HDFC Life, one of India's leading life insurance companies, launched ProGrowth Maximiser, a unique single premium Unit Linked Insurance Plan, with three investment options – Highest NAV Guarantee, Capital Guarantee, and Free Asset Allocation.
Amitabh Chaudhry, MD& CEO, HDFC Life, said, "We continue to listen to our customers and design products that are flexible to meet their needs. ProGrowth Maximiser is an ideal product in an environment where the economic cycles are getting shorter. It provides our customers the flexibility to choose from multiple investment options as per their needs and risk appetite. Additionally, it has both the limited underwriting and the fully underwritten versions.
This will serve both customers segments – those looking for better value products and those looking for similar benefits while preferring the ease of over-the-counter life insurance solutions."
ProGrowth Maximiser - Attractive Premium Allocation Rates of 97.50%
Three Investment Options
1) Highest NAV Guarantee Fund: Guarantees that guaranteed at maturity will be minimum NAV of Rs 15 or highest NAV recorded daily during the first 7 years of the fund.
2) Capital Guarantee Fund: Guarantees that the unit price on maturity of the policy is atleast equal to the unit price that was used to allocate units to the single premium invested at the inception of the policy.
3) Free Asset Allocation: Flexibility to invest in any of the 5 non-guaranteed funds as below:
· A) Short Term Fund - a pure debt fund that aims to deliver stable returns by investing in the short end of the yield curve to limit the risk profile of the fund and assure safety of capital.
· B) Income Fund - aims to provide high potential returns through investment in high credit quality debt instruments while maintaining an optimal level of interest rate risk.
· C) Balanced Fund - aims to generate high returns through a dynamic allocation of investments in Debt and Equity Securities to combine stability of Debt instruments with long-term capital appreciation potential of Equities.
· D) Blue Chip Fund - aims to provide medium to long-term capital appreciation by investing in Large Cap equities.
· E) Opportunities Fund - aims to generate long-term capital appreciation by investing predominately in Mid Cap stocks.
Premium and Policy Term
Minimum premium is Rs 50,000 with no limit on the maximum premium. Policy term is 10 years.
Single Premium top up
Minimum single premium top up is Rs. 10,000. No limit on Free Asset Allocation Option and premium top up equals to the single premium paid at inception on selection of Highest NAV Guarantee option.
Entry and Maturity Age
Minimum age at entry is 14 years and maximum age is 65 years and maximum age at maturity is 75 years.
Sum Assured and Eligibility
1.25x single premium or 5x Sum Assured
Death and Maturity Benefits
On death, greater of sum assured or fund value is paid.
On maturity, fund value is paid. On selection of Highest NAV guarantee fund option, the fund value will be computed based on the NAV, which will be higher of,
1. Guaranteed NAV, subject to the minimum guaranteed NAV of Rs. 15
2. NAV on the date of maturity
On selection of Capital Guarantee Fund option, the fund value prevailing on the date of maturity will be paid.
On selection of Free Asset Allocation Option, the fund value prevailing on the date of maturity will be paid.
Tax Benefits:
The single premium plan is eligible for tax benefits under the Income Tax Act of 1961. Currently, Section 80C benefit is available for the premium paid into the plan subject to the limits in that section. Benefits received under Section 10 (10D) will be exempt from tax subject to the limits contained therein. In case of single premium top ups, tax benefits would be available subject to the limits mentioned in the Section 80C&10(10D).
A fully loaded insurance plan with 30-day Free Look in, ProGrowth Maximiser provides three investment options (Highest NAV Guarantee, Capital Guarantee, and Free Asset Allocation)
