Have you been looking for an ICICI Pru Life Insurance plan with opportunity to earn high returns through equity markets and options to protect gains from market volatility? If yes, then you should check out the single premium, ICICI Pru LifeLink Wealth SP ULIP plan which allows policy holders to select the premium amount, portfolio strategy, and sum assured.
Like any of the ULIP plans offered by ICICI Prudential, this plan too offers death benefit and maturity benefit apart from several other benefits. Here are some basic facts about the ICICI Pru LifeLink Wealth SP ULIP plan and the utilities it provides to the policy buyers.
The ICICI Pru LifeLink Wealth SP ULIP Plan at a Glance
|
Minimum Limit |
Maximum Limit |
|
| Sum Assured for 1-Pay | 125 percent of the premium | 500 percent of the premium |
| Policy Term | 10 years | 30 years |
| Premium Payment Term | Single premium | |
| Lock-in Period | 5 years | 5 years |
| Age of Policy Holder during Buying the Policy | 0 years | 60 years |
| Age of Policy Holder during Maturity of the Policy | Should be an adult | 70 years |
| Premium amount | Rs. 40,000 | - |
Premium Analysis of a Policy under Various Premium Paying Term, Sum Assured and Return per Year
|
Policy Term (in Years) |
Fund Value at Maturity at a rate of 6 percent per year (in Rs.) |
Fund Value at Maturity at a rate of 10 percent per year (in Rs.) |
| 10 | 135,567 | 199,434 |
| 20 | 200,606 | 450,733 |
In the sample, the following data has been used:
Premium Paid = Rs.100,000
Age = 30 years
Sum Assured = Rs 500,000
Portfolio Strategy = Fixed
ICICI Pru LifeLink Wealth SP ULIP Plan Details
Just like any ULIP-based ICICI Pru Life Insurance policy, this policy too, has death benefit, maturity benefit, tax benefit, and other benefits. Take a look at some of the key features of this plan which makes it a lucrative investment cum risk cover for many.
- Death benefit offered with the ICICI Pru ULIP insurance plan is either the sum assured or Fund Value – whichever is the higher of the two amounts. If any partial withdrawal had been made, the amount is deducted from the sum assured and offered as death benefit. The Fund Value, if offered as death benefit, would include top up amount.
- Maturity benefit offered with the plan is the Fund Value along with top up value. The life assured can receive the benefit as lump sum or in installments.
- Tax concessions are applicable to the paid premium. The maximum amount exempted here is 1 lakh. The maturity benefit is also subjected to tax relief as section 10(10D) of Income Tax Act.
- Loyalty addition is accrued at the end of every 5 years of policy term. This allocation will start from the 10th policy year.
- There are 2 portfolio strategiesavailable with the policy holder to manage the fund investment. These are:
- Trigger Portfolio Strategy– In this strategy, funds will be allocated in 2 funds, such as:
- Equity-oriented fund where 75 percent of the fund will be allocated
- Debt-oriented fund where 25 percent of the fund will be allocated
- Fixed Portfolio Strategy– In this strategy, funds will be invested into one of the 8 investment funds. The policy holder will have the option of choosing the investment funds. The 8 investment funds are:
- Opportunities fund
- Multi Cap growth fund
- Bluechip Fund
- Multi Cap Balanced Fund
- Income Fund
- Money Market Fund
- Return Guarantee Fund
- Dynamic P/E Fund
- Trigger Portfolio Strategy– In this strategy, funds will be allocated in 2 funds, such as:
- Top-up option is available with the ULIP plan. The minimum amount offered under the plan is Rs. 2000.
- Switching in between funds is allowed under Fixed Portfolio strategy.
- Partial withdrawals can be done in this policy after the plan completes 5 policy years. One partial withdrawal with a minimum of Rs. 2000 can be done for free in every three policy years.
- Sum assured can be increased or reduced as per the requirement of the policy holder during the policy term. The increase would be from 125 percent to 500 percent or it would decrease in the corresponding way in case the sum assured is stipulated to be reduced.
- No riders are available under the ICICI Pru ULIP plan.
- No loans are available under the ICICI Pru LifeLink Wealth SP ULIP plan.
- Policy holder can surrender the policy provided the policy completes 5 policy years. The surrender value offered to the policy holder will be equal to the Fund Value and top up value. No surrender charge will be levied under this plan.
Advantages of ICICI Pru LifeLink Wealth SP ULIP Plan
Just like the ICICI Pru single premium insurance plans, this ULIP plan offers remarkable opportunity to the policy holder to acquire risk cover and high returns with single premium payment and longer policy term. And, there are more benefits also, such as:
- Lucrative death benefit, maturity benefit, and tax concessions are offered under the plan.
- Effective portfolio strategy is available to protect gains accrued from the capital market.
- Loyalty additions are offered up to 2.5 percent of Fund Value at every 5th year of the policy term.
- Enhanced protection needs are provided through top up facility and change in the sum assured.
- Free of cost partial withdrawal is allowed to the policy holder to get some financial relief during the policy term.
- Free look period is offered to the customers who have just bought the plan.
The ICICI Pru LifeLink Wealth SP ULIP plan reviews from policy buyers and experts have pointed out that this ULIP plan offers high returns to the users through profits accrued in equity market. It would be cash, debt, or equity market where premium amount is invested to yield good returns. There is a portfolio strategy to protect gains earned in the market from any untoward surges in the equity shares. However, the risk in the investment is ultimately to be borne by the policy holder.