ICICI Pru Signature is a savings and protection oriented unit-linked insurance plan. Along with life cover to secure our family in case we are not around, this plan also offers flexible investment options to help us achieve our goals.
a) Target Asset Allocation Strategy –
This strategy enables policyholders to choose an asset allocation that is best suited to their risk appetite and maintains it throughout the policy term. The policyholder can allocate their premiums between any two funds available with this policy, in the proportion of their choice. Their portfolio will be rebalanced every quarter to ensure that this asset allocation is maintained.
b) Trigger Portfolio Strategy 2 –
The Trigger Portfolio Strategy 2 enables policyholder to take advantage of substantial equity market swings and invest in the principle of “buy low, sell high”. Under this strategy, their 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.
c) Lifecycle Based Portfolio Strategy 2 –
As an individual, our financial needs are not static and keeps changing with our life stage. It is, therefore, necessary that our policy adapts to our changing needs. This need is fulfilled by the Lifecycle based Portfolio Strategy 2.
d) Fixed Portfolio Strategy –
This strategy enables the policyholder to manage their investments actively. Under this strategy, they can choose to invest their money in any of the fund options in proportions of their choice.
a) Return of Mortality Charges and Policy Administration Charges –
If all the due premiums have been paid, then the amount equal to the total of mortality charges and policy administration charges deducted in the policy will be added back to the fund value at maturity. This amount 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. Return of Mortality Charges and Policy Administration Charges is not applicable to the Whole Life option.
b) Wealth Booster –
The company will contribute to your wealth creation by allocating extra units to your policy at the end of every 5th policy year starting from the end of the 10th policy year till the end of your policy term. Each Wealth Booster will be equal to 3.25% of the average of the Fund Values including Top-up Fund Value, if any, on the last business day of the last eight policy quarters.
Wealth Boosters 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. Allocation of Wealth Boosters is guaranteed and shall not be revoked by the company under any circumstances.
c) Death Benefit –
In the unfortunate event of the death of the Life Assured during the term of the policy, provided the money is not in the Discontinued Policy (DP) fund, then the following will be payable to the Nominee, or in the absence of a Nominee, to the Legal heir.
Minimum Death Benefit will be 105% of the total premiums including Top-up premiums if any received up to the date of death,
d) Maturity Benefit –
On maturity of the policy, the policyholder will receive the Fund Value including the Top-up Fund Value, if any. The policyholder has the option to receive the Maturity Benefit either as a lump sum or as a structured payout using Settlement Option.
e) Partial Withdrawal Benefit –
This facility is designed to help and provide policyholders with liquidity so that if there is an immediate financial need then that can be met. The policyholder can avail this any time after the completion of five policy years, provided the money is not in the Discontinued Policy (DP) fund.
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 partial withdrawals are free of cost.
The following conditions apply on partial withdrawals –
Systematic Withdrawal Plan (SWP) –
Under the Partial Withdrawal facility, the policyholder can choose to opt for a Systematic Withdrawal Plan (SWP). This facility allows them to withdraw a pre-determined percentage of their fund value regularly. This can help them to meet specific needs such as a child’s education or money for day-to-day expenses during retirement.
f) Settlement Option –
The policyholder has an option to receive the Maturity Benefit as a structured payout using the Settlement Option.
In the event of the death of the Life Assured during the settlement period, Death Benefit payable to the nominee as a lump sum will be –
Death Benefit during the settlement period = A or B whichever is highest
On payment of the last installment of the settlement option, the policy will terminate and all rights, benefits, and interests under the policy will be extinguished.
g) Unlimited Free Switches –
If the policyholder chooses the Fixed Portfolio strategy, then they can switch units from one fund to another depending on their financial priorities and investment outlook as many times as they want. This benefit is available to the policyholder without any charges. The minimum switch amount is Rs 2,000. Switches are not applicable to other portfolio strategies.
h) Premium Redirection –
This feature is applicable only if the policyholder has opted for the Fixed Portfolio Strategy and provided the money is not in the DP Fund. If the policyholder has selected Fixed Portfolio Strategy, at policy inception, the policyholder can specify 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 be counted as a switch.
i) Top Up –
The policyholder 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 –
i) Policy Administration Charge –
Policy Administration Charge will be levied every month by the redemption of units at Rs 100 p.m. ( Rs 1,200 p.a.) throughout the policy term.
ii) Mortality Charges –
Mortality charges will be levied every month by the redemption of units based on the Sum at Risk.
The sum at Risk = Highest of the following –
iii) There is no premium allocation charge in the policy
a) When can I surrender my policy?
The policyholder can surrender the policy during the first five policy years, by intimating the company that you wish to surrender the policy. On intimation 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.
b) When can I revive my lapsed policy?
The revival period is three years from the date of the first unpaid premium. In case of revival of the policy, In order to revive the policy, the policyholder has to pay all the due and unpaid premiums without charging any interest or fee. The policyholder will also have to pay policy administration charges and premium allocation charges as applicable during the discontinuance period.
c) What to do if I didn’t like the terms and conditions of the policy?
If the policyholder doesn’t like the terms and conditions of the policy, then the policy can be returned with 15 days from the purchase of the policy if the policy is purchased in person and within 30 days if the policy is purchased through distance marketing. The period is known a 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 plus non-allocated premium plus charges levied by cancellation of units less proportionate risk premium for the period of cover, stamp duty expenses under the policy and expenses borne by the company on medical examination.
The policy will terminate on payment of this amount and all rights, benefits, and interests under this policy will stand extinguished.
d) Is there any grace period in the policy?
Yes, there is a grace period of 15 days for monthly mode of premium payment and 30 days for other modes of premium payment.
e) Is there any possibility that whether I can change the portfolio strategy in my policy?
Yes, the policyholder can change their 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.
f) Is Increase or Decrease of Sum Assured allowed in the policy?
The policyholder can choose to increase or decrease their Sum Assured during the policy term provided all due premiums have been paid to date.
g) Can the policyholder choose to decrease or increase the premium payment term by notifying the company?
Yes, the policyholder you can choose to increase or decrease the Premium Payment Term by notifying the Company provided all the due premium have been paid.
h) Can I increase the term of the policy by notifying the company?
Yes, the policyholder can choose to increase their policy term by notifying the Company.
Suicide Clause –
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 or Nominee.
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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