HDFC ProGrowth Flexi Plan: Feature & Reviews

Published: 06-03-2019 07:41:57 AM

It is always good to be insured to be safe for uncertain times. One of the best insurance providers we have around  is HDFC Standard Life when it comes to providing prompt and quality services in terms of insurance. HDFC ProGrowth Flexi Plan is a savings cum insurance plan by HDFC Standard Life. It is one of the most popular non-participating unit linked life insurance plan among the Indian population which lets the policyholders invest along with savings and insurance in the same policy. These types of plans let you invest along with getting insured at the same time which helpsyou to grow your corpus and protect your dependents simultaneously. Thus, you can be prepared for the uncertainties of life without compromising on the probable investments.

Plan Features

• The plan provides protection to the nominees in case of the unfortunate and unforeseen demise of the insured.
• There are options of additional benefits in this plan that can easily be availed by the insured as per his or her choice.
• The plan gives you an option to invest in different type of funds. The amount of investment and premium is decided by the policyholder as per his/her requirements. The selected premium amount is invested in the chosen funds in the magnitudes as per the wishes of the policyholder. The accumulated funds will be disbursed to the policyholder at the end of this policy term.
• In the case of the death of the policyholder during the policy term, the nominee will get the sum greater of Unit Fund Value or sum assured.

Types of Benefits Involved

There are two types of benefits that are covered in the plan, and these options are:

Death Benefit: Under the death benefit, the nominee will be paid the higher of sum assured ,Unit Fund Value and minimum death benefit. Once the promised benefits and their amount has settled the term of the policy will end, and HDFC is no longer liable to offer any benefits thereafter.

Accidental Death Benefit: Under the accidental death benefit, the nominees of the insured are paid the additional sum assured along with the death benefit amount if the policyholder dies in an accident. The HDFC ProGrowth Flexi Plan will terminate after the amount settlement.

Plan Options offered in HDFC ProGrowth Flexi Plan

The plan has two choices for the coverage, and they are:

• If the policyholder chooses life option, then death benefit will be provided to the policyholder
• If the policyholder chooses extra life option, death benefit and accidental death benefit will be provided to the insured. .

Eligibility for HDFC ProGrowth Flexi Plan

PARAMETERS	MIN	MAX
Entry Age	14 (Life Option) 18( Extra Life Option)	65 (Life Option) 55( Extra Life Option)
Maximum Age At Maturity		75 (Life Option) 70( Extra Life Option)
Policy Term	10	30
Premium	24,000(Annual) 10,000 (Half-yearly) 2,500 (Monthly)	No limit

 

Options for investment funds in HDFC ProGrowth Flexi Plan

 

The policyholder is provided with a choice among the investment funds in which S/he wishes to invest. There are various options that are bifurcated mainly on the basis of risks, and returns. The policyholder should consider the same factors, i.e., risks and returns, for making a selection of the investment fund they are interested in. The available options of investment funds are:

1. Equity Plus: The equity plus fund focuses upon the generation of the returns that are more than or equal to the Nifty Index returns. The fund composition is 0-20% in the money market, e., deposits cash and instruments. For the government securities, fixed income instruments and bonds the fund composition is of 0-20% as well. When it comes to equities, the fund composition for equity plus is 80-100%. The risk and return rating of this particular investment fund is very high.
2. Diversified Equity Fund: The diversified equity fund focuses upon the generation of long-term capital amount appreciation with the help of investments made in companies with high potential. The fund composition is 0-40% in the money market, e., deposits cash and instruments. For the government securities, fixed income instruments and bonds the fund composition is yet again 0-40%. When it comes to equities, the fund composition for equity plus is 60-100%. The risk and return rating of this particular investment fund is very high.
3. Blue Chip Fund: The Blue-chip fund focuses upon the exposure of money to instruments related to equity and large-cap equities. The fund composition is 0-20% in the money market, e., deposits cash and instruments. When it comes to equities, the fund composition for equity plus is 80-100%. The risk and return rating of this particular investment fund is very high.

 

4. Opportunities Fund: The opportunities fund focuses on the exposure of money to instruments related to equity and mid-cap equities. The fund composition is 0-20% in the money market, e., deposits cash and instruments. When it comes to equities, the fund composition for equity plus is 80-100%. The risk and return rating of this particular investment fund is very high.

 

5. Balanced Fund: In the balanced fund the money is allocated among different equity funds in order to increase the returns. The allocation of debt ensures that the volatility of the returns is not as much. The fund composition is 0-20% in the money market, e., deposits cash and instruments. For the government securities, fixed income instruments and bonds the fund composition is of 0-60%. When it comes to equities, the fund composition for equity plus is 40-80%. The risk and return rating of this particular investment fund is moderate.

 

6. Income Fund: In the income fund there is a higher potential when it comes to the returns. This is so as there are credit exposure and longer duration of the investment. The fund composition is 0-20% in the money market, e., deposits cash and instruments. For the government securities, fixed income instruments and bonds the fund composition is of 80-100%. The risk and return rating of this particular investment fund is moderate.

 

7. Bond Fund: In the bond fund, the allocation of the funds is done among the instruments of fixed income. The fund composition is 0-60% in the money market, e., deposits cash and instruments. For the government securities, fixed income instruments and bonds the fund composition is of 40-100%. The risk and return rating of this particular investment fund is moderate.

 

8. Conservative Fund: In the conservative fund, the funds are invested in government securities and fixed income instruments of high grade with a shorter yield. These funds assure stable returns over the course of investments. The fund composition is 0-60% in the money market, e., deposits cash and instruments. For the government securities, fixed income instruments and bonds the fund composition is of 40-100%. The risk and return rating of this particular investment fund is low.

Benefits Under the Plan

 

• The maturity benefit in this plan involves complete fund value
• Under the settlement option, the insured can receive the money in equal installments over a time period of 5 years.
• If the policyholder passes away before 60 years of age, then the sum assured is 105% of the paid premiums or the net amount of withdrawals in the last two years or fund value whichever is high.
• If the policyholder dies after 60 years of age, then the sum assured will be the withdrawals made after the age of 58 105% of the paid premiums or fund value whichever is high.
• If the policyholder is insured under the extra life option, then he/she is paid accidental death benefit along with the sum assured.
• The plan involves tax benefits under section 80C of Income Tax Act.

FAQs

1. What is the time range for which HDFC ProGrowth Flexi Plan can be availed?

This policy has a term range of 10 to 30 years.

2. What is the type of coverage options available under the HDFC ProGrowth Flexi Plan?

There are 2 options for the coverage that can be opted under this plan and they are:

1. Life Option
2. Extra Life Option
3. What is the maximum age of maturity of the plan?

The maximum age of maturity in this HDFC ProGrowth Flexi Plan is 75 years.

4. What is the tenure of premium payment under this plan?

The tenure of premium payment is the same as policy term.

5. What are the options of investment funds available in this plan?

There are 8 options of investment funds that can be opted under this plan and they are:

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