Insurance Plans 218 views May 30, 2020

ICICI Prudential ULIP Plans

Most of the individuals are unaware of the full form of ULIP insurance plans. It is basically a Unit Linked Insurance Plan that not only gives your family protection covers but also helps you to make an investment. You can increase your wealth and your family will be protected in case of the unfortunate death of the insured. You can take a look at the ICICI Prudential ULIP Plans that will help you to multiply your wealth and protect your family when you are not with them. In a ULIP Plan, if you die within the policy term then the nominee will receive the death benefits and if you survive the policy term then you will receive the Maturity Benefits. Let’s explore the types of ULIP Plans and their benefits.

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Benefits of the ULIP Plans from ICICI Prudential

You must see the benefits of the ULIP plans before buying any such plan from ICICI Prudential Life Insurance Company.

Savings

The ULIP Plans create a habit of savings in many individuals. You can save a lot of money through the ULIP plans for your future. Your family will also get the death benefits if y any chance the insured passes away during the policy term. You have the chance to create wealth for your loved ones when you are not with them.

Protection

The ULIP plans also give you a live cover. In case of unfortunate death of the insured the nominee is entitled to receive the sum of money. So, the family can have a happy future after your death and they can fulfill all their financial needs.

Options for Investment

There are multiple options for making the investments in the ICICI Prudential ULIP Plans. You have the full control over your investment and you can manage it in the following manner:-

Switch Between Funds– You can switch between funds of your choice in the investment insurance plan. You will have full control to manage your portfolio in the ULIP Funds.

Premium Redirection- In the premium redirection, you can invest your premiums into different funds offered by ICICI Prudential depending upon your preference.

Partial Withdrawal– In case of an emergency, you are allowed to make partial withdrawals during the policy term. But there is a condition that you will have to pay all the premiums of the policy up to 5 years regularly. You are only allowed to withdraw 20% of the fund value on the policy year.

Top-Up Premium– If you want to increase your investment then you have the option to pay Top-Up Premium and accumulate more and more money in the same ULIP Plan.

Tax benefits

While computing your taxable income you can show the amount of premiums that you have paid in a year and enjoy Tax Deductions under Section 80C of the Income Tax Act 1961.

Wealth Maximization

You have the opportunity to save more and more money for your future either for your child’s education or for uncertain emergencies. Investments in equity and debt funds will increase your returns and maximizes your wealth.

Addition in Fund Value

On a certain span of time, the company also adds some value to your existing funds and thus it increases the returns. The value addition in the funds can be Loyalty Additions and Wealth Booster as per the ULIP plan you are buying.

Types of ICICI Prudential ULIP Plans

There are three types of ULIP Plans offered by the ICICI Prudential Life Insurance Company. You must go through these ULIP plans before finalizing any plan.

Regular Pay Plans

In a regular payment plan, you will have to pay the amount of premium throughout the policy term. You will have the choice for choosing the premium paying frequency and it can be monthly, half-yearly, or yearly.

One Pay Plans

In a One Pay Plan, you will only have to pay the amount of premium only once in a policy term. So, you have to decide the premium paying term at the time of inception of the policy whether you want to pay the premium at once or at certain intervals.

Guarantee Plans

In a guarantee plan, you will get guaranteed returns that include investment and insurance. Your investments are made in the market that has a low risk and they are not exposed to the equity funds. The company focuses more on the savings rather than focusing on market risks for a high return.

Non-Guarantee Plan

In the Non-Guarantee ULIP Plan, the amount of your premium is invested in funds for a higher return. Your growth of money depends on the market risks and if you are investing for a long-term then you can get high returns at the time of maturity.

Life Stage Based Plans

In the Life Stage Based Plans of the ICICI Prudential ULIP Plans, the company makes the investment of your premium depending upon your age. The allocation of investment in the equity funds will be more than the debt funds in the initial stages. As your age increases the company starts to make more investments in the Debt funds than the equity funds.

Points to Remember while Buying ULIP Plans for ICICI Prudential

There are some key points that you must go through before taking any ULIP Plan from any company. But here you can see some details of the ICICI Prudential Life Insurance Company.

Claim Settlement Ratio

The Claim Settlement Ratio is the percentage of the payouts made by the company for the insurance claims. High Claim Settlement Ratio denotes that a company has a good record in making the payments of the claims to the insured or nominee. ICICI Prudential ULIP Plans have a claim settlement ratio of 98.6%.

Solvency Ratio

If you go through the Solvency Ratio of the Company then you can easily figure out whether the company will be able to clear the claims in the future. According to the Guidelines of IRDA, the Solvency Ratio of Insurance Company must be 1.5 or more and the ICICI Prudential Life Insurance Company has the Solvency Ratio of 2.52.

ULIP Funds

As you know that in the ULIP Plan your premiums are invested into ULIP Funds. So, before buying any ULIP plan, you must see the performance of the ULIP funds in which your premium has been invested.

Strategies of Investment

Every company offers different types of strategies for investments. So you must check the strategies offered by the company for managing your funds in a ULIP Plan.

Fees and Charges

Check the Following Charges of the ICICI ULIP plans before buying then:-

  1. Premium Allocation Charges
  2. Policy Administration Charges
  3. Fund Management Charges
  4. Mortality Charges
  5. Switching Charges
  6. Discontinued Premium Charges.

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