Capital Guarantee Plan
What is the Capital Guarantee Plan?
A capital guarantee plan is a unique financial solution that combines the features of a Unit Linked Insurance Plan (ULIP) and a guaranteed return plan. Similar to a ULIP, a capital guarantee investment plan allows you to invest in the market and earn market-linked returns. At the same time, the plan ensures that your capital is 100% secure and offers a guaranteed capital return at maturity. This means you get your entire invested amount back, irrespective of market conditions. In addition to this, you earn market-linked returns.
A capital guarantee solution plan also offers a life cover that protects the financial interests of your loved ones in your absence. You also get to claim tax2 benefits subject to the conditions of The Income Tax Act, 1961.
How Do Capital Guaranteed Investment Plans Work?
Below is an illustration to help you understand how this plan works:
Meet Ravi Sharma
He is a 35-year-old Marketing Professional
Ravi smartly invests in
A capital guarantee solution plan for twenty years.
₹ 10,000` p.m. for 10 years
He gets a guaranteed^ lumpsum of 12.66 Lakh at maturity
₹ 10K
1
₹ 10K
2
₹ 10K
3
₹ 10K
4
₹ 10K
5
₹ 10K
6
₹ 10K
7
₹ 10K
8
₹ 10K
9
₹ 10K
10
The plan guarantees the safety of his invested capital
2044
₹ 28.41 Lakh
₹ 12.66 Lakh
₹ 15.75 Lakh
₹ 28.41 Lakh
`Goods and Services Tax and Cesses (if any) will be charged extra, as per applicable rates
Key Features & Benefits of Capital Guarantee Solution Plan
Below are some key features of a capital guarantee solution plan:
Capital Guarantee
The major advantage of the capital guarantee solution plan is that you get 100% of the invested money back at the end of the policy term. The plan offers safety of capital along with any market-linked returns you earn at maturity.
Portfolio Flexibility
Market movements are known to affect types of instruments, differently. Having portfolio flexibility means being able to switch to the type of market instrument that works better for your portfolio to make the most of market movements.
With this in mind, this plan offers ample flexibility and allows you to switch between the available funds multiple times during the course of your investment. You can choose between 22 funds and switch back and forth to make the most of market movements completely free of cost. With the freedom to switch between funds, you can align your investments with evolving market trends and your financial goals. This allows you to customise your investment portfolio according to your risk tolerance and long-term objectives.
Wealth Creation
The capital guarantee plan enables you to build wealth and fulfil your goals with multiple different funds. You can invest in funds of your choice according to your goals. Apart from the funds, you can also choose between four portfolio investment strategies. The plan offers a Target Asset Allocation Strategy, Trigger Portfolio Strategy, Fixed Portfolio Strategy and Lifecycle-based Portfolio Strategy, each with its unique approach to investment.
Inbuilt Life Cover4
The plan protects your loved ones financially for the entire policy term. This ensures that your family is financially secure even in your absence.
Market-Linked Returns7
The capital guarantee plan is ideal for low-risk investors. The plan offers exposure to market-linked7 opportunities and a variety of fund options. You get market exposure and the possibility of capital growth, but at the same time, your invested money is secure, and the risk is relatively lower.
Flexibility of Withdrawal
The capital guarantee solution plan offers a Systematic Withdrawal Facility (SWP) that allows you to cover your liquidity needs. You can make free withdrawals with SWP and ensure financial liquidity in times of need or in case of emergencies.
Tax2 Benefits
The premiums paid under the policy are allowed as a deduction of up to ₹ 1.5 lakh per annum under Section 80C of the Income Tax Act, 1961. The returns received under the policy are also subject to tax2 benefits under Section 10(10D) of the Income Tax Act, 1961.
Who Should Invest in a Capital Guarantee Solution Plan?
Below are some things to consider when purchasing a capital guarantee solution plan:
Balanced investor
Goal-based investor
Things to consider while buying a Capital Guarantee Plan
Below are some things to consider when purchasing a capital guarantee solution plan:
Risk appetite
The capital guarantee plan strikes a balance by offering guaranteed and market linked returns. While your capital is 100% safe, you also get exposure to market opportunities and potential growth. As a result, this plan is more suited to investors with a moderate risk appetite.
Investment term
The investment term can be chosen based on your goals. For instance, retirement is a long-term goal, whereas a car purchase may be a short-term goal. Your goals can help you pick a suitable policy term.
Investment Objectives
The capital guarantee plan offers a balanced approach to risk by protecting your invested capital while enabling you to invest in a diversified portfolio. Whether you are aiming for long-term financial security, planning for major life events, or seeking a reliable investment avenue, the plan can help you achieve all these investment objectives.
Plan Features and Details
It is essential to check and compare the unique features and benefits of a capital guarantee plan. This can help you make an informed decision. Make sure to go through the premium, features, fund options and other similar components.
Capital Guarantee Solution Plans offered by ICICI Pru Life
ICICI Prudential Life offers the ICICI Prudential Signature Capital Guarantee6-II plan. This capital guarantee solution plan offers you the potential for wealth creation, 100% safety of capital and tax benefits to secure your financial future.
Below are some features of this plan:
100% safety of invested capital with market-linked returns7
Flexible Premium Payment Term (PPT) and Policy Term (PT) options
Financial growth1 with 3.25% of the fund value added every 5th year from the 10th policy year onward
Choice of 4 portfolio strategies and 22 funds spanning equity, debt, and balanced options
Tax2 benefits under section 80C and 10(10D) as per the Income Tax Act, 1961
Unlimited free withdrawals, including Systematic Withdrawal Plans (SWP3)
Zero premium allocation charges5 and the return of mortality and administrative charges5 at the end of the policy term
Comprehensive life cover4 for continued protection of your loved ones and peace of mind
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