ICICI Prudential Signature Plan
When we become family people, a bunch of responsibilities fall on our shoulders. In that case, we not only have to save enough to fulfil the needs and dreams of our loved ones but also protect our family by all means. Keeping all these criteria in mind, ICICI Pru Life Insurance Company has come up with a unit-linked insurance plan, ICICI Pru Signature (New), that is specially designed for customers who need life cover and wealth boosters at the same time.
Under this policy, you have the choice of 4 portfolio strategies and a wide range of funds across equity, balanced, and debt to suit your saving needs. The special feature is that the entire premium without any deductions is allocated among the funds of your choice. This plan promises to take care of your family even when you are not around and to build a financial corpus to offer you a smooth economic background. To know more about this policy, have a look at the following mentions.
|Age at entry||Minimum – 0 years, Maximum – 60 years|
|Age at maturity|
For policies other than Whole Life:
Minimum: 18 years, Maximum: 75 years
For Whole Life option: 99 years
|Premium payment option||Limited pay, Regular pay|
|Premium payment term|
Limited pay – 5, 7, 8, and 10 years
Regular pay – Same as policy term
For the Whole Life option, Limited Pay – 7, 8, 10, and 15 years
|Minimum and maximum policy term|
10- 30 years, Whole Life
For the Whole Life policy term option, the policy term will be equal to 99 minus Age at entry
|Minimum and maximum premium|
For policies other than Whole Life: Rs 30,000 p.a. – Unlimited
For Whole Life option: Rs. 60,000 p.a. – Unlimited
|Premium payment modes||Yearly, half-yearly, and monthly|
|Sum Assured for policies other than Whole Life|
|Sum Assured for Whole Life option|
|Top up sum assured||1.25 X Top-up premium|
What Will Policyholder Get With ICICI Pru Signature?
This policy has come up with a bunch of benefits and facilities that promise you to keep your family safe and protected even after your demise. The following details will give you a clear idea about this plan. have a look.
Return of Mortality Charges and Policy Administration Charges:
The amount equal to the total of mortality charges and policy administration charges deducted in the policy will be added back to the fund value at maturity, provided all due premiums have been received. This amount 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. This will exclude any extra mortality charges, and taxes levied on the charges deducted as per prevailing tax laws. It is not applicable to the Whole Life option.
The company 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 the 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, if any, on the last business day of the last eight policy quarters. 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.
In the unfortunate event of death of the Life Assured during the term of the policy, provided the monies are not in the Discontinued Policy (DP) fund, the following will be payable to the Nominee, or in the absence of a Nominee, the Legal heir.
Death Benefit = Highest of Sum Assured, including Top-up Sum, Assured, if any, Minimum Death Benefit, or Fund Value, including the Top up Fund Value, if any.
The minimum Death Benefit will be 105% of the total premiums, including Top-up premiums, if any, received up to the date of death.
On maturity of the policy, you will receive the Fund Value, including the Top-up Fund Value, if any. You have the option to receive the Maturity Benefit either as a lump sum or as a structured payout using the Settlement Option.
For immediate financial need, you can avail of this any time after the completion of five policy years, provided the monies are not in the Discontinued Policy (DP) fund. You can make an unlimited number of partial withdrawals as long as the total amount of partial withdrawals in a year does not exceed 20% of the Fund Value in a policy year. The partial withdrawals are free of cost.
You have the option to receive the Maturity Benefit as a structured payout using the Settlement Option. With this facility, you can opt to get payments on a yearly, half-yearly, quarterly, or monthly (through ECS) basis over a period of one to five years post-maturity. The first payout of the settlement option will be made on the date of maturity. At any time during the settlement period, you have the option to withdraw the entire Fund Value. Only the Fund Management Charge and mortality charge, if any, would be levied during the settlement period.
Key Highlights of ICICI Pru Signature Plan?
Apart from the above benefits and facilities, this plan has presented a bunch of special advantages and features that have made the policy unique and popular among customers. The followings are the mentions of those advantages.
Unlimited Free Switches:
If you choose the Fixed Portfolio strategy, you can switch units from one fund to another depending on your financial priorities and investment outlook as many times as you want. This benefit is available to you without any charge. The minimum switch amount is Rs. 2,000. Switches are not applicable to other portfolio strategies.
Change in Portfolio Strategy:
You have the option to switch among the available Portfolio Strategies. You can change your portfolio strategy up to four times in a policy year, provided the monies are not in the Discontinued Policy Fund free of cost. Any unutilized Change in Portfolio Strategy (CIPS) cannot be carried forward to the next policy year. On moving to the Life Cycle-based Portfolio Strategy 2 or Trigger Portfolio Strategy 2, your existing funds and all future premiums will be allocated between Multi Cap Growth Fund and Income Fund as per the Strategy details mentioned earlier.
This feature is applicable only if you have opted for the Fixed Portfolio Strategy and provided monies are not in DP Fund. If you have selected Fixed Portfolio Strategy, at policy inception, you specify the funds and the proportion in which the premiums are to be saved in the funds. At the time of payment of subsequent premiums, the split may be changed without any charge. This will not count as a switch.
Top up Facility:
You can save any surplus money as a Top-up premium, over and above the base premium(s), into the policy. The minimum Top-up premium is Rs. 2,000. Your Sum Assured will increase by Top-up Sum Assured when you avail of a Top-up. Top-up premiums can be paid at any time except during the last five years of the policy term, subject to underwriting. A lock-in period of five years would apply for each Top-up premium for the purpose of partial withdrawals only. At any point during the term of the policy, the total Top-up premiums paid cannot exceed the sum of base premium(s) paid till that time.
Increase and Decrease in Sum Assured:
You can choose to increase or decrease your Sum Assured during the policy term provided all due premiums to date have been paid, and monies are not in the DP fund.
Increase and Decrease in Premium Payment Term:
Provided all due premiums have been paid, you can choose to increase or decrease the Premium Payment Term by notifying the Company. An increase in Premium Payment Term is allowed subject to Board Approved Underwriting Policy. Increase or Decrease in Premium Payment Term must always be in multiples of one year.
Four Portfolio Strategies:
They are as follows:
- Target Asset Allocation Strategy – This strategy enables you to choose an asset allocation that is best suited to your risk appetite and maintains it throughout the policy term. You can allocate your premiums between any two funds available with this policy, in the proportion of your choice.
- Trigger Portfolio Strategy 2 – It enables you to take advantage of substantial equity market swings and save on the principle of buy low and sell high. Under this strategy, your savings will initially be distributed between two funds Multi Cap Growth Fund, an equity-oriented fund, and Income Fund, a debt-oriented fund, in a 75%:25% proportion.
- Fixed Portfolio Strategy – This strategy enables you to manage your savings actively. Under this strategy, you can choose to save your monies in any of the following fund options in the proportions of your choice. You can switch monies amongst these funds using the switch option.
- Lifecycle Based Portfolio Strategy 2 – Your financial needs are not static and keep changing with your life stage. It is, therefore, necessary that your policy adapts to your changing needs. This need is fulfilled by the Lifecycle Based Portfolio Strategy 2.
The revival period is three years from the date of the first unpaid premium. In case of revival of a discontinued policy during the lock-in period, the company will collect all due and unpaid premiums without charging any interest or fee, levy policy administration charges, and premium allocation charges as applicable during the discontinuance period. In case of revival of a discontinued policy after the lock-in period, you, at your own expense, have to furnish satisfactory evidence of the health of the Life Assured, as required by the insurer Revival of the policy may be on terms different from those applicable to the policy before the premiums were discontinued.
Tax exemption benefits may be available per the prevailing Income Tax laws. Goods and Services Tax and cesses, if any, will be charged extra by redemption of units, as per applicable rates.
What Are The Exclusions of ICICI Pru Signature?
Understanding a policy is not completed if you do not thoroughly review its exclusions. Therefore, to offer you a better idea of the policy, and to avoid future complications, here are the exclusions of the ICICI Pru Signature (New) policy.
- Anything that does not satisfy the terms and conditions of the policy as well as of the company will fall under the category of exclusions.
- Any kind of breach of law with criminal intent will be permanently excluded from the policy.
- If the Life Assured, whether sane or insane, commits suicide within 12 months from the date of commencement of the policy or from the date of policy revival, 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 Claimant. Any charges other than Fund Management Charges and guarantee charges, if any, recovered subsequent to the date of death will be added back to the fund value as available on the date of intimation of death.
- If the Life Assured, whether sane or insane, commits suicide within 12 months from the effective date of increase in Sum Assured, then the amount of increase will not be considered in the calculation of the death benefit.
How Does ICICI Pru Signature Plan Work?
Mr. Rishi, a 36-year-old businessman, bought ICICI Pru Signature (New) policy for himself. Let us find out how much benefit he will reap from the given credentials.
|Policy years||20 years|
|Tax-free Maturity Benefit||At an 8% rate, Rs. 2.52 crores|
Frequently Asked Questions
This facility allows you to regularly withdraw a pre-determined percentage of your fund value. This can help you to meet specific needs, such as a child’s education or money for day-to-day expenses during retirement. A systematic Withdrawal Plan is allowed only after the first five policy years. The payouts may be taken monthly, quarterly, half-yearly, or yearly on a specified date and are payable in advance. This facility can be chosen at policy inception or during the policy term.
You can choose to increase your policy term by notifying the Company. An increase in terms is allowed subject to the Policy terms allowed under the policy. Decreasing the policy term is not allowed.
The following fund options are available under this strategy:
Focus 50 Funds: To provide long-term capital appreciation from an equity portfolio invested predominantly in top 50 stocks.
Opportunities Fund: To generate superior long-term returns from a diversified portfolio of equity and equity-related instruments of companies operating in four important types of industries viz., Resources, Investment-related, Consumption-related, and Human Capital leveraged industries.
Value Enhancer Fund: To achieve long-term capital appreciation through investments primarily in equity and equity-related instruments in sectors that are emerging or witnessing an inflection in the growth trajectory.
Multi Cap Growth Fund: To generate superior long-term returns from a diversified portfolio of equity and equity-related instruments of large, mid, and small-cap companies.
Bluechip Fund: To provide long-term capital appreciation from an equity portfolio predominantly invested in large-cap stocks.
India Growth Fund: To generate superior long-term capital appreciation by investing at least 80% in a diversified portfolio of equity and equity-related securities of companies whose growth is propelled by India’s rising power in domestic consumption and services sectors.
Maximiser V: To achieve long-term capital appreciation through investments primarily in equity and equity-related instruments of large and mid-cap stocks.
Maximize India Fund: To offer long-term wealth maximization by managing a diversified equity portfolio comprising companies in NIFTY 50 & NIFTY Junior indices.
Multi-Cap Balanced Fund: To achieve a balance between capital appreciation and stable returns by investing in a mix of equity and equity-related instruments of large, mid, and small cap companies and debt and debt-related instruments.
Active Asset Allocation Balanced Fund: To provide capital appreciation by investing in a suitable mix of cash, debt, and equities. The investment strategy will involve a flexible policy for allocating assets among equities, bonds, and cash.
Secure Opportunities Fund: To provide accumulation of income through investment in various fixed-income securities. The fund seeks capital appreciation while maintaining a balance between return, safety, and liquidity.
Income Fund: To provide accumulation of income through investment in various fixed-income securities. The fund seeks capital appreciation while maintaining a balance between return, safety, and liquidity.
Money Market Fund: To provide suitable returns through low-risk investments in debt and money market instruments while attempting to protect the capital deployed in the fund.
Balanced Advantage Fund: To generate superior long-term returns from a diversified equity and debt securities portfolio. The equity allocation is to be changed dynamically based on market conditions and relative attractiveness versus other asset classes.
Sustainable Equity Fund: To focus on investing in select companies from the investment universe which conduct business socially and environmentally responsibly while maintaining governance standards.
Mid Cap Fund: To generate superior long-term returns by investing in mid-cap stocks, predominantly those forming part of the Midcap Index.
The key features are as follows:
- Age-based portfolio management – At policy inception, your savings are distributed between two funds, Multi Cap Growth Fund, and Income Fund, based on your age. As you move from one age band to another, your funds are re-distributed based on your age.
- Quarterly rebalancing – On a quarterly basis, units will be rebalanced as necessary to achieve the above proportions of the Fund Value in the Multi Cap Growth Fund and Income Fund. The re-balancing of units will be done on the last day of each Policy quarter.
- Safety as you approach maturity – As your policy nears its maturity date, you need to ensure that short-term market volatility does not affect your accumulated savings. In order to achieve this, your savings in Multi Cap Growth Fund will be systematically transferred to Income Fund in ten installments in the last ten quarters of your Policy.
The followings are the applicable charges:
- Fund management charge
- Policy administration charge
- Mortality charges
- Discontinuance charges
During the first five policy years, on receipt of intimation that you wish to surrender the policy, the Fund Value, including Top-up Fund Value, if any, after deduction of applicable Discontinuance Charge, will be transferred to the Discontinued Policy Fund (DP Fund). You or your nominee will be entitled to receive the Discontinued Policy Fund Value on earlier death or the lock-in period’s expiry. Currently, the lock-in period is five years from policy inception. On surrender after completion of the fifth policy year, you will be entitled to the Fund Value, including Top-up Fund Value, if any.
If you are not satisfied with the terms and conditions of this policy, you have the option to return the policy document to the Company with reasons for cancellation within 15 days from the date it is received if the policy is purchased through solicitation in person, and 30 days from the date it is received, in case of electronic policies or if your Policy is purchased through voice mode.
The grace period for payment of premium is 15 days for monthly mode of premium payment and 30 days for other modes of premium payment commencing from the premium due date.