ULIPs Charge Structure

• Sales Benefit Illustration: A sales benefit illustration shows the various charges applicable, for the entire duration of the policy. This helps you understand the amount deducted and the exact amount invested in your choice of funds. You can request the company sales representative to share a sales benefit illustration with you.
• Product Brochure: A product brochure informs you about the various charges applicable on your policy, and the reason for which they are charged. You can download the product brochure from our website or ask for it from our sales representatives.
• Advisor: You could also enquire with your advisor for a detailed understanding of all the charges applicable on your policy throughout its term.

• Policy administration charges: These charges are towards the servicing and maintenance of your policy such as the cost of paperwork, workforce, and other similar expenses. They are deducted on a monthly basis.
• Premium allocation charges: These charges are deducted upfront from your premium. They are allocated towards the amount spent by the insurance company in processing your policy, such as the cost of underwriting^*, medical examinations and expenses related to distributor fees. After these charges are deducted, your money gets invested in the funds of your choice.
  *Underwriting is the process of assessment of your policy application
• Mortality charges: Mortality expenses are charged towards providing you with a life cover². These expenses vary with age and are deducted on a monthly basis.
• Fund management charges: Depending on the funds chosen by you, a portion of your ULIP premium is invested in various equity funds, debt funds or a mix of both. The Fund Management Charge is for managing these investments in order to offer you potentially higher returns.

As an investor, it is important for you to remember that since the overall charge structure of the ULIP reduces to a large extent over the long term, it is beneficial for you to stay invested for the entire term.

• Rider charges: Riders provide an additional protection cover over the base life cover². Rider charges are deducted from your premium. We, at ICICI Prudential Life Insurance offer Unit Linked Accident Death Benefit Rider.
• Switching charge: ULIPs not only allow you to invest your money in fund options with different debt-equity exposures but also give you the option to move your money between different funds. Moving your money from one fund to another is called Switching. For example, you can switch money from a fund invested 100% in equity to a balanced portfolio, which is invested 60% in equity and 40% in debt.
  Generally, only a limited number of fund switches are recommended in a year as a ULIP is a long-term investment tool. ULIPs from ICICI Prudential Life offer you four free Switches in a year. For additional Switches, a minimal charge of ₹ 100/- is applied per Switch.
• Top-up charge: Top-up is one of the unique features of a ULIP. This allows you to invest your surplus money either once or multiple times in your policy. This amount is over and above your regular premium payments and can be made at any time while your policy is in force. Top-ups help you grow your wealth further by increasing the amount of investment. Insurance companies may deduct a certain percentage from the top-up amount as charges.
• Premium discontinuance charge: You may decide to stop paying your premium before the lock-in period of five years. Upon discontinuance of premium payments, your money will be locked in a Discontinuance Fund. A Premium Discontinuance Charge may be deducted for this, as mentioned under the policy conditions. This is charged as a percentage of the fund value or as a percentage of the premium. While you can discontinue your policy before the policy term, it is advisable to stay invested for at least 10 years to enjoy the maximum benefits offered by your policy.