HDFC Life Pro Growth Plus Plan

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.

Eligibility - Who is the HDFC Life ProGrowth Plus Plan for?

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.

Sum Assured and Premium Range - What you Get and What it Costs?

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:

Plan Option	Cover
Life Option	Death Benefit
Extra Life Option	Death Benefit + Accidental Death Benefit

The benefits offered by the plan options are detailed below:

Benefit Type	Summary
Death Benefit	The larger amount from the following will be paid: Sum Assured less withdrawals Unit Fund Value Minimum Death Benefit
Accidental Death Benefit	Apart from the Death Benefit, this additional amount is paid to the nominee

Sum Assured:

The sum assured varies as shown below:

Parameter	Minimum	Maximum
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: 10 times the annualised premium 0.5 * policy term * annualised premium
	Age 45 years and above:
	Highest amount among the following: 7 times the annualised premium 0.25 * policy term * annualised premium
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.

Premium:

The policyholder has the option to choose the premium and premium payment term as per the table below:

Parameter	Frequency	Minimum	Maximum
Premium	Annually	Rs.24,000	Rs.1,00,000
	Half-Yearly	Rs.10,000	Rs.50,000
	Monthly	Rs.2,500	Rs.8,333

Plan Coverage - What the HDFC Life ProGrowth Plus Plan Covers?

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:

• Maturity Benefit - The HDFC Life ProGrowth Plus policy matures at the end of the chosen policy term, and all risk covers cease at that time. The policyholder may redeem his/her balance units at the prevailing unit price and withdraw the fund value.

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 Benefit - In the case of unfortunate demise of the life insured, the nominee will be paid a death benefit as defined below:

Death	Summary of the Death Benefit
Before 60 years	The larger amount among the following will be paid: Sum Assured, minus withdrawals made during the two years immediately preceding death Total fund value Minimum death benefit of 105% of paid premiums
At the age of 60 or above	The larger amount among the following will be paid: Sum Assured, minus withdrawals made after 58 years of age Total fund value Minimum death benefit of 105% of paid premiums

 

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.

• Partial Withdrawal - In the event of a financial emergency, the policyholder can make lump sum partial withdrawals from the funds, after the completion of 5 years. However, this is subject to:
  • The life assured being at least 18 years of age
  • The minimum amount of withdrawal being Rs.10,000
  • After withdrawal, the fund value does not go below 150% of the annualised premium
  • The maximum amount withdrawn throughout the policy term being 300% of the annualised premium

Add-On Plans – Additional Coverage under the HDFC Life ProGrowth Plus Plan:

This plan does not offer any add-on covers.

Exclusions - What the HDFC Life ProGrowth Plus Plan doesn’t Cover?

• If the policyholder commits suicide within 12 months from the start of the policy or from the revival date of the policy, the nominee or beneficiary will receive the fund value as on the date of death. If any charges are recovered after death, these will be paid back to the nominee or beneficiary with the death benefit.
• The Accidental Death Benefit will not be paid if the death occurred 90 days after the accident. This amount is also not paid if the death was caused through the participation of the life assured in a hazardous hobby or race.
• Accidental Death Benefit is also not paid when the death is caused by any of the following:
  • Intentional injury or suicide, irrespective of the mental stability of the life assured.
  • Intake of solvent or alcohol.
  • Intake of drugs, other than those prescribed by a registered doctor.
  • Invasion, war, rebellion, civil war, hostilities, etc.
  • Participation in a flying activity, other than as a passenger in a commercial aircraft.
  • Participation in any activity with criminal intent.

Other Key Features – Freelook Period, Surrender Values, Grace Period etc.

Discontinuance:

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:

• To revive the policy within 2 years from the date of discontinuance, or,
• To completely withdraw from the policy. In this case, the policy will be discontinued without any risk cover

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:

• To revive the policy within 2 years from the discontinuance date
• To withdraw from the policy without any coverage
• To convert the policy into paid-up status, where:

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:

• All due premiums should be paid without any interests.
• The discontinuance charges that were deducted at the time of discontinuance will be reversed and the amount in the discontinued policy will be re-allocated in the segregated funds chosen by the policyholder.
• Premium allocation charge and policy administration charge will be levied.

Surrender:

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.

Free-Look Period:

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.

Charges:

The charges associated with the HDFC Life ProGrowth Plus plan are as follows:

• Premium Allocation Charge - This charge is based on the premium. After this amount is deducted from your annualised premium, the remaining amount is used to purchase units. This remaining percentage of your annualised premium is referred to as the Premium Allocation Rate, and this value is guaranteed for the entire term of the policy.

Premium due in year	Premium Allocation Rate	Premium Allocation Charge
1	97.50%	2.50%
2	98%	2%
3 and above	100%	0%

• Fund Management Charge (FMC) - The fund management charge is deducted daily, and the daily unit price is determined after this deduction. Typically, this amount is 1.35% of the fund value.
• Policy Administration Charge - This charge is calculated as a percentage of the annualised premium, and is levied on a monthly basis. However, this is subject to a maximum of Rs.500 per month. This charge is deducted by cancelling units from the chosen funds in a proportionate manner, and is guaranteed for the entire policy term.

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%

• Mortality Charge - Every month, the insurer deducts a charge for providing death cover under the HDFC Life ProGrowth Plus insurance policy. This charge is levied by cancellation of units from the chosen funds in a proportionate manner, and is guaranteed for the entire policy term. The age of the policyholder and the level of insurance cover determines the amount of mortality charge deducted per month.
• Miscellaneous Charges - Any policy alteration request from the life assured attracts a charge of Rs.250 per request. In addition, if he/she requests for partial withdrawal, premium redirection, and fund switch, the following charges will be levied:
  • Partial withdrawal charge - A request for partial withdrawal will attract a charge of Rs.250 per request. If the request was executed through the insurer’s website, there will be a relaxation in this charge, and each request will be levied a charge of only Rs.25. This charge is levied at the time when the partial withdrawal is done.
  • Switching charge - When the policyholder requests for a fund switch, he/she will be required to bear a charge of Rs.250 per request. If the request was executed through the insurance company’s website, the charge will be a reduced amount of Rs.25 per request. This charge is levied at the time of switching from one fund to another.
  • Premium redirection charge - If the policyholder requests for premium redirection, he/she will be required to pay Rs.250 for the service. If the request was executed through the insurer’s web portal, the charge will only be Rs.25 per request.
• Discontinuance Charge - This charge is dependent on the year of discontinuance and the annualised premium. After the 5th policy year, there is no Discontinuance Charge. Calculation of the Discontinuance Charge is as per the table below:

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

Tax Benefits – How you can save with the HDFC Life ProGrowth Plus Plan?

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.

Other Benefits – How you can save with the HDFC Life ProGrowth Plus Plan?

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.

Why you should Buy the ProGrowth Plus Plan from HDFC Life?

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.

HDFC Life ProGrowth Plus Plan FAQs:

Q. Can I avail loans on the policy?

A. No, loans are not available on the HDFC Life ProGrowth Plus policy.

Q. What are the funds associated with the HDFC Life ProGrowth Plus plan?

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

Q. What are the flexibilities that the HDFC Life ProGrowth Plus plan offers?

A.

• Change of funds - Investment fund choices can be altered in two ways:
  • Switching - The policyholder can switch from one fund to another at any point of time.
  • Premium Redirection - The policyholder can pay future premiums into different funds, as required.
• Change of frequency - The policyholder can choose to change the frequency at which premiums are paid, anytime during the policy term.

Q. Can charges under the HDFC Life ProGrowth Plus plan be altered?

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.

Q. Is Service tax applicable for the policy?

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.

Q. I have identified a premium that I can comfortably pay during the initial days of the premium payment term. Can this amount be altered later on?

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.

Q. Can I assign the policy to another individual?

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.

Q. What can be done if my request for policy assignment has been rejected by the insurance company?

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.

Q. What are the unit prices of funds associated with the policy?

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.

Q. What are non-negative claw-back additions?

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.