What is a Savings Plan?

A savings plan is a unique financial instrument that lets you save money for future needs in a systematic manner while also providing you with life insurance coverage. It also helps you grow your money with stable returns making it a low-risk investment option. A savings plan offers death benefit to the nominee in case of an unfortunate event during the policy term.


Why invest in a Savings Plan?

Below are a few reasons why you should consider investing in a savings plan:

  • A savings plan allows you to save a fixed amount of money regularly without putting too much burden on your finances. This enables you to build a savings pool consistently and prepare for future financial needs
  • Savings plans often offer stable returns that can help you increase your savings over time. They help you tackle inflation, plan for financial goals and live a financially secure life. Savings plans are typically designed for long-term savings goals, such as retirement, education, or buying a house
  • Savings plans have an in-built insurance component that can protect the financial interests of your family in your absence
  • Savings plans offer tax1 benefits under various sections of The Income Tax Act, 1961, that help you save more money
  • Savings plans can help you build assured savings as they generally carry low risk

Who should invest in a Savings Plan?

The following people can invest in a savings plan:

  • Individuals of all age groups up to 60 years can invest in a savings plan
  • Individuals of all income groups can invest in a savings plan. These plans have an affordable premium, making them ideal for everyone
  • Savings plans can be ideal for conservative investors with a low-risk appetite
  • Savings plans can be ideal for individuals wanting to save money for their non-negotiable goals

Types of Savings Plans

Here are some different types of savings plans you can choose from:

Unit-Linked Insurance Plans (ULIPs)

Unit-Linked Insurance Plans (ULIPs) are investment-cum-insurance products that combine the benefits of life insurance and growth of money. They offer a life cover` along with the option to invest in equity, debt or hybrid funds~. They suit all risk appetites due to their diverse investment options. They also allow investors to switch between these funds as per their investment objectives and risk appetite.

Money Back Plans

Money-back plans are another type of life insurance plans that offer assured payouts at the time of maturity, in addition to the sum assured paid to the nominee in case of the policyholder's demise during the policy term. They can be a low-risk option for meeting several financial goals, such as children's education, marriage, or other life goals.

Endowment Plans

Endowment plans are a type of life insurance plans that offer both life insurance coverage and a savings component. These plans are designed to offer a savings component that can help investors meet future financial goals and provide financial security to the policyholder's loved ones in case of an unfortunate event.

Public Provident Fund (PPF)

Public Provident Fund (PPF) is a long-term savings scheme backed by the Government of India. It can help you build a retirement corpus or save for long-term financial goals. PPF is a low-risk investment option that is ideal for creating assured returns. This scheme is suitable for the ones looking to invest between ₹ 500 to ₹ 1.5 lakh per financial year.

Post Office Monthly Income Scheme (POMIS)

The Post Office Monthly Income Scheme (POMIS) is another government-backed savings scheme. It allows a maximum investment limit of ₹ 9 lakh for individual accounts and ₹ 15 lakh for joint accounts. POMIS is a secure investment option and can offer a steady income without the risk of market fluctuations.

Senior Citizen Savings Scheme

The Senior Citizen Savings Scheme can be opened by people aged 60 years and above or 55 years and above in some cases. The scheme can offer risk-free returns and help senior citizens fight inflation while also ensuring financial security. The scheme is also supported by the Indian government.

Sukanya Samriddhi Yojana (SSY)

Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme aimed at promoting the welfare and education of the girl child. The SSY scheme allows parents or legal guardians to open an account in the name of a girl child. The scheme offers an attractive rate of interest and provides tax1 benefits under Section 80C of The Income Tax Act, 1961.

Atal Pension Yojana (APY)

Atal Pension Yojana (APY) is a government-backed pension scheme that can provide pension benefits to individuals working in the unorganised sector. The scheme aims to encourage workers to save for their retirement and ensure a steady stream of income during their old age.

Employee Provident Fund (EPF)

The Employee Provident Fund (EPF) is a government-backed savings scheme that can help employees in the organised sector save for their future needs, like a financially independent retirement. Under the scheme, employees contribute a part of their salary towards the fund and the employer also contributes an equal amount. The EPF scheme is managed by the Employees' Provident Fund Organisation (EPFO).

National Pension Scheme (NPS)

The National Pension Scheme (NPS) is a pension scheme sponsored by the Indian government and regulated by the Pension Fund Regulatory and Development Authority (PFRDA). It aims to provide retirement benefits to employees of government, private and unorganised sectors. The scheme offers tax1 benefits under Sections 80CCD(1) and 80CCD(2), along with various investment options for growth of money.

Key features of a Savings Plan

  • Life cover

    A savings plan comes with a life cover` and provides financial security to your dear ones in case something unfortunate happens to you.

  • Maturity benefit

    Savings plans come with maturity benefit. This brings certainty to your savings. Some savings plans also offer additions & bonuses that enhance the maturity corpus, thus helping you to achieve your financial goals faster

  • Steady returns

    Savings plans offer steady and safe returns. These returns are risk-free, which means you do not lose the money that is committed to you at the time of policy inception, provided you pay all premiums on time.

  • Flexible premium payment

    Savings plans allow you to pay the premium monthly, quarterly, half-yearly or annually, as per your convenience.

Benefits of having a Savings Plan

  • Financial Protection

    A savings plan provides financial protection to your dependents during the policy tenure. Even if something unforeseen happens to you, your family can be financially independent and can lead the worry-free life you have planned for them

  • Tax benefits

    Savings plans offer tax1 benefits under Section 80C of The Income Tax Act, 1961. The maturity proceeds under the policy are exempt subject to conditions prescribed under Section 10(10D) of the Income Tax Act, 1961

  • Retirement Savings

    Savings plans can be used to build a corpus for your retirement. By portioning a small amount at regular intervals, you can turn a monthly savings plan into a powerful retirement savings engine. Over a few years, a savings plan can lead to a sizeable amount which can be used to generate a pension for your retirement

Factors to consider before investing in a Savings Plan

Goal setting

Risk assessment

Flexibility

Plan features

It is important to set a goal before starting any savings plan. This could be going on a dream vacation, buying an expensive car, making the down payment for a house, funding your child’s higher education or planning a comfortable retirement for yourself

Your risk appetite may vary depending on your age, life stage, income and goals. A plan that offers high returns may come with a high risk associated with it. It is important to evaluate the risks associated with various plans and choose a plan based on your risk appetite

A savings plan that can allow you to withdraw your money in case of a financial emergency can help you stay prepared for unforeseen difficult times. Many savings plans also offer you the flexibility to choose the premium payment frequency and the payout method as per your requirements. You should look for such flexible features when purchasing a savings plan

Different plans come with different features and you must pay attention to how each feature benefits you. You should try to look for plans that provide you with features like flexible premium payment options, free withdrawals, additional benefits on purchasing online and more. Also, look for a trustworthy brand so that you can be assured that your money is safe

Why choose a savings plan from ICICI Prudential Life Insurance?

  • 5.81 Cr %

    Lives covered as on March 31, 2022

  • 2.04 Lakh Cr

    Benefits paid till March 31, 2022

  • 1 Day

    Claim SettlementΨ

  • 30 Days Return Policy

    if not satisfied, return (free look) the policy and get your money back




Explore protection and savings plans in different categories

 

  • ICICI Pru Guaranteed Income For Tomorrow

    • Guaranteed^^ benefits in the form of lump sum or regular income to achieve your life goals
    • Option to receive guaranteed^^ income from 2nd year onwards2
    • Life cover` for the financial security of your family
    • Tax1 benefit on premiums paid under section 80C1 and the returns are exempt subject to conditions prescribed u/s 10(10D)1
    • Buy online and get up to 2.5% additional maturity benefitπ

    ^^Conditions Apply

    Check Returns

  • ICICI Pru Guaranteed Income For Tomorrow (Long-term)

    • Guaranteed> regular income for as long as 15, 20, or 30 years as per your financial goals
    • Option to get back 110% of total premiums paid3
    • Life cover` for the financial security of your family
    • Tax1 benefit on premiums paid under section 80C1 and the returns are exempt subject to conditions prescribed u/s 10(10D)1
    • Up to 2% additional benefit~~ on buying online

    >Conditions Apply

    Check Returns

  • ICICI Pru Assured Savings Insurance Plan

    • Guaranteed+ Maturity Benefit
    • Guaranteed addition of 9% or 10% is added to your invested amount every year of your policy term++
    • Life cover` for the financial security of your family
    • Tax1 benefit on premiums paid under section 80C1 and the returns are exempt subject to conditions prescribed u/s 10(10D)1

    +Conditions Apply

    Check Returns

  • ICICI Pru Gold

    • Regular income^ up to 99 years of age followed by a lump sum# on maturity
    • Option to start receiving income immediately from the end of 1st policy year/month or defer it for a few years as per your need
    • Protection through life cover` till up to 99 years of age
    • Tax1 benefit on premiums paid under section 80C1  and the returns are exempt subject to conditions prescribed u/s 10(10D)1

    ^Conditions Apply

    Check Returns

  • ICICI Pru Sukh Samruddhi

    • Choice to avail benefits as either income0 or lump sum0
    • Life cover` for the financial protection of your loved ones
    • Option to receive income on any date of your choice with ‘Save the Date’@
    • Option to accumulate income and withdraw it later as per your convenience with ‘Savings Wallet’Ø
    • Tax1 benefit on premiums paid under section 80C1 and the returns are exempt subject to conditions prescribed u/s 10(10D)1

    0Conditions Apply

    Check Returns

Who should opt for a savings plan?

A savings plan is a versatile product that is relevant for people from different life stages, having different income levels and with different financial goals.

  • Life Stages

    Savings plans are beneficial to everyone who hasn't crossed the retirement age. Whether you have just joined your first job, started a family or are some years away from retirement, a savings plan is ideal for most life stages of your life

  • Income levels

    The premium for a savings plan depends on your financial goals. You do not have to earn a lot to afford a savings plan. The focus is not just on the amount you save, but more on how long you can follow through with your plan. However, do make sure that the sum assured for the life cover is enough to cover the present & future financial needs of your family

  • Financial Goals

    Savings plan can be used to meet a variety of financial goals like purchasing a house, buying a car, your child's higher education and marriage and your retirement. No matter what the financial goal, the best savings plans will always help you attain it

How to compare different savings plans?

There are a lot of savings plans available today. To choose the best savings plan, one should consider the following factors:

  • Size of life cover

    The size of the life cover being offered is an important parameter. The more the life cover offered, the better the plan.

  • Premium

    The best savings plan for you will be the one that fulfils all your requirements and at the same time, also fits into your budget.

  • Company Credentials

    Savings plans involve investing over a long period of time. Hence, it is important to ensure that the insurance company is stable with a sound financial position and would be able to honour its commitment even several years after the original promise was made.


Documents Required to Purchase a Savings Plan

You may require the following documents to buy a savings plan

  • Aadhaar Card
  • Driving license
  • Indian Voter Id Card
  • Passport
  • Completely filled policy application form
  • Income proof (6 months’ bank statement/ ITR details/ last 3 months’ salary slips)
  • Identity proof and address proofs for the KYC process

Frequently Asked Questions

The amount of money you should save at any given age depends on several factors. These factors include your income, debts, day-to-day expenses, long-term and short-term goals and many more. Hence, it is difficult to specify a fixed amount that you should save. However, a common rule that may be helpful is saving 20% of your incomeλ . This can help secure your future without having to compromise on your present needs and aspirations.

Your savings requirement depends on your financial goals. For instance, if your goal is to buy a house, you would need to save and invest more rigorously. It is difficult to identify a fixed amount that can fit everyone’s goals and needs. You can check out our calculator to find out the amount you would accdumulate by investing regularly.

  • Yes, an insurance savings plan is a great tax-saving tool that can boost your overall income and reduce your taxes significantly. You can claim deduction for the premiums paid under the policy under Section 80C1 of the Income Tax Act, 1961.
  • The returns under the policy are exempt subject to conditions prescribed under Section 10(10D)1

Anybody who wants a risk-free and assured savings tool can invest in a savings plan. The minimum age criterion to invest in a savings plan can range between 0 and 18 years, while the maximum age criterion is 60 years.

The term of your savings plan will entirely depend on your goal. For instance, if you are saving for a short-term goal like travel or a house renovation, you can consider purchasing a short-term plan. This will help you build your savings at minimal risk that can mature in the required timeframe. However, if you have a long-term goal like buying a house or saving for your child’s education, you can consider a long-term savings plan. A longer timeframe will help you accdumulate more savings. Moreover, the longer you stay invested, the longer you can continue to take advantage of tax1 benefits too. So, make sure to invest in a plan accdordingly and stay invested in the plan.

COMP/DOC/Jun/2021/36/5937

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1 Tax benefits are subject to conditions prescribed under Sections 80C, 10(10D), 115BAC and other provisions of the Income Tax Act, 1961. Goods and Services Tax and Cesses 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.
` Life cover is the benefit payable on the death of the Life Assured during the policy term.
~ Past performance is not indicative of future performance.
λ Follow the 50/30/20 rule to get your finances in order - https://www.livemint.com/money/personal-finance/follow-the-50-30-20-rule-to-get-your-finances-in-order-11616925763713.html % 58.1 mn lives covered across our individual and group customers as per ICICI Prudential Life Council Report.
As per Financial Statements (Schedule 4- Benefits paid (Gross)) of the company, benefits paid since inception up to March 31, 2022.
Ψ 1 Day is a working day, counted from the day of receipt of all relevant documents from the claimant, additional information sought by the Company and any clarification received from the claimant. The Company will be calling the claimants for verification of information submitted by the Claimant which will also be considered as part of relevant documents. Working day will be counted as Monday to Friday and excluding national holidays/ Bank holidays/ Public holidays.

ICICI Pru Guaranteed Income for Tomorrow
^^ Guaranteed benefits in the form of lump sum will be payable under the Lump Sum Plan option. Guaranteed benefits in the form of regular income will be payable under the Income Plan option and Early Income Plan option provided all due premiums have been paid.
2 This benefit is available under the Early Income plan option.
π Additional Maturity Benefit is offered for online sales: For Lump Sum Plan option, 2.5% of Sum Assured on Maturity is applicable for Limited pay. In case of Single Pay in Lump Sum Plan option, 1% of Sum Assured on Maturity is applicable. For Income Plan option, 2.5% of Guaranteed Income is applicable. For Early Income Plan option, 3.5% of Guaranteed Income is applicable. For Single Pay Income Plan option, 1% of Guaranteed Early Income is applicable.
1 Tax benefits/Tax-free returns under the policy are subject to conditions under Sections 80C, 10(10D), 115BAC and other provisions of the Income Tax Act, 1961. Goods and Services Tax and Cesses, if any will be charged extra as per applicable rates. Tax laws are subject to amendments from time to time. Please consult your tax advisor for more details.
` Life cover is the benefit payable on the death of the Life Assured during the policy term.

ICICI Pru Guaranteed Income for Tomorrow (Long-term)
>Guaranteed benefits are payable depending on the plan option chosen, subject to all due premiums being paid. ICICI Pru Guaranteed Income For Tomorrow (Long-term) offers two plan options namely 'Income' and 'Income with 110% ROP'. The customer can choose any plan option from the two available options. Please refer to the product brochure for more details.
3 ICICI Pru Guaranteed Income For Tomorrow (Long-term) offers four plan options namely, Income, Assured Income, Income with 110% ROP, Assured Income with 110% ROP. The customer can choose any plan option from the two available options. Please refer to the brochure for more details.
~~ Additional Benefit is offered for online sales: For Income/Assured Income Plan option, 1.5% of Guaranteed Income is applicable. For Income with 110% ROP/Assured Income with 110% ROP Plan option, 2% of Guaranteed Income is applicable.
1 Tax benefits/Tax-free returns under the policy are subject to conditions under Sections 80C, 10(10D), 115BAC and other provisions of the Income Tax Act, 1961. Goods and Services Tax and Cesses, if any will be charged extra as per applicable rates. Tax laws are subject to amendments from time to time. Please consult your tax advisor for more details.
` Life cover is the benefit payable on the death of the Life Assured during the policy term.

ICICI Pru Assured Savings Insurance Plan
+ Guaranteed Maturity Benefit (GMB): Your GMB will be set at policy inception and will depend on policy term, premium, premium payment term, age and gender.
++ Guaranteed Additions (GAs) rate will be 9% for policy term of 10 years and 10% for policy term of 15 years. GAs will be added to the policy at the end of every policy year if all due premiums have been paid. Each GA will be calculated as GA rate multiplied by the total premiums paid till date (excluding extra mortality premiums, Goods & Services Tax and Cess (if any)).
1Tax benefits/Tax-free returns under the policy are subject to conditions under Sections 80C, 10(10D), 115BAC and other provisions of the Income Tax Act, 1961. Goods and Services Tax and Cesses, if any will be charged extra as per applicable rates. Tax laws are subject to amendments from time to time. Please consult your tax advisor for more details.
` Life cover is the benefit payable on the death of the Life Assured during the policy term.

ICICI Pru Gold
^ In plan option ‘Immediate income’ and ‘Immediate income with Booster’, starting from the first policy year till the end of the policy term, you will receive a regular income at the end of every policy year/month, as chosen by you, provided the policy is in-force. For “Immediate Income with Booster”, along with the regular income, you will also receive a benefit (known as Guaranteed Booster) every 5th policy year provided the policy is in-force. This Guaranteed Booster will be equal to 100% of the Guaranteed Income, as applicable for the year of payment.
In ‘deferred Income’ plan option, you will receive regular income at the end of every year/month, starting from end of deferment period as chosen by you, provided the policy is in-force. You can start this income as early as 2nd policy year or as late as Premium Payment Term plus 1 year.
This regular income will comprise the following:
• Guaranteed Income (GI) and
• Income which will be linked to Bonus, if declared; referred to as Cash Bonus (CB)
You will receive this income till the date of maturity, death, surrender or lapse of the policy, whichever happens first.
# For all plan options, Maturity Benefit will be sum of:
Sum Assured on Maturity, plus
Balance in the Savings Wallet (if any), plus
Terminal Bonus (if declared)
The Sum Assured on Maturity shall be the sum of Annualised Premium payable under the policy.
` Life cover is the benefit payable on death of the life assured during the policy term.
1 Tax benefits/Tax-free returns under the policy are subject to conditions under Sections 80C, 10(10D), 115BAC and other provisions of the Income Tax Act, 1961. Goods and Services Tax and Cesses, if any will be charged extra as per applicable rates. Tax laws are subject to amendments from time to time. Please consult your tax advisor for more details.

ICICI Pru Sukh Samruddhi
0 ICICI Pru Sukh Samruddhi offers two plan options namely ‘Lump sum’ and ‘Income’. The customer can choose any of the two available options. Guarantee is in the form of ‘Sum Assured on maturity’ in Lump Sum plan option and ‘Guaranteed income’ in Income plan option.
@ Save the date: Under ‘Income’ plan option, you can choose to receive Guaranteed Income on any one date succeeding the due date of first Income to coincide with any special date. This option needs to be selected at policy inception and can be changed any time before the completion of premium payment term. If you have chosen a specific date to receive Guaranteed Income, the Income, as applicable, payable from this date will be increased for the deferment period i.e. for completed number of months between the due date of first pay-out and the specific date chosen, at an interest rate equal to Reverse Repo Rate, compounded monthly. This interest rate on GIs will be reviewed twice every year on 1st of June and 1st of December, and will be set equal to Reverse Repo Rate published on RBI’s website. This option to receive GIs on any one date can be availed by both in-force as well as paid-up policies. The last GI will be paid on the date of maturity of the policy and not on the special date chosen by You and therefore, the interest rate mentioned above shall not be applicable for the last GI. It can be chosen only if annual frequency of Guaranteed Income is selected under ‘Income’ plan option.
Ø Savings Wallet: You have an option to accumulate Guaranteed Incomes (GIs), instead of taking as payment during the policy term. The GIs will be accumulated at an interest rate equal to Reverse Repo Rate published by RBI, compounded daily. This interest rate on GIs will be reviewed twice every year on 1st of June and 1st of December, and will be set equal to Reverse Repo Rate published on RBI’s website. You also have an option to withdraw, completely or partially, the accumulated GIs anytime during the Income Term. This option is only available under Income Plan option.
` Life cover is the benefit payable on the death of the Life Assured during the policy term.
1 Tax benefits/Tax-free returns under the policy are subject to conditions under Sections 80C, 10(10D), 115BAC and other provisions of the Income Tax Act, 1961. Goods and Services Tax and Cesses, if any will be charged extra as per applicable rates. Tax laws are subject to amendments from time to time. Please consult your tax advisor for more details.

ICICI Pru Guaranteed Income For Tomorrow UIN 105N182V08 (A Non-Linked Non-Participating Life Individual Savings Product)

ICICI Pru Guaranteed Income For Tomorrow (Long-Term) UIN 105N185V14 (A Non-Linked Non-Participating Individual Life Insurance Savings Plan)

ICICI Pru Assured Savings Insurance Plan UIN 105N144V08 (A Non-Linked Non-Participating Life Individual Savings Product)

ICICI Pru Gold UIN 105N190V02 (A Non-linked Participating Individual Life Insurance Savings Plan)

ICICI Pru Sukh Samruddhi UIN 105N188V01 (A Non-linked Participating Life Individual Savings Product)

W/II/0221/2023-24

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