ICICI 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
*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
*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 ₹ 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 = ₹ 1.52 to ₹ 14 per every ₹ 1,000 sum assured
Illustration with an example
- 35 years – ₹ 100,000 single premium – One pay
- Sum Assured = 1.25 x premium = ₹ 1.25 x 100,000 = ₹ 125,000
- Assured benefit would be = 101% of premium = ₹ 101,000
- Maturity amount @ 4% returns – ₹ 113,853 and 8% = ₹ 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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Suresh
ICICI Pru Guaranteed Wealth Protector (ULIP)
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98 comments
Add a comment ↓this plan seems to have designed to benefit the bank and not any significantly to its customers.
I have completed ICICI Prulife Guaranteed Wealth Protector Plan- Rs 50,000 (Fifty Thousand Per Annum) years payment tenure completing on 11th March, Already paid last installment last year. Total paid 250000/- (Rs Two Lakh Fifty Thousand). Since, i need money for marriage of my daughter. I wish to surrender. Kindly let me know how much amount full & final amount i will be getting.
Hello Suresh ,
i have paid two premium of 1.5 lakh ,now i don’t want to continue because i have paid 3 lakh in 2 year and fund value is just 2.70 lakh , i m in loss of 30k
lease suggest what should i do , in this condition
please help and suggest , if i not pay next premium then what all charge i have to pay from mu paid money
Hi sunil, check with customer support about how to close this policy with low charges and time frame
Invested 1,20000 in gwp Icici .want to discontinue .one year over .what would be my final amount getting after five years ?
It is a such a stupid ULIP plan, Pls dont get into such plans. After 3 yrs also the return % is only 6% and apart from it the units that are located to us are only 80% of the premium deposited by us. Please save your money instead if you could invest this amount of money into good equity company you would easily get a return on 25-30% within a year or two. So take decision wisely, Invest and grow your money, dont let it get trapped and hoarded.
Ankit, sorry about your experience on this plan. Many investors has saved their money after reading our article.
Hi,
I have invested in ICICI Pru Guaranteed Wealth Protector Plan. My premium in INR 120000/- per annum and I have already paid 2 premiums. This is my third year and I stopped paying from my premiums as I did not see it giving any profit and my money being at loss. As explained, I am planning to surrender the policy so that I would atleast 4% per annum interest on the fund. The question I have is, should I surrender the policy before the 5 year term or after 5 year term?
As per the below link, surrending before 5 years will give 4% interest p.a atleast deducting the discontinuation charges and surrendering after 5 years will give the fund value (I believe there is not going to be 4% interest earnings in this case) at that time without discontinuation charges.
https://www.policybazaar.com/insurance-companies/icici-prudential-ulip-plans/guaranteed-wealth-protector-plan/
please help if my inference is correct and any idea about how much would be the discontinuation charges?
Consideraing the TAX benefits of this scheme, would this be an ideal tax saving scheme compared to NPS or National Savings Certificate or any other ULIP (where amoutn is not guaranteed) ??
No. Don’t invest in such schemes. You can check best tax saving schemes indicated in my last week article
Hi,
I have invested this fund for last 2 yers and yearly i am paying 25000K. This month end(nov 38th) is due for my 3rd premium. From feb 2017 on words my home loan EMI will start. So now i am thinking, Shell i continue this policy for other 2 years ( need to pay 3 premium) or just leave it and surrender the policy after 3 years.
Can you please advise for me this. This will help me to take good decision for my investment.
Thank you.
advisor promised me 11% interest.. i have given the DD.. luckly i came thorugh this blog.. now i have cancelled the policy… Thanks a lot..
Just wanted to know better oprtion on child education plan..
Thanks,