ICICI Prudential Elite Life

ICICI Prudential Elite Life Plan is a simple unit linked insurance plan (ULIP) for the elite investors, such that if the Life Insured dies within the policy tenure, the nominee would receive the Sum Assured or the Fund Value, whichever is higher as Death Benefit. On Maturity, the Life Insured would receive the Fund Value. In this plan, the effective Fund Management Charge is much low as compared to other similar plans as there is Loyalty Additions from 6^th year onwards.

·         This is a simple ULIP where the higher of Sum Assured or Fund Value is paid on death and Fund Value is paid on maturity

·         Loyalty Units are added to the fund from the 6^th policy year onwards

·         The Fund Management Charge is effectively reduced by the % of Loyalty additions received.

·         There is a choice of 8 Investment Funds in this plan

·         This plan provides for unlimited free switches

·         The Sum Assured can be increased and decreased within the policy tenure for 1-Pay.

Death Benefit – In case of death of the Life Insured, the nominee would get the higher of Sum Assured or Fund Value as Death Benefit

Maturity Benefit – On maturity, the Fund Value is paid to the policyholder according to the investment option chosen.

Income Tax Benefit - Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C

Premium = Rs.5,00,000

Age = 30 years

Policy Term = 20 years

PPT = 5 Pay and 1-Pay

Sum Assured = Rs 50,00,000 for 5-Pay and Rs 25,00,000 for 1-Pay

Total Investment = Rs. 5,00,000 x 5 years= Rs 25,00,000 for 5-Pay

Total Investment = Rs. 5,00,000 x 1 year= Rs 5,00,000 for 1-Pay

Riders – There are no riders available in this policy

Investment Fund Options

There are 8 Investment Funds available

1.     Opportunities Fund

2.     Multi Cap Growth Fund

3.     Bluechip Fund

4.     Maximiser V

5.     Multi Cap Balanced Fund

6.     Income Fund

7.     Money Market Fund

8.     Dynamic P/E Fund

Top-up

The minimum and maximum amount for Top-up is Rs 2,000 and sum assured automatically increases either by 125% or 500% of the top up premium amount. Top Up can be done anytime except during the last 5 years of the Policy Term and each Top-up Premium also has a Lock In Period of 5 years.

Switching

This plan provides for unlimited fee switches.

Partial Withdrawal

Partial withdrawals are allowed only after completion of 5 policy years. One Partial Withdrawal is allowed in each policy year upto a maximum of 20% of the existing Fund Value. The minimum amount for partial withdrawal is Rs 2,000

You stop paying the premium before 5 years - If the policy holder stops paying the premium, the insurance cover will cease and the fund value net of any discontinuance charge will be transferred to the Discontinued Policy Fund. The Discontinued Policy Fund will be credited with a minimum interest rate of 3.5% p.a. and the proceeds from this will be payable after the fifth policy anniversary. In case of death of the Life Assured during this period, only the accumulated fund value will be payable to the nominee.

You stop paying the premium after 5 years - If the policy holder stops paying the premium after 5 years, then the accumulated policy fund amount till the date of discontinuance shall be paid to the policy holder and the policy will terminate immediately.

You want to surrender the policy – If the policy holder wants to surrender the policy before completing 5 years, then the insurance cover will cease and the fund value net of any discontinuance charge will be transferred to the Discontinued Policy Fund. The Discontinued Policy Fund will be credited with a minimum interest rate of 3.5% p.a. and the proceeds from this will be payable after the fifth policy anniversary. In case of death of the Life Assured during this period, only the accumulated fund value will be payable to the nominee.

If the policyholder surrenders the policy after completion of 5 policy years, then the insurance cover will cease and your fund value shall be paid immediately and the policy would be terminated.

You want a loan against your policy - There is no loan available under this plan.

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