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ICICI Pru Guaranteed Wealth Protector Plan

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ICICI Pru Guaranteed Wealth Protector Plan Summary

ICICI Pru Guaranteed Wealth Protector Plan is an investment cum insurance plan. The uniqueness of this plan is the investment strategy which is auto-decided and is meant to grow your capital in the initial years and then directed towards conservation in the later years. Also this plan provides a capital guarantee for the premiums you have paid.

This is how the plan’s investment strategy can be summarised:

“At the start of the policy, a higher portion of your money will be invested in the equity oriented fund. Over time the allocation to the debt oriented fund will be increased in order to manage the guarantee. The allocation between the equity oriented fund and the debt oriented fund will be rebalanced periodically throughout the policy term. This regular reallocation will in turn determine the returns generated under the policy.”
 
Policy Type UIN
ULIP 105L143V02

Note: There was an earlier version of this plan with UIN 105L143V01.

Important - In this plan, you have to stay invested for at least 5 years. You cannot withdraw your investment before 5 years under any circumstances. While this reduces flexibility, it also forces you to stay invested and thereby making it a long term investment tool.


Key features of ICICI Prudential Guaranteed Wealth Protector Plan

  • Investment cum insurance plan with premium protection
  • Wealth Boosters & Loyalty Additions on Maturity 
  • Tax exemptions under Sec 80C and Sec 10(10D). As per current income tax rules, ensure that the life cover is at least 10 times the annual premiums paid, to avail these tax benefits.
We will understand each of the above mentioned points and more in the sections below.

COMPARE THIS PLAN WITH OTHER ULIP PLANS


Eligibility Criteria in ICICI Pru Guaranteed Wealth Protector Policy

In this plan you can pay premiums as single premium or limited pay as follows:
  • One pay - single premium
  • Five pay - pay for 5 years only
  • Seven pay - pay for 7 years only
 
  One Pay Five Pay Seven Pay
Policy Term 10 years 10 years 12 years
Min. Entry Age 8 years
Max. Entry Age 70 years 60 years 60 years
Min. Age at Maturity 18 years
Max. Age at Maturity 80 years 70 years 72 years
Premium Payment Modes Single Annual, Half-yearly, Monthly
Min. Premium Rs. 48,000 Rs. 24,000 for Annual mode
Rs. 48,000 for other modes
Max. Premium No limit
 
Sum Assured Criteria
Age at Entry One pay Five pay & Seven pay
Min. Max
8 to 44 years 1.25 x  Single Premium 7 x Annual Premium 10 x Annual Premium
45 to 54 years 7 x Annual Premium 10 x Annual Premium
55 to 60 years 7 x Annual Premium 7 x Annual Premium

Note: As per current income tax rules, if the Sum Assured in the plan is not 10 times the Annualised Premium, you will not get complete tax benefits on premiums paid and the maturity amounts. So be very careful about this.
 

How is your money invested in this plan?

The differentiator in this plan is its investment strategy, Let us understand in detail how it works. To start with, this plan has 2 funds which invest as follows:
 
Fund Name Asset Allocation Risk-Reward Profile
Equities & Related Securities Debt Money Market & Cash
Life Growth 75% to 100%
 
0% to 25%
 
0% to 25%
 
High
Life Secure Nil 40% to 100% 0% to 60% Low

Your money will be invested in these 2 funds according to the Guaranteed Wealth Protection Strategy. Please bear in mind that this strategy actually does not “guarantee” wealth protection and is just a name given to the strategy.

Working: Your money will be invested in the Life Growth Fund and Life Secure Fund in the proportions as listed below. Your Fund Value will also be re-balanced once in every quarter to arrive at these proportions. You will observe that in the initial years, more of your money will be invested in the Life Growth Fund (if you are young) and then they are gradually moved to the Life Secure Funds as the policy term increases.

For One pay and Five pay plans
 
Policy Year Age at Entry < 45 years Age at Entry >= 45 years
Life Growth Life Secure Life Growth Life Secure
1 to 4 60% 40% 45% 55%
5 60%, reducing in each quarter in equal proportion 40%, reducing in each quarter in equal proportion 45%, reducing in each quarter in equal proportion 55%, reducing in each quarter in equal proportion
6 30% 70% 22.5% 77.5%
7 to 8 20% 80% 15% 85%
9 to 10 10% 90% 10% 90%

For Seven pay plans
 
Policy Year Age at Entry < 45 years Age at Entry >= 45 years
Life Growth Life Secure Life Growth Life Secure
1 to 6 60% 40% 45% 55%
7 60%, reducing in each quarter in equal proportion 40%, reducing in each quarter in equal proportion 45%, reducing in each quarter in equal proportion 55%, reducing in each quarter in equal proportion
8 30% 70% 22.5% 77.5%
9 to 10 20% 80% 15% 85%
11 to 12 10% 90% 10% 90%
 


Benefits in ICICI Pru Guaranteed Wealth Protector Policy

This is an investment plan, so benefits to a large extent will depend on how your investments perform over time.
 
Maturity Benefit
On maturity, you will receive higher of the following:
 
  • Fund Value + Loyalty Additions + Wealth Boosters
  • Assured Benefit, which is 101% of all premiums paid. So on maturity, you are assured that at least the premiums paid by you will be returned, even if the funds have performed terribly.
 
Loyalty Additions - If you have been paying premiums on time, extra units will be allotted at the end of every year, starting from the end of the 6th policy year. Each Loyalty Addition will be 0.25% of the Average of the Fund Values on the last business day of the last 8 policy quarters.
 
Wealth Boosters - A Wealth Booster will be allocated as extra units as follows:
  • For One pay option, 1.5% of Average Fund Value after 10 policy years
  • For Five pay option, 3.25% of Average Fund Value after 10 policy years
  • For One pay option, 3.25% of Average Fund Value after 12 policy years
 
Death Benefit
In the unfortunate event of the death of the policyholder, the nominee will get the following:
 
Highest of:
  • Fund Value
  • Sum Assured
  • 105% of the premiums paid
 
Increase or Decrease in Sum Assured - The plan offers these flexibilities subject to meeting the underwriting conditions. This facility is not available for the One pay option.
 
Loans - No loans are offered by the company against this plan. 
 

Charges in ICICI Pru Life Signature Plan

The list of charges applicable in this plan are as mentioned below. 
 
Premium Allocation Charge - This is charged by deducting the amount from your premiums before they are invested in any funds. So this charge is as a % of the premiums.
  • One pay - 3%
  • For Five pay and Seven pay
Premium payment mode Year 1 Year 2 Year 3 Year 5 Year 6+
Annual 6% 5% 4% 4% Nil
Half-yearly, Monthly 4% 4% 3,5% 3% Nil

Policy Administration Charge - Max. Rs. 500 per month.
This charge is deducted every month by cancelling the appropriate number of units.
  • One pay - Rs. 60 per month for the 1st five policy years
  • For Five pay and Seven pay
Policy Year % of Annual Premium
1 to 5 0.21% per month (2.52% p.a.)
6 onwards 0.1% per month (1.20% p.a.)

Fund Management Charge - 1.35% per annum for both the funds. This is charged daily by adjusting the NAV of the funds. In the Discontinued Policy Fund, this charge is 0.5% per annum.

Investment Guarantee Charge - 0.5% per annum for both the funds. This is towards the investment guarantee which is being provided.

Mortality Charge - This will depend on your age and the amount of cover. This charge is deducted every month. This charge is deducted every month by cancelling appropriate number of units.

Discontinuation Charge - This is charged by cancelling units you hold. They are as follows:

For Five pay and Seven pay options 
 
Year of Discontinuance Annual Premium upto Rs. 50,000 Annual Premium > Rs. 50,000
1 Lower of 20% x (AP or FV) subject to a max of Rs. 3,000 Lower of 6% x (AP or FV) subject to a max of Rs. 6,000
2 Lower of 15% x (AP or FV) subject to a max of Rs. 2,000 Lower of 4% x (AP or FV) subject to a max of Rs. 5,000
3 Lower of 10% x (AP or FV) subject to a max of Rs. 1,500 Lower of 3% x (AP or FV) subject to a max of Rs. 4,000
4 Lower of 5% x (SP or FV) subject to a max of Rs. 1,000 Lower of 2% x (SP or FV) subject to a max of Rs. 2,000
5+ Nil Nil

AP - Annual Premium
FV - Fund Value of Date of Discontinuance

For One pay option 
 
Year of Discontinuance Single Premium < Rs. 3,00,000 Single Premium > Rs. 3,00,000
1 Lower of 2% x (SP or FV) subject to a max of Rs. 3,000 Lower of 1% x (SP or FV) subject to a max of Rs. 6,000
2 Lower of 1.5% x (SP or FV) subject to a max of Rs. 2,000 Lower of 0.7% x (SP or FV) subject to a max of Rs. 5,000
3 Lower of 1% x (SP or FV) subject to a max of Rs. 1,500 Lower of 0.5% x (SP or FV) subject to a max of Rs. 4,000
4 Lower of 0.5% x (SP or FV) subject to a max of Rs. 1,000 Lower of 0.35% x (SP or FV) subject to a max of Rs. 2,000
5+ Nil Nil

SP - Single Premium
FV - Fund Value of Date of Discontinuance
 

What happens when you stop paying the premiums before 5 years?

If the premiums are not paid by the end of the grace period, the plan will be withdrawn and discontinued. This is what will happen:
  • There will be no more risk coverage offered.
  • The Fund Value on the date of discontinuance will be moved to the “Discontinued Policy Fund”.
  • This fund will now earn a minimum guaranteed interest rate of 4% (as per current regulations).
  • A Fund Management Charge of 0.5% per annum would be applicable.
  • The Fund Value will be paid out at the end of 5 years and the policy terminates

That pretty much explains how ICICI Pru Guaranteed Wealth Protector Plan works and the benefits you get out of it. If you have any questions on this plan, drop in a line in the comments and we will be happy to help out.
NAV of all funds in ICICI Pru Guaranteed Wealth Protector Plan
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