ICICI Prudential Elite Life Plan

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ICICI Prudential Elite Life Plan
 
ICICI Prudential Elite Life 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 premiums paid by you are invested based on the investment fund chosen by you after deduction of charges, in addition to providing life cover. 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.
 
 
Key Features of ICICI Prudential Elite Life Policy
 
  • This is a simple ULIP without Bonus facility
  • In this plan, higher of the Sum Assured or Fund Value is paid on death of the Life Insured within the Policy Tenure
  • In this plan, the 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 from the 6th year onwards
  • 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 Prudential Elite Life Insurance Policy
 
Death Benefit – In case of death of the Life Insured within the Policy Tenure, the nominee gets the higher of the Sum Assured or the Fund Value as Death Benefit and the policy terminates.
 
Maturity Benefit – When the policy matures, the Fund Value is paid to the policyholder as Maturity Benefit and the policy terminates.
 
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 and the Maturity proceeds are tax free under section 10(10)D subject to fulfilment of terms and conditions
 
 
Eligibility conditions & other restrictions in ICICI Prudential Elite Life Insurance Plan
 

 
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.)
2,00,000
No Limit
Payment modes
Only Yearly

AP – Annualised Premium; PT – Premium Term
 
Sample Illustration of ICICI Prudential Elite Life Unit Linked Insurance Plan
 
The below illustration is for a healthy Male (non-tobacco user) opting for a
Premium = Rs. 5,00,000, Sum Assured = 50,00,000 for 5 Pay and 25,00,000 for 1 Pay
Age at Entry = 30 years
Choice of Fund - Dynamic P/E fund
Policy Term = 20 years
FV stands for Fund Value
ICICI Prudential Elite Life Sample Benefit Illustration
 
 

 

Additional Features and Benefits of ICICI Prudential Elite Life Unit Linked Insurance Plan
 
Riders – There are No Additional Riders in this plan
 
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
 
 
Charges in ICICI Prudential Elite Life 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
3% 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 600 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
2
4% of lower of (AP or FV), subject to a maximum of Rs. 5000
3
3% of lower of (AP or FV), subject to a maximum of Rs  4000
4
2% of lower of (AP or FV), subject to a maximum of Rs  2000
5 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.
 
 
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. 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.
 
The policy can however be revived within 2 years from the date of discontinuance but not later than the expiry of any lock-in period.
 
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 – Surrender is allowed only after 5 policy years. Thus, 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.
 
 
Other Unit Linked Insurance Plans from ICICI Prudential Life Insurance
 
ICICI Pru Wealth Builder
ICICI Pru LifeStage Wealth II
 
 
Some Unit Linked Insurance Plans from other insurance companies
 

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