Guaranteed Savings Insurance Plan GSIP

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Guaranteed Savings Insurance Plan Review

 

Guaranteed Savings Insurance Plan (GSIP) from ICICI Prudential Life Insurance is an endowment policy which guarantees the return of premiums paid at 5% per annum on death of the policy holder. This is a non unit-linked insurance plan which offers limited premium paying option. 

 

Compare Endowment Policies

 

Key Features of ICICI Prudential Guaranteed Savings Insurance Plan

  • Offers Guaranteed Maturity Benefit (GMP) which is total of all premiums paid and guaranteed regular additions accrued during the policy term along with Maturity Addition
  • Limited premium payment term
  • Guaranteed Death Benefit (GDB) which is total of all premiums paid at a compounded rate of 5 percent per annum
  • No medical tests required

 

 

Benefits you get from ICICI Prudential Guaranteed Savings Insurance Plan

 

Death Benefit – In case of death of the Life Insured, the nominee receives the total of all premiums paid till date compounded at the rate of 5 percent per annum. This is referred to as the Guaranteed Death Benefit (GDB)

 

Maturity Benefit – At the maturity of the policy, the insured will get his/her Sum Assured (total of all premiums paid). In addition to this, the policy will also offer Guaranteed Regular Additions and Maturity Addition which is calculated as a percentage of the sum assured.  

 

Income Tax Benefit – Premiums paid under life insurance policy are exempted from tax under Section 80 C and maturity proceeds are exempted from tax under Section 10 (10D)

 

 

Eligibility in ICICI Prudential Guaranteed Savings Insurance Plan

 

 

Minimum

Maximum

Sum Assured (in Rs.)

Annual Premium x Premium Paying Term

Policy Term (in years)

15

20

Premium Payment Term (in years)

7

10

Entry Age of Policyholder

0

60

Age at Maturity

18

75

Single premium (in Rs.)

NA

Payment modes

Yearly, Half-yearly or Monthly

Minimum Annual Premium Amount

18,000

12,000

 

 

Sample illustration of premium amount in Guaranteed Savings Insurance Plan

 

The below illustration is for a healthy Male (non-tobacco user) opting for a Sum Assured = Rs. 1,00,000  and Policy Term = 15 years and 20 years respectively.

Sample Premium and Returns of Guaranteed Savings Insurance Plan from ICICI Prudential

 

 

Additional Features and Benefits of Guaranteed Savings Insurance Plan

 

Riders- No riders are available with this plan.

 

 

What happens if?

 

 

You stop paying the premium – If you stop paying the premiums after 3 policy years, the policy acquires a Paid Up Value for a Reduced Sum Assured but the policy would be eligible for any future regular additions.

 

Reduced Sum Assured Value= Guaranteed Maturity Benefit X (Total Number of Premiums Paid/Total Number of Premiums Payable)

However, the policy can be revived within 2 years from the first unpaid premium by paying up the due premiums along with interest as calculated.

 

You want to surrender the policy – On discontinuing the policy you will be entitled to a surrender value which is the higher of the Guaranteed Surrender Value (GSV) and Non Guaranteed Surrender Value (NGSV).

 

The GSV=35% of Premiums paid - First Year’s Premium.

 

The NGSV= Present Value of Paid Up Sum Assured, discounted at the Gross Redemption Yield at the Review Date immediately preceding the date of surrender, plus 2% per annum.

 

You want a loan against your policy – Loan facility is available under this policy upto 80% of Surrender Value.

 

 

Alternate endowment plans from different insurance companies


LIC Endowment Assurance Plan

Kotak Endowment Plan

Tata AIG Shubh Life

 

 

Other endowment insurance plans from ICICI Prudential Life Insurance


ICICI Pru Future Secure

ICICI Pru Save ‘n’ Protect

ICICI Pru iAssure

~ By Deepak Yohannan
Note: This is a statement of facts based on the information collected from the Guaranteed Savings Insurance Plan GSIP brochure and insurance company's website. It should not be construed as a Critical or Favourable Guaranteed Savings Insurance Plan GSIP Review, Analysis or Recommendation.
Insurance is a subject matter of the solicitation.


Leave a Comment

I want to print my policy statement for 80c. How to print it.

By Mukund Kulkarni on Oct 10, 2014 Reply

He He looks like you are an advisor(agent ) of this company

By Prof R K Gupta on Jun 22, 2014 Reply

ICICI Gsip Plan is the best investment instrument which covers income tax benefit, Regular addition,maturity addition and death benefit.pay premium for limited period (7 yrs).received guranteed maturity benefit after 15 yrs while enjoying regular addition every year till maturity.
Get Pension after maturity till death.

By Chetan Mishra on Mar 20, 2013 Reply

Guys, never ever buy icici pru policies

By Harish on Feb 12, 2013 Reply

It is good for people think about long term FD, not for life cover.

In FD there is burden like Form 15 and interest will be taxable.

In GSIP there is no need of form15 and it is under section 80cc to get tax benefit.

By Suresh on Jan 26, 2013 Reply

exactly

Replied By Chetan Mishra on Mar 20, 2013 Reply

The Agent told us in Sept.12 that the policy returns are based on 10 year Gsec which is around 9%. It was actually 8.2% in Sept. 12. It is around 7.9% now in January 2013. There are charges like policy administration charge, Fund management charge plus Commission in first 5 yrs( or all years?).What is more worse is that the charges are not required to be disclosed like ULIP. The document clearly states that the bonus declared and maturity addition is at the discretion of the company.You may invest in up to 30000 every year in PPF which gives 8.8% interest compounded yearly and balance 20000 divided into into ELSS and term plan of insurance Co. if you wish to invest total 1 lakh to save tax.

By Rajesh on Jan 21, 2013 Reply

This is a traditional Endowment plan.The word Guaranteed is misleading.It is not for returns.Nothing is required to be disclosed in traditional plans.You get bonuses and maturity addition.You do not require insurance with investment.Buy your cover with a term plan so that you can invest the balance wherever you like.

By Rajesh on Jan 18, 2013 Reply

Thanks for sharing info.
Its great idea.Everybody
wants today a guaranteed
interest with secure plans.
GSIP is for all ages.I advise
my friends totake this great
policy.
Thanks

By Amit on Jan 01, 2013 Reply

Now the Guaranteed Death Benefit (GDB) is ten times of the annual premium or premium paid with 5% of compound interest whichever is higher.

By Haja on Nov 03, 2012 Reply

Thanks..
It comes to 8.4% if compounded quarterly.

By Pavan on Sep 28, 2012 Reply

Seems to b a good plan, but can anyone tell me a rough idea what is the net interest rate dat i get in this plan.. It mentions a fixed amount of Rs 14,14,102 on an yearly invest amount of 50,000 for ten years.. thanks

By Abhijit Warade on Sep 07, 2012 Reply

I am working as Marketing Manager in SKG group. I wanted to invest for my baby girl (5 months)
in GSIP plane.. Kindly advice me for the same or any other batter plane to invest..

Request to advise me with your guideline.

Regards,
Hemanshu Vora

By Hemanshu Vora. on Aug 16, 2012 Reply

dear sir/madam
I inform you that,, if you want the guaranteed savings insurance plane or tack the policy so please contact at this no, 9007333616 or if any query or doub so kindly contact i solving of your query bikoz i am as a financial Adviser of icici prudential.

By Sadique Husain on Aug 06, 2012 Reply

I INVESTMENT 25000/ RS. FOR 7 YEARS AND I WANT KNOW GSIP WILL GET AMOUNT AFTER 15 YEARS AND WHAT WILL BE RETURN.

By Iqbal Husain on Jul 29, 2012 Reply

Helo. sir/mam
I want to know from ur end that if i paid Rs12,000/-for 10 yrs against GSIP , than what amount exactly I well get return after 20yrs.

By S.Dwivedi on Jul 20, 2012

By S. Dwivedi on Jul 20, 2012 Reply

Hai i made some research on gsip... compared to fd its good plan with insurance coverage and tax free benifits.

By Sunil on Jul 12, 2012 Reply

good news abt gsip ..... now in this plan risk coverage is premium *10times whibh was not there earlier..... it fetches good returns in long run.

By Mahesh on Jul 12, 2012 Reply

Hi,
i Inform you that i sadique financial advisor of icici prudential and and i also working in icici prudential at kankurgachi kolkata, if any your query or dobs Regarding guaranteed saving insurance plane so please contact at 9007333616.

By Sadique Husain on Jun 26, 2012 Reply

one of my friend approached me for gsip but being a renal transplant patient shall i go for gsip? is there any medical restrictions ?

By Bishnupada Bhattacharjee on Mar 26, 2012 Reply

one of my friend approached me for gsip but being a renal transplant patient shall i go for gsip? is there any medical restrictions ?

By Bishnupada Bhattacharjee on Mar 26, 2012 Reply

some call from delhi to inform me about gsip plan , they told me that if i will invest 20000 per year for seven year , i will get 30% bonus on rs/-20000 per year is it right or wrong, again they told me that company will generate my acivation code , than if i have some other policy of my family i will also gwt 30% bonus on any policy of icici pru life insurance is it right or wrong plz reply

By Vinal Shah on Mar 09, 2012 Reply

according to me gsip is a good plan not telling best one coz no single plans are there in market that only giving best return coz it depends on requirement of customer everything is business but gsip giving approx guarantee amount..u are knowing at least about ur returns ... these are my opinion..if any plan giving really best then let me know pls and post ur comment....

By kaberi bangalore(silchar)

By Kaberi on Mar 03, 2012 Reply

if i will invest 20000 for 7 years and the maturity be 15 years how much i will get at the maturity including regular additins at 3 %.
thanks
nidhi goel
9650095363

By Nidhi Goel on Feb 19, 2012 Reply

I feel I have wrongly selected this ICICI gurantee saving insurance plan policy. I am still continuing it. If i discontinue in the middle I have lose huge money. I am paying monthly Rs10,000. People will always think positive and expect the high returns at the end of 15th or 20th years.. good if you are getting it.. There are other sides of this policy tooo.. If the policy holders passed away in the middle (ie before 15/20 years) Did you know how much the nominee will receive? he/she will receive only the Sum assured with 5% interest. no extra benefits/bonus.

To get the entire benefit this policy, policy holder should survive for 15years in the case of 7 years premium paying term or 20 years if the premium paying term is 10 years.

great risky policy ...

By Rviswar on Feb 10, 2012 Reply

Iam praveen. at present my age is 25 years. I would like to recieve 25000/- per month as my pension. please tell me the details regarding how much amount I have to pay annually, how many years I have to pay and all those things.

By Praveenkumar on Feb 04, 2012 Reply

I planning to invested Rs.25,000/- I want to know if I pay for seven years in same rate and after ten years what amt would I receive at if i withdraw,is it guaranteed return ????

By Nilesh Ghosh on Jan 27, 2012 Reply

the yield for the plan will be approximately 9-11% over a long term

By Selvi on Jan 21, 2012 Reply

Sir, I m planning to purchase the icici guaranteed savings insurance plan this feb,2012 as my friend also invested his money in this plan. But i want to know the guaranteed exact rate of interest which will make my friend's money Rs.280063/- (PPT=40009/- per annum Term=15 years) to Rs.800000/- +.

By Ajit Basak on Jan 17, 2012 Reply

iam 43 years, i expecting pension - Rs. 25,000/- per month. For this 25,000/- per month pension how much to pay for an year in pension plan and how many years to pay. Kindly advise me in details.

thanks

By Varghese Babu on Jan 07, 2012 Reply

i want to know full details abt GSIP policy icici

By Haleel on Dec 24, 2011 Reply

I want to know from ur end that if i paid Rs20,000/-for 7 yrs against GSIP , than what amount exactly I well get return after 15yrs

By Haleel on Dec 24, 2011 Reply

I want some information,of this plan.

By Viki Pawar on Dec 20, 2011 Reply

I am being contacted by ICICI people to have this plan after they judjed thats I am interested in the plan because they promoted this plan with medical insurance benifit of Rs1lac(For15 years) + Whole life Insurance Rs3lac(Normal death)+Rs6lac(Accedental death).They are telling that I would got whole money i.e 7premium(Rs30000*7+10%RA+125%of Rs30000). Can any body help me what to do they also telling that this scheme is availlable upto 10-12-11 only.
Anurag Vats
09414061421

By Anurag Vats on Dec 08, 2011 Reply

hi,
i wanted to know about GSIP policy of icici, whether the rate of return is guaranteed or not.

By Mohit Chopra on Nov 27, 2011 Reply

ICICI G SIP FD @ 9 % FD @ 8 %

Year 2026 Inv (Rs) Inv (Rs) Year 2026 Year 2026
25000 Year 2011 25000 91,062.06 79,304.23
25000 Year 2012 25000 83,543.18 73,429.84
25000 Year 2013 25000 76,645.12 67,990.59
25000 Year 2014 25000 70,316.62 62,954.25
25000 Year 2015 25000 64,510.66 58,290.97
25000 Year 2016 25000 59,184.09 53,973.12
25000 Year 2017 25000 54,297.33 49,975.12


Total amount payable after 15 yrs

ICICI G SIP FD @ 9 % FD @ 8 %

442000 5,00,000.00 4,60,000.00

FD seems a better option + FD gives liquidity option during emergency without losing any money.

Does G SIP provide insurance ?
@ Experts : Please let me know if i am wrong.

By Nabarun Das on Nov 18, 2011 Reply

If i invested Rs.50,000/- for seven years what was my guaranteed returns or estimated returns after 15 years ????

siraj

By Siraj on Nov 17, 2011 Reply

if i invest 50000 p/a for 7 years how much i will get after 15 years.

thanks

Siraj

By Siraj on Nov 17, 2011 Reply

I find that the easiest way to explain how this plan works is to take an example of one option with certain figures and go through it. Let’s use the same example that they use in their benefit illustration page.

Let’s say you choose the 15 year term policy and decide on a premium of Rs. 25,000.

First thing to keep in mind is that in this option you have to pay premiums for the first 7 years, but you get the money at the time of maturity which is at the end of the 15th year. The good part about this is that your insurance cover lasts for 15 years as well.

So, how much is the insurance cover?

Insurance Cover = Annual Premium x Number of Premiums

In this case – 25,000 X 7 = Rs. 175,000.

From the sample term insurance post – you know that this is not much and you can get a cover of as much as Rs. 50 lakhs with an annual premium of Rs. 5,000 or so.

However, this is one benefit you do get – so keep that in mind.

Now, the next and slightly trickier part – how much money do you get back?

You will get your money back at the time of maturity so in this case at the end of 15 years, and they have split how much you get in three buckets.

Premium Payment: This is simply the sum of premiums that you have paid, so your own cash, and this forms part of the guaranteed payment they talk about.
Regular Additions: Every year, they will declare a certain percentage of the sum assured that will be added to how much you receive back from them. From the past numbers – I see that this is around the 4% mark, so in our case 4% of Rs. 1,75,000 or Rs. 7000 will be added to what you get at the maturity. This will be added throughout the term of the policy, so in our case – 7,000 x 15 = Rs. 1,05,000. This is also part of what they consider the guaranteed payment. So, the guaranteed total is Rs. 1,75,000 + Rs. 105,000 viz. Rs. 2,80,000.
Maturity Benefit: On top of the two amounts above – they will also give you a maturity benefit, but this doesn’t fall under the guaranteed category. I think this means that they are not obliged to pay this amount, however in their illustration they have shown this to be Rs. 74,292.
If you sum up these three amounts – you will get a value of Rs. 3,54,292.

So, under the ICICI Guaranteed Savings Insurance plan, if you were to pay Rs. 25,000 for 7 years, you may get Rs. 3,54,292 according to the illustration that they have shown. Note that the only number that you can be certain of in this calculation is the premium because that’s an absolute, and they will return that.

For the Regular Additions amount – they will pay you a percentage that’s at least half of the 10 year G-Sec and so far that’s hovered around the 4% mark, and from their documentation I couldn’t find anything about the maturity benefit, but at least for this illustration they have used the same rate as the regular addition so let’s just assume that you will get that.

Now, that I have this number – I want to know at what rate should I invest my money myself to reach this target. Let’s choose a conservative number and say that I can only grow my money at 6% per year.

Now, I use the compound interest calculator at MoneyChimp and find out that if I were to invest Rs. 25,000 every year and grow it at 6% – at the end of 7 years I will have about Rs. 2,20,000.

I also used the RD calculator to see how much I will get if I were to get a recurring deposit for 7 years with Rs. 2083 (25,000 / 12) every month for 84 months (years) and that gives me about Rs. 2,16,000.

So, let’s say using these conservative numbers you invest your money for 7 years. Then take Rs. 2,20,000 and do a fixed deposit at 6% for the remaining 8 years. The same calculator shows that I will get about Rs. 3,50,000 at the end of the term.

This shows me that even this conservative interest rate of 6% earns you enough to match the returns indicated by the ICICI Prudential Guaranteed Savings Plan, and in my opinion a cover of Rs. 1,75,000 is not a big enough amount to sway your decision.

Having come this far – the last thing to see is what happens if you want to cancel the policy mid way because that seems to happen a lot.

The brochure says that if you pay the premium for at least 3 years then the policy acquires surrender value, which I take to mean that if you cancel before that time period you don’t get anything at all.

Then to calculate the surrender value – you have to see the higher of the two:

Guaranteed Surrender Value: This is 35% of the base premiums paid minus the first year premium. So if we go back to our example and say that we want to cancel after the 4 installment. Then 35% of 1,00,000 is Rs. 35,000 and if you reduce the first premium from that then you are left with Rs. 10,000 only.
Non Guaranteed Surrender Value: This is the present value of the paid up sum assured discounted at the gross redemption yield at the review date immediately preceding the date of surrender, plus 2% annum. Quite frankly, I don’t know how to calculate this or even what this means, I can only hope its close to the money you have already paid but that’s probably not how it is.
I’ve covered all the features that caught my eye, and tried to be as comprehensive as my understanding permitted. If you’ve come this far going through the whole article – the decision makes itself.

If you see any inaccuracies or mistakes in understanding then please let me know, and of course as usual everything that you have to say is welcome.

By Sk. on Nov 14, 2011 Reply

hey dis policy suits for long term goals like child marriage, education, etc... as a Irda certified guy i can suggest dis product for child goals....for more queries just mail me on royal_snakes@yahoo.com...I will revert back my no to ur mail...people might misuse my no if i reveal at this platform.

By Nikhil on Nov 12, 2011 Reply

I want to know from ur end that if i paid Rs20000/per year -for 10 yrs against GSIP , than what amount exactly I well get return after 20yrs

By Jashvant Thakur on Nov 12, 2011 Reply

If i invested Rs.20,000/- for seven years what was my guaranteed returns or estimated returns after 15 years ????

By Navindoo on Nov 10, 2011 Reply

@ Anuj Gulati....if yu ar gng to remit te premium for 7 years..then the Maturity will be on 15 th year, you will get a sum of amount 14,70,000 min Guarantee.

By Kenny Augustine on Nov 10, 2011 Reply

I WANT THIS POLICY FOR MY FUTURE....

By Rahul on Nov 09, 2011 Reply

From the details furnished in the leaflet, what I could understand is that the policy is offering only 4% interest as GMP and a trivial amount as RA(and 5% interest on the premiums paid in case of death). I do not understand why one should go for it when more than 9% interest benifit is available under FDs with nomination facility for benifit of nominee in case of death.

By K N Sahu on Oct 25, 2011 Reply

iI WANT DEPOSIT 100000

By Prakash Veer on Oct 21, 2011 Reply

i was misled by icici agent for this policy. He gave following stats for this plan. its particulars are 50k premium anually; policy term is 15yrs; premiums are paid for 7yrs.

so he said there will be a maturity addition at the 7th yr end and again at 15yr end. so he said, at 7th year end, i would get 6.47Lakhs.
but when i called the icici customer care, they confirmed that maturity addition will be only at the 15th yr end.

so ppl be aware of these misleading agents..

By Srimanth on Oct 16, 2011 Reply

if i invest 1.00,000 p/a for 7 years how much i will get after 20 years.

By Anuj Gulati on Oct 16, 2011 Reply

I want to invest 20000/year,after 15 year whats the return amount and its guaranteed to every year 4% extra added with the same.

By Niranjan Pradhan on Oct 13, 2011 Reply

my invest amount 25000 /year after 2 year i want to change the plan of invest and collect the diposite amount then what will be return amount.
Rajesh kumar
cell 8793239204

By Rajesh Kumar on Oct 07, 2011 Reply

This is an useless policy which offers return of premium with 5% interest compounded as death benefit. It not an insurance policy and something else which is against to the principles of life insurance

By Ch.Suneel Kumar on Sep 10, 2011 Reply

are you giving insurance in gsip? if yes,then on what basis?

By Tashi on Aug 25, 2011 Reply

Helo. sir,
I want to know from ur end that if i paid Rs18,000/-for 10 yrs against GSIP , than what amount exactly I well get return after 20yrs

By Rajib on Aug 16, 2011 Reply

I have invested Rs.25,000/- for first year I want to know if I pay for seven years in same rate and after ten years what amt would I receive at if i withdraw,is it guaranteed returns or estimated returns ????

By Avijit Samanta on Aug 12, 2011 Reply

I have invested Rs.25,000/- for first year I want to know if I pay for seven years in same rate and after ten years what amt would I receive at if i withdraw,is it guaranteed returns or estimated returns ????

By Avijit Samanta on Aug 12, 2011 Reply

i have invested 30000 for first year i want to know if i want to surrender after paying for seven years,what amt would i receive at the eight year if i withdraw,is it guaranteed returns or estimated returns

By Sakshi on Aug 09, 2011 Reply

I want to take health insurance of My mother. Her date of birth is 01/08/1950. so please tell me about IDBI term fedral of senoir.

By Gaikwad Shashikant Amabdas on Jul 23, 2011 Reply

sir
now iam 45 years old if i jointhe met suraksha trop pls tell me the annual premium ,
payment term amount gong to received,
please give me details

By Asaithambi.P on Jul 15, 2011 Reply

i t is very beautiful policy.

By Goutam Bhattacharya on Jul 12, 2011 Reply

buy online

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