ICICI Pru Guaranteed Income For Tomorrow (GIFT) – Who can invest?
Life is full of unpredictable events. All our lives we work to ensure that our loved ones are secured and we have enough savings for unforeseen events. Recently ICICI Prudential has launched “Gift” plan which is an insurance cum investment plan. Guaranteed income for tomorrow (GIFT) by ICICI Prudential life insurance aims to provide coverage for these uncertain events as well as other important goals that require finances. This may include important events like marriage, education, or just a peaceful retirement. What is ICICI Pru Guaranteed Income For Tomorrow (GIFT) all about? What are the pros and cons in this GIFT Plan from ICICI? Can you opt this Gift Plan to get regular income?
Also Read: LIC Bima Jyoti Plan 860 – Who can consider in this plan?
Overview about ICICI Pru Guaranteed Income For Tomorrow (GIFT)
This policy aims to provide financial security in the long-term by paying a premium amount based on the expected returns and goals. The policy inculcates several interesting benefits that are unique to it. It provides multiple options to get the income based on the preferred timing and goals to expedite the same.
Key Features of ICICI Pru Guaranteed Income For Tomorrow (GIFT)
Here are the key features of ICICI Prudential guaranteed income for tomorrow.
This policy would provide a lump sum amount or a regular income in the form of guaranteed benefits based on the goals decided while taking up the policy.
It also provides an option to receive guaranteed income as per the applied conditions. One can start such income as early as second year after the policy has been purchased.
There are higher benefits for women.
Gift Plan also provides life insurance cover to secure the family financially in the case of an unforeseen death.
It also has an option of saving the date feature which provides guaranteed income, particularly important day as per the policyholder’s request.
The policy also provides an option to take loans against the policy by the policyholder in case of any financial emergency which may arise or an unforeseen event that requires additional financial help as loans.
Eligibility to buy ICICI Pru Guaranteed Income For Tomorrow (GIFT)
Here are the eligibility criteria to take this GIFT Plan.
If you opt for one time in the lump sum category you should be aged between 18 to 75 years.
However, if the lump sum payment option is for 5 to 10 years the age category varies from 18 years to 80 years.
Regarding income and early income options the minimum age to buy the policy is 18 years of age and the maximum be 71 years.
What are various options available in this plan?
This plan comes with 3 options
1) Early Income Option
2) Income Plan option
3) Lumpsum Option
4) Single Pay income
ICICI Gift Plan – Product at glance
What is death benefit payable under this plan?
This plan provides survival benefit which we would discuss in subsequent paragraphs, it also provides death benefit i.e life insurance risk coverage. This would be highest of the following:
1) Sum Assured on Death (10 times of the Annualized premium)
2) 105% of Total Premiums Paid up to the date of death
3) Sum Assured on Maturity X Death Benefit factor for Lump sum plan option
1) What is early income option in ICICI Pru Guaranteed Income For Tomorrow (GIFT)?
This policy has two types of income that can be opted by the policyholder other than the lump sum option.
One can choose 7 years or 10 years premium payment term (PPT).
Policy term would be PPT + 1.
Under this option, early income would start from the second year after the first premium payment has been done and continues till the time the last premium payment is done.
The amount received during this phase is referred to guaranteed early income and the amount received after the premium payment is referred to as a guaranteed income.
Death benefit is payable in case of death of the policy holder.
Early Income Option explained with an example
Mr. Saurav, 35 year old male, paying an annual premium of Rs 1 lakh. He wants to create an alternate source of income for himself so that he can plan to retire early. Moreover, he wants some income to start off from the very next year to take care of his son’s school fees.
Premium Payment Term – 7 years
Pay for 7 years
Income from 2nd year till 8th year – Rs 20,000
Income from 8th year till 14th year – Rs 116,640
Premium Payment Term – 10 years
Pay for 10 years
Income from 2nd year till 11th year – Rs 25,000
Income from 11th year till 20th year – Rs 132,321
Mr Saurav also have an option to get this money every month. In this case, he would get Rs 141,061 (higher amount) / 12 months = 11,755 every month for 10 years.
2) What is the income plan option in this GIFT Plan from ICICI Pru?
When a person taking up the policy chooses to pay the premium amounts for 5, 7 or 10 years, which are referred to as Premium Payment Term (PPT), and at the same time also chooses to receive the guaranteed income for 5, 7 and 10 years, the policy term would be PPT +1. In these cases, the life cover is however available for the entire term of the policy.
Death benefit is payable in case of death of the policy holder.
Income Plan Option explained with an example
Ms Smita, 35 year old female, paying an annual premium of Rs 1 lakh. Here are the PPT and payouts.
She has the flexibility to get guaranteed income every year or every month.
As an example, if she opts for monthly income for 10 years premium payment term, she would get Rs 203,821 / 12 = Rs 16,985 per month for 10 years.
3) What is a lump sum option in ICICI Pru Guaranteed Income For Tomorrow (GIFT)?
The policy also offers a lump sum plan option under which the policyholder would pay premiums for a certain period and when the policy term ends, he or she would receive a guaranteed lump sum amount as stated in the policy.
This allows the policyholder to make savings and investments under this plan and get a particular guaranteed lump sum for an event that is scheduled at a particular time.
Death benefit is payable in case of death of the policy holder.
One can choose PPT and guaranteed lump sum payment option.
| You can choose to pay premiums for | You can choose to get guaranteed lump sum at the end of |
|---|---|
| 1 year (Pay just once) | 5 or 10 or 15 years |
| 5 years | 10 or 12 years |
| 6 years | 12 years |
| 7 years | 12 or 15 years |
| 10 years | 15 or 20 years |
Lump sum Option explained with an example
Mr Anmol,35 year old male, paying an annual premium of Rs 1 lakh.
Anmol wants to create a corpus to fund his son’s higher education. Here is how the lump sum is paid.
4) What is single pay income in ICICI Gift Plan?
Under this plan, policy holder will pay premium only once and receive guaranteed regular income (known as the Guaranteed Early Income) for a fixed period starting from the end of 2 year till the end of 10 year.
Single Pay Income Option explained with an example
Anjali,35 year old female, paying a one-time premium of Rs 1 lakh with Life Insurance Benefit of 10 lakhs.
What are the hidden factors in ICICI Pru GIFT Plan?
Here are some hidden factors.
1) If you stop paying premiums for two years, no benefits would be payable
2) In case of death due to suicide within 12 months, nominee would get only 80% of premiums paid.
3) These plans provide low returns of approx. 5.5% along with life insurance coverage.
Also Read: Bharti Axa Launched Wealth Pro ULIP – Should you opt?
Should you opt for ICICI Pru Guaranteed Income For Tomorrow (GIFT)?
ICICI Pru GIFT is a good option for those who have fixed goals and knows the approximate happening of a certain event. This can be related to the long term goals of a child’s education, marriage, and retirement. The approximate returns are 5.5% + life insurance coverage, which are low. This plan is for low risk investors who do not want to take risk from equity or mutual funds and willing tocomprise with such guaranteed low returns.
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Suresh, is there another plan comparatively better from the returns point of view, than ICICI GIFT?
None of the so called insurance-cum-investment plans provide good returns.
Hello Suresh Sir,
Can you please advise which is the best policy among the below 3 listed?
1. HDFC Sanchay Plus
2.HDFC Click2 Protect 3D
3. ICICI Pru GIFT.
If you can recommend any other best plans also grateful to you sir.
Thank you
Shashi Kiran
Hello Shashikiran, 1st and 3rd are ULIPs / insurance-cum-saving schemes which provide low returns. 2nd is term plan + comes with additional features. If your goal is life insurance, go for a simple term plan and invest balance in other investment options like mutual funds etc., If you are low risk investor and still okay with low returns you can opt for ICICI Pru Gift.
Sir
If you suggest a Guaranteed income plan for a low risk taker with enough exposure to equity,which one you recommend?
HDFC life Sanchay Plus Longterm income plan or ICICI Gift income plan option ?
Thanks
John, Both offer low returns and has their unique features. If you are looking from only returns perspective (even after compromising with low returns), ICICI Gift Plan is better