In today’s era of cutthroat competition, living the life of your choice is quite a challenge. No matter how good you are at work to attain your dreams, there are multiple issues related to health, finances, housing, and so on, waiting to hit. So, to protect yourself and your family from an emergency, you need to go for an insurance plan before this you must know about the features and benefits of HDFC Life ProGrowth Plus. The plan should be chosen such that it gives a viable return for a specific investment.
HDFC Life (an initiative of Housing Development Finance Corporation Limited) brings up exciting health and life insurance plans to cover those issues and give you a maximum advantage with the help of HDFC Life ProGrowth Plus.
Being a joint venture between the Mumbai-based leading financial solutions provider HDFC and a UK-based firm Standard Life Plc, HDFC Life insurance proved to be an excellent initiative. So far it has been successfully providing health and finance solutions both to individuals and groups.
On August 14, 2015, signed a share sale agreement with Standard Life according to which, the latter would acquire a 9.0% stake in HDFC Ltd. The transaction was subject to stay till regulatory approvals.
After the completion of the transactions, HDFC Ltd. will acquire a 61.65% stake in HDFC Life and Standard Life’s stake will revise to 35.00%. The rest will be held by others.
Now HDFC has about 398 branches operating in more than 980 towns and cities in India.
Let us discuss the features and benefits of HDFC Life ProGrowth Plus one of its great initiative, HDFC ProGrowth Plus.
What is HDFC Life ProGrowth Plus?
It is a unit-linked insurance plan which provides wealth with insurance benefits. It is a unit-linked insurance plan in which, the premium is invested in the capital market to achieve viable returns and insurance coverage.
However, just like the other ULIP initiatives, HDFC Life ProGrowth Plus also involves investment risks to be borne by the customer. However, this plan has secured many lives which is evident in the HDFC Life ProGrowth Plus reviews.
How should HDFC Life ProGrowth Plus work?
HDFC ProGrowth Plus is a simple savings-cum-insurance plan in which the subscriber must pay a premium during the entire policy tenure. This regular premium is then invested in capital markets as a result of which the customer or investor enjoys life cover and many other benefits.
How to avail of HDFC ProGrowth Plus?
To avail of this plan, you need to choose the plan options, regular premium and protection level, and then the desired investment fund(s).
You can choose the policy term, frequency, level of protection, and premium from the table below:
|Parameters||Minimum(in years)||Maximum (in years)|
|Minimum Qualifying Ages Life Option||14||65|
|Minimum Qualifying Ages Extra Life Option||18||55|
|Maturity Age Life Option||NA||75|
|Maturity Age Extra Life Option||NA||70|
|Half Yearly||Rs. 10,000||Rs.50,000|
|Sum Assured||Less Than 45 Years||Higher of (Yearly Premium X 10.0) or (Policy Term X Yearly Premium X 0.50)||40 X Yearly Premium, subject to a maximum sum assured amount of Rs. 40,00,000|
|Equal to 45 years (or) Above||Higher of (Yearly Premium X 7.0) or (Policy Term X Yearly Premium X 0.25)|
|Policy Term*||10 Years||30 Years|
|The ages mentioned above are previous birthdays. *Policy terms of 11 to 14 years are not referred to above.|
Key Features of HDFC Life ProGrowth Plus
As mentioned before, HDFC ProGrowth Plus reviews are evidence that this plan introduces very attractive features of Life ProGrowth Plus, let us discuss different features and benefits of HDFC Life ProGrowth Plus in detail.
Different features of HDFC ProGrowth Plus are as below:
1. HDFC Life ProGrowth Plus Policy Term
The duration of this procedure can range from 10 years to 30 years. Policy terms of 10-14 years are not available.
2. HDFC Life ProGrowth Plus Premium Payment
Must be paid throughout the tenure of the policy Premiums.
- Investment options: There are four fund options based on risk factors Income Fund, Blue Chip Fund, Balanced Fund, and Opportunities Fund.
- Maximum Extension
- Annual and Half early Frequency: 30 Days
- Monthly Frequency: 15 Days
- Plan Options
- Life option: Benefit on Death
- Extra Life Option: Benefit on Death + Additional sum of money on accidental death.
Benefits of HDFC Life ProGrowth Plus
Different benefits of HDFC ProGrowth Plus are as follows:
- Maturity Benefit: Upon maturity of the policy, the customer will receive the amount based on the existing Net Asset Value (NAV).
- Death Benefit: The nominee of the subscriber is liable to receive any of these with the greater value
- Sum Assured
- Fund Value
- 105% of the premiums paid.
Post payment, the policy will terminate, and after that, no benefits would be entertained anymore.
- Accidental Death Benefit: The sum of money will be paid to the nominee as per the death benefit and the additional sum assured. This amount will be given only in the event of death due to an accident, subject to the terms and conditions mentioned in the benefits section of the policy document.
- Tax Benefit: Premiums paid by the customers of this plan will enjoy some exemptions in tax as well, such as
- Tax benefits under Section 80C of the Income Tax Act, 1961
- Under Section 10(10) D of the Income Tax Act, 1961, the benefits received from this policy are exempted from tax
Please note that these benefits are subject to conditions specified therein and can be availed according to current tax rules. These benefits are subject to change as per the changes in tax rules.
- Partial Withdrawal: This benefit will be allowed only after the first five years of the policy subject to the terms and conditions of benefits in the policy.
- Recipient of Benefits: The nominee can avail of this benefit only if the Policy Holder and Life Assured are the same. If the Policy Holder is other than Life Assured, the Policy Holder will receive the benefit.
What are the Potential Charges that Might Apply?
Few charges might apply due to negligence or lack of knowledge of things like the duration of the policy, payment of premiums, and so on.
Different charges are Premium Allocation Charge(Annual), Policy Administration Charge(Annual), Fund Management Charge, Mortality Charge, Discontinuance Charge, and Miscellaneous Charge.
What if I do not pay the Premium in Time?
If you have not paid or failed to pay the premium by the expiry of the grace period, you can have the following options:
- Revive the policy within 2 years from the date of discontinuance.
- Completely risk-free withdrawal from the policy.
- Conversion of the policy into a paid-up policy (available upon discontinuance on or after completion of the first five years of the policy.
If you do not contact the bank on the above-mentioned conditions or decide to surrender before the completion of the first five years, the fund value will be moved to Discontinued Policy Fund (DPF). The Subscriber will get the remaining amount post-completion of the lock-in period.
If you surrender after the first five years, the fund value will be paid to you.
So far, this plan has proved to be a huge success which is reflected in the HDFC ProGrowth Plus review. All you need is to take some care about premium payments, and the returns will be awesome. HDFC ProGrowth Plus boasts of presenting you with a wealthy and bright future.