HDFC Life ProGrowth Plus Plan - Things to Know

A lucrative business or job has its limitations. It cannot guarantee a safe future in today's unpredictable world. So, we need to pull up our socks before the scorching sun appears and prepare a shield.

That is why we need to invest in a unit linked insurance plan and ensure a prosperous future and life insurance cover.

Housing Development Finance Corporation Limited (HDFC) collaborated with a UK-based financial firm, Standard Life plc to launch a joint venture, HDFC life.

Now HDFC Life insurance has emerged as one of the leading life insurance companies in India. It features 27 retail and 8 group products in its portfolio.

This company offers a broad range of insurance plans (such as pension, protection, savings, and health) for both individuals and groups.

Let us discuss one of those initiatives that come with savings and life cover benefits; that is HDFC Life ProGrowth Plus Plan.

What is HDFC Life ProGrowth Plus Plan?

The ProGrowth Plus initiative by HDFC Life is a premium unit-linked insurance plan (ULIP). It brings up both savings and insurance benefits.

It is a concept in which the premium becomes a part of capital market investment yielding viable returns and insurance coverage.

This plan gives the flexibility to choose one among regular dividend and investment fund. The monthly premium is then invested and net of premium allocation charges in the fund and proportion selected by the investor.

At the expiry of the policy terms, the investor receives the accumulated value of the fund(s). No wonder HDFC life ProGrowth Plus review is in a perfect place.

In the case of the death of investor or Life Assured during the policy term, the specified nominee receives the greater of Sum Assured or Fund value. Please refer to Death Benefits for more details.

How to choose a plan?

There are two steps to choose the plan that suits your necessities and budget. Let us discuss them in detail.

Table 1

Parameters To Choose The Plan		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
Premiums	Annual	Rs. 24,000	Rs. 1,00,000
	Half Yearly	Rs. 10,000	Rs. 50,000
	Monthly	Rs. 2,500	Rs. 8,333
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
Ages mentioned above are a previous birthday. *Policy terms of 11 to 14 years are not mentioned above.

Note: The variations in the capital market create a direct impact on the performance of the ULIPs.

In all the ULIPs the risk of investment will be borne by the customer. ULIPs do not guarantee investment returns.

Steps To Choose Your Plan:

1.     Choose the right option (for your program) including your regular premium and protection level.

2.     Choose your desired investment fund(s).

Step 1:

There are 2 Plan Options to choose from:

Table 2

Plan Option	Cover	Benefit Types
Life Option	Death Benefit	Greater of the following will be paid*
		Sum Assured	Unit Fund Value	Minimum Death Benefit
Extra Life Option	Death Benefit + Accidental Death Benefits	In addition to the benefits mentioned above, an additional Sum Assured will be paid to the nominee.

Note: Linked insurance products do not provide any liquidity during the initial five years of the contract. The Policy Holder or investor will not get the option to withdraw or surrender the invested fund partially or completely during the first five years.

The HDFC life ProGrowth Plus review works in your favour if choose the regular premium and protection level from Table 1.

Step 2:

It is highly imperative to choose the investment plan in order to deal with the risk and return that comes later, as the investor is responsible for their choices.

Now that you have chosen your plan, regular premium and protection level, you are good to go to the second step.

There are four fund options that give the investor the potential for:

·        Higher but more variable returns

·        Lower but stable returns

Your investment will yield money based on these four funds specially designed to meet your potential to take the risk. You can go either for one or a combination or all of the following options:

·        Income Fund (ULIF03401/01/10 IncomeFund101): This assures a higher potential return due to long duration and credit exposure. It has a moderate risk factor.

·        Balanced Fund (ULIF03901/09/10 BalancedFund101): This fund has the provision of Dynamic Equity to increase the returns while the debt allocation decreases turbulence of the returns. This has moderate to the high risk factor.

·        Blue Chip Fund (ULIF03501/01/10 BlueChipFund101): This fund has the provision of large-cap equities and related tools. A risk factor is very high in this fund option.

·        Opportunities Fund (ULIF03601/01/10 OpportunitiesFund101): This fund has the provision of mid-cap equities and related tools with a very high-risk factor.

Asset Class
Fund	Money Market Instruments, Cash, and Deposits	Liquid Mutual Fund**	Government Securities, Fixed Income Instruments, and Bonds	Equity
	Fund Composition
Income Fund	0%-20%		80%-100%	NA
Balance Fund	0%-20%		0%-60%	40%-80%
Blue Chip Fund	0%-20%		NA	80%-100%
Opportunities Fund	0%-20%		NA	80%-100%

** Liquid Fund investment will always be within the limit of Mutual Funds as per the IRDAI regulations and guidelines IRDAI (Investment)(4th Amendment) Regulations, 2008, Annexure II).

Conclusion

Like all the investment plans that assure a great return involve a great risk, a ULIP also does.

HDFC life ProGrowth Plus review have been great so far. However, to bring it to a close, it will always be wise to go through all the risk factors, terms, and conditions, to avoid a potential loss.