ICICI Prudential has come out with the ICICI Pru LifeLink Wealth Single Premium Policy , which
is being kept open for subscriptions only for about 2 weeks .
The
features are compatible with the new IRDA guidelines which are more friendlier
to the policy holders.
The
features are :
It is a Single
premium ULIP , you can pay premium only
once and stay invested for a long term. There are two portfolio strategies –
Fixed and Trigger
A unique
Dynamic P/E Fund that uses reference to price-earning multiple of NIFTY 50, to
determine asset allocation between equity and debt
Loyalty
Addition: Up to 2.5% of Fund Value, at the end of every fifth policy year,
starting from the tenth policy year
After
deducting the premium allocation charge, the balance amount will be invested as
per the portfolio strategy of your choice
At
maturity, the Fund Value including Top up Fund Value, if any, will be paid.
Alternatively, settlement options can be chosen
In the
unfortunate event of death of the Life Assured during the term of the policy,
your nominee will receive Sum Assured (reduced by partial withdrawals) or Fund
Value, whichever is higher
Death
benefit
The nominee
shall receive higher of the Sum Assured (reduced by applicable partial
withdrawals) or Fund Value, including Top up Fund Value, if any
If the Life
Assured is below 7 years of age at the time of death, only the Fund Value,
including Top up Fund Value, if any would be payable
Top Ups
You can
decide to increase your investment by investing additional money over and above
your regular premiums, at your convenience
Minimum
top-up amount is Rs. 2,000
Top-up
premiums can be paid anytime during the term of the policy, subject to
underwriting
In case you
avail of a top up, you will have to increase your Sum Assured by either 125% or
500% of the top up premium amount
Lock in
period for the top-up premiums will be five years or the outstanding term which
ever is lesser, or any such limit prescribed by IRDA from time to time
Partial
withdrawals :Allowed after completion of 5 policy years
Minimum
partial withdrawal amount is Rs.2,000
One partial
withdrawal allowed every three policy year (e.g. partial withdrawal can be made
once from 6th to 8th policy year, once from 9th to 11th policy year and so on )
Maximum partial
withdrawal amount: 20% of the FV as on the date of partial withdrawal
Increase/Decrease
in Sum Assured
Increase in
Sum Assured
Allowed
only on policy anniversaries before the policy anniversary on which the life
assured is age 60
Such
increases would be allowed subject to maximum Sum Assured restriction
Cost of any
medical reports and charges will be borne by the policyholder and recovered by
redemption of units
Decrease in
Sum Assured
Allowed
only on policy anniversaries subject to the minimum SA restrictions
Automatic Transfer Strategy (ATS)
ATS is a strategy that will help you mitigate
any risk arising from market volatility and also will help you in rupee cost
averaging for purchase of your Ulips and ensure lowest average cost .
With this
strategy, you can invest your premium as a lump sum amount in our Money Market
Fund and transfer a chosen amount every month into any one of the following
equity funds: Multi Cap Growth Fund / Opportunities Fund / Bluechip Fund
ATS can be
chosen in the application form itself and once chosem will help take care of
volatility of the market and also ensure lowest average cost of NAV for ULIP
purchase.
The minimum
transfer amount is Rs.2000
This
facility will be available free of charge and if Fixed Portfolio Strategy is
chosen
Surrender
value
Other
benefits
CIPS
(Change in portfolio strategy)
Allowed
once every policy year and it is free of cost
Switch
Four free
switches every policy year
Available
only under Fixed Portfolio Strategy
Charge
structure
Foreclosure
condition
If, after
three policy years have elapsed, the Fund Value falls below Rs. 10,000, the
policy shall be terminated by paying the Fund Value, post deduction of
surrender charges (if any).
Trigger
Portfolio Strategy
Fund value
in Multi Cap Growth Fund in excess of 3 times of Income Fund fund value is
considered as gains
Gains made
are transferred to Money Market Fund to protect them from future market
volatility
Funds in
Multi Cap Growth Fund and Income Fund are redistributed in a 75% : 25%
proportion
No transfer
to or from Money Market Fund will be done
Trigger Portfolio Strategy
Fixed Portfolio Strategy ( can be opted by the
policy holder who would like to allocate the between equity and debt portion of
their premium amount on their own , this requires knowledge of the stock
markets ) .
This
portfolio strategy offers the
flexibility of allocating investments as per customer’s choice
Customers
can choose their own asset allocation using any of the following eight
available funds:
Multi Cap Growth Fund
Opportunities Fund
Bluechip Fund
Dynamic P/E Fund
Multi Cap Balanced Fund
Income Fund
Return Guarantee Fund
Money Market Fund
Dynamic P/E Fund ( The equity portion and debt
portion gets re-balanced automatically , recommended for policy holders who are
not following the stock market trends themselves )
Fund
Objective: To provide long term capital appreciation through dynamic asset
allocation between equity and debt. The allocation to equity and equity related
securities is determined by reference to the P/E multiple on the NIFTY 50 ; the
remainder is to be invested in debt instruments, money market and cash.
Asset
allocation:
Dynamic P/E Fund
Fund
Objective: To provide long term capital appreciation through dynamic asset
allocation between equity and debt. The allocation to equity and equity related
securities is determined by reference to the P/E multiple on the NIFTY 50 ; the
remainder is to be invested in debt instruments, money market and cash.
Asset
allocation:
Settlement
option
At
maturity, you can choose to take the Fund Value as a structured benefit
You can opt
to get payments on a yearly, half yearly, quarterly or monthly (through ECS)
basis, over a period of one to five years, post maturity
At any time
during the settlement period, you have the option to withdraw the entire Fund
Value
During the
settlement period, the investment risk in the investment portfolio is borne by
the policyholder.
