India's 1st IRDAI Approved Insurance Web Aggregator

ICICI Pru SIgnature Plan

  •  views
  •  views

ICICI Pru Signature Plan Summary

ICICI Pru Signature Plan is an investment cum insurance plan. The charges in the plan are low, even comparable to mutual funds. So it increases the chances of higher returns. The plan is a ULIP and hence your premiums are invested in funds of your choice and their returns can be monitored regularly.
 
Policy Type UIN
ULIP 105L177V02

Note: There was an earlier version of this plan with UIN 105L177V01.

Steps to proceed:
  1. Decided on the amount of investment
  2. Choose the amount of Life Cover needed
  3. Decide on the frequency of payment
  4. Select policy term - you could select Whole Life Option
  5. Choose Premium Payment Term - Regular or Limited
  6. Choose your fund options

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 Signature Plan

  • Investment cum insurance plan with low charges
  • No premium allocation charge
  • Wealth Boosters every 5 years after 10th policy year
  • Mortality Charge and Policy Administration Charges are reversed on Maturity
  • Option of Whole Life cover - till the age of 99
  • 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 Prudential Signature Policy

These are the basic eligibility criteria of the plan.
 
  Minimum Maximum
Age at Entry 0 years 60 years
Age at Maturity 18 years 75 years
99 years - WLO
Premium Amount Rs. 30,000 p.a.
Rs. 60,000 p.a. - WLO
No limit
Policy Term 10 years 30 years
99 minus Entry Age - WLO 
Premium Payment Term
 
Regular Pay - Same as policy term
Limited pay - 5, 7 & 10 years
Limited pay (WLO) - 5, 7 , 10 & 15 years
Premium Modes Monthly, Half-yearly, Yearly

Note:
  • WLO - Whole Life Option
  • In case life assured is a minor, the maturity benefits will be paid when the minor is 18 years of age, no matter what policy term is selected.
Sum Assured Criteria
Age at Entry Minimum Maximum
0 to 44 years 7 x Annualised Premium Higher of (10 x Annualised Premium) & (0.5 x Policy Term x Annualised Premium)
> 45 years 7 x Annualised Premium 10 x Annualised Premium
 
Sum Assured Criteria for Whole Life Option
Age at Entry Minimum Maximum
0 to 44 years 7 x Annualised Premium Higher of (10 x Annualised Premium) & (0.5 x (70-Entry Age) x Annualised Premium)
45 to 58 years 7 x Annualised Premium 10 x Annualised Premium
9 to 60 years 7 x Annualised Premium 7 x Annualised 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 and maturity amounts. So be very careful about this.
 

Benefits in ICICI Pru Signature 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 the Fund Value. Fund Value is calculated by multiplying the no. of Units of the funds you hold with the NAV of those funds.

You can use the Settlement Option to withdraw your money. In the Settlement Option you can take your money in equal installments, for a period between 1 to 5 years. You can choose to receive the money on a monthly, quarterly, half-yearly or yearly basis. The investment risk during this period would be borne by the policyholder - so be very sure in case you want to use the Settlement Option. Fund Management Charge would also be applicable. Understand scenarios where this feature could be useful to you - just don’t opt for it because someone advised you without giving reasons. 


Death Benefit - In the unfortunate event of the death of the policyholder, the nominee will get the following:
Highest of:
  • Total Fund Value remaining
  • Sum Assured
  • 105% of the premiums paid

Return of Mortality & Policy Administration Charges - All Mortality charges and Policy Administration Charges deducted in the policy throughout the policy term, will be paid back at the time of Maturity, provided all due premiums have been paid. 
  • Taxes and extra mortality rates would not be refunded
  • This is not applicable for Whole Life Option

Wealth Boosters - The plan will contribute to your wealth creation by allocating extra units to your policy at the end of every 5th policy year starting from the end of 10th policy year till the end of your policy term. 
  • Each Wealth Booster will be equal to 3.25% of the average of the Fund Values including Top-up Fund Value.
  • Wealth Boosters will be allocated among the funds in the same proportion as the value of total units held in each fund at the time of allocation.

Partial Withdrawals - If you are greater than 18 years old and have completed 5 policy years, you can make partial withdrawals from your funds. You can make unlimited number of partial withdrawals as long as the amount of withdrawals do not exceed 20% of the Fund Value in a policy year. 

You can also use a Systematic Withdrawal Plan, wherein a fixed amount of money can be withdrawn regularly. This can be used to fund some known expense like child’s education or retirement income.

Top-Ups - You can add more premiums at any time except during the last 5 policy years.
  • Top-up premiums should not exceed the single premium paid initially
  • Minimum top-up premium is Rs. 2,000

Switching - You can move your existing investments between funds at any point of time. You can do this as many times as you want.

Other Flexibilities offered in this plan - The plan offers these flexibilities subject to meeting the underwriting conditions.
  • Increase or Decrease in Sum Assured
  • Increase or Decrease in Premium Payment Term
  • Increase in Policy Term
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. Overall the charges are low which is the main feature of this plan.

Premium Allocation Charge - Nil

Policy Administration Charge - Rs. 500 per month. This charge is deducted every month by cancelling the appropriate number of units.

Fund Management Charge - 1.35% per annum for all funds except the Money Market Fund. For the Money Market Fund, the charge is 0.75% per annum. This is charged daily by adjusting the NAV of the funds. In the Discontinued Policy Fund, this charge is 0.5% per annum.

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.

Partial Withdrawal Charge - Nil

Switching Charge - Nil

Premium Redirection Charge - Nil

Discontinuation Charge - This is charged by cancelling units you hold.
 
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
 

Fund Options in ICICI Prudential Life Signature Plan

Important - The returns in your plan will depend on your choice of funds. So it is very important to choose them wisely. If you choose a Low Risk fund, the chances of returns will not be very high but will be stable. These funds are managed by experienced fund managers of ICICI Prudential Life Insurance.
 
Fund Name


 
Fund Composition Risk & Reward Profile
Money Market Instruments & Cash Debt
 
Equity & Equity Related Securities
Focus 50 0% to 10% 0% to 10% 90% to 100% High
Opportunities 0% to 20% 0% to 20% 80% to 100%
 
High
Value Enhancer 0% to 15% 0% to 15%
 
85% to 100%
 
High
Multi Cap Growth 0% to 20%
 
0% to 20%
 
80% to 100% High
Bluechip 0% to 20%
 
0% to 20%
 
80% to 100%
 
High
India Growth 0% to 20%
 
0% to 20% 80% to 100%
 
High
Maximizer V 0% to 25%
 
0% to 25%
 
75% to 100%
 
High
Maximizer India 0% to 20%
 
0% to 20%
 
80% to 100%
 
High
Multi Cap Balanced 0% to 50%
 
20% to 70%
 
0% to 60% Moderate
Active Asset Allocation Balanced 0% to 40%
 
30% to 70%
 
30% to 70% Moderate
Secure Opportunities 0% to 40%
 
60% to 100%
 
-
 
Low
Income 0% to 60%
 
40% to 100%
 
-
 
Low
Money Market 50% to 100% 0% to 50% - Low


Choice of Portfolio Strategies
  1. Target Asset Allocation Strategy
  2. Trigger Portfolio Strategy 2
  3. Fixed Portfolio Strategy
  4. Lifecycle based Portfolio Strategy 2

Best to take the help of someone who really knows their stuff around these strategies, else it may be better to leave it to the investment strategy of the company.
 

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 Signature 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.
Compare Ulip Plans

Leave a Comment

Unit Linked Plan Calculator
Important: Insurance is the subject matter of solicitation | © 2009-2020 MyInsuranceClub.com