ICICI Pru1 Wealth Plan
ICICI Pru1 Wealth is a unit-linked insurance plan wherein the investment risk in the investment portfolio is borne by the policyholder. For the first five years of the contract, unit-linked insurance policies do not provide any liquidity. Till the conclusion of the fifth year, the policyholder will not be allowed to fully or partially withdraw the money invested in unit-linked insurance products.
With this strategy, you can invest in the market and provide for your family through life insurance while having the possibility for higher profits. On both premiums paid and rewards received, you will earn tax benefits. Read on to know more about ICICI Pru1 Wealth’s eligibility criteria, features & benefits, exclusions, premium calculation, and more.
Here is the eligibility criteria for ICICI Pru1 Wealth insurance plan:
|Age at entry (age last birthday)
Minimum: 8 years, Maximum: 60 years
For minor lives, life insurance coverage begins on the date the risk first arises. When a minor life assured turns major during the policy term, the policy does not vest in the name of the life assured.
|Age at maturity (age last birthday)
Minimum: 18 years, Maximum: 70 years
Minimum / Maximum Single Premium
|Rs. 50,000 – Unlimited
|5 and 10 years
Minimum Sum Assured: 1.25 times single premium
Maximum Sum Assured: 10 times Single Premium
Key Features & Benefits of ICIC Pru1 Wealth Insurance Plan
Here is the list of the features and benefits of ICICI Pru1 Wealth Insurance Plan.
- Death Benefit
Benefits are paid to the nominee in the event of the assured’s death. The highest of the following is paid as the death benefit:
- Sum assured and top-up sum assured (if any)
- Fund value and top-up fund value (if any)
- Minimum death benefit.
- Maturity Benefit
The investor is entitled to receive the fund value, the wealth booster, and the top-up fund value (if any), either as a lump amount or via a structured distribution utilizing a settlement option, at the policy’s maturity.
- Wealth Booster
The fund value for the five-year policy term is increased by 2.50% at the end of the fifth policy year. It is 2.75 percent for the 10-year insurance term, with top-up premiums (if applicable) and withdrawal amounts (if applicable) added at the end of the tenth policy year.
- Settlement Payout Flexibility Benefit
The maturity benefit may be paid out in a flat sum or over the course of a year, a half-year, a quarter, or even a month. The nominee is entitled to receive the benefit as a lump payment if a death benefit occurs during the settlement term. The policy will expire once these benefits have been paid, and the employer will no longer be eligible to provide more benefits.
- Partial Withdrawal Benefit
Only policies with terms of 10 years or longer may be partially withdrawn. After the first five policy years, you can make an unlimited number of withdrawals as long as each one doesn’t cost more than 20% of the fund’s value in a given policy year. There are no additional fees for a partial withdrawal.
- Surrender Benefit
If you surrender the policy during the lock-in period, the fund value is transferred to the discontinued policy fund after discontinuance fees have been deducted. The investor receives the fund value right away after the lock-in period is over.
- Top-up Benefits
Any extra cash you have over and above the base premium can be invested as a top-up premium. Only policies with a 10-year term are eligible for this feature. A Top-up premium must be at least Rs. 2,000. 99 top-ups in total are permitted during the policy’s term.
- Partial Withdrawal Benefit
After five policy years have passed, partial withdrawals are permitted for the remaining ten years of the policy term. As long as the total number of partial withdrawals in a year does not exceed 20% of the Fund Value in a policy year, you are permitted to make an unlimited number of partial withdrawals.
- Free-look Period
If the policy is acquired through personal solicitation, the period from the date of receipt shall be 15 days. In the case of electronic policies or if your Policy is purchased through voice mode, which includes telephone calls, SMS, physical mode, which includes direct postal mail, newspaper & magazine inserts, and solicitation through any means of communication other than in person, 30 days from the date it is received.
- Tax Benefits
Section 80C, 10(10D), and other provisions of the Income Tax Act of 1961 are conditions that must be met for the policy to provide tax benefits. Redeeming units will result in an additional charge for GST and/or cesses based on the current rates. There are occasionally changes made to tax laws.
What Are The Things Not Included Under ICICI Pru1 Wealth Plan?
Suicide Clause – Only the Fund Value, including Top-up Fund Value, if any, as available on the date of intimation of death, would be payable to the policyholder’s family if the Life Assured—whether sane or insane—commits suicide within 12 months of the date the policy began.
How Does the ICICI Pru1 Wealth Plan Work?
Let’s take an example to understand!
A man, named Mr. Lokesh Bhatia, looking for an investment cum insurance plan that can help him fulfill his dreams. After getting many suggestions from friends and searching on the internet, he stumbled upon the ICICI Pru1 Wealth Plan and found it a great deal of investment. Mr. Bhatia, then, decided to safeguard his family with this plan.
Here’s what he will get under different circumstances.
|Age at entry
|Amount of single premium
|Fund Value at Maturity
|Rs 1, 00, 000
|Rs 10, 00, 000
Frequently Asked Questions
In a policy year, you are free to change your fund options as much as you like without incurring any additional fees.
The three main fees under the plan are the Fund Management Fee, Mortality Fee, and Discontinuance Fee.
The policyholder may change units from one fund to another as often as desired depending on their financial priorities and investment outlook. You can use this advantage without paying anything. The bare minimum for a move is Rs. 2,000.
Under the scheme, a partial withdrawal must be at least INR 2,000.