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Investment Plans 2623 views April 8, 2020
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.
Table of Contents
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).
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.
Here are the two benefits provided under the HDFC Life ProGrowth Plus Plan:
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.
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.
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.
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.
The list of salient features of HDFC Life ProGrowth Plus Plan is as follow:
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 |
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 |
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. |
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.