For those keen in multiple savings option along with risk cover, often choose the ICICI Pru LifeTime Premier ULIP plan. Just like any ICICI Pru ULIP insurance plan, this plan too has investment options with efficient portfolio strategies to protect gains, attractive insurance cover, and many more benefits. Let’s find out the various features and advantages of the ICICI Pru ULIP insurance plan and why it seems to have an edge over the other plans in the similar segment.
The ICICI Pru LifeTime Premier ULIP at a Glance
|Minimum Limit||Maximum Limit|
|Sum Assured with age of life assured less than 45||Higher of (10 × annual premium) and (0.5 × Policy Term × annual premium)||According to Maximum sum assured multiples|
|Term Period||10 years||30 years|
|Premium Payment Term||5 years||Policy Term years|
|Age of Policy Holder during Buying of the Policy||7 years||65 years|
|Age of Policy Holder during Maturity of the Policy||Should be an adult||75 years|
|Regular Pay Premium||Rs. 18,000 per year||No Limits|
|Limited Pay Premium||Rs. 50,000 per year||No Limits|
Premium Analysis of a Policy under Various Premium Paying Term, Sum Assured and Return per Year
|Policy Term||Fund Value at Maturitywhere return is at a rate of 6 percent per year in Rupees||Fund Value at Maturitywhere return is at a rate of 10 percent per year in Rupees|
In the sample, the following data has been used:
Premium paid yearly= Rs.50,000
Age = 30 years
Mode of premium payment = Annually
Premium Paying Option = Regular
Sum Assured = Rs 500,000
Portfolio strategy = Fixed
Policy Term = 10 years and 15 years
ICICI Pru LifeTime Premier ULIPPlan Details
The attractive feature of ICICI Pru LifeTime Premier ULIP plan is that the death benefit is equal to the sum assured along with the Fund Value. Like other ICICI Pru savings insurance plans, this plan allows double benefit during the death of the life assured and investment portfolio strategies to protect gains generated from equity market in case of any volatility in the capital market. There is also systematic investment in the funds through Automatic Transfer Strategy. Apart from these lucrative features, there are other options as well, such as:
- The nominee would get death benefit which is the sum assured and Fund Value. Any top up value available with the plan is also added.
- The life assured gets the Fund Value on completion of the policy term as the maturity benefit.
- Loyalty Addition is added after 10 policy year. The units are added to the Fund Value every 5th year.
- Sum assured can be increased or decreased during the policy term.
- Under the plan, 12 number of investment fundsare available to the policy holders, such as:
- Opportunities Fund
- Multi Cap Growth Fund
- Bluechip Fund
- Multi Cap Balanced Fund
- Income Fund
- Money Market Fund
- Return Guarantee Fund
- Dynamic P/E Fund
- Maximiser V Fund
- Highest NAV Fund A
- Highest NAV Fund B
- Highest NAV Fund C
- Under the plan, 2 portfolio strategiesare offered, such as:
- Fixed Portfolio Strategy
- Trigger Portfolio Strategy
- A Top-up amount, starting from Rs 2000 is offered under this plan. Each top-up premium would have a 5 year lock-in period. Once the top-up option is selected, the sum assured automatically increases by 125 percent or 500 percent of the top up premium.
- Switching is permitted for a minimum amount of Rs. 10,000. No charge is levied against the first 6 switches. However, policy holders would not be able to switch from a non-guaranteed NAV option to a guaranteed NAV option.
- Partial withdrawal of funds can be done only after the completion of 5 years of the policy term. While the maximum limit is 20 percent of the Fund Value, the minimum amount is Rs. 2,000.
- No rider is available with this plan.
- No loan option is available with this ICICI Pru Life Insurance plan.
Premium Payment is Discontinued or Policy is Surrendered
The ULIP insurance policy will go in lapsation mode if no premium is paid within the grace period during the first 5 years. The Fund Value will be transferred to Discontinued Policy Fund. The amount with an interest — at the rate of 3.5 percent per year — will be handed over the policy holder after 5 years of the policy term. If the premium is not paid after 5 years, then the policy holder would get back the Fund Value immediately. In both cases, the policy ceases to exist and insurance benefits will lapse.
When the policy is surrendered before 5 years of the policy term, the insurance policy will become invalid. The Fund Value would be deposited into the Discontinued Policy Fund and an interest rate of 3.5 percent per year would be added to it. This amount would be paid to the policy holder after the completion of 5 years of the policy term. When policy is surrendered after completion of 5 years of the policy term, insurance benefit would cease to exist and the Fund Value would be provided to the policy holder. In both cases, insurance benefit and policy would lapse.
Advantages of ICICI Pru LifeTime Premier ULIP
The ICICI Pru LifeTime Premier ULIP allows the policy holder to choose the premium payment option, where he or she can either pay premium for the entire policy term or for a limited period. The Loyalty additions, top up, and tax concessions have also made the ULIP plan a viable investment cum insurance option. The other advantages are:
- Paid premiums up to a limit of 1 lakh are exempted from the tax as per section 80C of the Income Tax Act.
- Unlike many other ULIP plans, this plan offers sum assured as well as Fund Value to the nominee as death benefit.
- Maturity benefit is quite lucrative with Fund Value generated from “buy low and sell high” strategy.
- Loyalty additions would be 2 percent of the Fund Value.
- Top up option would allow policy holders to invest extra if conditions are favorable.
- Switching option in the Fixed portfolio strategy allows policy holders to invest better and earn better Fund Value.
- Automatic Transfer Strategy allows policy holders to earn gains systematically.
- Free look period offered with this ULIP based ICICI Pru Life Insurance plan makes it more user-friendly and convenient.
Those who know how ULIP plans work have responded positively about the plan. The ICICI Pru LifeTime Premier ULIP plan reviews state that the plan offers high returns as the premiums are invested in the equity market. However, the gain is protected as the amount generated from the market is stored in the safe fund. With flexible premium payment option, flexible sum assured, and settlement option among other benefits, the ULIP-based ICICI Pru Life Insurance policy is an attractive way to secure life and invest simultaneously.