As you move ahead in life, your responsibilities grow. You need to plan for children’s education, long term life goals, the marriage of children and unanticipated outlays. It is obvious to look for ways to cover life to secure your family if you are not around. In such a scenario, you may look for an investment opportunity that not only offers you good returns but also protects your family’s financial future.
ICICI Pru Signature Plan Details:
ICICI Pru Signature Plan is a ULIPs or Unit Linked Insurance Plan that combines the benefits of insurance and investment to offer both high returns and security. It is a flexible investment option and helps you achieve your goals. There is an initial 5-year lock-in period, after which you can make partial withdrawals.
Read on to understand how ICICI Pru Signature Plan works and the benefits you get out of it.
Some key features of ICICI Pru Signature:
- Life insurance covers the whole policy period
- Complete premium with no deductions is allocated among the funds of the policyholder’s choice
- Wealth promoters at the end of every 5 years starting from the close of the 10th policy year
- Return of mortality and policy administration charges at maturity
- Selection of four portfolio strategies and varied range of funds across equity, balanced and liability to get up the policyholder’s investment requirements
- Systematic withdrawal plan to draw money habitually from policy.
Key Benefits of ICICI Pru Signature
Here are the benefits offered by the Pru Signature Plan:
- Death Benefits:
In case of the unfortunate death of the policyholder, the nominee of the policy will get the highest of the following amounts:-
- Sum Assured counting the Top-Up Sum Assured
- Minimum Death Benefit
- Worth of the Funds as well as the Top-up fund value
- Maturity Benefit:
On maturity, you will get the Fund Value. Fund Value is computed by multiplying the no. of Units of the funds you have by the Net Asset Value (NAV) of those funds.
- Surrender Benefit:
If the insured wants to surrender the policy within the first 5 policy years, the Fund Value as well as the Top-up Fund Value, if any, will be moved to the Discontinued Policy Fund. The nominee will be eligible to get the Discontinued Policy Fund Value on the demise of the insured or expiry of the lock-in period, whichever is earlier.
Sample illustration of Premium Amount & Sum Assured in ICICI Pru Signature
Let us see this example to understand how the ICICI Pru Signature Plan works. Suppose Kunal Varma is a 45-year-old Assistant Director in a blue-chip company. His wife Sulekha Varma is 40, she’s a bank manager. They have 1 child. To grow his wealth, secure his family’s future, and to achieve cherished goals he purchased the ICICI Pru Signature insurance plan with the following details:
Sum Assured: INR 30 lakhs
Policy Term: 54 years
Premium Payment Term: 7 years
Annual Premium: INR 3 lakhs
In the 5th year of the policy if Kunal passes away due to an unfortunate turn of events, his nominee of the policy will receive INR 30 lakhs as a lump sum death benefit. The total premium paid would be INR 15 lakhs.
If Kunal dies during the 15th year of the policy, his nominee Sulekha would receive the death benefit of 33.89 lakhs at an 8% assumed rate of return and 30 lakhs in case of a 4% assumed rate of return. If Kunal passes away during the 35th year of the policy, Sulekha would receive a death benefit of INR 1.29 Crore at an 8% assumed rate of return and INR 35.23 lakhs at a 4% assumed rate of return.
If Kunal outlives the policy term, then let’s take a look at the fund values he will receive at 4% and 8% assumed rate of return respectively:
At 65 years of age, the policy years will be 20, hence the fund value would be INR 47.32 lakhs and INR 23.65 lakhs at 8% and 4% respectively. During the 85th year of the policy, the fund value would be INR 1.80 crores at 8% and INR 40.76 at the rate of 4% return. If Kunal outlives the entire tenure of the policy, then the fund value would be INR 4.50 crore and INR 59.89 lakhs at the rate of 4% and 8% respectively.
The performance of the policy depends on the performance of the funds in the market.
Eligibility conditions & restrictions in ICICI Pru Signature Plan
|Entry Age||Minimum entry age: 0 years Maximum entry age: 60 years|
|Maturity Age||For policies other than Whole Life:Minimum maturity age: 18 years Maximum maturity age: 75 yearsMaturity age: 99 years for Whole Life option|
|Policy Term||10-30 years For Whole Life (99- Entry Age)|
|Premium Paying Term||Limited Pay: 5, 7, and 10 yearsRegular Pay: Same as the policy tenureWhole Life Cover – 7, 10, or 15 years|
|Top-up Sum Assured||1.25 X Top-up premium|
|Mode of Paying Premium||Monthly, Half-Yearly and Yearly|
|Loan Facility||Not Available|
Exclusions under ICICI Pru Signature Plan
Let’s discuss the exclusions important to keep in mind:
In case the life assured commits suicides within 12 months from the date of policy start or policy renewal, only the Fund Value with the Top-up Fund Value if any obtainable on the date of death notification will be payable to the nominee.
All the charges excluding the Fund Management and assurance expenses that have been recovered post the date of death will be supplemented back to the Fund Value as on the date of decease.
In the situation that the insured candidate dies by committing suicide from the date of the surge in Sum Assured, the sum of intensification will not be taken into consideration in the death benefit computation.
Additional riders, features & benefits of ICICI Pru Signature Plan:
- Financial Protection:
The plan is a Life Cover for the whole policy tenure so that your family is monetarily protected even in your absence.
- No Deductions:
The whole premium with no deductions is invested in the funds along with the return of impermanence and policy management charges at maturity.
- Loyalty Rewards:
Get rewarded with Wealth Boosters at systematic intermissions by just continuing investment in the plan.
- Tax Benefits:
You may under Section 10(10D) and tax discount on premium paid under Section 80 C enjoy a tax-free maturity amount.
- Unlimited Free Switches:
Switch between the funds multiple times for Fixed Portfolio Strategy, totally free of cost.
- Abundant Flexibility:
Choice of four portfolio plans and a varied range of funds across equity, balanced and debt to fit your investment requirements.
Partial Withdrawals/Systematic Withdrawals accessible as per conditions post 5 policy years
- Whole Life Cover:
Relish policy advantages till 99 years of age with Whole Life opportunity.
- Availability of Riders:
Accident and Disability Benefit Rider, Serious Sickness Rider and an Income Advantage Rider.
- Easy Online Purchase:
You may buy online in 4 simple steps
- Select Premium Amount
- Choose Funds/ Strategy
- Initiate Payment
- The plan will soon be issued
The charges in the plan are low, even if compared to the charges of mutual funds.
Tax Benefits of ICICI Pru Signature Plan:
The amount of premium paid, besides the benefits received under the ICICI Pru Signature Insurance Plan, are eligible for tax benefits. Tax exemptions can be enjoyed under Section 80C and Section 10(10D). Recent Income Tax rules confirm that the life cover is in any case 10 times the yearly premiums paid, to get these tax benefits.
Charges in ICICI Pru Life Signature Plan
- Premium Allocation Charge – Nil
- Policy Administration Charge – Rs. 500 per month
- Fund Management Charge – 1.35% per year for all funds excluding the Money Market Fund
- Mortality Charge
- Partial Withdrawal Charge – Nil
- Switching Charge – Nil
- Premium Redirection Charge – Nil
- Discontinuation Charge – This is charged by withdrawing units you hold.
This is a protection-oriented unit associated insurance plan, to ensure the security of your family. If you are looking for a scheme that helps your money to breed, besides the future of your loved ones to remain guarded against the unforeseen turns of life; invest prudently in ICICI Pru.
ICICI Pru Signature Plan, to put it in simple words, is an investment cum insurance plan. Accordingly, it surges the probabilities of higher returns. The plan is a ULIP and so your premiums are invested in funds of your preference and their returns can be supervised habitually. Read and understand carefully and choose the best-personalised investment plan. Speak with an expert and get your doubts clarified before investing.
If the premium is not paid even in the grace period, the plan will be inhibited and discontinued. There will be no more danger coverage offered. The Fund Value on the date of discontinuation will be shifted to the “Discontinued Policy Fund”.
If the opportunity to revive the policy is selected, the policyholder must do so by clearing the due premiums and pertinent charges within 2 years of the discontinuation. Renewal of the policy should be executed prior to the termination of the lock-in period.
You need to fill out the surrender form and submit it along with supplementary documents at the nearest ICICI Prudential branch; to surrender your ICICI Pru Signature Plan.
- Duly Filled Surrender Form
- Original Policy Document
- A photo ID duly signed
- A Cancelled cheque with the insured individual’s name
After you submit your submission request, ICICI Prudential will process it within 10 working days and confirm the same.
No loans are offered by ICICI Pru against this plan.