ICICI PRU Lakshya Wealth – Review, Features and Benefits

When we prosper in life, we always think of buying a house or funding a child’s higher education or protecting our loved ones. We always want to give them the best and for this, one needs to have the right plan.

ICICI Pru Lakshya is specially designed to grow your wealth with the promise of protecting your money. This can be done through guaranteed benefits in the form of sum assured on maturity and guaranteed value benefits, and bonuses in the form of regular additions, if declared every year throughout the policy term as well as a terminal bonus, if declared on maturity.

ICICI Pru lakshya Wealth Policy

2 Plan Options under this Policy –

This policy has 2 options that a policyholder can choose from. They are as follows –

  1. Wealth Plan
  2. Lifelong Income Plan

Features of this Policy –

  • Lump-Sum Benefit
  • Capital Protection
  • Bonuses
  • Guaranteed Value Benefits
  • Life Cover Benefit
  • Tax Benefit on Premiums Paid
  • Loan Benefit

Benefits of the Policy –

I) Under Wealth Plan Option –

a) Death Benefit –

On the death of the life assured during the policy term, provided all due premiums have been paid, the following will be payable – Death Benefit = Higher of (A, B)

Where,

  • A = Sum Assured on Death, + Accrued Regular Additions net of encashment (if any) + Interim Regular additions (if any) + Terminal Bonus (If declared)
  • B = 105% of Total Premiums paid as on the date of death, Sum Assured on Death = Higher (10 X Annualised Premium or PPT X Annualised Premium).

Once the Death Benefit is paid to the nominee of the policyholder then, all policy benefits will cease.

b) Maturity Benefit –

The Maturity Benefit comprises of guaranteed benefits and bonuses.

Maturity Benefit = Sum Assured on Maturity + applicable Guaranteed Value Benefits + accrued Regular Additions net of encashment if any + Terminal bonus (if declared).

There are two pay-out options to receive the Maturity Benefit under Wealth Plan.

a) Lump-sum – This is ideal for those looking to build a wealth corpus. Under this option, the entire maturity benefit will be payable as a single pay-out at the end of the policy term.

b) Income – This is ideal for those looking to receive regular income for a fixed number of years. Under this option,

  • You shall receive the Maturity Benefit in installments over a chosen period.
  • You can choose to receive the entire Maturity Benefit or a part of it as regular installments over a period of 5, 10, or 15 years offered by the Company from time to time.
  • The interest rates applicable for arriving at the installment payments for the chosen period shall be as fixed by the Company on a monthly basis.

II) Under Lifelong Income Option –

a) Death Benefit –

On the death of the life assured during the policy term, provided all due premiums have been paid, the following will be payable –

Death Benefit = Higher of (A, B)

Where,

  • A = Sum Assured on Death + Bonuses
  • B = 105% of Total Premiums paid as on the date of death
  • Sum Assured on Death = Higher of (10 X Annualised Premium or Premium Payment Term X Annualised Premium)

Once the Death Benefit is paid, all policy benefits will cease.

b) Maturity Benefit –

On receipt of all due premiums and on survival till maturity, you will receive the Maturity Benefit which is comprised of guaranteed benefits and bonuses as explained below.

Maturity Benefit = Sum Assured on Maturity + Terminal bonus (if declared).

c) Survival Benefit –

  1. On survival of the life assured till the Income Start Date (ISD) which is fifth policy anniversary after the Premium Payment Term, the accrued Regular Additions net of encashment if any, till that date shall be payable as a lump sum.
  2. After the Income Start Date (ISD), on every policy anniversary, till the end of the policy term or death whichever is earlier, the following is payable.
  • Guaranteed Income (GI)
  • Cash Bonus (if declared)

The GI will be set at policy inception. Higher premiums will be eligible for higher Guaranteed Income. For a 40-year-old male choosing PPT of 10 years, the GI payable is as shown below for different Annualised Premiums.

survival benefit of lifelong Income

Eligibility Criteria of the Policy –

a) For Wealth Plan Option –

wealth option eligibility criteria of the policy

b) Lifelong Income Option –

Lifelong Income Option eligibility criteria of the policy

Is there any surrender benefit in the policy?

The Policy will acquire a Guaranteed Surrender Value on payment of at least 2 full years’ premiums. On policy surrender, Surrender Value equal to the higher of the following will be payable –

  • Guaranteed Surrender Value (GSV) which includes guaranteed surrender value of accrued Bonuses declared in the form of Regular Additions, net of encashment if any.
  • Special Surrender Value (SSV)On payment of Surrender Value the policy will terminate and all rights, benefits, and interests under the policy will stand extinguished.

Is there any guaranteed benefit under the policy?

i) For Wealth Plan Option –

GSV will be calculated as follows –

  • GSV = GSV Factor for premiums X total premiums paid, plus GSV Factor for Bonus X accrued Regular Additions net of encashment if any X Surrender timing factor.

ii) For Lifelong Income Plan Option –

GSV will be calculated as follows –

  • GSV = GSV Factor for premiums X total premiums paid, less Guaranteed Income paid if any, plus
  • GSV Factor for Bonus X accrued Regular Additions net of encashment if any X Surrender timing factor.

All the factors applicable to Guaranteed Surrender Value calculation are guaranteed throughout the policy term. If the policyholder discontinues their premiums before their policy has acquired a surrender value, no benefits will be payable under the policy.

Can I take a loan against this policy?

The policyholder can avail loans under this policy after the policy acquires surrender value. The loan amount of up to 80% of the Surrender Value can be availed. The Company shall be entitled to call for repayment of the loan with all due interest by giving three months’ notice, if the amount outstanding is greater than the surrender value and if the policy is in a paid-up state.

In the event of failure to repay by the required date, the policy will be foreclosed, the policy will terminate, and all rights, benefits and interests under the policy will stand extinguished.

Is there any grace period in this policy?

If the policyholder is unable to pay an installment premium by the due date, then a grace period of 15 days will be given for payment of due installment premium for monthly frequency, and 30 days will be given for payment of due installment premium for any other frequency. The life cover continues during the grace period. In the case of Death of Life Assured during the grace period, the company will pay the Death Benefit as per the terms and conditions of the Policy.

Can I cancel the policy if I didn’t like its terms and conditions of the policy

If the policyholder doesn’t like terms and conditions of the policy, then the policy can be returned to the company within 15 days and 30 days (in case the policy is purchased through distance marketing) from the date the policyholder has received the policy. This period is known as the Free Look Period.

On receiving the policy, the company will refund the premium paid after deduction of Stamp duty, the proportionate risk premium for the period of cover, and the expenses borne by the company on medical tests, if any. The Policy shall terminate on payment of this amount and all rights, benefits, and interests under this Policy will stand extinguished.

Exclusion Under the Policy –

Suicide Clause –

In case of death due to suicide within 12 months from the date of commencement of risk under the policy or from the date of revival of the policy, as applicable, the nominee or beneficiary of the policyholder shall be entitled to 80% of the total premiums paid till the date of death or the surrender value available as on the date of death whichever is higher, provided the policy is in force.

Conclusion –

So as all that I wanted to share in this article. Let me know if you have any queries in the comment section.

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