Adequate risk cover with a guaranteed return of premiums is a good benefit which a customer seeks from an insurance policy. ICICI Prudential Guaranteed Savings Insurance Plan (GSIP) is an endowment policy which guarantees the return of premiums paid at 5% per annum on death of the policy holder. It is a non unit-linked insurance plan which offers limited premium paying option. If the need is clearly a long-term savings policy then ICICI Prudential Guaranteed Savings plan GSIP) is a good insurance plan.
- Guaranteed Death Benefit (GDB) which is total of all premiums paid at a compounded rate of 5% per annum
- Limited premium payment term
- Offers Guaranteed Maturity Benefit (GMP) which is total of all premiums paid and guaranteed regular additions accrued during the policy term along with Maturity Addition.
- No medical tests required
Death Benefit: In case of death of the Life Insured, the nominee receives the total of all premiums paid till date compounded at the rate of 5% per annum. This is referred to as the Guaranteed Death Benefit (GDB)
Maturity Benefit: At the maturity of the policy, the insured will get his/her Sum Assured (total of all premiums paid). In addition to this, the policy will also offer Guaranteed Regular Additions and Maturity Addition which is calculated as a percentage of the sum assured.
Income Tax Benefit: Premiums paid under life insurance policy are exempted from tax under Section 80 C and maturity proceeds are exempted from tax under Section 10 (10D)
Sum Assured (in Rs.) Premium x Premium
Policy Term (in years) 15 20
Premium Payment Term 7 10
Entry Age of Policyholder 0 60
Age at Maturity 18 75
Single premium (in Rs.) NA
Payment modes Yearly, Half-yearly or Monthly
Minimum Annual 18,000 12,000
There are no riders are available with this plan
Discontinuance of Premiums
If premiums are stopped after 3 policy years, the policy acquires a Paid Up Value for a Reduced Sum Assured but the policy would be eligible for any future regular additions.
Paid up Sum = GMB x Total number
Assured (PUSA) paid of premiums
Total number of
However, the policy can be revived within 2 years from the first unpaid premium by paying up the due premiums along with interest as calculated.
Surrender the policy
On discontinuing the policy you will be entitled to a surrender value which is the higher of the Guaranteed Surrender Value (GSV) and Non Guaranteed Surrender Value (NGSV).
The GSV = 35% of Premiums paid -
First Year’s Premium.
The NGSV = Present Value of Paid Up Sum
Assured, discounted at the Gross
Redemption Yield at the Review
Date immediately preceding
surrender, plus 2% per annum.