ICICI Pru Life Stage Wealth II


Name of Policy

ICICI Pru Life Stage Wealth II

Type of Policy

ULIP Endowment

Various Investment Options

Opportunities Fund: To generate superior long-term returns from a diversified portfolio of equity and equity related instruments of companies operating in four important types of industries viz., Resources, Investment-related, Consumption-related and Human Capital leveraged industries.

Multi Cap Growth Fund: To generate superior long-term returns from a diversified portfolio of equity and equity related instruments of large, mid and small cap companies.

Blue chip Fund: To provide long-term capital appreciation from equity portfolio predominantly invested in NIFTY scrips.

Multi Cap Balanced Fund: To achieve a balance between capital appreciation and stable returns by investing in a mix of equity and equity related instruments of large, mid and small cap companies and debt and debt related instruments.

Income Fund: To provide accumulation of income through investment in various fixed income securities. The fund seeks to provide capital appreciation while maintaining a suitable balance between return, safety and liquidity.

Money Market Fund: To provide suitable returns through low risk investments in debt and money market instruments while attempting to protect the capital deployed in the fund.

Return Guarantee Fund*: To provide guaranteed returns through investment in a diversified portfolio of high quality fixed income instruments.

 Features

Parameter

Value             

Entry age

Minimum: 7 ; Maximum: 65 years

Maturity Age

Min: 18 years ; Max:75 years

Policy Term(Fixed)

Min: 10 years

Max: 3 years                              

Premium Payment Term

Regular, Limited Pay 5, Limited Pay 7, Limited Pay 10

Premium

Regular: Rs.24,000

Limited Pay 5: Rs 48,000

Limited Pay 7: Rs 36,000

Limited Pay 10: Rs 24,000

Basic Sum Assured

Regular and Limited Premium:

Age Entry below 45 years

Min SA: Higher of (10 × annual premium) and (0.5 × Policy Term × annual premium)

Age Entry above 45 years

Min SA: Higher of (10 ×  annual premium) and (0.25 × Policy Term × annual premium)

Max SA: As per maximum sum assured multiplies.

Top-Up Premium

Min: Rs 2,000

Top-Up Sum Assured

There will be an increase in Sum Assured when you avail of a top up and you will get an option of choosing an increase of either 125% or 500% of the top up premium amount.

 

 

Charges

Explanation

Premium Allocation Charge (on regular premiums)

Year 1: - 2%

Year 2 Onwards: -  0%

Policy Administration Charge

Year 1 to PPT: - 0.47%

Thereafter : - 0.10%

(% of Annual Premium payable)

Fund Management Charge (FMC)

 

Type of Fund

Charge

Opportunities Fund

Multi Cap Growth Fund

Blue chip Fund

Multi Cap Balanced Fund

Income Fund

Dynamic P/E Fund

1.35% p.a.

Return of Guarantee Fund

1.25% p.a.

Money Market Fund

0.75% p.a.

There will be an additional charge for the investment guarantee of 0.25% p.a. for the Return Guarantee Fund. This will be charged by adjustment to NAV.

Switching Charges

Four free switches are allowed every policy year. Subsequent switches would be charged 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*.

*These charges will be deducted through redemption of units.

Mortality Charge

Mortality charges will be deducted on a monthly basis on Sum Assured. Indicative annual charges per thousand life cover for a healthy male and female life are as shown below*:

Age

10

20

30

40

50

60

Male Rs

0.77

1.33

1.46

2.48

5.91

14.21

Female Rs

0.72

1.26

1.46

2.12

4.85

11.83

Life Cover

yes

Illustration

Let us assume a simple case:

  •      Your age: 30 years
  •      Sum assured: 5 lakhs
  •      Policy term: 10 years
  •      Premium: Rs.50,000 per year

The life insurance component is miniscule, not exceeding 10 times your annual premium. If you really want life insurance, a good term plan will give you life insurance of about 500 times your annual premium – so you would rather avoid the fund.

 Let’s see what you get:

  •        life cover plus Investment
  •      Of your first year premium of Rs.50, 000/- 2.47%+ Mortality charge (2%+0.47%) is removed. Most of this goes to your agent’s pocket. Only the remaining gets invested in the fund.
  •       Of your second year premium of Rs.50, 000/- .10%+ Mortality charge gets removed again. Most  of this again goes to your agent, and only the remaining gets invested.
  •        In addition to this, of your total fund, the fund management charge of ~1.35% is cut every year
  •       Instead, if this Rs.50, 000 per year had gone into a Systematic Investment Plan in a Mutual Fund, giving a return of approximately 15% a year on a five year average, not a single Rupee would have been deducted as policy charges. It would not take a mathematician to deduce that the returns here will be much better.

 

In summary, investments can deliver returns only if the costs are not so high.

Fintotal Product Analysis is the ideal place to seek unbaised and neutral view on all financial products.

Do not get fooled by agents and distributors, just check here before you make any purchases.


Explore more in a easy manner.


Table of Contents

Table of Contents