ICICI Pru LifeTime Classic Policy is a unit-linked insurance plan. In this policy, the investment risk in the investment portfolio is borne by the Policyholder. This plan offers the insured a life insurance cover to protect their family in case of your unfortunate demise along with multiple choices on how to invest to help you achieve your financial goals.
The plan also offers 4 portfolio strategies that can be selected according to your personal investment needs.
a) Target Asset Allocation Strategy –
This strategy enables you to choose an asset allocation that is best suited to your risk appetite and maintains it throughout the policy term. You can allocate your premiums between any two funds available with this policy, in the proportion of your choice.
Your portfolio will be rebalanced every quarter to ensure that this asset allocation is maintained. The re-balancing of units shall be done on the last day of each policy quarter. You can avail of this option at inception or at any time later during the policy term.
b) Trigger Portfolio Strategy 2 –
For an investor, maintaining a pre-defined asset allocation is a dynamic process and is a function of constantly changing markets. The Trigger Portfolio Strategy 2 enables you to take advantage of substantial equity market swings and invest on the principle of “buy low, sell high”.
Under this strategy, your investments will initially be distributed between two funds Multi-Cap Growth Fund, an equity-oriented fund, and Income Fund – a debt-oriented fund in a 75%: 25% proportion. The fund allocation may subsequently get altered due to market movements.
c) Fixed Portfolio Strategy –
This strategy enables you to manage your investments actively. Under this strategy, you can choose to invest your money in any of the following fund options in proportions of your choice. You can switch money amongst these funds using the switch option. The details of the funds are given in the table below:
d) Lifecycle based Portfolio Strategy 2 –
Your financial needs are not static and keep changing with your life stage. It is, therefore, necessary that your policy adapts to your changing needs. This need is fulfilled by the LifeCycle based Portfolio Strategy 2.
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.
i) In the case of Single Pay policies, Death Benefit = A or B or C whichever is highest, Where,
ii) In the case of Limited Pay and Regular Pay policies, For age at entry less than 50 years, Death Benefit = (A+B) or C whichever is higherWhere,
iii) For the age at entry greater than or equal to 50 years, Death Benefit = A or B or C whichever is highest, Where,
Minimum Death Benefit will be 105% of the total premiums including 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 the Top-up Fund Value, if any. You will have an option to receive the Maturity Benefit as a lump sum or as a structured payout using the Settlement Option.
c) Loyal Additions and Wealth Boosters –
The Company will allocate extra units as below provided all due premiums have been paid:
d) Rider Benefit –
Additional protection through ICICI Pru Unit Linked Accidental Death Rider. The insured will be paid in addition to the death benefit if death is due to an accident.
Can I make switches between funds?
If you choose the Fixed Portfolio Strategy, you can switch units from one fund to another depending on your financial priorities and investment outlook as many times as you want. Four switches are free in a policy year. Switches in excess of 4 free switches in a policy year will be charged at Rs 100 per switch. Unutilized free switches can not be carried forward in the next policy year. The minimum switch amount is Rs 2,000.
What is the Top-up facility in the policy?
The insured can invest any surplus money as Top-up premium, over and above the base premium(s), into the policy. The following conditions apply to Top-ups –
Is it possible to make any Change in the Portfolio Strategy?
You can change your portfolio strategy up to four times in a policy year. This facility is provided free of cost. Any unutilized CIPS cannot be carried forward to the next policy year.
What is Premium Redirection in the policy?
This feature is applicable only if the insured has opted for the Fixed Portfolio Strategy and provided the money is not in the DP Fund. If the insured has selected Fixed Portfolio Strategy, at policy inception, by specifying the funds and the proportion in which the premiums are to be invested in the funds.
At the time of payment of subsequent premiums, the split may be changed without any charge. This will not count as a switch. This benefit is not applicable to the Single Pay option.
Is there any partial withdrawal benefit in this policy?
Irrespective of the portfolio strategy selected by the insured, partial withdrawals are allowed after the completion of five policy years and on payment of all premiums for the first five policy years. The insured 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 partial withdrawals are free of cost. The following conditions apply on partial withdrawals, they are as follows –
Can I increase or decrease the sum assured?
The insured can choose to increase or decrease their Sum Assured at any policy anniversary during the policy term provided all due premiums have been paid.
Can I increase the premium payment term?
Provided all due premiums have been paid, the insured can choose to increase the Premium Payment Term by notifying the Company.
This benefit is not applicable to the Single Pay option.
Can I increase or decrease Policy Term?
The insured can choose to increase or decrease their policy term by notifying the Company.
When can I surrender the policy?
During the first five policy years, on receipt of intimation that the insured wishes to surrender the policy, 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 insured or your 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, you will be entitled to the Fund Value including Top-up Fund Value, if any.
How is money treated in the policy while the money is in the DP Fund?
While money is in the DP Fund –
When can I revive my lapsed policy?
The revival period is three years from the date of the first unpaid premium. Revival will be based on the prevailing Board approved underwriting guidelines.
In case of revival of the policy, the company shall collect from you the following –
On payment of overdue premiums before the end of the revival period, the policy will be revived. On revival, the policy will continue with benefits and charges, as per the terms and conditions of the policy. The insured shall have an option to revive the policy without or with the rider if any.
The money will be invested in the segregated fund(s) chosen by the insured at the NAV as on the date of such revival.
i) Premium Allocation Charge
Premium Allocation Charge depends on the premium payment option and the premium payment mode chosen. It is deducted from the premium amount at the time of premium payment and units are allocated in the chosen funds thereafter. This charge is expressed as a percentage of the premium.
ii) 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.
iii) Policy Administration Charge –
Policy Administration Charge will be levied every month by the 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 –
Can I cancel the policy if I didn’t like its terms and conditions?
If the insured is not satisfied with the terms and conditions of this policy, then the policy can be returned to the company with reasons for cancellation within 15 days from the date of receipt of the policy document and 30 days from the date of receipt of the policy document, if your policy is purchased through Distance Marketing Distance.This period is known as the Free Look Period.
On cancellation of the policy during the free-look period, the insured shall be entitled to an amount which shall be equal to non-allocated premium plus charges levied by cancellation of units plus Fund Value at the date of cancellation less stamp duty expenses under the policy and expenses borne by the company on medical examination.
Is there any grace period in the policy?
The grace period for payment of premium is 15 days for monthly mode of premium payment and 30 days for other modes of premium payment.
If the Life Assured, whether sane or insane, commits suicide within 12 months from the date of commencement of the policy or from the date of policy revival, 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. If the Life Assured, whether sane or insane, commits suicide within 12 months from the effective date of the increase in Sum Assured, then the amount of increase shall not be considered in the calculation of the death benefit.
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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