ICICI Pru1 Wealth is more than a life insurance plan. With just a single premium payment, you can get 100% of your money invested in funds of your choice. You get 7 fund choices i.e. 3 equity funds, 3 debt funds and 1 balanced fund and can switch between these funds anytime, at no extra cost.
This plan gives you the potential for better returns by investing in the market, while protecting your family with life cover. You will also get tax benefits on premium paid and benefits you receive.
a) Death Benefit –
In the unfortunate event of the death of the Life Assured during the term of the policy the following will be payable to the Nominee, or in the absence of a Nominee the Legal heir.
Minimum Death Benefit will be 105% of the single premium and top-up premiums if any received up to the date of death.
b) Maturity Benefit –
On maturity of the policy, you will receive the Fund Value including Wealth Booster and Top-up Fund Value, if any. You have the option to receive maturity benefit either as a lump sum or as a structured payout using Settlement Option.
c) Wealth Booster –
The company will allocate extra units at the end of the policy term, provided monies are not in the DP fund. Wealth Booster will be 2.50% of the single premium for 5-year policy term and 2.75% of single premium including top-up premiums less partial withdrawals if any for 10-year policy term.
Wealth Booster will be allocated among the funds in the same proportion as the value of total units held in each fund at the time of allocation. The allocation of Wealth Booster units is guaranteed and shall not be revoked by the Company under any circumstances.
d) Settlement Option –
You will have an option to receive the Maturity Benefit as a lump sum or as a structured payout using Settlement Option.
Death Benefit during the settlement period = A or B whichever is highest of the following –
e) Partial Withdrawal Benefit –
Partial withdrawals are allowed for a Policy term of 10 years after the completion of five policy years. You can make an unlimited number of partial withdrawals as long as the total amount of partial withdrawals in a year does not exceed 20% of the Fund Value in a policy year. The Fund Value will be as at the beginning of the policy year. The partial withdrawals are free of cost.
The following conditions apply on partial withdrawals, they are as follows –
f) Top Up Benefit –
You can invest any surplus money as Top-up premium, over and above the base premium, into the policy.This feature is available only for a policy term of 10 years. The following conditions apply on Top-ups –
g) Increase or Decrease of Policy Term –
Can I surrender the policy?
If the policyholder surrenders during the first five policy years, then the policyholder will receive, the Fund Value including Top-up Fund Value, if any, after deduction of applicable Discontinuance Charge shall be transferred to the Discontinued Policy Fund (DP Fund). The policyholder or their nominee, as the case may be, will be entitled to receive the Discontinued Policy Fund Value, on the earlier of death or the expiry of the lock-in period.
Currently, the lock-in period is five years from policy inception. On surrender after completion of the fifth policy year, the policyholder will be entitled to the Fund Value including Top-up Fund Value, if any. No surrender penalty will be levied and policy surrender will extinguish all rights, benefits and interests under the policy.
Treatment of the policy while monies are in the DP Fund –
While monies are in the DP Fund –
Can I cancel the policy if I didn’t like its terms and conditions?
If the policyholder is not satisfied with the terms and conditions of this policy, the policy can be returned with the policy document to the Company for cancellation with reasons within i. 15 days or 30 days (if the policy is purchased through distance marketing) from the date it is received. This period is known as the Free-Look Period.
On cancellation of the policy during the free-look period, the policyholder shall be entitled to an amount which shall be equal to Fund Value at the date of cancellation less stamp duty expenses under the policy, proportionate risk premium and expenses borne by us on medical tests, if any
The policy will terminate on payment of this amount and all rights, benefits and interests under this policy will stand extinguished.
Automatic Transfer Strategy –
Automatic Transfer Strategy(ATS) helps eliminate the need to time your investment by giving you the benefit of rupee cost averaging. If this option is chosen, you can invest all or some part of your investment in Income Fund or Money Market Fund and transfer a fixed amount in regular monthly instalments into any one of the following funds –
There would be no additional charges for ATS. The following conditions apply to ATS –
a) Premium Allocation Charges and Policy Administration Charges –
In this policy, there are no premium allocation and policy administration charges in this policy.
b) Fund Management Charge (FMC) –
The following fund management charges will be applicable and will be adjusted from the NAV on a daily basis. This charge will be a percentage of the Fund Value.
c) Mortality Charges –
Mortality charges will be levied every month by the redemption of units based on the Sum at Risk. The sum at Risk will be the highest of the following –
Indicative annual charges per thousand life cover for a healthy male and female life are as shown below –
d) Discontinuance Charges –
Discontinuance Charges are described below in the chart.
No discontinuance charge is applicable for Top-up premiums.
What is the premium payment option in ICICI Pru1 Wealth plan?
ICICI Pru1 Wealth is a single premium payment life insurance plan that allocates 100% of your investment amount in the funds of your choice while providing a life insurance cover. So, pay just once and enjoy the benefits for the long term!
What are the policy terms available in ICICI Pru1 Wealth plan?
ICICI Pru1 Wealth has two policy terms i.e. 5 & 10 years. You can choose the policy term which will support your plans to achieve your financial goals.
How much premium do I have to pay?
The premium for ICICI Pru1Wealth starts at Rs 50,000/- per annum. There is no limit on the maximum investment amount.
What are unlimited free switches between funds?
The policyholder can switch units from one fund to another depending on your financial priorities and investment outlook as many times as you want. This benefit is available to you without any charge. The minimum switch amount is Rs. 2,000.
What is the risk of investment in the unit of funds?
The policyholder should be aware that the investment in the units is subject to the following risks –
Suicide Exclusion –
If the Life Assured, whether sane or insane, commits suicide within 12 months from the date of commencement of the policy, only the Fund Value, including Top-up Fund Value, if any, as available on the date of intimation of death, would be payable to the Claimant.
Any charges other than Fund Management Charges and guarantee charges, if any, recovered subsequent to the date of death shall be added back to the fund value as available on the date of intimation of death.
So, by now you know each and every important detail about this policy. Do let me know if I have missed any important points in the comment section. Please feel free to ask any doubts regarding this policy.
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