ICICI Prudential Elite Wealth

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ICICI Prudential Elite Wealth Plan

 

 

 

ICICI Prudential Elite Wealth Plan is a simple Unit Linked Insurance Plan. Thus, it is a Non-Traditional Insurance Plan without Bonus facility.
 
How it works – In this plan, premium needs to be paid either in a lumpsum under One Pay or for 5 years under 5 Pay but in an annual mode. The Minimum Premium for this plan is Rs 5,00,000 for both 1 Pay and 5 Pay options.
 
This plan offers Loyalty Additions from the 6th year onwards of 0.25% of the average daily Fund Value from 6th to 10th policy year and 0.6% from the 11th year onwards. Thus, once the Loyalty additions are paid, the effective Fund Management Charge is offset by that amount.
 

The Fund Value is paid as Maturity Benefit on survival till the end of the policy tenure. However, if the Life Insured dies within the policy tenure, higher of the Sum Assured or the Fund Value is paid as Death Benefit and the policy terminates.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 are Loyalty Additions from 6th year onwards.


 

Key Features of ICICI Pru Elite Wealth Plan

 

  • 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 6th 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

 

 

Benefits you get from ICICI Pru Elite Wealth Plan

 

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

 

 

Eligibility conditions and other restrictions in ICICI Pru Elite Wealth Plan

 

 

Note: Also check out ICICI Pru Elite Life, minimum premium starts at Rs 2 lakhs
 

 

Sample illustration of premium amount in ICICI Pru Elite Wealth Plan

 

Premium = Rs 5 lakhs

Age = 30 years

Policy Term = 20 years

Premium Paying Term = 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

ICICI Pru Elite Weath ULIP



Additional Features and Benefits of ICICI Pru Elite Wealth Plan

 

Riders – There are no riders available in this policy

 

Investment Fund Options - There are 8 Investment Funds available

  • Opportunities Fund
  • Multi Cap Growth Fund
  • Bluechip Fund
  • Maximiser V
  • Multi Cap Balanced Fund
  • Income Fund
  • Money Market Fund
  • 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 allows free unlimited number of 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.

 

                                             

What happens if?

 

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.

 

 

Alternate ULIPs from different insurance companies

 

BSLI Dream Endowment Plan

SBI Life - Smart Performer

Tata AIG Life Invest Assure Flexi Supreme

 

 

Other ULIPs from ICICI Prudential Life Insurance

 

ICICI Prudential Pinnacle Super

ICICI Prudential Life Time Premier

ICICI Prudential Elite Life

 

 
Charges in ICICI Prudential Elite Wealth Unit Linked Insurance Plan
 
Premium Allocation Charge – This charge is deducted from the Premium Paid by you

Type of Premium Payment
Premium Allocation Charge
1 Pay
3% of the Single Premium Paid
5 Pay
2% of the Premium
Top Up
2% of Top Up Premium

 
 
Policy Administration Charge— This is the charge for the administrative working of the policy and is deducted by cancellation of units on a monthly basis.

Policy Year
Premium Allocation Charge
1 Pay
Rs 60 p.m.
5 Pay
Rs 500 p.m.

 
 
Fund Management Charge– This charge is deducted by adjusting the NAV of the units on a daily basis.

Type
Charge
Maximiser V Fund
1.35% of the Maximiser V Fund Value
Opportunities Fund
1.35% of the Opportunities Fund Value
Multi Cap Growth Fund
1.35% of the Multi Cap Growth Fund Value
Bluechip Fund
1.35% of the Bluechip Fund Value
Dynamic P/E Fund
1.35% of the Dynamic P/E Fund Value
Multi Cap Balanced Fund
1.35% of the Multi Cap Balanced Fund Value
Income Fund
1.35% of the Income Fund Value
Money Market Fund
0.75% of the Money Market Fund Value

 
 
Discontinuation Charge— This charge is for discontinuing the plan before the end of the Policy Tenure.

Year of Discontinuation
Premium Discontinuation Charge
2nd
4% of lower of (AP or FV), subject to a maximum of Rs. 5000
3rd
3% of lower of (AP or FV), subject to a maximum of Rs  4000
4th
2% of lower of (AP or FV), subject to a maximum of Rs  2000
5th onwards
NIL

 
 
Mortality Charge — This charge is paid for the Life Coverage provided according to the Sum At Risk. This is based on the mortality rates which are specified for all ages and amount of cover being provided.
 
Service Tax would be applicable on the charges depending on the applicable rates.
 

 

 

 
Minimum
Maximum
Sum Assured (in Rs.) for 1-Pay
125% of the Premium
500% of the Premium for age 6-60, 125% of Premium for other ages
Sum Assured (in Rs.) for 5-Pay
For Age 8 to <45 years, Higher of (10 X AP) or (0.5 X PT X AP)
For Age >= 45 years, Higher of (10 X AP) or (0.25 X PT X AP)
Policy Term (in years)
10
3
Premium Payment Term (in years)
1
5
Entry Age of Life Insured (in years)
0 for 1-Pay and
8 for 5-Pay
70 for 1-Pay
65 for 5-Pay
Age at Maturity (in years)
18
80 for 1-Pay
75 for 5-Pay
Premium (in Rs.)
5,00,000
No Limit
Payment modes
Only Yearly

 

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