HDFC Life ProGrowth Plus Plan

Updated: 04-10-2019 09:25:39 AM

Regular income earned by any individual is seldom enough as the income expenditure ratio varies drastically. This is the main reason for many people to invest in mutual funds and other investment options. And if the person has dependents to support, then it becomes all the more crucial. In such situations, ULIP plans prove to be an effective method of finding an equilibrium between investment and insurance. And that is exactly what HDFC Life strives for. When it comes to unit linked plans, HDFC Life ProGrowth Plus Plan proves to be simple and highly comprehensive ULIP. This plan provides you with various options for investing in terms of funds along with insurance benefits. You can enjoy the benefits of life insurance along with monetary returns on the investments made from your premium.

What is HDFC Life ProGrowth Plus Plan?

It is a Unit Linked Insurance Plan (ULIP) offered on a regular premium basis. In this plan, the policyholder is offered the choice of investment funds as well as the premium amount. The premium amount will be allocated in the chosen funds and in selected proportions. When the policy matures, the insured receives accumulated fund value over the policy term. In case the policyholder passes away before the end of policy term, their nominees will be provided with the sum assured or the fund value (whichever is higher).

Options for Investment Funds in HDFC Life ProGrowth Plus Plan

The plan provides complete flexibility to the policyholder for assuring the corpus growth as per the risk appetite. The risk factor in these policies ranges from high to low as per the proportion of investment in various financial instruments. There are eight options of the type of funds that are available, and they are explained below:

Fund	Details	Fund composition	Risk – Return Rating
Diversified Equity Fund	Long-term capital generator.	Cash & deposits: 0% – 40% Fixed income instruments & bonds: 0% – 40% Equity: 60% – 100%	Very High
Equity Plus	Long term capital generator; Appreciation alike Nifty or better than that	Cash & deposits: 0% – 20% Fixed income instruments & bonds: 0% – 20% Equity: 80% – 100%	Very High
Blue Chip	Large-cap equity exposure along with other equity related instruments	Cash & deposits: 0% – 20% Fixed income instruments & bonds: NA Equity: 80% – 100%	Very High
Opportunities	Mid-cap equity exposure along with other equity related instruments	Cash & deposits: 0% – 20% Fixed income instruments & bonds: NA Equity: 80% – 100%	Very High
Balanced	Optimum money allocation to balance the risk-return factor.	Cash & deposits: 0% – 20% Fixed income instruments & bonds: 0% – 60% Equity: 40% – 80%	Moderate to High
Income	Higher duration & credit exposure – Higher returns	Cash & deposits: 0% – 20% Fixed income instruments & bonds: 80% – 100% Equity: NA	Moderate
Bond	Allocating of money in fixed income instruments only	Cash & deposits: 0% – 60% Fixed income instruments & bonds: 40% – 100% Equity: NA	Moderate
Conservative	Traditional allocation in fixed income instruments & government securities – To deliver stable returns	Cash & deposits: 0% – 60% Fixed income instruments & bonds: 40% – 100% Equity: NA	Low

Plan Options Available

HDFC ProGrowth also provides you with the options in terms of plans. The plans are differentiated from each other on the basis of the benefits that are offered in the same. There are two options in terms of plans in this policy. They are:

• Life Option: Provides you with the death benefit, i.e., it pays the promised amount to the nominees in case of unfortunate death of the insured during the policy term.
• Extra Life Option: Offers both accidental death benefit along with death benefit.

Benefits and Eligibility of the Plan

The eligibility and benefits are an important aspect of the plan. They decide who gets the policy and what is offered under the policy. These aspects are explained as follows:

• The maturity benefit involves the total value of the fund.
• In the settlement option, the policyholder can avail maturity benefit equally over a period of 5 years.
• The death benefit can be taken in the form of partial withdrawals in two years prior to the death or 105% of the paid premiums, whichever is higher.
• In case the policyholder has opted for extra life option and passed away accidentally, his nominees will be paid with extra sum assured at the time of death.
• If the policyholder attains the age of 60 under the policy term, he or she is eligible for a sum assured of the partial amount withdrawn after 58 years of age or 105% of the total premium, whichever is higher.
• There are tax benefits under section 80 C and 10 D on premiums and claims respectively, under this plan.
• There are EMI facilities for premium payment if you have a credit card of HDFC.

Parameters	Details
Entry Age	Life Option: 14 – 65 years Extra Life Option: 18 – 55 years
Maturity Age	Life Option: 75 Years Extra Life Option: 70 years
Policy Term	10 or 30 years
Premium Payment Term	10 or 30 years
Premium Payment Frequency	Monthly, Semi-annually or Annually
Premium Range	Monthly: Rs. 2,500 – Rs.8,333 Semi-Annually: Rs. 10,000 – Rs. 50,000 Annual: Rs. 24,000- Rs. 1,00,000

FAQs

Q1. Can I withdraw money from funds in case of emergency?

Yes, you most certainly can. You can do so after a period of 5 years.

Q2. I bought this policy 7 days ago but don’t want to continue with the policy. Can I do that?

Yes, you have a grace period of 30 days/ 15 days for annual/half-yearly modes. Within this period, you can withdraw the policy.

Q3. Can I take loan with this policy?

No. Loan facility is not available in this plan.