Investment Plans 117 views December 23, 2020

While planning for the future, don’t forget to have protection for your family. And this can be done easily with life insurance that gives financial protection to your family in case of your unfortunate demise. And knowing your future requirements for guaranteed returns and life cover here, we will compare LIC Market Plus – I Growth Fund Vs ICICI Pru Wealth Builder II. These insurance policies are popular among customers, so for a clear understanding, we have listed out the difference between the two. Let’s read this page and compare.

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Eligibility for LIC Market Plus – I Growth Fund vs ICICI Pru Wealth Builder II

ParticularsLIC Market Plus - I Growth Fund (For Basic Plan without Life Cover)LIC Market Plus - I Growth Fund (For Basic Plan with Life Cover)ICICI Pru Wealth Builder II
Minimum Entry Age18 years as on last birthday18 years as on last birthday0 years
Maximum Entry AgeRegular premium: 75 years
Single premium: 80 years (nearest birthday)
65 years
(nearest birthday)
69 years
Minimum Maturity Age40 years40 years18 years
Maximum Maturity Age85 years75 years79 years
Minimum PremiumINR 1,000 per month
And
INR 5,000 per annum
INR 1,000 per month
And
INR 5,000 per annum
INR 48,000 for single pay
And
INR 24,000 per annum for limited and regular pay
Premium Payment TermSingle and Regular (yearly, half-yearly or quarterly
or monthly)
Single and Regular (yearly, half-yearly or quarterly
or monthly)
Single, Yearly, Half-yearly and Monthly
Policy TermThe maximum policy term is till the anniversary year on which the age of the Life assured as per his/her nearer birthday is 75 yearsThe maximum policy term is till the anniversary year on which the age of the Life assured as per his/her nearer birthday is 75 years10 years

Death Benefit – Compare LIC Market Plus – I Growth Fund vs ICICI Pru Wealth Builder II

In the unfortunate event of your death during the policy term, the following will be payable:-

ICICI Pru Wealth Builder II – For single pay premium policy, Death Benefit is highest of the following:-

Sum Assured + Top-up Sum Assured, if any – Partial Withdrawals, if any.

Fund Value + Top-up Fund Value, if any.

Minimum Death Benefit – Partial Withdrawals, if any.

Whereas for Limited and Regular Pay policies, Death Benefit is the highest of the following as per the Life Assured age at the time of death:-

  1. Sum Assured plus Top-up Sum Assured, if any
  2. Fund Value plus Top-up Fund Value, if any
  3. Minimum Death Benefit

Note – Minimum Death Benefit is 105% of the total paid premiums paid plus the Top-up premiums if any. And if your age is above or equal to 50 years, partial withdrawals, if any, will be reduced from the minimum death benefit only for limited and regular pay policies.

LIC Market Plus – I Growth Fund – If you opt for a life cover, the Sum Assured under the Basic Plan plus the Fund Value shall be payable either in a lump sum or a pension. On the other hand, if a life cover has not been opted, only the Fund Value shall be payable either in a lump sum or as a pension.

Maturity Benefit – Compare LIC Market Plus – I Growth Fund vs ICICI Pru Wealth Builder II

On maturity, these life insurance policies will give you the following benefits:-

ICICI Pru Wealth Builder II – Fund Value + Top-up Fund Value, if any. You can receive the Maturity Benefit as a lump sum or as a structured payout.

LIC Market Plus – I Growth Fund – Your fund value is utilized into a pension as per the prevailing immediate annuity rates under the relevant annuity option. However, you can commute up to ⅓ of the benefit in a lump sum. And, you may choose to purchase a pension from LIC or another life insurance company.

Compare LIC Market Plus – I Growth Fund vs ICICI Pru Wealth Builder II Features

Now know about both the life insurance plan features and see which is a better alternative for you.

ICICI Pru Wealth Builder II

Loyalty Additions: The Loyalty Additions are allocated as extra units at the end of every policy year, from the end of the 6th policy year, provided the money is not in the DP Fund. Each loyalty addition is equal to 0.25% of the Fund Value + Top-up Fund Value (on the last business day of the last eight policy quarters) average.

An additional Loyalty Addition of 0.25% becomes payable every year, starting from the end of the sixth policy year, provided all premiums are paid in full.

Wealth Boosters: Wealth Boosters are allocated as extra units at the end of every 5th policy year, from the 10th policy year, provided the money is not in the DP Fund. Your each Wealth Booster is the percentage of the average of the Fund Value + Top-up Fund Value if any (on the last business day of the last eight policy quarters). Check out this table below and know which is better.

Premium Payment optionWealth Booster
Single Pay1.50%
Limited Pay and Regular Pay3.25%

LIC Market Plus – I Growth Fund

Accident Benefit Option: If you buy LIC Market Plus – I Growth Fund with life cover, you may opt for Accident Benefit, which is equal to life cover, subject to a minimum of INR 25,000 and a maximum of INR 50 lakh. The Accidental Death Benefit will be payable until the policy anniversary. In case you die due to an accident, an additional sum assured equal to the Accident Benefit is payable to the beneficiary

Critical Illness Benefit Rider: If you buy LIC Market Plus – I Growth Fund with life cover, you may opt for Critical Illness Benefit, which is equal to the life cover and subject to a minimum of INR 50,000 and maximum of INR 10 lakh. This additional benefit is available if the policy term is 10 years and above. And the benefit is payable until the policy anniversary. In case you are diagnosed with a defined category of Critical Illness, as subject to the terms and conditions, a sum assured equal to the Critical Illness Benefit shall be payable.

Investment of Funds

LIC Market Plus – I Growth Fund and ICICI Pru Wealth Builder II policy will invest your premium in the following funds to provide you higher returns at maturity.

LIC Market Plus - I Growth FundICICI Pru Wealth Builder II
Bond FundOpportunities Fund
Secured FundMulti Cap Growth Fund
Balanced FundBluechip Fund
Growth FundMaximiser V
-Multi Cap Balanced Fund
-Income Fund
-Money Market Fund

No partial withdrawal of units will be allowed under LIC Market Plus – I Growth Fund plan. Whereas this is allowed after the completion of 5 policy years in the ICICI Pru Wealth Builder II plan, provided the money is not in the DP Fund. The life assured can make an unlimited number of partial withdrawals as long as the total amount of partial withdrawals in a year does not exceed 20% of the Fund Value.

ICICI Pru Wealth Builder II partial withdrawals are free of cost and the following conditions apply to it.

  1. Allowed only after the first five policy years
  2. Allowed only if the Life Assured is at least 18 years of age
  3. A lock-in period of five years on the top-up premiums applies for partial withdrawals.
  4. The partial withdrawals are made from the Top-up Fund Value and then from the Fund Value.

Conclusion

Now after knowing about both LIC Market Plus – I Growth Fund and ICICI Pru Wealth Builder II plan, you are in a position to make a decision. And remember that you should choose a policy that should have maximum benefits. So don’t compromise on it when choosing between the two.

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