ICICI Pru Guaranteed Savings Insurance Plan-Key Features and Benefits

The ICICI Pru Guaranteed Savings Insurance plan is a limited pay endowment plan which has guaranteed maturity benefit along with guaranteed regular additions to allow policy holders to plan their future savings and expenditure in a secured way. Although the ICICI Pru Guaranteed Maturity Benefit plan has guarantees additions, it is not a participatory plan where results depend on the performance of the company or an ULIP plan where the gains are generated or reduced on movements in the capital markets.

Let’s find out why the ICICI Pru Endowment insurance plan is popular among families who look forward to financial security, risk cover, and lot more savings benefit among others.

The ICICI Pru Guaranteed Savings Insurance Plan at a Glance

Estimated Benefits of the ICICI Pru Guaranteed Savings Insurance Plan under Various Rates of Return

In the above given illustration, the following data has been used:

Premium = Rs. 25,000

Age = 30 years

Policy Term = 15 Years

Premium Paying Term = 7 Years

Premium Paying Mode = Annual

Sum Assured = Rs 175,000

Estimated Benefits of the ICICI Pru Guaranteed Savings Insurance Plan under Various Rates of Return 

In the above given illustration, the following data has been used:

Premium = Rs.25,000

Age = 30 years

Policy Term = 20 Years

Premium Paying Term = 10 Years

Premium Paying Mode = Annual

Sum Assured = Rs 250,000

ICICI Pru Guaranteed Savings Insurance Plan Details

The ICICI Pru Guaranteed Savings Insurance plan allows the policy holder to choose either 7 years or 10 years as the premium paying term. The policy holder can also select the premium or the sum assured. Similar to other Endowment Insurance plans, this plan too offers death benefit and maturity benefit to the beneficiary. However, the Guaranteed Returns Insurance plan offers guaranteed returns and does not base on results accrued in capital markets. Take a look at some more useful features offered under the ICICI Pru Guaranteed Savings Insurance plan.

• The nominee gets Guaranteed Death Benefit (GDB) or death benefit which is equal to the premiums paid till date that has been compounded at 5 percent per year.
• The life assured gets Guaranteed Maturity Benefit (GMB) or maturity benefit which is equal to sum assured or all the premiums paid by the policy holder, Maturity Additions (MA) or lump sum amount generated as a percentage of sum assured and offered at the end of the policy term, and Regular Additions (RAs) or a percentage of sum assured that is announced at the beginning of each policy year.
• Premiums can be paid for a limited term of 7 years or 10 years.
• No riders are available under the ICICI Pru Guaranteed Savings Insurance plan.
• Tax concessions are available under the Guaranteed Returns Insurance plan.
• Loan facility is available under this ICICI Pru Endowment insurance plan, provided the following conditions are met:
  • The premiums for the first 3 years of the policy term must be paid.
  • Policy must have attained a surrender value.
  • Maximum loan amount permitted under this plan is 80 percent of the surrender value.
• No medical test is needed to get the plan.
• Guaranteed surrender value or non-guaranteed surrender value – whichever is higher — is offered in case the policy is discontinued. The guaranteed surrender value is 35 percent of the paid premium exclusive of the 1^st year’s premium. Non-guaranteed surrender value is the paid up sum assured. But some conditions apply.
• Reduced sum assured is available under this plan, which is equal to the total number of paid premiums divided by total number of premiums payable multiplied by the Guaranteed Maturity Benefit.

Discontinuation of Premium or Surrender of the Policy

If a policy holder discontinues paying premiums, the policy may continue with a reduced sum assured or paid up sum assured. To quality for this facility, the following conditions must be met:

• Policy must have acquired a surrender value.
• Premium for at least 3 policy years must be paid.

…The policy under paid up sum assured will not be eligible for Regular Additions. Death benefit will also be reduced.

If the policy holder surrenders the policy, a surrender value is offered to the policy holder. This amount is the higher of the Guaranteed Surrender Value (GSV) and Non Guaranteed

Surrender Value (NGSV). The policy can be reinstated provided the revival option is made within the 2 years of the date of the initial unpaid premium. The unpaid premiums and interest rates must be paid.

Advantages of ICICI Pru Guaranteed Savings Insurance Plan

The ICICI Pru Guaranteed Savings Insurance plan is a lucrative endowment plan where there is life cover for the policy term period as well as maturity benefit, tax concessions, and many other benefits. Some other advantages of the ICICI Pru Endowment insurance plan are:

• The ICICI Pru Guaranteed Savings Insurance plan is a perfect ICICI Pru safe tax savings plan as it is subjected to tax relief on paid premiums as per laws under Section 80 of the Income Tax Act. The maturity benefits are also provided with tax concessions under Section 10 (10D) of the Income Tax Act.
• GDB is not only paid premiums but also interest rate compounded at 5 percent.
• GMB has sum assured along with lucrative additions which makes the plan a viable investment cum savings option.
• Guaranteed surrender value under the plan allows the policy holder to get back some amount of the paid premiums made for this plan.
• Reduced sum assured under the plan ensures that beneficiary gets some benefit even though some premiums are not paid.
• Loans allow policy holder to bank on the paid premiums paid during the policy term.
• Free look period allows the policy holder to review the policy for few days and surrender the same without incurring a considerable loss.

The ICICI Pru Guaranteed Savings Insurance plan reviews suggest that the plan provides attractive guaranteed returns at maturity. People who want to save money for the future expenses of their kids look forward to this Endowment Insurance Plan as it offers more than the sum assured even at limited premium payment term.