HDFC Life SL Pro Growth Flexi Plan

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.

Eligibility - Who is the HDFC Life SL ProGrowth Flexi Plan for?

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
	Minimum	Maximum
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.

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

The policyholder can choose to opt for a plan with any of the following coverage options:

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 nominee will be paid the greater amount among the following: Sum Assured (minus withdrawals) Unit Fund Value Minimum Death Benefit
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.

Sum Assured:

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
				Minimum	Highest among, 10 times the annualised premium 0.5 * policy term * annualised premium	Highest among, 7 times the annualised premium 0.25 * policy term * annualised premium	10
Maximum	40 times the annualised premium		30

Premium:

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:

Parameter	Premium			Policy Term
					Annually	Semi-Annually	Monthly
	Minimum	Rs.24,000	Rs.10,000		Rs.2,500	10
Maximum	No limit			30

 

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.

Plan Coverage - What the HDFC Life SL ProGrowth Flexi Covers?

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:

• Maturity Benefit - At the end of the policy term, the policy reaches maturity. At this point, you can choose to redeem your balance units and withdraw the fund value.

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.

• Death Benefit - If the policyholder faces death during the policy term, the benefits paid to the nominee are as detailed below:

Before 60 years of age	The nominee will be paid the greater amount among: Sum Assured (minus withdrawals made during the two years immediately preceding death) Total fund value Minimum death benefit of 105% of paid premiums
After 60 years of age	The nominee will be paid the greater amount among: Sum Assured (minus withdrawals made after the policyholder reached 58 years of age) Total fund value Minimum death benefit of 105% of paid premiums

• 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 policyholder being at least 18 years old
  • The minimum withdrawal amount being Rs.10,000
  • After withdrawal, the fund value not being less than 150% of the original premium
  • The maximum amount that can be withdrawn being 300% of the original premium, throughout the policy term.

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

This plan does not offer any add-on covers.

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

• If the life assured commits suicide within 12 months from the start or revival of the policy, the nominee will receive the fund value, as on the date of death. Any charges recovered after the date of death will be paid along with the death benefit.
• If the death occurs after 90 days from the accident date, the Accidental Death Benefit will not be paid to the nominee. The Accidental Death Benefit is also not paid when the death is caused by the participation of the life assured in a dangerous hobby or race, unless initially communicated to the insurer.
• The Accidental Death Benefit will not be paid in any of the following cases as well:
  • Intentional injury or suicide, irrespective of mental stability of the life assured
  • Solvent, drug, or alcohol abuse
  • Invasion, war, hostilities, rebellion, etc.
  • Participation in a flying activity, unless as a passenger in a commercial flight
  • Participation in any criminal act with criminal intent

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

Discontinuance:

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:

• Revival of policy within 2 years from the date of discontinuance, or,
• Complete withdrawal from the policy without any risk cover

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:

• Revival of the policy within 2 years from the discontinuance date, or,
• Complete withdrawal from the policy without any coverage, or,
• Conversion of the policy into paid-up status

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.

Surrender:

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.

Free-Look Period:

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.

Charges:

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

• Premium Allocation Charge - After the premium allocation charge is deducted from your premium, the remaining amount is used to purchase units. This remaining percentage of your annualised premium is referred to as the Premium Allocation Rate.

	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.

• Fund Management Charge (FMC) - The daily unit price is inclusive of the fund management charge. This is equal to 1.35% per annum of the fund’s value charged on a daily basis.
• Policy Administration Charge - The Policy Administration Charge will not be levied in the initial 5 years of the policy. Subsequently, a policy administration charge of 0.46% of the annualised premium is levied on a monthly basis, subject to a maximum of Rs.500 per month. This charge is levied by cancelling units from each of the chosen funds.
• Mortality Charge and Risk Benefit Charges - Every year, the insurer levies a charge for providing the death benefit to the policyholder. The charge that is deducted each month depends on the age of the life assured and the amount of coverage. This charge is taken by cancellation of units from each of the chosen funds.
• Miscellaneous Charges - A charge of Rs.250 per request is levied for any policy alteration request initiated by the life assured. The charges for fund switch, partial withdrawal, and premium redirection are as follows:

• Partial Withdrawal Charge - If the policyholder initiates a request for policy withdrawal, he/she will be charged Rs.250 for the same. In case the request was initiated through the webpage of the insurer, then the charge will be slashed to Rs.25 per request. This charge is levied at the time of partial withdrawal of the fund.
• Switching Charge - In case the life assured raises a request for fund switch, he/she will be required to pay a charge of Rs.250 per request. If the request was executed through the web portal of the insurance company, the charge for the same is Rs.25 per request. The charge will come into effect when the switching is done.
• Premium Redirection Charge - When the life assured initiates a policy redirection request, the change will attract a charge of Rs.250 per request. However, if the request was executed through the website of the insurer, the charge will only be Rs.25 per request.
• Discontinuance Charge - The discontinuance charge is dependent on the year in which the policy was discontinued and the premium that the life assured pays. There is no charge levied after the 5th policy year.

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

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

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.

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

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.

Why you should Buy the SL ProGrowth Flexi Plan from HDFC Life?

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.

HDFC Life SL ProGrowth Flexi Plan FAQs:

Q. Can I avail loans on the policy?

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

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

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

Q. What are the flexibilities that the HDFC Life SL ProGrowth Flexi 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.

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

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.

Q. Is Service Tax applicable for the policy?

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.

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 SL ProGrowth Flexi policy.

Q. Can I assign the policy to another individual?

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.

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 non-negative claw-back additions?

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.

Q. What is distance marketing?

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.