ICICI Prudential Wealth Builder Plan

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ICICI Prudential Wealth Builder Plan
 
ICICI Prudential Wealth Builder Plan is a Limited Pay and Regular Premium Unit Linked Insurance Plan. Its is a Non-Traditional Insurance Plan without Bonus facility.
 
How it works – In this plan, premium can be paid for a Limited Period of 5 or 10 years under Limited Pay Option or for the entire Policy Tenure under Regular Policy Tenure. There is Loyalty Additions that are paid in this plan every year from the end of the 10th policy year onwards as a percentage of the average Fund Value.
 

 

Premium Payment
Year 10
Year 11 onwards
Regular Pay
2%
0.75% p.a.
Limited Pay 5, 7 or 10
2%
0.5% p.a.
 
The premium net of charges is invested in the funds as per the choice of the policyholder. There are 3 Portfolio Strategies to choose from:
  • Life Cycle Based Portfolio Strategy- Portfolio is balanced between equity and debt exposure based on age
  • Fixed Portfolio Strategy- there is a choice of 7 funds to choose as per risk appetite
  • Trigger Portfolio Strategy which works on the principle of “Buy Low, Sell High”
The portfolio strategy can be changed once every year.
 
On survival till the end of the Policy tenure, the Fund Value is paid to the Policyholder as Maturity Benefit and the policy terminates. However, in case of death of the Life Insured within the Policy Tenure, the nominee gets the Sum Assured + Fund Value as Death Benefit and the policy terminates.
 
There is 1 additional rider available in this plan of Waiver of Premium on Critical Illness Benefit Rider
 
 
Key Features of ICICI Pru Wealth Builder Insurance Plan
 
  • It is a Limited and Regular Premium ULIP without Bonus facility
  • Loyalty Additions are paid every year from the end of the 10th policy year onwards as a percentage of Fund Value
  • There are 3 portfolio strategies available in this plan
  • There are 7 funds available for investment in this plan
  • The portfolio strategy can be changed once every year.
  • In case of death of the Life Insured within the Policy Tenure, the nominee gets the Sum Assured + Fund Value as Death Benefit
  • On survival till the end of the Policy tenure, the Fund Value is paid to the Policyholder as Maturity Benefit
  • Sum Assured can be increased or decreased every year
  • There is an Automatic Transfer Facility that is available in this plan from Money Market Fund to Bluechip Fund, Multi Cap Growth Fund or Opportunities Fund
  • There is 1 additional rider available in this plan of Waiver of Premium on Critical Illness Benefit Rider
 
 
Benefits you get from ICICI Pru Wealth Builder Insurance Policy
 
Death Benefit – In case of death of the Life Insured within the Policy Tenure, the nominee gets the Sum Assured + Fund Value, subject to a minimum of 105% of Premium Paid as Death Benefit and the policy terminates.
 
Maturity Benefit – On survival till the end of the Policy tenure, the Fund Value is paid to the Policyholder as Maturity Benefit and the policy terminates.
 
Income Tax Benefit - Tax benefits on the premium amount paid up to Rs. 15,000 in case of individuals and Rs 20,000 for senior citizens are allowed as a deduction from the taxable income each year under section 80D of the Income Tax under the existing tax laws of the Income Tax, 1961.
 
 
Eligibility conditions & other restrictions in ICICI Pru Wealth Builder Policy                 
 

 

 
Minimum
Maximum
Sum Assured (in Rs.)
For ages < 45, SA= Higher of (10 x AP) and (0.5 X PT X AP)
For ages 45 & above, SA=Higher of (7 x AP) and (0.25 X PT X AP)
As per Sum Assured Multiples
Policy Term (in years)
10, 15, 20, 25
30
Premium Payment Term (in years)
5, 10
Equal to Policy Term
Entry Age of Life Insured (in years)
0
65
Age at Maturity (in years)
18
75
Annual Premium (in Rs.)
24,000
Unlimited
Payment modes
Only Yearly
 
 
Additional Features and Benefits of ICICI Pru Wealth Builder Plan
 
Riders – There is 1 Additional Rider in this plan:
  1. Waiver of Premium on Critical Illness Benefit Rider
 
Investment Fund Options - In this plan, there are 3 Investment Strategies in this plan:
  1. Life Cycle Based Portfolio Strategy- Portfolio is balanced between equity and debt exposure based on age
  2. Fixed Portfolio Strategy- there is a choice of 7 funds
    • Opportunities Fund
    • Multi Cap Growth Fund
    • Bluechip Fund
    • Multi Cap Balanced Fund
    • Income Fund
    • Money Market Fund
    • Maximiser V
  3. Trigger Portfolio Strategy which works on the principle of “Buy Low, Sell High”
 
Top-up – In this plan, additional investment can be done at a minimum amount of Rs 2000 for which the Sum Assured also increases by 125% or 500% of the Top Up Premium. All Top Up Premiums are also locked for a period of 5 years.
 
Switching - There are 4 free switches that are allowed in every policy year. Subsequent switches will be charged at Rs. 100 per switch by cancellation of units.
 
Partial Withdrawal - In this policy, there is Partial Withdrawal Facility but after completion of 5 policy years or the Life Insured is 18 years of age, whichever is later. The minimum amount of Partial Withdrawal is Rs 2000 upto a maximum of 20% of Fund Value. One Partial Withdrawal is free every year.
 
 
Charges in ICICI Pru Wealth Builder Plan
 
Premium Allocation Charge – This charge is deducted from the Premium Paid by you

 

Policy Year
Premium Allocation Charge
Year 1
3%
Year 2
2%
Year 3 – Year 5
1%
Year 6 onwards
NIL
 
 
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
Year 1 to PPT
0.47%
Thereafter
0.10%
 
 
Fund Management Charge– This charge is deducted by adjusting the NAV of the units on a daily basis.

 

Type
Charge
Opportunities Fund
1.35%
Multi Cap Growth Fund
1.35%
Bluechip Fund
1.35%
Multi Cap Balanced Fund
1.35%
Income Fund
1.35%
Money Market Fund
0.75%
Maximiser V
1.35%
 
 
Discontinuation Charge— This charge is for discontinuing the plan before the end of the Policy Tenure.

 

Year of Discontinuation
Annual Premium <= Rs 25,000 p.a.
Annual Premium > Rs 25,000 p.a.
1st
Lower of 20% of (Annual Premium or Fund Value) subject to a maximum of Rs 3,000
Lower of 6% of (Annual Premium or Fund Value) subject to a maximum of Rs 6,000
2nd
Lower of 15% of (Annual Premium or Fund Value) subject to a maximum of Rs 2,000
Lower of 4% of (Annual Premium or Fund Value) subject to a maximum of Rs 5,000
3rd
Lower of 10% of (Annual Premium or Fund Value) subject to a maximum of Rs 1,500
Lower of  3% of (Annual Premium or Fund Value) subject to a maximum of Rs 4,000
4th
Lower of 5% of (Annual Premium or Fund Value) subject to a maximum of Rs 1,000
Lower of 2% of (Annual Premium or Fund Value) subject to a maximum of Rs 2,000
5th onwards
NIL
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 earn a minimum guaranteed interest rate equal to the savings account rate of State Bank of India 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 be revived as well but within a period of 2 years from the Date of Discontinuance of the Policy or before completion of the Lock-in period of 5 policy years, whichever is earlier.
 
You stop paying the premium after 5 years - If the policy holder stops paying the premium after 5 years, then there is no Surrender/Discontinuance Charges and the Fund Value is 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, if at least 5 years’ premiums have not been paid, will be transferred to the Discontinued Policy Fund. The Discontinued Policy Fund will earn a minimum guaranteed interest rate equal to the savings account rate of State Bank of India 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 there is no Surrender/Discontinuance Charges and the Fund Value is paid to the policy holder and the policy will terminate immediately.
 
You want a loan against your policy - There is no loan available under this plan.
 
 
Other ULIPs from ICICI Prudential Life Insurance
 
 
 
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