Product Review: ICICI Prudential Wealth Builder Plan
ICICI Prudential Wealth Builder Plan is a Limited Pay and Regular Premium Unit Linked Insurance Plan. Thus, it is a Non-Traditional Insurance Plan without Bonus facility.
In this plan, premium can be paid for a Limited Period of 5 or 10 years under Limited Pay Option or for the entire Policy Tenure under Regular Policy Tenure.
There is Loyalty Additions that are paid in this plan every year from the end of the 10th policy year onwards as a percentage of the average Fund Value.
| Premium Payment |
Year 10 |
Year 11 onwards |
| Regular Pay |
2% |
0.75% p.a. |
| Limited Pay 5, 7 or 10 |
2% |
0.5% p.a. |
The premium net of charges is invested in the funds as per the choice of the policyholder. There are 3 Portfolio Strategies to choose from:
- Life Cycle Based Portfolio Strategy- Portfolio is balanced between equity and debt exposure based on age
- Fixed Portfolio Strategy- there is a choice of 7 funds to choose as per risk appetite
- Trigger Portfolio Strategy which works on the principle of “Buy Low, Sell High”
The portfolio strategy can be changed once every year.
On survival till the end of the Policy tenure, the Fund Value is paid to the Policyholder as Maturity Benefit and the policy terminates. However, in case of death of the Life Insured within the Policy Tenure, the nominee gets the Sum Assured + Fund Value as Death Benefit and the policy terminates.
There is 1 additional rider available in this plan of Waiver of Premium on Critical Illness Benefit Rider
Benefits
Death Benefit: In case of death of the Life Insured within the Policy Tenure, the nominee gets the Sum Assured + Fund Value, subject to a minimum of 105% of Premium Paid as Death Benefit and the policy terminates.
Maturity Benefit: On survival till the end of the Policy tenure, the Fund Value is paid to the Policyholder as Maturity Benefit and the policy terminates.
Income Tax Benefit: Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C. The Maturity Proceeds are also tax free under section 10(10)D under the mentioned clauses.
Additional Benefits
Riders
There is 1 additional rider available in this policy- Waiver of Premium on Critical Illness Benefit Rider
Investment Fund Options
In this plan, there are 3 Investment Strategies in this plan:
| |
Min
|
Max
|
Sum Assured
(in Rs.) |
For ages < 45, SA= Higher of (10 x AP) and (0.5 X PT X AP)
For ages 45 & above, SA=Higher of (7 x AP) and (0.25 X PT X AP)
|
As per Sum Assured Multiples |
Policy Term
(in years) |
10, 15, 20, 25 |
Premium Payment Term
(in years) |
5, 10 |
Equal to Policy Term |
| Entry Age of Life Insured (in years) |
0 |
65 |
| Age at Maturity (in years) |
18 |
75 |
| Annual Premium (in Rs.) |
24,000 |
Unlimited |
| Payment modes |
Only Yearly |
- Life Cycle Based Portfolio Strategy- Portfolio is balanced between equity and debt exposure based on age
- Fixed Portfolio Strategy- there is a choice of 7 funds
- Opportunities Fund
- Multi Cap Growth Fund
- Bluechip Fund
- Multi Cap Balanced Fund
- Income Fund
- Money Market Fund
- Maximiser V
Trigger Portfolio Strategy which works on the principle of “Buy Low, Sell High”
Surrender the policy
If the policy holder wants to surrender the policy before completing 5 years, then the insurance cover will cease and the Fund Value net of any discontinuance charge, if at least 5 years’ premiums have not been paid, will be transferred to the Discontinued Policy Fund. The Discontinued Policy Fund will earn a minimum guaranteed interest rate equal to the savings account rate of State Bank of India and the proceeds from this will be payable after the fifth policy anniversary. In case of death of the Life Assured during this period, only the accumulated fund value will be payable to the nominee.
If the policyholder surrenders the policy after completion of 5 policy years, then there is no Surrender/Discontinuance Charges and the Fund Value is paid to the policy holder and the policy will terminate immediately.
Loan
There is no Loan available in this plan.