment portfolio(s).

More about HDFC Life ProGrowth Plus Plan

Types of the policies under this plan:

There are two plan options from which the potential policyholder can choose from. The choice provided is on the basis of the level of protection and the coverage offered.

1. Life Option: This policy covers only for the death benefit.
2. Extra Life Option provides for the death benefit and accidental death benefit.

Benefits provided under HDFC Life ProGrowth Plus Plan

Here are the two benefits provided under the HDFC Life ProGrowth Plus Plan:

Death Benefit

The greater of the following would be reimbursed from the following listed below. After the reimbursement to the benefactor, the policy would cease to exist.

1. Sum Assured
2. Unit Fund Value
3. Minimum Death Benefit
4. Accidental Death Benefit

Also referred to as the Extra Life Benefit, this benefit is provided along with death benefit. Under this benefit, an additional sum assured is paid to the nominee but only if the cause of death is an accident. After the benefit is paid out it will become inactive.

Maturity Benefit

At maturity of the policy, which is the end of the chosen policy term, wherein all your risk covers to cease is when the maturity benefit provided. Maturity benefit is basically redeeming your balance units at the prevailing unit price (at the time of redeeming) as well as the fund value.

Types of Funds

The types of the fund(s) to invest in will be in complete control of the policyholder and it should be chosen at the commencement of the policy. Moreover, it can be redirected or changed if required further along with the policy term.

1. Diversified Equity Fund
2. Equity Plus Fund
3. Balanced Fund
4. Opportunities Fund
5. Blue Chip Fund
6. Conservative Fund
7. Bond Fund
8. Income Fund

Key Features of the HDFC Life ProGrowth Plus Plan

The list of salient features of HDFC Life ProGrowth Plus Plan is as follow:

1. This ULIP plan has a 5 year lock-in period. This period, of the first five years, will not offer any liquidity. As per the contract, one cannot surrender their policy or withdraw the money invested in the plan until after the end of the last year of the period.
2. There is the flexibility provided to the policyholder in cases of premium, policy term, level of protection and the frequency.
3. Entry ages for Life Option are of a minimum of 14 years and a maximum of 65 years. However, for Extra Life Option it is a minimum of 18 years and a maximum of 55 years.
4. The Maturity age for Life Option and Extra Life Option is a maximum of 75 years and 70 years respectively with no minimum maturity age.
5. Premiums payable are divided accordingly:

   Premiums to be paid	Minimum Amount	Maximum Amount
   Annually	Rs. 24,000	Rs. 1,00,000
   Half Yearly	Rs. 10,000	Rs. 50,000
   Monthly	Rs. 2,500	Rs. 8,333

6. The sum assured, however, can be calculated in the manner provided:

   Sum Assured (According to age parameter and the policy picked)	Minimum Amount	Maximum Amount
   For those below 45 years	0.5 x policy term x annualised premium Or you can calculate with by using relevant information Higher of 10 x annualised premium	However, the maximum amount for both the age parameters will be calculated using 40 x annualised premium. It will be subject to an absolute maximum sum assured amount of Rs. 40,00,000
   For those of 45 years and over	0.25 x policy term x annualised premium Or in this manner Higher of 7x annualised premium

7. The death benefit provided will be as follows

   In case of death before the age of 60 years	The highest of the following would be paid out Sum Assured (minus the withdrawals made during the two year period immediately preceding the date of death) The minimum death benefit of 105% of the paid premium Or the Total fund value.
   In case of death after the age of 60 years	The highest of the following would be paid out The sum assured (minus the withdrawals made after the age of 58 years The sum fund value or The minimum death benefit after which the policy will cease to exist.

8. The policy term can range from 10 years to a maximum of 30 years.
9. Similarly, the premium paying term can range from 10 years to 30 years is offered, with exception to 11 years term or 14 years term.
10. It is important to balance the level of risk and return, under the HDFC Life ProGrowth Plus Plan there are 8 possible funds option to choose from that will conveniently help with the returns and investment option.  Furthermore, it is a well-established fact that higher the risk more is the potential of high returns and lower the risk the smaller and stable returns over the term of the investment.
11. Partial Withdrawal, as mentioned, can only be done after the lock-in period of 5 years in case of financial emergency or requirement. There can be a lump sum partial withdrawal after the lock-in period for the age groups 18 years and above, with a minimum withdrawal amount of Rs. 10,000.
12. However, after the withdrawal and the applicable charges, the fund value is not less than 150% of the annualized premium. The maximum sum withdrawn during the policy term cannot be over 300% of the actual regular annualized premium.
13. A grace period of 30 days for annual and half-yearly modes and 15 days for the monthly mode is offered on discontinuance of the policy. A notice is issued within 15 days from the expiry of the Grace period, in case one fails to within the provided grace days.
14. Tax benefits are also provided under Section 80C of the Income Tax Act subject to terms and conditions and the prevailing law. Additionally, under Section 10(10D) further exemptions are provided subject to change in accordance with the prevailing Tax law.

Final Word

HDFC Life ProGrowth Plus plan is beneficial to build a financial corpus by investing in the market and also availing life insurance to protect you and your family members. You can easily invest in buying units from any of the following 8 funds provided under this plan that is designed to cater to your appetite for risk. You can either invest in a type of fund or combination of funds offered. But before anything else it is crucial to balance your level of risk and return; therefore, make sure to research and determine your requirements thoroughly so as to make responsible decisions.