ICICI Pru Life clarifies on our blog about ICICI Pru Guaranteed Wealth Protector Plan

ICICI Pru Life clarifies to myinvestmentideas.com views on ICICI Pru Guaranteed Wealth Protector Plan

When I have written the article about ICICI Pru Guaranteed Wealth Protector plan and indicated the limitations and negative points, some of the readers wrote back to me indicating to re-review my points. Today, ICICI Pru Life officials have clarified about my pointers on our blog. Please see the responses here. There is no change in my view, however these pointers indicate that due to limitations from IRDA or ULIP, these products are going to be like this.

Please see this link where they provided this response on my blog (myinvestmentideas.com). I am reproducing this for every one's benefit

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

I want to post this clarification seperately so that investors who wish you invest in such products knows about the risks and details before they take any decision.

Do you love my analysis and articles, then give me a facebook like 🙂


Suresh KP


  • wahid memon

    Your artical is eye opner,
    I have cancelled my policy with in 15 days,
    Thanks 4 giving clear cut idea

  • Narender Airee


    I have purchased 5 pay policy term plan. I just wanted to know after paying premium for 5 years. Can i surrender my policy in 6th year? Is there any charges applicable at that time? Please suggest

  • anilkumar

    Hi Suresh

    I would like to clarify certian doubts abt term plans.

    I wish to have coverage worth 4 crores from various ins companies.I know that it is better to split it between 2 or maximum 3 companies.But because of the premium amounts I have chosen 2 'stable' firms- LIC & SBI and 2 relative new comers whose values -CSR etc seem tobe ok-Max & Bharati.

    I have chosen the hospitalisation rider from Bharati and the comprehensive accident ridr from Max. What I want to clarify is- if I take other health ins which willinclude hospitalisation charges, will i be able to claim from Bharati? I think we have to give the originals of the bills etc to get reimbursment.Since there is only 1 set of originals- how can I make claims from Bharati? Because if I am not able to do so there is no point in taking up the rider.

    so too in the case of the accident claim from max-if I go in for accident insurance from some other company can i still claim from max?

    Incidentally can u pls give me ur suggestions for a 4 crore term plan split up? With the maximum safety and minimum premium!!! I dont trust ICICI even though they score well in settlement, speed etc since I had bad experiences with them before.


    Thank you


    • Anil, Here are my comments

      1) how to claim health insurance from more than one company – Let us assume that you have taken two insurance policies of Rs 2 Lakh and Rs 1 Lakh. Let us also see an example where the claim amount is Rs 250,000. Here the claim amount is higher than the amount insured, then any single insurer cannot settle the claim, hence the contribution clause will have to be applied. Your company insurer will be pay Rs 166667 and Rs 83333 by your second insurer. Keep in mind that documentation will have to be complete with each of the insurers. You would need to submit the entire sets of documents to both the companies. Hospital would have to give you a certified set of copy of the bills and other documents in addition to the original documents. So keep in mind, more the number of policies you would have to deal with more documentation. The documents required by each insurer may also differ.

      2) What are the best term insurance plans. Please refer my article where I suggested some good term plans. Since you do not want ICICI, you can consider others. https://myinvestmentideas.com/2013/12/best-term-insurance-plans-in-india/

    • ICICI Prudential Life Insurance

      Dear Sir(Anil),

      We are concerned to hear your experience. We request you to help us with your contact and policy details to assist you .

      Alternatively, you may also post your concern along with your policy details on  https://onlinelifeinsurance.iciciprulife.com/digital/ipru/GrievanceRedStep.htm?execution=e2s1
      Request you to quote the reference number 127743_aaac whilst sharing the details. Post receipt of the requirement, our representative will get in touch with you within 48 hours.

      ICICI Prudential Life Insurance

  • Mohit

    Congratulations as you got an opposition from ICICI. It can be concluded that your war against ULIP is working & I really appreciate that. All the replies from ICICI was just ridiculous. The statement, "This plan offers customer a chance to grow their money while enjoying a safety" was really a funny statement. Hahahahaha!

    Again, it's not because of IRDA limitations but due to money making policies of companies & high commission rates of agents, ULIPS are like that. Anyway, this article was really great as the statement from ICICI provides superb enjoyment to the readers.

  • Vignesh

    Hi Suresh,

    I already read the clarification yesterday and found that it is same as you specified. It still has the same drawbacks as you suggested. So, it is having even the Life Cover security only if the users opt for annual premium. If the premium is single shot, then it is a loss for the customers, because it is just 1.25 times of the premium. Such a cover can be generated by a person, if he just simply puts his premium on a Fixed Deposit for 3 years (assume 100000, then the interest earned will be 27000+ within 3 years completion). So, whatever may be the scenario, the ULIP Plans are built in a way that only the Insurance companies get the benefit and not the customers.

    Also, their Pension plans are the worst plans ever.


    Vignesh. S

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