HDFC Life Pragati Plan
HDFC Life Pragati plan has been designed keeping in mind the needs of the individuals to secure their future. For that reason, this non-linked, participating, life insurance plan has come up with dual benefits- savings and protection against life uncertainties. In this way, it helps you to build a financial corpus and keeps your family secure and protected even when you are not around. Under this plan, you can also increase your policy value with the help of bonuses. To know more about this plan, have a look at the below mentions.
Minimum 8 years
Maximum 55 years
Minimum 18 years
Maximum 65 years
|Sum assured on maturity|
Minimum Rs. 5000
Maximum Rs. 20 lakhs
|Premium paying term|
Limited Pay – 5 Years to 10 Years
Regular Pay – 10 Years
Single Pay – 5 to 20 Years
Limited Pay – 10 to 20 Years
Regular Pay – 10 Years (Fixed)
|Grace period||15 days and 30 days|
|Free look period||15 days and 30 days|
|Minimum premium payment|
|Maximum premium payment||Rs. 2,00,000 (Single and Annualised Premium)|
What Do We Get With HDFC Life Pragati?
This plan has come up with a bunch of benefits and facilities that have erased the worries of your life. The following table contains the general advantages of the plan.
On survival of the life assured till the maturity date, you will receive the higher of the followings, only if you have cleared all the due premiums:
In case of the unexpected demise of the life assured during the policy terms of an active policy, the beneficiary or the nominee will receive the higher of the followings:
Available only if the following terms and conditions are fulfilled:
|Paid-up Benefit on Death|
During the ACC period – Full death benefit
After the ACC period – Higher of the followings:
|Paid-up Benefit on Maturity|
Higher of the followings:
|Tax Benefits||Available as per the prevailing tax laws|
Major Benefits of HDFC Life Pragati
Apart from the aforesaid benefits, the policy presents some more unique advantages for which it is popular among consumers. And, the mentions are as follows.
Auto Cover Continuance (ACC) – This feature helps you to get full death benefits for a lapsed policy or a paid-up policy for 2 years or an outstanding policy term, whichever is lower from the date of paid-up or lapse.
Bonuses – A Simple Reversionary Bonus depends on the Premium Payment Term and the Policy Term combination chosen. This bonus is paid either with the maturity benefit or death benefit, whichever is earlier. The interim bonus is paid in case of the death of the life assured during the inter-valuation period at the time of surrender or maturity. You are eligible to avail of a terminal bonus during the surrender, maturity, or death that depends on the actual experience, it is not a guaranteed benefit.
Benefits under a lapsed policy – If you fail to pay the premium even within the grace period, the policy will lapse if the policy has not acquired a guaranteed surrender value. The benefits that you can avail of under a lapsed policy are as follows.
- Foreclosure of a lapsed policy – If you want to withdraw an amount from a lapsed policy, you will be eligible to enjoy a lump sum benefit that depends on the applicable Special Surrender Value (SSV) factors as applicable at the time of foreclosure.
- Death benefit – During the ACC period, you will get the full death benefit, and after the ACC period, you will get 100% of the total premiums paid.
- Maturity benefit – You are eligible to receive the maturity benefit as a lump sum amount equal to 1005 of the total premiums paid, only if the policy is not foreclosed.
Revival – The insurer allows you to revive your lapsed or paid-up policy within the revival period of 5 years from the date of the first unpaid premium that is subject to the terms and conditions of the insurer, only if you have paid all the outstanding premiums, interests, and taxes. The current rate of interest for revival is 9.5% per annum, which may vary from time to time.
Rider benefits – You can strengthen your HDFC Life Pragati insurance plan by opting for the rider benefits available with the policy. They are – HDFC Life Income Benefit on Accidental Disability Rider and HDFC Life Critical Illness Plus Rider.
Exclusions of HDFC Life Pragati
Your knowledge of a policy remains incomplete if you do not understand the exclusions of the policy. It helps you to avoid future complexities. So, the general exclusions of this policy are as follows.
- Anything that does not fulfill the terms and conditions of the company.
- In case of death due to suicide within the 12 months from the date of commencement of risk or from the date of the revival of the policy, the nominee or the beneficiary will get at least 80% of the total premiums paid till the death, or the surrender value, whichever is higher.
Frequently Asked Questions
The Sum Assured on Death will be the higher of the followings:
- Sum Assured on Maturity
- 10 times Annualized Premium8 for entry age less than 45 years and 7 times Annualized Premium8 for entry age greater than or equal to 45 years for Limited and Regular pay policies OR 2 times Single Premium for Single pay policies.
Once the death benefit or the maturity benefit is paid by the insurer, the policy will get terminated automatically with no further benefits payable. This may differ in the case of a reduced paid-up policy or a lapsed policy.
The GSV will be the aggregate of the followings:
- Percentage of Total Premiums4 paid
- Percentage of Accrued Bonuses (if declared)
Under this policy, alterations to Premiums, Premium paying term / Policy Term, and Sum Assured are not allowed. However, alteration to the frequency of premium payment is allowed which may put an effect on the premium amount.
The installment premium for the premium payment frequencies other than annual mode is arrived at by multiplying the annual premium by the conversion factors, given below:
|Premium Payment Frequency||Conversion Factor|