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 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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Suresh
ICICI Pru Guaranteed Wealth Protector (ULIP)
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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,
Hi Rajesh, You can invest in top mutual funds for child education which can help you. Refer this article. https://myinvestmentideas.com/2016/11/best-mutual-funds-to-invest-for-child-education/
Thanks Suresh for your valuable inputs.
I want to start the investment online. Any articles which i can refer to start and manage MF SIP online.
Thanks,
Rajesh
You can refer this article about some of the best top mutual funds to invest in 2017.https://myinvestmentideas.com/2016/09/top-10-best-sip-mutual-funds-to-invest-in-2017/
Thanks a lot Suresh.
I have created below portfolio. Rs 1000/- per month in each.
Kotak Select Focus Funds
Birla SL Frontline equity Fund
DSP BlackRock Micro Cap Fund
ICICI Balanced Fund
HDFC Balanced Fund
Thanks,
Rajesh
Bro after how many days u cancelled ? How much money they deducted ? Pls msg back
After how many days u cancelled and what is the cancellation charge ??
I am surprised over such a -ve huzz and buzz. Agree to make a mistake by investing for this so called win-win plan, but its not that big a blunder even. What I have observed is that funds are doing good. Yes, deductions are too high but they are decreasing with the time.
So everyone, you have already invested. Be patient and watch the performance for next 5 Years (after all we have no choice now). I am hopeful that if not too much, at least I would be getting a return of annualized 6 – 8% return. Rest… lets learn a lesson to study properly before making any investment decision.
All the best.
Syed thanks for the comments. Let us not make outself convenced to be good if we made mistake. Let us accept that we made mistake and see if we can correct outselves. Many readers on this blog has benefited by avoiding this plan. Some read this blog post after purchasing and withdrawn. Some could not come out due to lock in period. Every one understood how this plan is. Hence, your comment saying “fund is doing good”, but at what cost?
I also feel being cheated by investing in this plan for 2 yrs @rs 1lakh per yr because the fund value has reduced and I find no option but to continue for 5 yrs otherwise may incur more loss.
Mohan Lal
Bad to hear about your story Mohan. As an investor, we should alway check with couple of websites or blogs and seek opinion before investing in such ULIPs.
Hi there,
I have inversted 220000rs in 2 years. Same as everybody else my account is in the negative. I am planning to get out of this after 5 years. Will I get back all of my fund value as of that time or is there any early withdrawal fee or something like that cos my policy is for 10 years. I guess not cos I have paid 5 preimiums. Can some one please clarify this for me.
Thanks
Navin.
Hi there,
I have inversted 220000rs in 2 years. Same as everybody else my account is in the negative. I am planning to get out of this after 5 years. Will I get back all of my fund value as of that time or is there any early withdrawal fee or something like that cos my policy is for 10 years. I guess not cos I have paid 5 preimiums. Can some one please clarify.
Plz never buy this policy, my fund value is getting in negative day by day, all ICICI policy adviser will tell you same thing that u will get a return of 13% – 15%, but there is nothing like that, they will misguide you about this policy. Its better to go with PPF or other safe mode of investments.
Iam also planning to invest in icici guranteed wealth protector. The icici excutive told me many good things about this plan. Pls inform me
I have invested in this plan last year. My experience says it shall provide good return. Initially, yes there are good many deductions, but still I am hopeful to get somewhere 2 to 2.5 times of my investment in next 10 years.
pleasesujest which ulips is best for me icicipru wealth buildr 2 or hdfcclik2investulip.
What I got to understand is and have invested and committed to invest 1.2 lakh every year for 5 years. So after 5 years i would have invested 6 lakhs and at the end of 10 years, i will get minimum of 12 lakhs. If i would have done an FD exactly in the same pattern i would get intrest only at 7.5% per annum and when i worked it out this seems to pay back at the rate of 9%.
Will little or poor understanding in this area of investment, please correct me if i am wrong.
I got a call from ICICI Asst. Manager about this plan and he says the minimum investment per year is 50,000 for a lock in period of 5 years and a minimum 13% interest is guaranteed and the interest can go up to 25% based on the share value or equity share. But in the benefits given above I can see that it is only 101% of premium paid. Which is true?
Details given here are true. ICICI Pru life themselves has clarified this
A bank manager talked me into this scheme 2 years back while i was in india. After two years of investing 10lakh the balance is around 9lakh now. The bank manager said too many good thing about it, what he didn’t tel me was the amount of fee that they charge upfront on each installment.
This is a big scam plan from icici and it’s agents.
please don’t consider investing in this scheme. I don’t want anyone else to loose money as i did.
Venugopal, Investor awareness is increased now a days. Many blogs / websites are posting positives and drawbacks of these policies. If you see my article, even ICICI pru life themselves clarified some points. Bad to know that some manager made false statements and you brought. My advice is not to listen to a person. Do own analysis and then buy such plans. You can post queries on blogs like mine where thousands are getting clarified. This is one way to avoid subscribing to such policies.
Dear Suresh ,
Big thanks for making this article . This really helps guys like me who are very poor in this subject . Below table is given to me with a minimum guaranteed percentage of 12% for a 15 years lock period with return on 21st year plan . This covers the charges as well . Would be great if you can review this and comment on the returns . Your comments will really help me to take a call on opting for this plan .
Years Investment Charges Invested Amount Interest Final Amount
1 150000 6000 144000 17280 161280
2 150000 6000 144000 36633.6 341913.6
3 150000 6000 144000 58309.632 544223.232
4 150000 6000 144000 82586.78784 770810.0198
5 150000 6000 144000 109777.2024 1024587.222
6 150000 6000 144000 140230.4667 1308817.689
7 150000 6000 144000 174338.1227 1627155.812
8 150000 6000 144000 212538.6974 1983694.509
9 150000 6000 144000 255323.3411 2383017.85
10 150000 6000 144000 303242.142 2830259.992
11 150000 6000 144000 356911.199 3331171.191
12 150000 6000 144000 417020.5429 3892191.734
13 150000 6000 144000 484343.0081 4520534.742
14 150000 6000 144000 559744.169 5224278.911
15 150000 6000 144000 644193.4693 6012472.38
16 0 0 0 721496.6857 6733969.066
17 0 0 0 808076.2879 7542045.354
18 0 0 0 905045.4425 8447090.797
19 0 0 0 1013650.896 9460741.692
20 0 0 0 1135289.003 10596030.7
21 0 0 0 1271523.683 11867554.38
Total 2250000 90000 2160000 9707554.379 11867554.38
Hi Sir .. I have a question during inforce period of the plan can i change the fund allocation ? also after 5 years lock period we can withdraw the amount ? what benefit I will get if I close the plan in 6th year and withdraw the amount instead of withdrawing the amount in 5th year ?
My age is 60+. can I invest in the ICICI pru. Guaranteed Wealth protector (ULIP). What will be assured money for 500000/- (every year 100000 for 5 years). And on completion of 10 years, how much amount I will get?
Oh Suresh
kaash I would have gone through this article some months back. Any remedy?
Now I feel, I should stop investing in any sort of ULIPS or investment plans. I guess FDs are the best options.
FD’s are one of them. Continue to read my blog for few days, you would get 10’s of options to invest based on your risk appetite
They assured that this scheme will return 10% interest rate, let me see what will happen after 5yrs. Least I can get back Principle right?
No. Necessary commissions / allocations would be reduced. On top of that you would market value of your investments on balance.
God bless the person who shared this info. I had given the check and was saved at last moment after I read this.
Thank you Shikha
Thanks for the article. I had invested 40K in this plan(5 pay) last year. My next premium is due next month. I need your opinion whether I should continue paying the premiums or discontinue the plan. Present fund value is around 35K. If I discontinue the plan, then they’ll pay 4% annualised interest for next 4 years but I am not sure how much charge they’ll deduct for discontinuing the policy.
I HV invested 50k just before 5 days can I get it back in few days or I will have to wait for five years thanks for opening my eyes pls reply
Good to hear that Himanshu.
I was sold out to this plan on my last trip to India. Very little did the branch manager mention about the allocation changes. For 5 lakh annual premium they are taking away around 40 thousand as fees and fund allocation charges immediately on premium. I am stuck with this for another 3 years. not sure what the return will be on this.
I got saved just in the nick of time. Today i went to the bank to open an FD in the name of my 3 year old daughter who has a kis account in the bank and as expected i was convinced by one of the over effective young brigade members of the branch to put at least 50000 out of the total sum i wanted to deposit, in to what she called ‘regular deposit’ with tax savings ( i doubt if that is even a product or a product category) very enthusiastically i was told about it is pretty much an FD + 3-5% more returns plus tax savings, never mentioning any of the charges involved and even the basic fact that it is indeed an insurance product. Just after i finished the paperwork i came back to office and stumbled upon this article which shocked me and later i spoke to my brother who is an AVP in one of the leading mutual fund houses and he verified the same view point. I marched straight to the branch, confronted them and got the unprocessed form and the cheque back from them. Thanks. However i also think the fault lies with me and people like me, who, being educated and aware individuals, still slip and decide about investments on impulse and at the point of sale without doing any homework!!
A SIP in a good Mututal fund is better than this Guaranteed Wealth protector plan.
As of now, I am in this plan since a year, but growth in my money is less than 5%.
I am surprised ,as the ICICI website shows a 16% growth since inception and 11% for both funds in the plan.
Hi Sir,
Thanks for the details.
ICICI associates convinced me to choose this Policy since it giving more returns.
Have invested 50k on Dec’2014 for 5 years and maturity period is ten years.
Can you please suggest if it gives good returns ? or Suggesting me to cancel and Invest it in FD. Please advise me on this
Thank you Suresh .I have already invested 1 lac last year and now i have to pay this year premium. So i think better to come out it. But as you said my money will be blocked for 5 yrs.
Hi Suresh ,
Thanks a lot for this much detail analysis 🙂 ICICI bank manager convinced me 2 days back to invest on this plan and I did so with a 40K premium anually with a payment term of 5 years without even realizing its an ULIP !!! They never told me that !!! Neither was I told about all the charges associated with this. After going through your site I understood the mistake I have made. Today I cancelled the policy and invested 40K in FD. Thanks a lot for your help again. These private banks are just duping their customers. This is a very bad situation for all.
Bad to hear that Anish
An eye opening article about the ULIPs. I was about to invest in this plan but now would rather invest in FDs. Thanks Suresh.
Recently we had a seminar in our co. on Investment by ICICI persons & told about various ideas to save. I am attracted to Wealth builder 2 (Maximiser 5). Pls suggest is it good to get good benefits?
Stay away from ULIP plans
sir i invested 31000 rs per month icici gurentee wealth protector lp 5 year 10 yers term wat i expeted rturn
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
Thank you Sristi
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,
Tejas
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.
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.
Irfan, There is no guarantee that you would get some amount after maturity. These are more for risk perspective. Ask the agent / ICICIpru life to give in writing.
Hi,
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.
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
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?
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
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.
Hi
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?
Hi Asmita, Nothing is late. You can re-look such scheme and come out and invest your funds atleast in bank FD or RD where you can grow your money.
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.
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.
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 ?
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.
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
Hi Jagadish, MF’s are never be compared with ULIP’s. Recently, ICICI Click 2 Invest ULIP has come with low charges. You can check this article.https://myinvestmentideas.com/2014/07/hdfc-click2invest-new-ulip-should-you-invest/
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?
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.
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.
Sunny.
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 ?
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?
Dear Ramya,
We will be glad to assist you with your query. Please write to us at lifeline@iciciprulife.com from your registered email id with the complete details for assistance.
Regards,
http://www.iciciprulife.com
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….
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.
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
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.
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
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.
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
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.
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.
Regards.
Karuna D.
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.
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.
Regards,
ICICI Prudential Life Insurance
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.
ICICI Pru Guaranteed wealth protector plan is total waste and investors are being cheated. In my case, there is not even a proper update on the request given through ICICI pru agent on the nominee update. Nominee initials were mentioned incorrectly by the agent and I asked them to get it corrected. Its been more than 2 years and I had been running behind the agent to get it done.. still they haven't done anything about it and there is no option to update the info online/raise a request for the same online. Highly ridiculous!!! I am frustrated and it looks like I am paying interest for my own money!!!! Never invest with ICICI.
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.
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.
Regards,
Vignesh. S
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.
Regards
Hiren
I echo you Hiren