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Knowledge Base Life Insurance Investment / Pension HDFC Life ProGrowth Super II Review
Wednesday, 06 April 2011 16:58

HDFC Life ProGrowth Super II Review

Written by  Yashish Dahiya
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HDFC Life ProGrowth Super II Review 


Plan Name: ProGrowth Super II

Insurer: HDFC Life Insurance Company Limited

Category: Unit Linked Insurance Plan

Objective: Financial protection of family and good return on investment


Major USP of HDFC Life ProGrowth Super II 


- Flexible combination of coverage available

- Five investment funds to choose from


Age eligibility of HDFC Life ProGrowth SuperII 


Minimum Entry Age – 14 Years

Maximum Entry Age - 65 Years

Minimum Age at Maturity-18 Years

Maximum Age at Maturity-75 Years

Policy Term – 10, 15 to 30 Years


Premium Options in HDFC Life ProGrowth SuperII 


Minimum Regular Premium: Rs 15,000 per annum

Maximum Premium Paying Term- Policy Term


Life Cover in HDFC Life ProGrowth Super II 


Minimum Sum Assured: 10 times Annual Premium

Maximum Annual Premium: 40 times Annual Premium


What benefits does HDFC Life ProGrowth SuperII offer? 


Death benefit:

In case the Life Assured passes away during the policy term, the beneficiary will receive Sum Assured and Fund Value.


Maturity Benefit:

The fund value as a lump sum is paid to the policyholder.


Critical Illness:

On diagnosis of any of the critical illness as specified in the plan, both Sum Assured and fund value will be paid to the policyholder.


Accidental Total and Permanent Disability:

If the life assured is involved in an accident and is disabled, then he will receive 10% of the Sum Assured for the entire benefit period.


Settlement Option:

Instead of taking maturity amount, you can opt for partial payments which will be paid over period of one to five years. The fund will be invested in the same method and can be withdrawn any time


How is my money invested in HDFC Life ProGrowth SuperII? What’s the risk? 


HDFC Life ProGrowth SuperII gives you many ways to manage investment. There are five funds available and one can opt for any of the fund depending upon his or her risk appetite. The funds available with ProGrowth Super II are:

  • Short Term Fund
  • Income Fund
  • Balanced Fund
  • Blue Chip Fund
  • Opportunities Fund

The investment risk is borne by the policyholder.


Compare Returns in Investment Plans!!

How much will you get?

get_quote


What will be my returns from HDFC Life ProGrowth Super II? 


The important question that customer wants answered is “What will be my returns in ProGrowth SuperII?” Let us take an example:


Rohan aged 30 invests Rs 25,000 for policy term of 20 years. He gets insurance cover of 250,000.

Assume fund value after four years is Rs 1.2 lacs

Death Benefit: If Rohan passes away after four years, his wife will get both Sum Assured and fund value. In this case, Rs 250, 000 plus Rs 120,000 will be given to his wife.


Maturity Benefit:

The returns that Ajay will make by investing Rs 18,000 in ProGrowth SuperII can be seen graphically:

hdfc

 

He gives in total amount of Rs 500,000 to HDFC Life. At maturity, assuming growth of 10% the amount he will receive is approximately Rs 1,176,110. The maturity amount could be more depending on the money market scenario. Longer terms typically provide good returns.


Are there any tax benefits?


Under Section 80C you can avail tax benefit, yearly premium (not more than 1lac) will be deducted from taxable income.

Under Section 10(10D) death claim is completely tax free.

 

What charges does HDFC Life ProGrowth SuperII deduct and how much?


Premium Allocation Charges: These charges are deducted as percentage of premium. Insurer deducts these charges on account of expenses incurred by the company – medical examination, policy issuance, underwriting bills. Premium allocation charge is 4% for first 7 years and 1% from 8th year onwards.

Fund Management Charge: The annual charges are 1.35% of fund value.


Policy Administration Charge: These are monthly deductions which start from first month and are for maintaining the policy- paperwork, work force etc.  The charge is 0.25% per month of original premium and will be increased by 5% per annum.

Mortality Charge:

These are charges deducted as a part of life cover provided and are recovered through cancellation of units.

 

What else should I know about? 


Switch: Switch is made to transfer the fund value from one fund to another.

Partial Withdrawal: If policyholder is above 18 years and minimum amount that can be withdrawn is Rs 10,000. The minimum amount that should be maintained should be 150% of original premium amount.

Grace period: ProGrowth SuperII can be renewed within 30 days from the premium due date. Additional 30 days are given after notice has been sent to revive or discontinue the policy.

Free Look Period: ProGrowth SuperII plan can be cancelled within 15 days of receiving the policy contract. A written application can be submitted to any branch for the same. The premium will be paid back minus some charges like stamp duty, medical reports.

 

How can I buy HDFC Life ProGrowth Super II? 


Policybazaar representatives will assist you in buying ProGrowth Super II.


What’s Policybazaar opinion on HDFC Life ProGrowth Super II? 


ProGrowth Super II is plan which has major focus on insurance part. There are total of 8 options available with ProGrowth Super II which include opting for accidental death benefit, critical illness, permanent and total disability benefit. You can opt for any of these combinations or all of them.

 

Compare Returns in Investment Plans!!

How much will you get?

get_quote

 

 

 

 

 

1 Comment
  • Comment Link rajesh Monday, 24 December 2012 22:08 posted by rajesh

    good plan to invest with the fund options and also the riders which are available.

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