HDFC Life ProGrowth Plus is a savings-cum insurance plan that provides customers extensive life cover and the flexibility of creating investment strategies based on their risk appetite. This ULIP enables you to make the best use of equities and channelize your savings in an effective manner. The plan is also versatile, as you can choose the sum assured. In addition, the policy is available through EMI for HDFC Bank credit card holders.
At the time of policy purchase, the customer can choose between two plan options, i.e., Life Option and Extra Life Option that vary on the amount of coverage. You can also make partial withdrawals from the plan to meet unprecedented expenses. Additionally, policyholders can pay premiums conveniently through multiple modes, such as credit card, internet banking, cheque, and auto debit facility.
The HDFC Life ProGrowth Plus plan can be purchased by a customer if he/she satisfies certain criteria with respect to his/her age and the level of protection he/she requires. These eligibility conditions are detailed below:
|Parameters||Life Option||Extra Life Option|
|Minimum Entry Age||14 years||18 years|
|Maximum Entry Age||65 years||55 years|
|Maximum Maturity Age||75 years||70 years|
All ages mentioned above are with respect to the last birthday of the life insured.
During the purchase of the policy, the customer selects the level of protection he/she desires by choosing an appropriate plan option. The plan options offered by the HDFC Life ProGrowth Plus scheme are:
|Life Option||Death Benefit|
|Extra Life Option||Death Benefit + Accidental Death Benefit|
The benefits offered by the plan options are detailed below:
|Death Benefit||The larger amount from the following will be paid:
|Accidental Death Benefit||Apart from the Death Benefit, this additional amount is paid to the nominee|
The sum assured varies as shown below:
|Sum Assured||Age less than 45 years:||40 times the annualised premium, subject to a maximum sum assured amount of Rs.40 lakh|
|Highest amount among the following:
|Age 45 years and above:|
|Highest amount among the following:
|Policy Term^||10 years||30 years|
^ The scheme does not offer policy terms between 11 and 14 years
Initially the sum assured is determined by the customer. Following this, the premium paid by him/her will be invested in the funds selected as per the chosen proportions. At maturity of the policy, the policyholder receives the fund value as a maturity benefit which is a lump sum amount. If the life insured faces death during the policy term, the nominee receives the death benefit.
The policyholder has the option to choose the premium and premium payment term as per the table below:
HDFC Life ProGrowth Plus is a Unit Linked Plan that does not offer any liquidity in the first five years of the contract. The policyholder will not be able to withdraw or surrender the funds invested in linked insurance products, either partially or completely during this period. The coverage of the HDFC Life ProGrowth Plus plan includes the following:
Settlement Option - The fund value can be withdrawn in periodic installments over a period of 5 years. The value of the instalment payable is subject to investment risk. At the time of settlement, the risk cover ceases, but the Fund Management Charge will continue to be deducted. No further charges will be deducted. During this period, partial withdrawals and switches are not allowed. Complete withdrawals are, however, allowed. At the end of 5 years, the insurer redeems the balance units at the prevailing unit prices and will pay the life assured the fund value.
|Death||Summary of the Death Benefit|
|Before 60 years||The larger amount among the following will be paid:
|At the age of 60 or above||The larger amount among the following will be paid:
If applicable, the Accidental Death Benefit will also be paid in addition to the above amount. Once the Death Benefit is paid, the policy terminates and no more benefits are payable.
This plan does not offer any add-on covers.
The HDFC Life ProGrowth Plus plan has a 30-day grace period for policies with annual and semi-annual frequencies. The grace period for policies with monthly frequency is 15 days.
Discontinuance before the completion of 5 years:
If the policyholder has not paid due premiums within the grace period, then he/she has the following options:
If the policyholder does not exercise any of the options above, the policy will be discontinued.
It should be noted that until the date of discontinuance, the risk cover of the policy will remain in-force and charges will be deducted. Once the policy is discontinued, the risk cover ceases and the fund value less the Discontinuance Charge is shifted to the Discontinued Policy Fund. The minimum guaranteed interest rate applicable to this fund is 4% per annum. A Fund Management Charge of 0.50% per annum will be levied for the amount in this fund.
If a discontinued policy is not revived, the proceeds will be paid out after the completion of the lock-in period of 5 years. In the scenario where the revival period exceeds the lock-in period, the proceeds can be received either at the end of the lock-in period or at the completion of the revival period. Once the discontinuance benefit is paid, the policy terminates with no further benefits.
Discontinuance after the completion of 5 years:
If the policy was discontinued after the lock-in period of 5 years, then the following options are available to the policyholder:
Paid-up Sum Assured = Sum Assured * (Premiums Paid) / (Total Premiums Payable)
If the policyholder does not exercise any of the options mentioned above, the policy will be withdrawn and the proceeds are paid out. After the discontinuance benefit is paid out, the policy terminates with no further benefits.
Revival of Discontinued Policies:
The policyholder can revive a discontinued policy within 2 years from the discontinuance date. At the time of revival:
If the policy is surrendered before the completion of 5 years, the fund value less the discontinued charges will be shifted to the Discontinued Policy Fund. After the completion of the lock-in period, the amount in the Discontinued Policy Fund with the accrued interests will be paid out to the policyholder. If the life assured dies before the payment of the surrender benefit, the amount in the Discontinued Policy Fund will be paid immediately to the nominee. Once the surrender benefit is paid, the policy terminates with no further benefits.
If the life assured is not in agreement with the terms and conditions mentioned in the policy document, he/she can choose to return the policy back to the insurance company, stating relevant reasons. The return of policy should be done within 15 days from the date of receipt of the policy document. This interval is referred to as the free-look period. The free-look period for policies that were bought through distance marketing is 30 days.
When the insurer receives the request from the customer, they will arrange for a refund of the value of units allocated under the policy. It should be noted that once a policy is returned, it cannot be reinstated again.
The charges associated with the HDFC Life ProGrowth Plus plan are as follows:
|Premium due in year||Premium Allocation Rate||Premium Allocation Charge|
|3 and above||100%||0%|
|Year||Percentage of annualised premium charged in a month|
|1 to 5||0.42%|
|6 to 10||0.83%|
|11 to 15||Nil|
|16 and above||0.83%|
|Year of Discontinuance||Discontinuance Charge|
|Annualised premium up to Rs.25,000||Annualised premium above Rs.25,000|
|1||Lower of 20% of Annual Premium or Fund Value, not exceeding Rs.3000||Lower of 6% of Annual Premium or Fund Value, not exceeding Rs.6000|
|2||Lower of 15% of Annual Premium or Fund Value, not exceeding Rs.2000||Lower of 4% of Annual Premium or Fund Value, not exceeding Rs.5000|
|3||Lower of 10% of Annual Premium or Fund Value, not exceeding Rs.1500||Lower of 3% of Annual Premium or Fund Value, not exceeding Rs.4000|
|4||Lower of 5% of Annual Premium or Fund Value, not exceeding Rs.1000||Lower of 2% of Annual Premium or Fund Value, not exceeding Rs.2000|
|5 and above||Nil||Nil|
Premiums paid by the policyholder under the HDFC Life ProGrowth Plus plan are eligible for tax benefits under Section 80C of the Income Tax Act, 1961. Under Section 10 (10D), the benefits received from this policy are exempt from tax. These regulations are subject to changes based on alterations in tax rules. It is advisable to consult a tax advisor for the updated regulations.
HDFC Life has been instrumental in efficiently honouring 99.41% claims in the financial year 2013-14. The insurance company also has a dedicated claims assistance cell that helps customers throughout their claim journey.
HDFC Life is a leading insurance solutions provider in India with a wide network of 398 offices and 9,000 touch-points across the country. The vast coverage ensures that their insurance products are easily accessible by one and all. The insurance company also has a strong financial consultancy wing that provides solutions to customers in India and abroad.
A. No, loans are not available on the HDFC Life ProGrowth Plus policy.
A. The HDFC Life ProGrowth Plus plan is a ULIP that gives you the choice of 4 different funds in which you can invest. Each fund has its own investment guidelines, on the basis of asset allocation between debt, equity, and money market instruments. You can choose to invest in a combination of funds; you can also switch between funds with the fund switch option. The funds available for investment under this plan are as follows:
|Fund (SFIN)||Investment Strategy||Investment Predominantly in||Risk and Return Rating|
|Income Fund ULIF03401/01/10 IncomeFund101||Higher returns from higher duration and credit exposure.||Bonds, Fixed income instruments, and Government securities||Moderate|
|Balanced Fund ULIF03901/09/10 BalancedFd101||Dynamic exposure to equity to enhance returns. Debt allocation reduces volatility.||Equity, Bonds, Fixed income instruments, and Government securities||Moderate to High|
|Blue Chip Fund ULIF03501/01/10 BlueChipFd101||Exposure to equity-related instruments and large-cap equities||Equity||Very High|
|Opportunities Fund ULIF03601/01/10 OpprtntyFd101||Exposure to equity-related instruments and mid-cap equities||Equity||Very High|
A. The insurance company cannot make any changes to the current charges, without approval from IRDAI. The Fund Management Charge will have a maximum upper limit, as per the IRDAI guidelines. The Premium Allocation Charge, Policy Administration Charge, and Mortality Charge rates are guaranteed for the complete policy term.
A. Service tax and all other statutory levies are applicable on the policy. In the future, if any other indirect tax or levy becomes applicable, it will have to be paid by the policyholder.
A. No, it is not possible to alter the premiums, policy term, and sum assured under the HDFC Life ProGrowth Plus policy. However, change in frequency of premium is allowed. This may subsequently result in the alteration of the premium value at each payment.
A. Yes, it is possible to assign the policy, in part or as a whole, to another individual. The instrument of assignment should clearly state the reason for the assignment or transfer. The fee to be paid for the transfer/assignment will be specified, and the policyholder is expected to bear the cost. The insurer may accept or decline the policy assignment request.
A. If you are aggrieved by your insurer’s refusal to accept a policy assignment request, you can prefer a claim to IRDAI within 30 days of receipt of the refusal letter.
A. The insurer sets the unit price of a fund based on IRDA guidelines. It is calculated as follows:
Unit price of a fund = [(Market value of investments held by the fund) + (Value of current assets) - (Value of current liabilities and provisions)] / (Number of units that exist at the valuation date before unit allocation)
This value is rounded to the nearest Re.0.0001, and will be published at the insurer’s website.
A. When the policyholder exits from a policy (i.e., through surrender, maturity, or death, whichever comes earlier) at any time or after completing 5 years, the insurance company calculates the gross yield, net yield, and yield reduction on the basis of actual returns. If the reduction in yield is greater than regulations, the insurer adds claw-back additions to the fund before the benefits are paid out.