IN ULIPS, THE INVESTMENT RISK IN THE INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER

Understand what is a ULIP, compare and get the best out of your ULIP

ULIPs or Unit Linked Insurance Plans offer a life insurance cover along with the growth of your money and tax* benefits. This makes ULIPs an ideal financial instrument to invest in.

Every ULIP comes with its own set of benefits and features built to suit certain needs. These benefits and features provide flexibility in choosing premium payment options (monthly, half-yearly, annually), flexible withdrawal options, flexibility to choose your own premium amount, and more. You should look for a plan that suits your needs. ULIPs also provide multiple fund~ options to choose from and your returns from the plan depend on the funds you choose. Thus, understanding the plan better before investing will help you make an informed decision.

Our ULIP Plans

ICICI Prudential Life offers the below ULIPs for investment. You can choose the plan that fulfils your requirements

ICICI Pru Signature

The plan offers the below features:

  • Life cover2: The plan offers a life cover2 that secures your loved ones financially in case of an unfortunate event. You can choose the Whole Life cover2 option to stay covered till 99 years of age
  • Flexibility in investment: Under the plan, you can choose to invest in equity, debt or balanced funds as per your risk appetite. You may also switch between the funds as per your requirements without any additional cost. The plan also provides four portfolio strategies to choose from. This helps you invest as per your needs to achieve your financial goals
  • Flexibility in paying premiums and receiving payouts: You can choose to pay your premiums yearly, half-yearly or monthly as per your convenience. You may also choose to receive the payouts from the plan as a lump sum or regular income
  • Return on investment: The plan provides market-linked returns basis the funds chosen by you. Additional payouts in the form of wealth boosters^^ every five years increase the overall returns from the plan
  • Tax* benefits: The plan provides the below tax* benefits as per The Income Tax Act, 1961:
    • The premiums paid under the policy are eligible for tax* deduction subject to conditions under Section 80C
    • The amount received under the policy is exempt subject to conditions prescribed under Section 10(10D)

ICICI Pru1 Wealth

ICICI Pru1 Wealth is a single-premium ULIP that offers you the below features:

  • Life cover2: The plan offers a life cover2 that secures your loved ones financially in case of an unfortunate event
  • Flexibility in investment: Under the plan, you can choose to invest in equity, debt or balanced funds as per your risk appetite. You may also switch between the funds as per your requirements without any additional cost.
  • Flexibility in receiving payouts: You can choose to receive the payouts from the plan as a lump sum or regular income
  • Return on investment: The plan provides market-linked returns basis the funds chosen by you. Additional payouts in the form of wealth boosters^^ increase the overall returns from the plan
  • Tax* benefits: The plan provides the below tax* benefits as per The Income Tax Act, 1961:
    • The premiums paid under the policy are eligible for tax* deductions subject to conditions under Section 80C
    • The amount received under the policy is exempt subject to conditions prescribed under Section 10(10D)

ICICI Pru LifeTime Classic

The plan offers the below features:

  • Life cover2: The plan offers a life cover2 that secures your loved ones financially in case of an unfortunate event
  • Flexibility in investment: Under the plan, you can choose to invest in equity, debt or balanced funds as per your risk appetite. You may also switch between the funds four times in a policy year as per your requirements without any additional cost. The plan also provides four portfolio strategies to choose from. This helps you invest as per your needs to achieve your financial goals
  • Flexibility in paying premiums and receiving payouts: You can choose to pay your premiums yearly, half-yearly, monthly or all at once as per your convenience. You may also choose to receive the payouts from the plan as a lump sum or regular income
  • Return on investment: The plan provides market-linked returns basis the funds chosen by you. Additional payouts in the form of wealth boosters^^ and loyalty additions^ increase the overall returns from the plan
  • Tax* benefits: The plan provides the below tax* benefits as per The Income Tax Act, 1961:
  • The premiums paid under the policy are eligible for tax* deductions subject to conditions under Section 80C
  • The amount received under the policy is exempt subject to conditions prescribed under Section 10(10D)

ICICI Pru Smart Life

This is a ULIP child insurance plan that can help you stay financially prepared for your child’s goals. The plan offers the below features:

  • Life cover2: The plan offers a life cover2 that secures your loved ones financially in case of an unfortunate event
  • Waiver of premium benefit: In case of an unfortunate event, all future premiums are waived off and the policy continues to remain active till the end of the policy term. This ensures that your child is financially secure, no matter what
  • Flexibility in investment: Under the plan, you can choose to invest in equity, debt or balanced funds as per your risk appetite. You may also switch between the funds as per your requirements without any additional cost. The plan also provides two portfolio strategies to choose from. This helps you invest as per your needs to achieve your financial goals
  • Flexibility in paying premiums and receiving payouts: You can choose to pay your premiums yearly, half-yearly, monthly or all at once as per your convenience. You may also choose to receive the payouts from the plan as a lump sum or regular income
  • Return on investment: The plan provides market-linked returns basis the funds chosen by you. Additional payouts in the form of wealth boosters^^ and loyalty additions^ increase the overall returns from the plan
  • Tax* benefits:The plan provides the below tax* benefits as per The Income Tax Act, 1961:
    • The premiums paid under the policy are eligible for tax* deduction subject to conditions under Section 80C
    • The amount received under the policy is exempt subject to conditions prescribed under Section 10(10D)

W/II/1557/2022-23

ULIP - How to compare and get the best of your ULIP

1. Understand the key features of your ULIPs

ULIPs offer you the benefit of a Life Cover2 and also give you the opportunity to grow your wealth. To get the best out of your ULIPs, understand the following benefits available in ULIPs:

1. Fund Switch – An option to move your money between equity, balanced and debt funds~.

2. Premium Redirection – An option to invest your future premiums in a different fund of your choice other than your base fund.

3. Partial Withdrawals+ – An option that allows you to withdraw a part of your money.

4. Top-ups – This option allows you to invest your surplus money, either once or multiple times in your existing policy.

To understand all benefits offered under your policy, it is advisable that you read the product brochure carefully. This will help you make the right decision.

 

2. Choosing ULIP Plans fund options depending on your goals

Unit Linked Insurance Plans (ULIPs) give you an option to invest in equity, debt or a mix of both. Equity funds give you a long-term high growth potential, whereas, debt funds preserve your wealth. Based on your risk appetite and goals, you can choose to invest in either equity or debt. In addition to these, ULIPs also offer balanced funds, which give you an option to enjoy the best of both worlds – equity and debt. With ULIPs, you can also move your money between these funds~ as per your needs.

3. Taking the right amount of Life Cover2

ULIPs are designed to help you meet your financial goals like funding your child’s education or planning for your retirement. In addition to securing your goals, ULIPs also secure your family. They provide a lump sum amount called the Life Cover2 so that your loved ones can achieve their dreams even in your absence. You can opt for a Life Cover2 of 10 times your annual premium. To increase your family's financial security, you can also increase the Life Cover2 offered under your policy.

Let us understand this with an example. For an annual premium of ₹ 1,00,000/- you can get a Life Cover2 of ₹ 10,00,000/-. As your children grow older, your financial liabilities increase. As a result, you can increase your family's level of protection by increasing your Life Cover2 .

4. Stay invested with ULIPs for a long term

Besides providing Life Cover2 , ULIPs help you create wealth to achieve your financial goals. To stay invested for a long term in your ULIPs, your insurance company will offer you bonuses in the form of Loyalty Additions^ and Wealth Boosters^^ to further grow your wealth.

5. Get tax* benefits

Under the Income Tax Act, 1961, you can save taxes on your hard-earned money with Unit Linked Insurance Plans. You can get tax advantages at different stages of your life insurance policy.

Stage 1: Entry Advantage

You receive tax benefits* on your premium payments under the Income Tax Act, 1961

Stage 2: Exclusive Switching Advantage

Debt-equity Switches** are not liable to tax*

Stage 3: Exit Advantage

You also receive a tax-free* Maturity Benefit# subject to conditions under Section 10(10D)

6. Know the charges in your ULIP

ULIPs help you meet two of your most important financial needs - Protection and Savings. Both these benefits have some charges attached to them and it is important to understand the following charges before purchasing the ULIP:

Premium Allocation charge

Policy Administration charge

Mortality charge

Fund Management charge

In ULIPs, the overall charges reduce in the long term resulting in wealth creation.

Please note that your life insurer reserves the right to revise the charges over time.

Click here to know more about the charge structure of ULIPs.

Comparison of ULIPs by ICICI Pru Life

    Plan  
Features/ Benefits ICICI Pru Signature ICICI Pru1 Wealth ICICI Pru LifeTime Classic
Minimum entry age 0 8 years 0
Maximum entry age 60 years 60 years 75 years
Minimum Policy Term 10 years 5 years 5 years
Maximum Policy Term 30 years or Whole Life 10 years 30 years
Maximum Premium Unlimited Unlimited amount - single premium only Unlimited
Top-up options Available Available Available
Fund and Portfolio options 4 portfolio strategies – 19 fund options 9 fund options 4 portfolio strategies – 19 fund options
Option to Switch Funds Unlimited fund switches` Unlimited fund switches 4 free switches in a policy year`
Rewards or Wealth Boosters Wealth Boosters^^ at regular intervals for staying invested in the plan Wealth Booster^^ as a percentage of the premium paid at the end of your policy term Loyalty Additions^ and Wealth Boosters^^ get added to your investment for staying invested in the plan
Tax* Benefits Tax-free* maturity amount under Section 10(10D) and deduction on the premium paid under Section 80C* of the Income Tax Act, 1961 Tax-free* maturity amount under Section 10(10D) and dedcution on the premium paid under Section 80C* of the Income Tax Act, 1961 Tax* benefits on premiums paid under Section 80C of the Income Tax Act, 1961
Withdrawal options Systematic Withdrawals++ and partial withdrawal+ options help you to get regular money from your fund value Partial withdrawals+ are allowed only after the first five policy years Partial withdrawals+ are allowed only after the first five policy years

1. What is a ULIP policy?

A ULIP or Unit Linked Insurance Plan is a life insurance policy that helps you grow wealth by investing your money in the financial markets, while also providing you with the protection of life insurance cover.

2. Is it good to invest in ULIP plans?

ULIP plans are a combination of investment and life cover2. Investments help you achieve your long-term financial goals, whereas life cover2 makes sure your family doesn’t have to bear the financial burden in case of your untimely demise. ULIP premiums can also help you claim deduction under Section 80C of the Income Tax Act, 1961, and ULIP payouts are tax-free* subject to conditions under Section 10(10D) of the Income Tax Act, 1961. Hence, investment in ULIP can be considered a good idea.

3. What is the best way to choose ULIP?

To choose the best ULIP for yourself, you should compare plans and select the one that charges you the minimal amount in Premium Allocation, Policy Administration, Mortality, and Fund Management Charges.

4. Which is better ULIP or term insurance?

ULIP and term insurance are different categories of life insurance. If you are looking to invest your money to achieve a financial goal with the umbrella of life cover2, then buy a Unit Linked Insurance Plan. If you wish to get a pure protection plan, then buy a Term Insurance Plan.

Our ULIP Plans

ICICI Pru LifeTime Classic

Premium starts at `2500/- p.m.
UIN

ICICI Pru Signature Online

Premium starts at `2500/- p.m.
UIN

ICICI Pru1 Wealth-One-time

Premium starts at `50,000/- p.m.
UIN 105L175V04

ICICI Pru Guaranteed Wealth Protector

Premium starts at `4000/- p.m.
UIN

ICICI Pru Smart Life

Premium starts at `4000/- p.m.
UIN

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2Life Cover is the benefit payable on death of the life assured during the policy term.

*Tax benefits under the policy are subject to conditions under Sections 80C, 10(10D),115BAC and other provisions of the Income Tax Act, 1961. Goods and Service Tax and Cesses, if any, will be charged extra as per prevailing rates. Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for more details.

^Loyalty Additions are applicable from the 6th policy year onwards in the form of extra units at the end of every policy year. Each Loyalty Addition will be equal to 0.25% of the average of the Fund Values. You get an additional Loyalty Addition of 0.25% every year from the end of year 6 if all premiums for that year have been paid.

+Systematic Withdrawal Plan is allowed only after the first five policy years. The total withdrawals in a policy year cannot exceed 20% of the fund value.

~Switches are only applicable for fixed portfolio strategy and not applicable for other portfolio strategies.

^^Wealth Boosters will be allocated as extra units at the end of every 5th policy year starting from the end of the 10th policy year. Each Wealth Booster will be 3.25% for Limited/Regular Pay Policies and 1.5% for Single Pay Policies of the average of the Fund Values.

ICICI Pru Signature (unit-linked non-participating individual life insurance plan)- UIN:

ICICI Pru1Wealth (unit-linked individual plan) – UIN:

ICICI Pru LifeTime Classic (unit-linked non-participating individual life insurance plan) - UIN:105L155V08

ICICI Pru Smart Life (unit-linked non-participating individual life insurance plan) - UIN:105L145V08

W/II/4878/2021-22

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