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.
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 Cover 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
3. Taking the right amount of Life Cover
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 Cover so that your loved ones can achieve their dreams even in your absence. You can opt for a Life Cover of 10 times your annual premium. To increase your family's financial security, you can also increase the Life Cover offered under your policy.
Let us understand this with an example. For an annual premium of ₹ 1,00,000 you can get a Life Cover 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 Cover.
4. Stay invested with ULIPs for a long termBesides providing Life Cover, 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 sec 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
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
|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 – 15 fund options||9 fund options||4 portfolio strategies – 15 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 Sec 10(10D) and deduction on the premium paid under Sec 80C* of The Income Tax Act, 1961||Tax-free* maturity amount under Sec 10(10D) and dedcution on the premium paid under Sec 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?
2. Is it good to invest in ULIP plans?
3. What is the best way to choose ULIP?
4. Which is better ULIP or term insurance?
* Tax benefits under the policy are subject to conditions under Section 80C, 80D, 10(10D),115BAC and other provisions of the Income Tax Act, 1961. Good 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.
+ Provided monies are not in 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. DP Funds refer to Discontinued Policy Funds and consist of money from the lapsed policy.
++ Systematic Withdrawal Plan is allowed only after the completion of the first five policy years. Unlike traditional products, Unit Linked insurance products are subject to market risk, which affect the Net Asset Values. The customer shall be responsible for his/her decision. The names of the company, product names, or fund options do not indicate their quality or future guidance on returns. Funds do not offer guaranteed or assured returns.
Unlike traditional products, Unit Linked insurance products are subject to market risk, which affect the Net Asset Values. The customer shall be responsible for his/her decision. The names of the company, product names, or fund options do not indicate their quality or future guidance on returns. Funds do not offer guaranteed or assured returns.
** Switch is an option to move your allocated money between equity and debt funds.
# Maturity Benefit is the amount you receive when your policy ends.
~ Past performance is not indicative of future performance.
^ 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.
^^ 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.
` Only available under Fixed Portfolio strategy.
ICICI Pru Signature UIN 105L177V03
ICICI Pru1 Wealth UIN:105L175V03
ICICI Pru Smart Kid Plan with ICICI Pru Smart Life UIN 105L145V06
ICICI Pru LifeTime Classic UIN 105L155V06
Our ULIP Plans
|ICICI Pru LifeTime Classic
Premium starts at `2500/- p.m.
|ICICI Pru Signature Online
Premium starts at `2500/- p.m.
|ICICI Pru Pru1Wealth-One-time
Premium starts at `50,000/- p.m.
|ICICI Pru Guaranteed Wealth Protector
Premium starts at `4000/- p.m.
|ICICI Pru Smart Life
Premium starts at `4000/- p.m.