Guaranteed Savings Insurance Plan GSIP

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. 

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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

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.

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.