The HDFC Life ProGrowth Plus plan is a unit-linked life insurance plan (ULIP) that saves money through investments. The plan has eight investment funds and uses different combinations to make profits. An additional benefit of the plan are the convenient options for pay-outs to assist the policyholder with specific life goals.

Let’s understand this plan in brief before getting into its details:

How Does This Plan Work?

Firstly, an individual is required to choose between two options for the plan; either the Life option or the Extra Life option (offers additional accidental death benefit). The individual also has to select a sum assured, policy term (10 to 30 years), premium-payment term (same as the policy term), and premium amount.

Secondly, the policyholder is required to select the funds s/he wishes to invest in. According to the selections, the premiums will be invested in four of the following funds or a combination of all of them:

• Equity Plus Fund:
  • Money market instruments, cash, and deposits: 0% to 20%
  • Government securities, fixed income instruments, and bonds: 0% to 20%
  • Equity and equity-related securities: 80% to 100%
  • Risk rating: Very high
     
• Diversified Equity Fund:
  • Money market instruments, cash, and deposits: 0% to 40%
  • Government securities, fixed income instruments, and bonds: 0% to 40%
  • Equity and equity-related securities: 80% to 100%
  • Risk rating: Very high
     
• Blue Chip Fund:
  • Money market instruments, cash, and deposits: 0% to 20%
  • Equity and equity-related securities: 80% to 100%
  • Risk rating: Very high
     
• Opportunities Fund:
  • Money market instruments, cash, and deposits: 0% to 20%
  • Government securities, fixed income instruments, and bonds: 0% to 60%
  • Equity and equity-related securities: 40% to 80%
  • Risk rating: Very high
     
• Balanced Fund:
  • Money market instruments, cash, and deposits: 0% to 20%
  • Government securities, fixed income instruments, and bonds: 0% to 60%
  • Equity and equity-related securities: 40% to 80%
  • Risk rating: Moderate to high
     
• Income Fund:
  • Money market instruments, cash, and deposits: 0% to 20%
  • Government securities, fixed income instruments, and bonds: 80% to 100%
  • Risk rating: Moderate
     
• Bond Fund:
  • Money market instruments, cash, and deposits: 0% to 60%
  • Government securities, fixed income instruments, and bonds: 40% to 100%
  • Risk rating: Moderate
  • Risk rating: Low
     
• Conservative Fund:
  • Money market instruments, cash, and deposits: 0% to 60%
  • Government securities, fixed income instruments, and bonds: 40% to 100%
  • Risk rating: Low

Maturity Benefits

At the end of the policy term, the individual receives a lump sum payment along with the profits from his/her investments as the maturity amount. The maturity benefits can also be collected as periodic installments over a span of 5 years (settlement option) after the maturity date.

Death Benefits

In case of the untimely demise of the insured, the nominee receives the highest of the following:

• Total fund value
• 105% of premiums paid
• Sum assured:   
  • After deducting partial withdrawals made during the 2-year period before death, if death occurs before age 60
  • After deducting partial withdrawals made after the attainment of age 58

Why Should I Buy This Plan?

In addition to the benefits mentioned earlier, here are some more reasons to consider buying the HDFC Life ProGrowth Plus plan:

• It is a safe method to invest in the share market
• Flexibility to invest in eight funds with unlimited fund switches (cost as low as INR 250) to match your risk appetite
• Partial withdrawals (cost as low as INR 250) can be made whenever it may seem necessary
• The plan offers a flexible policy term of 10 to 30 years

Why Should I Buy This Plan?

The plan can be purchased by citizens of India with a minimum age of 14 and maximum age of 65 for the Life option of the plan; for the Extra Life option, the minimum age is 18 and maximum age is 65. The plan is a perfect investment option for individuals looking for max profits in a short term of 10 to 30 years.