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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.