Please suggest about ICICI Prudential Systematic Retirement Solution II plan

POSTED BY manojkhope ON April 29, 2014 8:20 pm COMMENTS (10)

Hello Friend’s ,

I bought ”ICICI Pru IPRU Wealth Builder II” plan under ”ICICI Prudential

Systematic Retirement Solution II” but some how i am felling that ICICI is charging more charges.

so related i mailed to ICICI on that they reply me as below like and they didnt provide the  Agent Commission information.

Premium Amount i paid is 50000 thousand per year on that they purchase a unit of 46432 Rs Only.

Please Advise me ? Is ICICI Prudential Systematic Retirement Solution II plan worth for me.

Their reply on charges :-

We are unable to provide you any details related to Agent Commission and same is paid by the ICICI Prudential branch.

Further, as per your request below mentioned are the policy charges:

Premium Allocation

• One Pay: 3%
A discount of 0.5% in the premium allocation charge is given to customers who buy directly from the Company’s website.
• Limited Pay and Regular Pay:
Premium payment mode / Policy year Year 1 Year 2 Year 3 Year 4 – 5 Thereafter
Annual                                                6%      5%      4%      4%        2%
Half-yearly/Monthly                              4%      4%      3.5%    3%        2%

A discount of 1% in the premium allocation charge is given to customers who buy directly from the Company’s website.
All Top-up premiums are subject to an allocation charge of 2%.

Fund Management

Fund FMC p.a.
Multi Cap Growth Fund 1.35%
Multi Cap Balanced Fund 1.35%
Maximiser V 1.35%
Bluechip Fund 1.35%
Opportunities Fund 1.35%
Income Fund 1.35%
Money Market Fund 0.75%

These will be charged by adjustment to NAV.

Policy Admin Charges

The policy administration charge will be levied every month by redemption of units, subject to a maximum of Rs. 500 per month (Rs. 6,000 p.a.). The policy administration charge will be as set out below:
One Pay: Rs. 60 p.m. (Rs. 720 p.a.) for the first five policy years

Limited Pay and Regular Pay:
Policy year Policy Administration Charge per month(% of Annual Premium payable)
Year 1 to PPT 0.21% p.m. (2.52% p.a.)
Thereafter 0.10% (1.20% p.a.)

Mortality Charges

Mortality charge will be calculated on the Sum at Risk which depends on Premium Payment Option and age at entry as described below.
For all One Pay and Limited Pay and Regular Pay policies with age at entry greater than or equal to 50 years
Sum at Risk = Highest of,
• Sum Assured, including Top-up Sum Assured, if any (reduced by applicable partial withdrawals),
• Fund Value (including Top-up Fund Value, if any),
• Minimum Death Benefit less applicable partial withdrawals, if any
Less
• Fund Value (including Top-up Fund Value, if any)
For Limited Pay and Regular Pay policies with age at entry less than 50 years
Sum at Risk = Highest of,
• Sum Assured, including Top-up Sum Assured, if any
Plus Fund Value (including Top-up Fund Value, if any)
• Minimum Death Benefit
Less
• Fund Value (including Top-up Fund Value, if any)
Mortality charge will be deducted on a monthly basis by redemption of units. No mortality charge will be deducted while monies are in Discontinued Policy Fund (DP Fund).
Mortality charges will be deducted until the earlier of intimation of death of the Life Assured and the end of the policy term.

Service Tax
Service tax and education cess will be charged as per applicable rates. The tax laws are subject to amendments from time to time.

Premium discontinuance Charges:

For One Pay policies:
Where the policy is discontinued in the policy year                                                 Discontinuance Charge
Year 1                                                                               Lower of 1% of (SP or FV), subject to a maximum of Rs. 6000
Year 2                                                                             Lower of 0.5% of (SP or FV), subject to a maximum of Rs. 5000
Year 3                                                                            Lower of 0.25% of (SP or FV), subject to a maximum of Rs. 4000 Year 4                                                                              Lower of 0.1% of (SP or FV), subject to a maximum of Rs. 2000 Year 5 and onwards                                                                                       NIL

Thanks,

Manoj

10 replies on this article “Please suggest about ICICI Prudential Systematic Retirement Solution II plan”

  1. Monika says:

    Hi Mr. Ashal can u please advice whether this policy is beneficial or not same ICICI retirement systematic solution for the sake of pension . As per ICICI by investing 5 lakh in 5 years one can start pension at 55 of around 9.8 lakhs annualy

    1. Monika

      Dont judge the plan so fast. Ask the person on the full illustration and how the pension returns are calculated. In general these plans are not that beneficial

  2. ashalanshu says:

    Dear Manoj, please cancel the policy under free look period. Purchase adequate term cover. After that please look into your existing life insruance policies. Regarding retirement corpus creation, please invest in PPF and MFs.

    Thanks

    Ashal

    1. manojkhope says:

      Thanks Ashal for your proper Guidance.

  3. manojkhope says:

    Hi Ashal,
    Please Advice.

    Regards,
    Manoj

  4. manojkhope says:

    Yes My Main Aim is to create a Good Corpus . My Current Age is 34.
    Below are some details about my financial Profile and Insurance :—–

    1>LIC’S MONEY PLUS (T.NO. 180) – ULIP(Market risks) – Growth Fund – Sum Assured 2Lack – Paying from Last 7 Years
    2> LIC’S 165(Jeevan Saral) – Life insurance Policy – Sum Assured 3Lack 12Thousand – Paying from Last 6 Years
    3> ICICI PRUDENTIAL LIFE TIME GOLD – ULIP(Market risks) – 100% in Flexi Balanced Fund – Sum Assured 1Lack 20Thousand – Paying from Last 7 Years
    4> ING New Future Perfect Plan – ULIP(Market risks) – New Prime Equity Fund – Sum Assured 90Thousand – Paying from Last 5 Years
    5> Royal Sunderam health Shield Insurance – Paying 10Thousand for Whole Family 4 members – cover 1 Lack each
    7> SBI Life-Dhanaraksha Plus LPPT – Term Plan – To Protect my Loan liabilities which was 25 Lacks for 20 Year – Avail a SBI Max Gain Home Loan on Yr 2009

    Some how i Buy this “ICICI Prudential Systematic Retirement Solution II plan” but thinking on to cancel it under Free Locking Period- Please Suggest the Best Option and expecting ur Advice on Canceling the Existing Policy.

    Thanks In Advance.

  5. ashalanshu says:

    Dear Manoj, if you said retirement planning, please tell me in detail, do you want to save for your retirement or do you want to save for your retirement through this policy only? In simple words, do you want to create retirement corpus or want to create retirement corpus under this policy only?

    Please reread my above query before commenting.

    Thanks

    Ashal

  6. ashalanshu says:

    Dear Manoj, why did you purchase this policy?

    Thanks

    Ashal

    1. manojkhope says:

      Thanks Ashal for replying.
      For retirement planning. But if there is better option other than this ; Please suggest?
      My current Age is 34

      1. manojkhope says:

        Hi Ashal,
        Waiting for your reply? please advice. Should i have to go with this policy Or Cancel it?

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