HDFC Life Pro Growth Plus Plan

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HDFC Life Pro Growth Plus Plan
 
HDFC Life Pro Growth Plus Plan is a Unit Linked Insurance Plan (ULIP). Thus, it is a non-Traditional Insurance Plan without Bonus facility.
 
How it works – In this plan, premium needs to be paid till the end of the Policy Tenure. There are 5 funds for investment purpose where the policyholder can choose his portfolio depending upon his risk appetite.
 
In this Plan, there are 2 variants:
  • Life Option- This is the Basic version of the Plan without additional features
  • Extra Life Option- In this variant of the plan, an inbuilt Accidental Death Benefit rider. Thus, if this variant is selected and the Life Insured suffers from an Accidental Death, then an additional Sum Assured is paid to the nominee as Accidental Death Benefit.
 
In this plan, if the Life Insured dies within the Policy Tenure, then higher of the Sum Assured or the Fund Value is paid to the nominee as Death Benefit and the policy terminates. However, if the Life Insured meets with an accidental death and had opted for Extra Life Option, then he would an additional Sum Assured as Accidental Death Benefit.
 
On maturity, the Fund Value is paid to the policyholder as Maturity Benefit.
 
 
Key Features of HDFC Life Pro Growth Plus Insurance Plan
 
  • It is a simple Unit Linked Insurance Policy without Bonus Facility
  • There are 2 variants of this plan
    • Life Option- Only Death Benefit
    • Extra Life Option- Death Benefit + Accidental Death Benefit
  • Higher of Sum Assured or Fund Value is paid to the nominee as Death Benefit
  • If the Life Insured meets with an accidental death and had opted for Extra Life Option, then he would an additional Sum Assured as Accidental Death Benefit.
  • There are 5 funds for investment purpose
  • The Fund Value is paid as Maturity Benefit
 
 
Benefits you get from HDFC Life Pro Growth Plus Insurance Policy
 
Death Benefit – In case of death of the Life Insured within the Policy Tenure, the nominee gets higher of Sum Assured or Fund Value as Death Benefit and the policy terminates.
 
Maturity Benefit – The Fund Value is paid as Maturity Benefit on the policy maturity
 
Income Tax Benefit - Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C and the Maturity Proceeds are tax free under section 10(10)D subject to fulfilment of terms and conditions.
 
 
Eligibility conditions & other restrictions in HDFC Life Pro Growth Plus Policy
 

 
Minimum
Maximum
Sum Assured (in Rs.)
For age<45 yrs, SA=Higher of 10 X AP or 0.5 X PT X AP
For age>=45 yrs, SA=Higher of 7 X AP or 0.25 X PT X AP
40 X AP
Policy Term (in years)
10
30
Premium Payment Term (in years)
Equal to policy term
Entry Age of Life Insured (in years)
14 for Life Option
18 for Extra Life Option
65 for Life Option
55 for Extra Life Option
Age at Maturity (in years)
-
75 for Life Option
70 for Extra Life Option
Annual Premium (in Rs.)
24,000 Annually
10,000 Semi-Annually
2,500 Monthly
No Limit
Payment modes
Yearly, Half-Yearly and Monthly

 
 
Additional Features and Benefits of HDFC Life Pro Growth Plus Plan
 
Riders – There are No Additional Riders available in this policy. Extra Life Option has inbuilt Accidental Death Benefit rider.
 
Investment Fund Options
There are 5 Investment Funds available in this plan:
  1. Short Term Fund
  2. Income Fund
  3. Balanced Fund
  4. Blue Chip Fund
  5. Opportunities Fund
 
Top-up – Not Allowed
 
Switching - Free switching is allowed at anytime.
 
Partial Withdrawal - You are allowed to make partial withdrawals in this policy after 5 complete policy years or the life assured is 18 years old, whichever is later. The minimum amount of partial withdrawal should be Rs. 10,000 and the Maximum Partial Withdrawal allowed is upto 300% of the original Regular Premium amount such that the Fund Value does not fall below 150% of the original Regular Premium.
.
 
What happens if?
 
You stop paying the premium before 5 years - If the policy holder stops paying the premium, the insurance cover will cease and the fund value net of any discontinuance charge will be transferred to the Discontinued Policy Fund. The Discontinued Policy Fund will be credited with a minimum interest rate as per the guidelines of the IRDA and the proceeds from this will be payable after the fifth policy anniversary. In case of death of the Life Assured during this period, only the accumulated fund value will be payable to the nominee. The policy can be revived within 2 years from the due date of the first unpaid premium.
 
You stop paying the premium after 5 years - If the policy holder stops paying the premium after 5 years, then the accumulated policy fund amount till the date of discontinuance shall be paid to the policy holder and the policy will terminate immediately.
 
You want to surrender the policy – If the policy holder wants to surrender the policy before completing 5 years, then the insurance cover will cease and the fund value net of any discontinuance charge will be transferred to the Discontinued Policy Fund. The Discontinued Policy Fund will be credited with a minimum interest rate as per the guidelines of the IRDA and the proceeds from this will be payable after the fifth policy anniversary. In case of death of the Life Assured during this period, only the accumulated fund value will be payable to the nominee.
 
If the policyholder surrenders the policy after completion of 5 policy years, then the insurance cover will cease and your fund value shall be paid immediately and the policy would be terminated.
 
You want a loan against your policy - There is loan available under this plan upto 40% of the Surrender Value provided the policyholder is at least 18 years old.
 
 
Other ULIPs from HDFC Life Insurance
 
HDFC Life Invest Wise Plan - Single Premium
 
 
Some ULIPs from other insurance companies
 
~ By Deepak Yohannan
Note: This is a statement of facts based on the information collected from the HDFC Life Pro Growth Plus Plan brochure and insurance company's website. It should not be construed as a Critical or Favourable HDFC Life Pro Growth Plus Plan Review, Analysis or Recommendation.
Insurance is a subject matter of the solicitation.


Leave a Comment

Hi Deepak ,
Me again, as I am planning to continue this policy only for 5 yrs and the amount is 25k per annum.
So i guess 25*5 =125000 my deposited amount + growth of funds will be the returned amount.
one more thing as much as market goes down but my basic deposited will not be affected.

By Anshuman Gaur on Jun 09, 2014 Reply

This is a unit-linked plan. Risk has to be borne by the policyholder (you). Your principal amount of Rs.1.25 lac is subject to market risk and is NOT guaranteed.

Replied By Manoj Aswani (MIC Staff) on Jun 09, 2014 Reply

I have bought this policy annual payment option, should i opt of monthly payment ?, will it be more beneficial

By Sanjay Hingorani on Apr 23, 2014 Reply

Choosing an annual (yearly) option is always beneficial while paying the insurance premium. Insurance companies offer a high rebate when the policyholder chooses to pay the premium in yearly mode. The total annualised premium may increase if you choose monthly mode.
 

Replied By Manoj Aswani (MIC Staff) on Apr 26, 2014 Reply

HI, I HAVE BOUGHT THIS PLAN FOR @3,000 MONTHLY FOR 20 YEARS. NOW MY AGE IS 30 YEARS. AFTER GOING THROUGH REVIEWS, I AM LITTLE BIT SCARED. I CALCULATED IF I INVEST RS.3,000/- MONTHLY IN RD, AFTER 20 YEAR I AM GETTING AROUND 20,00,000/- AT THE 9% INTEREST. I HAVE ALEADY PAID 9,000/- FOR THIS HDFC LIFE PROGROWTH PLUS PLAN. PLEASE TELL ME WHAT SHOULD I DO. SHALL I GO FOR CANCELLATION OF THIS POLICY IN FREELOOK PERIOD. I WANT GUARRENTED RETURNS. PLEASE GUIDE ME...................................THANX

By Ram Sharma on Apr 09, 2014 Reply

If you want guaranteed returns then this is not the plan. This is a unit-linked insurance plan (ULIP) where the money gets invested in equity markets and any loss has to be borne by the policyholder. So if you do not want to take any risk then exit the plan. However since you will exit before the lock-in period of 5 years, you will not get any premium back now. You can go to the nearest HDFC Life office or call their helpline to know the deductions that will happen in your policy.
 
 

Replied By Manoj Aswani (MIC Staff) on Apr 10, 2014 Reply

Hi, I given a thought of investing in this plan, considering the fact that I have sufficient insurance ( 1C Term Insurance + 2 LIC policy of 25K premium/year - hope this sufficient enough). My intention is only investment and also taking into account that ULIP maturity amount is TAX free. Considering all this still I can go for it or move my attention to MF? please advice. If it is ok to invest in this how much premium/investment amount i can opt for?

By Sasitharan Aruljothisubramanian on Apr 01, 2014 Reply

ULIPs have proved beneficial to a lot of investors especially the ones who have stayed invested for long. And yes the returns are tax-free.

But to understand whether this ULIP is better than a mutual fund, you should consult some certified financial planner.

Replied By Manoj Aswani (MIC Staff) on Apr 02, 2014 Reply

hi ! I have also opted for HDFC pro growth plus this year only but after reading the reviews i think i should withdraw this plan and invest my money in some other plan or FD. please suggest me what to do?

By Tripti Singh on Feb 07, 2014 Reply

Some of the benefits of a life insurance policy are protection, savings and tax exemption. If you compare a life insurance policy to bank fixed deposits (FD) then chances are that the returns in FD are higher than what you would receive from a life insurance policy. Do you want to solve more than one of your requirements by taking a life insurance policy or do you want to simply invest and get better returns? The decision has to be taken by you. Your decision has to be based on your own requirements and not reviews by people. If you want serious advice, then you should consult a financial planner and discuss your entire portfolio with him/her – your income, your expenses, current savings, and future planning. They will charge a fee for their service but they will help you in planning your investments rightly. Now if you exit the policy by paying only one premium, then you will not get any amount back.

Replied By Manoj Aswani (MIC Staff) on Feb 07, 2014 Reply

I opted for HDFC Pro-growth Plus one year back with premium of 50000 pa. They invested 48500 in some opportunity fund. Today when i checked my statement, the amount shrunk to 41000. I am totally disappointed. Please suggest me whether to i should surrender the policy or continue up to lock in period.

By Iqbal Singh on Feb 01, 2014 Reply

You should know that the policyholder has to bear any risk associated with ULIPS (unit-linked insurance plans). While you are blaming the insurer for this loss, you should realise that it was your money and hence your duty to keep a watch on it.

Do not exit the policy now. Go to the nearest branch of HDFC Life Insurance and discuss with their Branch manager on the apt fund strategy for your policy. Continue the policy for a few years and review performance at regular intervals.

 

 

Replied By Manoj Aswani (MIC Staff) on Feb 04, 2014 Reply

As i have opted this HDFC Pro-growth Plus and I am planning to pay till 5 years only. so I guess at the end of 5 year I will be benefited with tax free interest on the accumulated amount 25k*5+ tax free interest. am I right??

By Anshuman Gaur on Jan 15, 2014 Reply

Hi Anshuman, it is not interest which will accrue to your account. The premiums which you pay, after deduction of the charges, will be invested various instruments. Now depending on the returns which these financial instruments give, your maturity value will be decided. So it will depend on how the fund performs.

Replied By Deepak Yohannan (MIC Staff) on Jan 17, 2014 Reply

I had taken taken this today with 25000 per year investment. what will I get after 5 years? and should I continue with this?

By Rajesh Kumar on Nov 21, 2013 Reply

Dear Rajesh, it is a plan with relatively low charges. It may be a good idea to continue with the plan unless there is some specific issue which is bothering you. You will need to be a bit more specific wth your concern if any. If you are staying on, the chances of better returns would be higher if you stay invested in an equity oriented fund.

You would have been shown a sample returns sheet while buying the plan assuming 6% & 10% returns. That would be the only tool availble. Unfortunately it is bit difficult to do the calculation now as the tools are not available online.

Replied By Deepak Yohannan (MIC Staff) on Nov 22, 2013 Reply

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