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ICICI Pru1 Wealth Plan

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ICICI Pru1 Wealth Plan Summary

ICICI Pru1 Wealth Plan is a single premium 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 - Single Premium 105L175V02

Note: There was an earlier version of this plan with UIN 105L175V01..

Steps to proceed:
  1. Decided on the amount of investment
  2. Choose the amount of Life Cover needed
  3. Select policy term - 5 or 10 years
  4. 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. 

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Eligibility Criteria in ICICI Pru1 Wealth Policy

These are the basic eligibility criteria of the plan.
 
  Minimum Maximum
Age at Entry 8 years 60 years
Age at Maturity 18 years 70 years
Premium Amount Rs. 50,000 No limit
Policy Term 5 & 10 years

Note: 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
Upto 50 years 1.25 x Single Premium 10 x Single Premium
> 50 years 1.25 x Single Premium 1.25 x Single Premium

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


Benefits in ICICI Pru 1 Wealth 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 + Wealth Boosters. Fund Value is calculated by multiplying the no. of Units of the funds you hold with the NAV of those funds.

Maturity Benefit - On maturity, the plan will allocate extra units as follows:
  • 2.5% of Single Premium for plans with policy term of 5 years
  • 2.75% of Premiums paid less partial withdrawals

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

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. Partial withdrawals are allowed only for plans with a policy term of 10 years.

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

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

Increase in Policy Term - you can increase from 5 years to 10 years

Loans - No loans are offered by the company against this plan. 
 

Charges in ICICI Pru1 Wealth 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 - Nil

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

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 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 (AP 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


Fund Options in ICICI Pru1 Wealth 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
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
Maximizer V 0% to 25% 0% to 25% 75% to 100%
 
High
Multi Cap Balanced 0% to 50%
 
20% to 70% 0% to 60%
 
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

Automatic Transfer Strategy - You could invest your money into Income and Money Market Funds and then move them to the more aggressive fund options available. Single this is a single premium plan, this strategy will let you take benefits of rupee cost averaging.
 

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 Pru1 Wealth 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.
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