This, ICICI Pru LifeLink Wealth SP, is a ULIP plan but the only difference being it is a single premium plan from ICICI Prudential Life Insurance. This is a plan which will give you the opportunity to gain from more returns via the markets by making just a single premium. This plan from ICICI Pru also helps you protect your gains but still stay invested by protecting your investments from any future market volatility.
ICICI Pru LifeLink Wealth SP can be brought only by way of paying single premium only and there are no options like annual, monthly or quarterly premiums particularly on this plan. Since being an ULIP plan this plan’s returns and risks are solely dependent on the stock market and risk is to be entirely borne by the investors.
LifeLink Wealth SP Details: The minimum or maximum age entry is 0-60 years
- The minimum or maximum age at maturity is 8-70 years
- Minimum Premium is Rs. 40,000 (one time)
- Policy term – 10 or 20 or 30 years
- Sum assured – have a choice of 125% or 500% of the single premium being paid
- Tax benefits on premium paid as well as on the received benefit amount at the end of term
Benefits of ICICI Pru Life Link Wealth SP:
- Payment of premium once and benefit of staying invested for long term.
- A portfolio strategy namely Trigger Portfolio Strategy will help protect your gains in case of future market volatility but still maintaining the given asset allocation. Fixed portfolio strategy will help you manage the funds from the given 8 funds and have the option of switching between those funds.
- Two options of sum assured – either 125% or 500% of the paid up premium to help better protection and returns need.
- Loyalty addition of upto 2.5% of the total fund value for every five years but from the start of the tenth policy year onwards.
- There is an option to top-up in the future and thus boosting up your investment value.
- Total tax benefits for the premium paid as well as tax exempt from tax on the returns as well.
- Partial withdrawal is allowed after completing five policy years.
How does this policy work
- You need to choose the premium amount, Sum Assured and portfolio strategy for your policy
- 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 will be paid as a lump sum. 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 T&C 2 withdrawals ) or Fund Value, whichever is higherwithdrawals ) or Fund Value, whichever is higher
- 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 will be paid as a lump sum. 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 T&C 2 withdrawals ) or Fund Value, whichever is higherwithdrawals ) or Fund Value, whichever is higher
Charges:
Allocation Charges
There is a premium allocation charge of 5% for Rs. 40,000 to 499,999 and 4% for Rs. 5 Lakhs and above. Also there is policy administration charge of Rs. 60 per month for the first three policy years. There is also fund management charges of up to 1.35% per annum.
Policy Administration Charges
There would be a fixed Policy administration charge of Rs. 60 per month and it will be charged only during first three policy years.
Fund Management Charges
Policy Administration Charges: There would be a fixed Policy administration charge of Rs. 60 per month and it will be charged only during first three policy years.
Fund Management Charges
Upto Max 1.35%
Switching Charges
Four free switches are allowed every policy year. Subsequent switches would be charged at the rate of Rs.100 per switch. Any unutilized free switch cannot be carried forward to the next policy year.Four free switches are allowed every policy year. Subsequent switches would be charged at the rate of Rs.100 per switch. Any unutilized free switch cannot be carried forward to the next policy year.
Miscellaneous Charges
If there are any policy alterations during the policy term, they will be subject to a miscellaneous charge of Rs. 250 per alteration.a miscellaneous charge of Rs. 250 per alteration.
These charges will be made by redemption of units.These charges will be made by redemption of units.ICICI Prudential LifeLink Wealth SP is indeed a different ULIP policy in terms of paying premium unlike any other ULIP plans where you had to pay continuously and regularly for at least 3 or more years to stay invested while Life Link Wealth SP offer protection with just single premium of Rs. 40,000. Otherwise this works the same as any other ULIP plans.
Being a ULIP plan its entire performance is market dependent. Also as advised previously go for it if you have surplus funds lying and can park it in such plans and looking for very long term investment option with the added advantage of life insurance. Otherwise just for other investment avenues and give this plan a slip.
