If you were born between the years 1981 to 1994, you are a millennial1. This means that you are between 27 – 40 years of age and have probably taken up larger responsibilities in life, like getting married and starting a family. As a millennial, you are more likely to be financially independent by now and know how to deal with responsibilities.

You may have goals such as pursuing higher education, travelling the world, buying a dream house, and more. To meet these goals, you need to know the right plan options to invest in. Investing in the right plan can provide you with returns that can help you achieve your financial goals easily. Below are a few options that can be considered for investing by millennials.

Unit Linked Insurance Plan (ULIP)

A ULIP is a long-term investment plan that provides the dual benefit of a life cover` and growth on investment. These plans can help you achieve your long-term goals and come with the benefits listed below.

  • Investment as per your risk appetite - ULIPs give you the freedom to choose between various investment fund~ options such as equity, debt, or a mix of both as per your risk appetite. The returns from a ULIP depend on the type of funds you choose. While equity funds are high-risk high-return funds, debt funds are low-risk funds that may provide lower returns
  • Life cover` - In addition to the returns, ULIPs also provide a life insurance cover. This ensures financial security for your loved ones in case of an unforeseen eventuality. The claim amount ensures that your loved ones stay financially protected
  • Tax* benefits - ULIPs help you save tax in two ways:
    • The premiums you pay towards ULIP are allowed as a deduction from taxable income up to ₹ 1.5 lakh in a financial year, under Section 80C of the Income Tax Act, 1961
    • The amount you receive at the end of the tenure of the policy is also tax-exempt* subject to conditions under Section 10(10D)

ULIPs also provide additional benefits. For instance, the ICICI Pru Signature offers unlimited free switches between the funds. You can switch between equity, debt and balanced funds as per your choice. This enables you to take the advantage of various market conditions for a higher return. The plan also offers wealth boosters$ where the insurer contributes to your investment as a reward for staying invested, and more such benefits that further help to increase the returns from the investment.

Term plan

It is essential to grow your money, but it is also necessary to get financial security for you and your loved ones. Term plans ensure a fixed amount to your loved ones in case of an unfortunate event, any time during the tenure of the policy. This makes a term plan a beneficial investment for millennials.

Term plans provide a very high financial cover at affordable premium rates. Along with the life cover`, ICICI Pru iProtect Smart term plan offers additional benefits such as:

  • Terminal illness benefit - On the first diagnosis of a terminal illness#, the entire claim amount provided by the policy is paid to the policyholder upfront. This helps to ease the financial burden off the family members during the difficult times
  • Waiver of premium benefit - The insurer waives off all future premiums if the policyholder is diagnosed with a permanent disability## due to an accident. This ensures that the policyholder does not have to pay any future premiums to continue the policy
  • Accidental death benefit - In case of an unfortunate demise of the policyholder due to an accident^^, this benefit offers extra financial protection to the nominee. This is an optional benefit that can be availed at a very nominal cost
  • Critical illness benefit - The plan covers 34 critical illnesses** which include chronic diseases such as cancer, heart-related diseases, and more. Upon diagnosis of any of the illnesses covered by the plan, the benefit amount is paid upfront. Submitting hospital bills is not required. This amount can be used to pay for the medical bills, for diagnostics or for recuperation. This is an optional benefit. The critical illness** benefit can be added to the plan at a very minimal cost
  • Tax* benefits - Term Plan helps you save tax in two ways:
    • The premiums you pay towards a term plan are allowed as a deduction from taxable income up to ₹ 1.5 lakh in a financial year, under Section 80C of the Income Tax Act, 1961
    • The amount you receive at the end of the tenure of the policy is also tax-exempt* subject to conditions under Section 10(10D)

Health Insurance

In today’s times, there is a heightened need to keep yourself financially prepared for any health-related adversity. A health emergency can be a burden on your savings. Health insurance plans help you cater to these expenses without any worry.

Health insurance plans provide financial protection against various critical and life-threatening diseases. Plans like the ICICI Pru Heart/Cancer Protect provide immediate financial support. These plans provide fixed payouts based on the severity of the conditions^ covered under the plan. You do not need to submit any medical bills to claim the amount.

Retirement/Pension Plan

Your current lifestyle is majorly led by your current regular income. Your regular income may stop during your retirement years. To ensure that you stay financially independent and are able to maintain the same lifestyle even after retirement, it is important to invest in a retirement plan as early as possible.

Retirement plans provide a regular income throughout your retirement years. They also help you stay financially prepared for any medical emergency. As a millennial, investing in a retirement savings plan could be the right choice for you. These plans help you save money during your earning years that can later be used to earn regular income during your retirement years.

Investing in the right retirement plan can also help your investment to grow with time and provide good returns. They also offer tax* benefits as per the prevailing tax laws.


As a millennial, investing early can help you align your goals with your changing needs and income. Start investing early, as the longer you wait, the lesser time you will have for your money to grow. This will help you celebrate the milestones and at the same time, be financially prepared for any challenging situation.

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~Past performance is not indicative of the future performance.

*Tax benefits are subject to conditions under Sections 80C, 80D, 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.

#A Life Assured shall be regarded as Terminally Ill only if that Life Assured is diagnosed as suffering from a condition which, in the opinion of two independent medical practitioners specialising in the treatment of such illness, is highly likely to lead to death within 6 months. The terminal illness must be diagnosed and confirmed by medical practitioners registered with the Indian Medical Association and approved by the Company. The Company reserves the right for independent assessment.

##On diagnosis of Permanent Disability (PD) due to an accident, the future premiums under your policy for all benefits are waived. To know more about the definitions and terms & conditions applicable for permanent disability due to an accident, kindly refer to the sales brochure of ICICI Pru iProtect Smart.

^^Accidental Death benefit (ADB) is up to ₹ 2 crore (subjected to underwriting guidelines). ADB is available in Life Plus and All in One options. In case of death due to an accident, Accidental Death Benefit will be paid out in addition to Death Benefit. Accidental Death Benefit will be equal to the policy term or (80-Age at entry), whichever is lower.

**Accelerated Critical Illness Benefit (ACI Benefit) is optional and available under Life & Health and All in One options. This benefit is payable, on the first occurrence of any of the 34 illnesses covered. Medical documents confirming the diagnosis of critical illness need to be submitted. The benefit is payable only on the fulfilment of the definition of the diagnosed critical illness. The ACI Benefit is accelerated and not an additional benefit, which means the policy will continue with the Death Benefit reduced by the extent of the ACI Benefit paid. The future premiums payable under the policy will reduce proportionately. If ACI Benefit paid is equal to the Death Benefit, the policy will terminate on payment of the ACI Benefit. To know more in detail about the ACI Benefit and terms & conditions governing it, kindly refer to the sales brochure. ACI Benefit term would be equal to policy term or 30 years or (75-Age at entry), whichever is lower.

^For details on the illnesses covered under ICICI Pru Heart/Cancer Protect, please refer to the brochure.

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

$ Wealth Boosters 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 will be allocated as extra units to your policy at the end of every 5th policy year starting from the end of 10th policy year till the end of your policy term.

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

ICICI Pru iProtect Smart UIN:

ICICI Pru Heart/Cancer Protect UIN:


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