ICICI Pru Guaranteed Wealth Protector Plan
The unit-linked non-participating individual life insurance plan, i.e., ICICI Pru Guaranteed Wealth Protector offers the possibility of significant profits by investing a portion of your funds in equity while offering the complementary assurances of capital guarantee and life protection. The Guaranteed Wealth Protector Strategy will be employed in the management of your money. Your funds will be split between a debt- and an equity-oriented fund under this plan.
A larger amount of your funds will initially be allocated to the equity-oriented fund at the beginning of the policy. To manage the guarantee, the allocation to the debt-oriented fund will be raised over time. Throughout the duration of the policy, the allocation between equity-oriented and debt-oriented funds will be rebalanced regularly. The returns produced by the policy will be determined by this routine reallocation. The plan comes with single pay, five pay, and seven pay options that you can choose at your convenience. Read on to know more about the ICICI Pru Guaranteed Wealth Protector’s eligibility criteria, features and benefits, exclusions, premium calculation, and more.
Here is the eligibility criteria for ICICI Pru Guaranteed Wealth Protector:
|Age at Entry||Minimum – 8 years, Maximum – 70 Years|
|Maturity Age||Minimum – 18 Years, Maximum – 80 Years|
|Policy Term||12 Years|
|Premium Payment Term (PPT)||Single Premium or 7 Years|
|Minimum Premium||Rs. 24,000 p.a. for Annual mode. Rs. 48,000 p.a. for other modes|
|Premium Mode||Annual, Half yearly, Monthly|
Key Features & Benefits of ICICI Pru Guaranteed Wealth Protector
Here is the list of the key features and benefits of ICICI Pru Guaranteed Wealth Protector Plan:
- Loyalty Benefit: Starting at the end of the sixth policy year, Loyalty Additions will be distributed as additional units. Each Loyalty Addition shall equal 0.25 percent of the Fund Values averaged on the last business day of the previous eight policy quarters.
- Wealth Booster: After the tenth policy year, Wealth Boosters will be distributed as additional units. It is expressed as a portion of the Fund’s average on the last business day of the previous eight policy quarters.
- Non-negative claw-back additions: The insurer applies these at different points after the first five years of the contract to the unit Fund Value, as appropriate.
- Increase or Decrease in Sum Assured – The only option that permits changing the Sum Assured is the Five Pay option. From seven times to ten times the annual premium, the Sum Assured will increase. From 10 times the annual premium to 7 times the annual premium, the Sum Assured will decrease.
- Death Benefit – The following will be paid if the policyholder passes away while the policy is in effect: Death Benefit = A, B, or C, depending on which is highest, Where,
- A is equal to Sum Assured
- B is equal to the Minimum Death Benefit
- C is equal to Fund Value: The Minimum Death Benefit is 105% of the total premiums paid.
- Maturity Benefit – On maturity, A or B is payable:
Where B = Assured Benefit for the insurance and A = Fund Value incorporating Loyalty Additions and Wealth Booster
- In the case of One Pay, 101% of the Single Premium
In the case of Five Pay, the Assured Benefit of 101% of the total amount of all premium payments is only available upon the maturity of the policy and is not applicable upon death or surrender.
- Surrender – The surrender value is the Fund Value less any applicable Discontinuance Charge. It is moved to the Fund for Discontinued Policies (DP Fund). Five years from the start of the policy is the lock-in phase. You will be entitled to the Fund Value upon surrender following the end of the fifth policy year.
- Policy Revival – Withdrawing a surrender request within the first five years of a policy is equivalent to reviving discontinued premium insurance. By paying past-due premiums within two years of the date of discontinuance, you can reinstate the coverage.
- Free-look Period – If you did not purchase your policy through distance marketing, you have 15 days starting from the date you received it, and you have 30 days starting from the date you received it if you did.
- Tax Benefits – Sections 10(10D) and 80C of the Income Tax Act of 1961 permit tax deductions for premiums paid towards this plan.
Major Exclusion Under ICICI Pru Guaranteed Wealth Protector?
Only the Fund Value as it existed on the date of the intimation of death would be payable to the Claimant if the Life Assured, whether sane or crazy, commits suicide within 12 months of the date the policy began or from the date the policy was revived. The fund value as it existed on the date of the death notification shall be increased by any charges, excluding Fund Management Charges and guarantee charges, if any, that are recovered after the date of death.
The amount of the increase shall not be taken into account in determining the Death Benefit if the Life Assured, whether sane or crazy, commits suicide within 12 months after the effective date of any increase in the Sum Assured.
How Does the ICICI Pru Guaranteed Wealth Protector Plan Work?
Let’s take an example to understand!
A man, named Mr. Akash Lohia, looking to invest his hard-earned money to save for his family in bad circumstances. After getting many suggestions from friends and searching on the internet, he stumbled upon the ICICI Pru Guaranteed Wealth Protector policy. He found it a great deal of investment to protect against bad times. Mr. Lohia, then, decided to safeguard his family with this plan.
Here’s what he will get under different circumstances.
|Age at Entry||Annual Premium||Sum Assured||Mode of premium payment||Fund Value at Maturity|
|35 Years||Rs. 1,00,000||Rs. 10,00,000||Annual|
Returns @ 4% ARR* p.a. Rs. 7,75,479
Returns @ 8% ARR* p.a.
Frequently Asked Questions
Starting this approach is possible as early as age 8. The age cap shouldn’t be higher than 60.
You must be at least 18 years old when the plan matures, and you should not be older than 70 years for 5 Pay and 72 years for 7 Pay.
If you choose the 5 Pay option, the policy will last for 10 years; if you choose the 7 Pay option, it will last for 12 years.
You must be at least 18 years old and no older than 80 years old to participate in the plan when it reaches maturity.