What is a one-time investment plan?
A one-time investment plan is a type of investment where a lump sum amount is invested in one go in a particular scheme for a specific duration. As an investor, if one has a substantial amount of money with higher risk tolerance, they can invest in a one-time investment plan.
Advantages of One-Time Investment
- Capital appreciation: Profits from capital market investments depend on market performance. The stock prices can go up or down in the short term. With recurrent premiums, the sum you put in later does not get the time to adjust to the market conditions. But in long run, gains often cancel out the losses. Hence, a one-time investment allows your wealth to grow.
- Low charges: With multistage investments, you have to pay the associated transaction charges every time you invest. But with a one-time payment, you need to pay the fees only once. Hence, a one-time investment involves a lower cost.
- Better returns in the long run: Long-term investments gain from compounding. The dividends earn further interests year after year.
With multiple premiums, the sums paid later remain invested for shorter durations. But in a one-time investment, the full amount remains invested for the entire term. Hence, there are better returns in the long run.
- Convenience: You need not worry about arranging for future premiums or forgetting due dates. You pay the entire premium when the policy starts. Thus, there is no chance of the policy lapsing due to missed payments.
Factors affecting the decision of one-time investment
- Existing market conditions: Assessing the market conditions can help you identify the right moment for a one-time investment. For this, you can track the Price to Earnings (P/E) ratio of a broad market index like NIFTY for the past four quarters. A P/E closer to 14 indicates better chances of earning profits.
- Return potentials: Look into the past performances of the funds you plan to invest in and study the projected returns. It will help you determine whether the estimated returns match your expectations.
- Liquidity: You should evaluate your financial circumstances and the scope for easy availability of funds while considering a one-time investment.
- Patience: In the long term, patience pays off in investing. You are more likely to see better returns if you remain calm and stay invested.
- Investment duration: Market volatilities even out over time. Thus, a longer investment horizon allows you to play with equities having higher return-potential. However, if your financial goals have a shorter time-span, you can consider investing in debt and balanced fund types.
Why should you Choose ICICI Pru1 Wealth?
ICICI Pru1 Wealth is a one-time investment plan that offers multiple benefits:
- 100% of your premium gets invested$
- Premiums start from only ₹ 50,000/-
- Choice of seven funds~ across equity, balanced, and debt asset classes helps you choose as per your risk-taking capacity
- Financial rewards at the end of your policy term add to your wealth^
- Life cover# up to ten times your premium amount secures your family
If you buy a life cover worth ₹ 10 lakhs for a 10-year policy term with a one-time premium of ₹ 1,00,000/-*:
With a 4% assumed invested return, at maturity, you can get ₹ 1,20,285/-.
And if the rate of return is 8%, you can get ₹ 1,76,531/- after ten years.
Moreover, in case of an unfortunate event within those ten years, your family will receive ₹ 10,00,000/-`.
ICICI Pru Guaranteed Wealth Protector – another lucrative one-time investment plan
ICICI Pru Guaranteed Wealth Protector ensures you enjoy potentially better returns while keeping your invested money safe. Following are the key benefits of this plan -
- Minimum Life Cover equal to 105% of the total premiums received up to the date of death
- Protect your savings from market downturns through an Assured Benefit**
- Pay premium just once for a limited period of 5 or 7 years
- Get rewarded with Loyalty Additions## and Wealth Boosters##
Thus, if you wish to grow your wealth, go for a one-time investment plan.
1. What is a one-time investment also known as?
A one-time investment plan is also known as a lump sum investment. This approach allows you to invest a large amount of money in a single go. Lump sum investments can be made in various financial instruments such as stocks, mutual funds, life insurance plans, real estate and others
2. What are the benefits of a one-time investment?
A one-time investment plan offers several benefits. Some of them are mentioned below:
- It allows you to invest a large sum of money immediately and potentially generate substantial returns
- One-time investments can appreciate over time, potentially leading to significant returns which helps in wealth creation
- Making a one-time investment can be more convenient and time-effective
3. What are other options for a one-time investment?
Below are some options for a one-time investment:
- Single-premium life insurance plans
- Mutual funds
- Real estate
- Fixed Deposits (FDs)
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$ There is no premium allocation charge. 100% gets invested and then later charges get cut in the form of units.
` If the policy offers guaranteed returns, then these will be clearly marked “guaranteed” in the Benefit Illustration. Since the policy offers variable returns, the given illustration shows two different rates of assumed future investment returns. The returns shown above are not guaranteed and they are not the upper or lower limits of what you might get back, as the maturity value of policy depends on a number of factors including future investment performance.
# Sum Assured multiples in between the minimum and maximum limits are not available.
|Age at entry last birthday
|Minimum Sum Assured
|Maximum Sum Assured
|> 50 years
|1.25 times Single Premium
|10 times Single Premium
|<= 50 years
|1.25 times Single Premium
|1.25 times Single Premium
^ The company will allocate extra units at the end of the policy term, provided monies are not in the Discontinued Policy Fund. Wealth Booster will be allocated among the funds in the same proportion as the value of total units held in each fund at the time of allocation. The allocation of Wealth Booster units is guaranteed and shall not be revoked by the Company under any circumstances.
|2.50% of Single Premium
|2.75% of Single Premium
For the 10-year policy term,the wealth booster will be 2.75% of a single premium including top-up premiums less partial withdrawals if any.
** The Assured Benefit amount shown assumes all due premiums as per the premium payment term shown above are paid. On maturity, you will receive a higher of Assured Benefit or fund value. Assured Benefit will be 101% of total premium paid which is applicable only on maturity of the policy and does not apply on death or surrender. You can utilise this benefit amount only as per the available options. Alternatively, you can choose to postpone your vesting date.
## 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.
~ Past performance is not indicative of future performance.
* The above illustration is for a healthy male life with 100% of his investments in Maximiser V. The above are illustrative maturity values, net of all charges, Goods and Services taxes and/ or cesses. Since your policy offers variable returns, the given illustration shows different rates of assumed future investment returns. The returns shown in the benefit illustration are not guaranteed and they are not the upper or lower limits of what you might get back, as the value of your policy depends on a number of factors including future investment performance.
ICICI Pru Guaranteed Wealth Protector UIN
ICICI Pru1 Wealth UIN