ICICI Pru Lakshya Wealth Plan
ICICI Pru Lakshya was specifically created to increase your wealth while promising to safeguard your funds. There are two versions of the plan: a wealth plan and a lifetime income plan. With the “Lifetime income” option of this ICICI insurance plan, you can get an income with policy benefits through age 99, and with the “Wealth plan” option, you can potentially increase your wealth while also being guaranteed financial security.
The ICICI Pru Lakshya Wealth Policy is a traditional participating life insurance product with ample features and built-in flexibility to fulfil financial needs and provide protection for the duration of the policy. Read more about the ICICI Pru Lakhsya Wealth Plan’s eligibility criteria, key features & benefits, exclusions, premium calculation, and more.
|Entry Age||Minimum: 0 years Maximum: 70 years minus the Policy Term (Depends on the PPT and the Policy Term)|
Limited Pay 5 and 7: 12, 15, 20, 25, and 30 years
Limited Pay 10 and 12: 15, 20, 25, and 30 years
|Premium Paying Term(PPT)||Limited Pay: 5, 7, 10, and 12 years|
|Grace Period||30 days; 15 days for monthly mode of payment|
|Liquidity||A loan facility is available under this policy once the policy acquires surrender value.|
|Sum Assured on Death||Higher of (10 times Annualised Premium or PPT X Annualised Premium)|
|Premium Payment Frequency||Annual, Half-yearly, Monthly|
Features & Benefits of ICICI Pru Lakshya Wealth Plan
- Death Benefit
The paid-up Sum Assured on Death, accumulated Regular Additions nett of encashment if any, and contingent reversionary bonuses, if declared, will be paid upon death within the policy period.
Paid-up Sum Assured on Death = Sum Assured on Death X (12 X Premium Payment Term) / number of months for which premiums are paid.
All rights, benefits, and interests under the policy will be extinguished upon payment of this death benefit, which also marks the end of the policy.
- Maturity Benefit
If you live to the end of the policy term, you will receive the paid-up Sum Assured on Maturity, paid-up GVBs, accrued Regular Additions net of encashment, if any, and any declared Contingent Reversionary Bonus.
Paid-up Sum Assured on Maturity = Paid-up Sum Assured on Maturity X (12 X Premium Payment Term) / Sum Assured on Maturity
Paid-up GVBs are calculated as follows: GVBs X (12 X Premium Payment Term)/number of months for which premiums are paid
All rights, benefits, and interests under the policy will be extinguished upon payment of this maturity benefit, and the policy will be terminated.
- Loan Facility
After the policy gains surrender value, you can also apply for loans under it. You can get a loan for up to 80% of the surrender value. If the amount owed exceeds the surrender value and the policy is in a paid-up state, the company has the right to demand repayment of the loan with all applicable interest with three months’ notice. Failure to repay before the due date will result in foreclosure of the policy, termination of the policy, and extinction of all rights, benefits, and interests under the policy.
- Free Look Period
You have 15 days from the date you acquire the policy to study it, and 30 days if the policy was obtained electronically or through distance marketing. If within this time you are dissatisfied with the terms and conditions of the policy, you may return the policy to us along with your cancellation justifications. After deducting any applicable taxes, a proportionate risk premium for the duration of the coverage, and any costs we incurred for medical tests, if any, the firm will return the premium we paid.
- Tax Benefits
The policy’s tax benefits will follow the current Income Tax regulations. To determine if a tax benefit on premiums paid and benefits received is applicable, the company advises that you consult a specialist. Additional fees based on the current rates for goods and services tax will be applied. There may occasionally be changes made to the tax laws.
- Grace Period
If the policyholder is unable to pay an instalment premium by the due date, a grace period of 15 days and 30 days, respectively, will be granted for the payment of the due installment premium for monthly frequency and any other frequency, respectively. In the grace period, the life insurance remains in effect. If a Life Assured passes away during the grace period, the Company will pay the Death Benefit following the Policy’s terms and conditions.
- Survival Benefit
The accrued Regular Additions net of encashment (if any) and Contingent Reversionary Bonus, if declared, will be paid as a lump sum on ISD if the life assured survives until that date. Additionally, paid-up GI will be payable on each policy anniversary following ISD until the conclusion of the policy term or death, whichever occurs first, where paid-up GI is calculated as follows: Paid-up GI = GI X “number of months for which premiums are paid” / (12 X Premium Payment Term).
Exclusions Under ICICI Pru Lakshya Wealth Plan
The insurer’s liability is limited to 80% of the paid premium or the policy surrender value as of the insured’s death date if the policyholder commits suicide within a year of the policy’s beginning or its revival (whichever is greater).
How Does the ICICI Pru Lakshya Wealth Plan Work?
Let’s take an example to understand!
Sanjay is a 30-year-old IT employee. Recently married, Sanjay understands the importance of planning so that he can fulfil the dreams of his loved ones. He decides to invest in ICICI Pru Lakshya to fulfil his dream of buying a house for his family in the future. Sanjay invests Rs. 1 lakh for 10 years in ICICI Pru Lakshya Wealth & chooses a policy term of 20 years.
|Sum Assured on Maturity||Guaranteed Value Benefit||Accrued Regular Additions||Terminal Bonus||Maturity Benefit|
|Rs. 10,00,000||Rs. 2,65,000||Rs. 6,83,100||Rs. 5,69,250||Rs. 2,517,350 ( At 8% Assumed Rate of Return)|
Frequently Asked Questions
The nominee has the option to receive the Death Benefit over a predetermined period of 5, 10, or 15 years after the Death Benefit claim is decided. The candidate is also free to decide whether to receive instalments on a monthly, quarterly, annual, or half-yearly basis.
After paying the entire premium for at least two consecutive years, the policy may be surrendered to receive a Guaranteed Surrender Value. The policy expires when the surrender value is paid.
The acquisition of a surrender value in the insurance precedes the granting of a loan. The loan cannot be for more than 80% of the surrender value.