HDFC Life SL ProGrowth Flexi is a savings-cum insurance ULIP that enables you to financially secure your future. This investment plan by HDFC assists you in protecting your dependents from an unprecedented event like death, by offering a substantial death benefit. At maturity of the policy, you can choose to accept the fund value as a lump sum amount or you can even opt for the settlement option. The policy enables you to pay premiums through multiple modes, such as internet banking, credit cards, auto-debit functionality, and cheques. The payouts under the policy are subject to tax benefits as well.
For a customer to be able to purchase the HDFC Life SL ProGrowth Flexi plan, he/she would have to satisfy certain eligibility criteria with respect to his/her age and the amount of coverage he/she requires. The eligibility conditions associated with the HDFC Life SL ProGrowth Flexi plan are tabulated below:
|Coverage||Entry Age||Maximum Maturity Age|
|Life Option||14 years||65 years||75 years|
|Extra Life Option||18 years||55 years||70 years|
All ages mentioned above are with respect to the last birthday of the life insured.
The policyholder can choose to opt for a plan with any of the following coverage options:
|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 nominee will be paid the greater amount among the following:
|Accidental Death Benefit||Apart from the Death Benefit, this additional amount is paid to the nominee. Once the Accidental Death Benefit is paid, the policy terminates with no further benefits.|
Linked insurance products do not have any liquidity for the first five years of the policy term. This implies that the life assured will not be able to withdraw or surrender the money that is invested in Linked Insurance Products, in part or as a whole, till the end of the fifth year.
The sum assured for the HDFC Life SL ProGrowth Flexi plan varies as shown below:
|Parameter||Sum Assured||Policy Term|
|Age less than 45 years||Age 45 years and above|
|Maximum||40 times the annualised premium||30|
Since this is a ULIP, the premiums that you pay towards the policy are subject to risks in the capital markets. So, it is necessary to balance the risk and return associated with the policy. There are 4 funds that you can choose from to avail higher but more volatile returns, or lower but more stable returns. Based on your risk appetite, you can buy units in any of these funds.
The premium for policies with different payment frequencies are as shown below:
Policy terms between 11 and 14 are not available under the policy.
It is mandated that customers with policies having monthly premium payment frequencies should pay the premium for the first three months in advance.
The HDFC Life SL ProGrowth Flexi plan is a smart investment-cum-insurance plan that allows you to provide optimum financial protection for your family. The plan enables you to build savings and benefit from life cover at the same time. The coverage under the plan includes:
Settlement Option - The policyholder can take the fund value in the form of periodic instalments over a duration of 5 years. The value of the amount paid is dependent on the investment risks. During the settlement period, the risk cover stops, but the Fund Management charge will continue to be deducted. It should be noted that switches and partial withdrawals are not allowed during this period. Complete withdrawal may be allowed, without levying a charge. When the lock-in period of 5 years comes to an end, the insurer redeems the balance units and pays the fund value to the life assured.
|Before 60 years of age||The nominee will be paid the greater amount among:
|After 60 years of age||The nominee will be paid the greater amount among:
This plan does not offer any add-on covers.
The HDFC Life SL ProGrowth Flexi plan has a grace period of 30 days for policies with annual and semi-annual premium payment frequencies.
If the policyholder discontinues the policy before the completion of 5 years:
In case the premium is paid by the end of the grace period, then the following options are available to the life assured:
If the policyholder does not exercise any of the above options, the policy will be discontinued. Once the policy is discontinued, the risk cover stops and the Fund Value less the Discontinuance Charge will be shifted to the Discontinued Policy Fund. The minimum guaranteed interest rate for this fund is 4% per annum. Moreover, a fund management charge of 0.50% per annum is levied on amounts in this fund.
If a discontinued policy is not revived, the proceeds are paid out at the end of 5 years. In cases where the revival period exceeds the lock-in period, the life assured can receive the proceeds at the end of the lock-in period or at the completion of the revival period. After the discontinuance benefit is paid out, the policy terminates with no further benefits.
If the policyholder discontinues the policy after the completion of 5 years:
In such circumstances, the following options are available to the life assured:
During the revival period, the policy will be in-force with all risk covers, and charges will continue to be deducted. If the life assured does not exercise any of the above options, the policy will be withdrawn and 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 choose to revive a discontinued policy within 2 years from the date of discontinuance. At revival, all due unpaid premiums will have to be paid. The discontinuance charges that were deducted at the time of discontinuance will be reversed and the proceeds under the policy will be reallocated to the chosen funds. Premium allocation charge and policy administration charge will be levied for the discontinuance period.
If the policy is surrendered before the completion of 5 years:
The fund value minus discontinued charges will be shifted to the Discontinued Policy Fund. The amount in this fund along with the accumulated interest will be paid out at the completion of 5 years. If the life assured faces death before the surrender benefit is paid out, the proceeds of the Discontinued Policy Fund will be paid to the nominee immediately.
If the policy is surrendered after the completion of 5 years:
The fund value will be paid out to the life assured immediately. Once this benefit is paid, the policy terminates.
If the customer does not agree to the terms and conditions included in the policy document, he/she can return the policy back to the insurer within 15 days from the date of receipt of the policy document. This interval is known as the free-look period. The free-look period for policies that were purchased through distance marketing is 30 days. Once the insurer receives the letter from the customer, along with the returned policy, they will arrange for a refund of the value of units allocated under the policy. Once a policy is returned, it cannot be revived again.
The charges associated with the HDFC Life SL ProGrowth Flexi plan are as follows:
|Year 1 and 2||Year 3 to 5||Year 6 and above|
|Premium Allocation Rate||92.5%||95%||100%|
|Premium Allocation Charge||7.5%||5%||0%|
Premium Allocation Charge is guaranteed for the complete policy term.
|Discontinuance during the policy year||Discontinuance Charge|
|Annual premium up to Rs.25,000||Annual premium above Rs.25,000|
|1||Lowest among 20% of Fund Value or Annual Premium, not exceeding Rs.3,000||Lowest among 6% of Fund Value or Annual Premium, not exceeding Rs.6,000|
|2||Lowest among 15% of Fund Value or Annual Premium, not exceeding Rs.2,000||Lowest among 4% of Fund Value or Annual Premium, not exceeding Rs.5,000|
|3||Lowest among 10% of Fund Value or Annual Premium, not exceeding Rs.1,500||Lowest among 3% of Fund Value or Annual Premium, not exceeding Rs.4,000|
|4||Lowest among 5% of Fund Value or Annual Premium, not exceeding Rs.1,000||Lowest among 2% of Fund Value or Annual Premium, not exceeding Rs.2,000|
|5 and above||Nil||Nil|
Premiums paid by the policyholder under the HDFC Life SL ProGrowth Flexi plan and benefits received are eligible for tax benefits under Section 80C and Section 10(10D)) of the Income Tax Act, 1961. These regulations are subject to changes based on alterations in tax rules. It is advisable to consult a tax advisor for updated regulations.
HDFC Life is a frontrunner in providing insurance solutions within the country. They offer a bouquet of group and individual insurance schemes to meet insurance requirements related to Pension, Protection, Health, and Investment. The insurer also had a competitive claim settlement ratio of 99.41% in the financial year 2013-14. The claims assistance cell of the insurance company is notable in their efficiency and accuracy.
HDFC Life has a wide reach across the country with 398 branch offices and 9,000 touch-points. The vast coverage ensures that the insurance solutions provided by the company are always at reach. In addition, HDFC Life has an excellent financial consultancy team that offers solutions to customers throughout India and abroad.
A. No, loans are not available on the HDFC Life SL ProGrowth Flexi policy.
A. The HDFC Life SL ProGrowth Flexi plan is a ULIP that gives you the choice of 4 different funds in which you can invest. The premiums that you pay under this plan are associated with risks prevalent in the capital markets. When you invest in this policy, your contributions will be used for purchasing funds based on your risk appetite. 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.||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, 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. Change of funds - Investment fund choices can be altered in two ways:
A. The insurance company cannot make any changes to the current charges, without approval from IRDAI. The Fund Management Charge and Discontinuance Charge will have a maximum upper limit, as per the IRDAI guidelines. The Mortality Charges and Policy Administration Charges are guaranteed for the complete policy term.
A. According to Service Tax laws, all statutory levies and Service Tax are applicable to the HDFC Life SL ProGrowth Flexi policy. In the future, if any other indirect tax or levy becomes applicable, the life assured is expected to the pay the same.
A. No, it is not possible to alter the premiums, policy term, and sum assured under the HDFC Life SL ProGrowth Flexi policy.
A. It is possible to assign or transfer the policy to another individual. The instrument of assignment should indicate the reason for the assignment/transfer. The corresponding fee will be communicated to the life assured. Once the notice and the fee is received by the insurer, they will review the request and may accept or decline it, as seen appropriate.
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. When the life assured exits from a policy (either through surrender, maturity, or death) during the tenure or after 5 policy years, the insurance company calculates the gross yield, net yield, and reduction in yield based on the returns. If the reduction in yield is found to be larger than the requisites (as per regulations), the insurer adds the claw-back additions to the proceeds before these are paid out.
A. Distance marketing refers to the sale of insurance policies through modes that do not involve face-to-face interactions. Policy sales through the telephone, internet, etc. are all examples of distance marketing.
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