ICICI Pru Guaranteed Wealth Protector (ULIP)-Is it really win win plan?

ICICI Pru Guaranteed Wealth Protector planICICI Pru Guaranteed Wealth Protector (ULIP)-Is it really win win plan?

Are you seeing ICICI Pru Life Guaranteed Wealth Protector – Win win plan on advertisement hoardings on the road side? FM Radio keeps buzzing about this plan several times in a day. Are you wondering what is this win-win plan advertisement appearing major financial websites? This ULIP plan is offered by ICICI Pru life named Guaranteed Wealth Protector indicates that it is win win to have equity linked returns and also capital protection. ULIP schemes issued earlier have been cheating investors by charging high allocation and agent commissions. Does this ICICI Pru life guaranteed wealth protector is different from earlier ULIP Plans? Is it really win win plan ?

About ICICI Pru Guaranteed Wealth Protector ULIP

This is a Unit Linked Insurance Plan (ULIP) indicates that it would protect capital and would provide your assured benefit of 101% of premiums paid. Generally, all ULIP’s fund value would get reduced to the extent of commissions paid to agents + premium allocation charges, etc., Hence ULIP holders fund value shows very less compared to what they invested for a moment ignore the returns. This plan indicates that it provides 101% of assured benefit and investors are getting tempted to invest in this.

Also Read: Top Term Insurance Plans in India

Important Highlights of ICICI Pru Guaranteed Wealth Protector plan

  • It offers assured benefits
  • Option to pay for a single premium or premiums for 5 years
  • Loyalty additions and wealth booster features where a sum is added to your fund value
  • Like any other regular insurance plan, you would get tax benefits.

Features of this ICICI Guaranteed Wealthy Protector plan

ICICI Pru Guaranteed Wealth Protector plan-Features

*Snapshot from Brochure

What are the objectives or strategy of this insurance plan?

Your money would be invested in life growth fund or life secure fund, which depends on your age

ICICI Pru Guaranteed Wealth Protector plan-Objectives

*Snapshot from Brochure

Benefits under this insurance plan

1) Maturity benefit: This would be maximum of

        Fund value, including loyalty additions and wealth booster or

        101% of single premium (one pay) or 101% of the sum of all premiums paid (5 pay)

2) Loyalty additions: Loyalty addition, units are added at the end of the policy year from the 6th year onwards. This would be 0.25% of average fund in last 8 quarters.

3) Wealth booster: Extra units would be added at the end of the 10th policy year which would be 1.50% in the case of one pay and 3.25% in case of 5 pay.

4) Dealth Benefit: On dealth of the insured, nominee would get Sum Assured as indicated in above table.

Coming to various deductions and allocation charges in this insurance plan

  • Policy admin charges = 2.52% per annum during premium payment term and 1.20% after that. For One pay it is Rs 720 per annum for 5 years.
  • Fund management charge of 1.35% per annum + 0.50% is adjusted in NAV for investment guarantee
  • Mortality charges = Rs 1.52 to Rs 14 per every Rs 1,000 sum assured

Illustration with an example

  • 35 years – Rs 100,000 single premium – One pay
  • Sum Assured = 1.25 x premium = Rs 1.25 x 100,000 = Rs 125,000
  • Assured benefit would be = 101% of premium = Rs 101,000
  • Maturity amount @ 4% returns – Rs 113,853 and 8% = Rs 167,243
  • Loyalty addition = 0.25% from 6th year to 10th year = 1.25% in total. This would depend on fund value
  • Wealth booster – 1.50% at the end of the 10th year.
  • Total additions would be 2.75% (approx)

Positive factors of ICICI Guaranteed Wealthy Protector plan

  • Provides assured benefit of 101% of premiums paid.
  • Loyalty additions of 0.25% of average fund value every year from 6th year onwards
  • Wealth booster package which adds 1.50% (single pay) or 3.5% (5 pay) of fund value at the end of the policy term

Also Read: Best Mediclaim Plan to buy in India

Some of the Negative factors of ICICI Guaranteed Wealthy Protector plan

  • You cannot surrender the policy within 5 year policy term. If you want to surrender the policy within 5 years, the fund value would go to discontinued fund account and you would get amount after 5 years completion. During such discontinuance period you would get 4% annualized interest.
  • Additions from loyalty additions and wealth booster would get offset to some extent of deductions. Net summary is deductions are higher than additions.
  • Like any other ULIP, even this has several deductions like mortality charges, allocation charges, fund management fees etc., which are high and makes this plan unattractive.

Download Brochure of ICICI Pru life guaranteed wealth protector plan

Conclusion: ICICI Pru life guaranteed Capital Protector ULIP win win plan is not a win win in reality. Though it offers several benefits all such benefits are adjusted with the charges which this plan deducts. However, considering earlier ULIP plans where your investment amount is being reduced, this plan at least protects to that extent where it offers 101% assured benefit. But I do not see any reason why I need to invest my money and think of protection of the money. Rather, I consider the term insurance plan and invest balance money in bank FD and sit and relax rather investing in this and worrying about it.

Readers, have you got tempted and invested in this plan ? What do you say about this plan. I would love to hear your views on this.

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ICICI Pru Guaranteed Wealth Protector (ULIP)

Article by Suresh

Suresh KP i.e. me have written 500+ articles on this blog. I love doing analysis and identifying the Best investment options.


  1. sristi sharma says:

    Thank you suresh for such a a detailed & honest review i recently received a call from ICICI RM about investing in this scheme i think more forums like yours should be available so that we as customers & investors do not get duped , thanks for your efforts

  2. Tejas says:

    Hi Suresh,

    Just discovered your Blog while doing a belated research on my ULIP plan. Your website is very insightful and has to be bookmarked.

    On my recent trip to India in March I too got tricked into buying this ICICI ULIP plan with annual premium of Rs. 120K. I should have done adequate research so my fault but better late than never. From the paper work I see that there is no way to get the money back for next 5 years. The question I have is…

    Instead of paying Rs. 120K for next 4 years as premium should I consider to surrender the policy and redeploy the future premium on some other investment vehicle? Would it still make sense. I am just wondering what is the best possible option to cut down my loss/damage control from here.

    Thank you,

    • Suresh KP says:

      Good to hear about this Tejas. If I am in your place, I would correct my mistake instead of dragging this for another 4 years and later getting lower amount. In mean time I would invest in simple bank FD (If i am conservative investor) and get 9% returns.

  3. irfan says:

    Hi suresh

    i have invested in this plan but seeing this article im getting affraid. They told me that if i invest 1lakh per annum for 5yrs then in the 6th yr i will be getting more than 8 lakhs is that true.

  4. srinath says:


    Iam 28 and i want to invest 2k per month. So please suggest me the best plan to go for it. I thought to go for ICICI Wealth builder but after reading your article i was thinking now about it.
    Please help me which is a any of the best plan for me to invest which give me assured money (at least what i have invest) and a good returns for my investment.Please help me out in this as i dont have the knowledge about the ULIPs and MF.

    • Suresh KP says:

      Don’t invest in ULIP’s which would take away your hard earned money. These days low cost ULIP’s are coming but you should wait for some more time. Meanwhile you ca invest in top funds like Birla SL Frontline equity or UTI Opps fund

  5. Nisha says:

    Hello Suresh, we had invested in ICICI Prudential Lifestage Pension Policy in sept 2009. one lakh each for 3 years. Now I have entered the 6th year where the surrender charge is 2%. Yesterday when I checked the value to my account is only 352000/-. I was thinking of surrendering rom this plan and opening a wealth protector plan with them for 13% assured return when i happened across this blog.
    what is your opinion?

    • Suresh KP says:

      Nisha, Just ignore all ULIP plans. Invest in bank FD if you do not take risk. If you can take some risk, you can look to invest in mutual funds. However consider term plan as first step

  6. Rahul Jain says:

    Hi Suresh,

    I feel very bad as i have just started investing in this plan yesterday i.e., 08/09/2014. After reading your review i am really furious on the ICICI employees who suggested me this plan. In our discussion they never mentioned me about the charges and the deductions that you have mentioned. They explained me all the benefits.

    What should i do now and please also let me know what will be the charges if the exit this plan.

  7. Asmita says:


    I want to invest my money. I have no knowlegde about how to invest.  I was convienced by ICICI prudential guys for "gauranteed weath protector". After reading this article, I am feeling like I made a mistake. What should i do now?

  8. Sudeep says:

    Dear Suresh,

    As mentioned by you that return on ICICI Guaranteed  Wealth Protector scheme on an average is 5 -6% Does this excludes hidden charges like allocation,mortality,fund management or includes them bcz if it includes them then it is a great loss, bcz these agents were telling that there is 12-16% return/annum in this scheme so plz guide wether it is worth investing or not.

    • Suresh KP says:

      Sudeep, Returns I indicated is indicative and after considering all charges. If someone is promising 12% to 13%, ask them to give in writing from ICICI team. Do not invest in such ULIP schemes.

  9. sangeeta says:

    Dear suresh,

    I have taken Max life -Guaranteed monthly income plan for 11 years,Premium 33030 p.a Now i am feeling this plan is not good. Please advice if i discontinue ?

    • Suresh KP says:

      Hi Sangeetha, There are several people like you, who have been cheated by insurance agents who get 35% commission in 1st year of your premium. My suggestion, consider term plan and then exit this.

  10. Jagadish says:

    Hi Suresh,

    Brilliant Article .. I also read in the finance websites that now ULIPS are comapritive to Mutual Funds , the argument given was that now the charges are reduced and if one stays till the end the loyality additions added will make up for the charges . What is your view ?

    Also I would like to suggest an article on comparing Top ten ULIPS , like the one you wrote on TOP ten funds for 2014 

    Thanks & Regards


  11. Pawan Kumar says:

    Hi Suresh,

    I just invested 50K per annum in this policy as they said there would be 101% guaranteed on amount I invested. I have asked them clearly that if this guaranteed is on my premium or on the money invested after deduction and they said it would be on your premium.

    That time this plan was new so I did not get much review on this, and now after reading your analysis I thing I will be in loss. My question is I took this policy is on 16 may 2014 and its free look period is over. Is there any other option to withdraw it with minimum cost?

    • Suresh KP says:

      Hi Pawan, You could have visited this blog little ahead of time. I don’t think there is any choice as you can surrender the policy with min charges only during free look up period. Pls consult customer care and close this.

  12. Sunny says:

    Hi Suresh,

    Thank you for such detailed post about ULIP and specifically writing about ICICI Prudential Life Insurance Policy. Recently I was fooled by the ICICI Prulife people and lured me into signing up Wealth Builder Policy. I agree it was my mistake of signing the contract without getting myself completely informed, but I remember correctly asking them about the applicable charges, which the adviser at the bank continously denied. Now I have received my policy document with Policy Allocation charges of 6%. With a yearly premium of 1.5Lacs, that turns out to be 9000 for the first year. In total they will deduct ~35K(6%, 5%, 4%,4%, 4%) in 5 years as premium allocation charges. Apart from Premium Allocation charges a sum of 315/- and 227/- is also deducted in the name of Policy Administration Charges and Morality Charges. What a foolish way to make money. Currently I’am fighting with them to get this policy cancelled. If I had visited your site early, I would have saved myself and my family lot of trouble.

    I was also browsing ICICI Prulife website and its very difficult to find all the information regarding premium allocation charges and so forth. Shame on ICICI Prulife to go down to such a level, where middle and lower class investors are duped into such schemes to make profits.

    Cheers to you for bringing this in open.


    • Suresh KP says:

      Very bad to hear your story Sunny. But you would have surrendered the policy within cancellation charges so that only document charges deducted. Have you missed to surrender within 15 days from the receipt of such policy ?

    • Ramya says:

      Hi Sunny,

      Did you get the policy cancelled. I have called the customer service and they said even if we cancel the policy the 1st premium that I have paid shall be locked with them for 5 years.. Is that true? Is there anyway to cancel and get a refund with some cancellation charges?



  13. NIRAJ DAVE says:

    I will just say that ICICI GWP  is a long term good return plan…if thouth logically.

    If money put in in FD for five years and U die in between what will u get? Compare…..

    No Tax benefit for FD – Interest above Rs 10000 is eligible for TDS….

    Assure that market performs good which gives your fund value which will be helpful to beat inflation.

    Can you proov the statement that the return on fund will be only 5 to 6 percent only after 10 years and Fund value will not raise….

    • Suresh KP says:

      Niraj, You can ask ICICI Pru life people to show proofs that returns are more than 6% in any of their wealth schemes ? The returns what they have been paying is only within this range.

  14. sumesh says:

    hi Suresh,


    How would u rate Bharati Axa wonder years retirement plan? Given a choice between this and icici dream retirement plan which would u choose? I know  one is a traditional retirement plan and the other is an fd , but still?


    Thank you

    • Suresh KP says:

      Hmmmm. I am yet to analyse this Sumesh. If you want me to do that, pls do me favor of putting this request on suggest a topic, i would do that in coming weeks.

  15. Srinivasa Rao says:

    Hi Suresh garu,

    Hope you are doing well. I need a small suggestion , recently i approached ING Vysya bank for a child care plan, they suggested me a product called Mera Ashirwad in which i need to invest 25000 Per Annum for 7 years and after this i need to wait another 5 years (i.e 7 yrs X 25000 = 1,75,000 investment and after 5 years of wait time) 7+5 = 12 years i was offered a sum of Rs. 2, 53,000 guarnteed income as lumsum. so i had opted this.


    Could you please suggest / confirm if my selection is worthy where i would wanted to use this money for college studies of my kid as i have 5 years daughter.


    Thank you inadvance, Srinivasa R.D


    • Suresh KP says:

      Srinivasarao, You have not specified whether you approached Bank or Insurance company. ING Vysya Bank refers to bank. Now let us see your calculations. 7 years x Rs 25,000 comes to Rs 175,000. Assuming you are investing this @ 9% bank interest. By the time you finish your 7 year period the lump sum should be Rs 257,000. For another 5 years @ 8.5% interest, this amounw would be Rs 3.32 Lakhs.  Now I am confused why they are offering only Rs 2.53 Lakhs. I am thinking that you are opting for Insurance product like ULIP not depositing this in RD of a bank. Now let me assume that you take term plan for Rs 3 Lakh for next 12 years, this would cost you Rs 30,000  to Rs 50,000 as premium. Still you are at loss. Pls check and let me know in case there is any disconnect in what I am understanding from your query.

      • Srinivasa Rao says:

        Dear Suresh,

        Thanks for your reply . Yes i approached ING Vysya Bank only there they have arranged a kiosk for all these products to explain . So as per him the product which has a Insurance benefit as well and if something goes wrong the nominee would get the benefits and this is not comes under ULIP . So request you please go through this and kindly suggest me if i can opt for this ?


        Thank you inadvance, Srinivasa Rao.D

        • Suresh KP says:

          Srinivasarao, these are insurance products offered by banks. I don’t suggest for you to invest. Go for term insurances and invest thru RD in ING bank itself. You would get more money than what they specified.

  16. Karuna says:

    Dear Sir,

    Hi, I have approached Icici Bank for opening a FD of Rs. 2,00,000/- for a period of 5 years. They have suggested me to invest Rs. 2,50,000/- (available in my account) in ICICI Guaranteed Wealth Protector with initial premium of Rs. 50,000/- for first year. Also, I was told that the policy would be in my daughter's name and I would be the nominee for the same. I am 60 years at present. Can you please advise on the pros and cons of their suggestion.


    Karuna D.

    • Suresh KP says:

      Hi Karuna garu, My personal opinion is this is not exciting plan. This is another ULIP. You may expect 5% to 6% returns per annum along with risk coverage. Is this what you are looking for  ? Another point is bank officials are fooling you. Because they want you to take policy in your daughter who is young and fit now. They are making you as nominee. Ask them to consider taking this in your name and make your daughter as nominee. They would not do that. I am not saying this is bad plan, but like any other ULIP or investment cum protection plan, the returns are limited. If you are ok with such returns, you may proceed. Pls note that returns are not guaranteed.

      • ICICI Prudential Life Insurance says:

        Dear Suresh,

        With respect to this analysis on ICICI Pru Guaranteed Wealth Protector, we would like to draw your attention to a few aspects about the product:

        1.     One of the apparent negatives pointed out by this analysis is that ‘Like any other ULIP, this product has several deductions like mortality charge, allocation charges, fund management fees etc, which are high and makes this plan unattractive’.

        Ø  Since this is an insurance plan, this product offers a life insurance cover to the customer. For example, suppose a 35 year old customer has a five-pay policy. If his annual premium is Rs. 1 lakh, his family will get Rs. 10 lakh on his death, anytime during the policy term. The mortality charge is deducted on account of this benefit.

        Ø  The product offers a capital guarantee on maturity. The guarantee charge in the product is deducted because of this.

        Ø  The other charges (Premium allocation charge, Policy administration charge and Fund Management Charge) are well within the RIY limits stipulated by the Regulator.

        o    IRDA regulations mandate that the ‘Reduction in Yield’ (RIY) after 10 years cannot be more than 3%. In this product, the RIY after 10 years is below 2%.

        2.     The analysis mentions that the policy cannot be surrendered within the first five years.

        Ø  All Unit Linked Insurance plans are designed as long term investment and insurance solutions. Hence, as mandated by IRDA Regulations, surrender is not allowed in the first five years.

        3.     The analysis concludes that a combination of a term insurance plan and a fixed deposit will be a better alternative than this product.

        Ø  Please note that this product is meant for customers who want growth in their investments while enjoying a safety net from market volatility.

        o    This plan will offer customers a chance to grow their money by investing in equity. Over a long term, investment in equity provides high returns that can beat inflation.

        o    This plan will safeguard customers’ investments through its capital guarantee feature. No matter how the markets perform, your capital will be protected.

        o    Moreover, as mentioned above, this product will also provide a life insurance cover to the customer.

        o    And finally, the premiums paid and the benefits received under this plan will be eligible for tax benefits.

        This is a unique solution which combines all of these benefits under one product. That is what makes this plan a ‘Win-Win’ proposition.


        ICICI Prudential Life Insurance

        • Suresh KP says:

          Thanks for your feedback ICICI Pru life team. I can conclude from your answers that negative points highlighted are correct and you cannot do much due to IRDA regulations.and things beyond control. Yes based on these facts, investors can decide and invest in such ULIP products. Thanks for your feedback.

  17. Samarjit says:

    I'm a regular visitor of your blog and found the information very useful. However I'd like to know more about central public sector enterprises (CPSE) exchange-traded fund (ETF) and advice whether to invest or not. Please help on this asap.

  18. Vignesh says:

    Hi Suresh,

    I accept what Hiren said, and to add an additional topic to such scams is the Pension Plans. Recently, i heard of a Pension Plan from Reliance and shocked to know the fact that they are just providing 30 percent of pension on which, i would earn on simply manipulating Fixed Deposit through years. What they are charging for manipulating the money is 70% of our growth.

    Its a shame to have the insurance products in india. Also, i had burnt my fingers a lot, before realizing such bitter truth. I felt LIC is one of the leading scammers in the market nowadays, than the private insurance.


    Vignesh. S

  19. Hiren says:

    Dear Suresh

    I wan in India and I had meeting with managers of ICICI banks and they were  so persuasive to make me invest in this plan. But I did analysis and also asked people around who had invested in such plans. What I realised is that this is a sort of scam, I read horrible stories of people who would invest X amount of money and when the term is over would get much less than initial amount. The reason given to them was that markets were not good. But initially they explain this is not a market based plan. So my advice would be rather to for 9% FD then look for 10-11% with ICICI.


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