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

ULIPs help you to achieve your life’s financial goals by creating wealth through market-linked investments. Through these instruments, you can spread your money across debt, equity, or balanced funds based on your risk appetite. This gives you the possibility to earn inflation-beating returns from the market. The in-built life insurance cover helps you safeguard your loved ones against financial challenges in case of a mishap.

There are certain charges levied by the insurance provider in exchange for their services. Some of these ULIP charges are deducted upfront from your premium while the rest are levied through the cancellation of units from your fund.

Before making an investment decision, you must consider these charges to ensure that your investment is cost-effective. Currently, the Insurance Regulatory and Development Authority of India (IRDAI) has put a cap on the amount of ULIP charges that can be levied by insurers. As a result, there is a limit to how much these costs can impact your investments. Also, most of these charges reduce over the policy tenure, levelling out your investment costs in the long term.

When you understand the charges in ULIP, you can plan your investments well and select the policy best suited to your specific financial needs.

• 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.

• Rider charges: Riders provide an additional protection cover over the base life cover^`. 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.