ICICI Prudential LIFE LINK WEALTH SP Review

Product highlights

1. Single premium ULIP: Pay premiums only once and stay invested for a long term
2. Trigger Portfolio Strategy: A unique portfolio strategy to protect gains made in equity markets from any future equity market volatility while maintaining a pre-defined asset allocation
3. Loyalty Addition: Up to 2.5% of Fund Value, at the end of every fifth policy year, starting from the tenth policy year
4. Two options of Sum Assured: Choose between 125% or 500% of premium as the Sum Assured to suit your protection needs
5. Top up: Flexibility to invest surplus money to boost your investment kitty
6. Tax benefits: On the premium paid and benefits received under the policy, as per the prevailing Income Tax laws

Charges you pay

·         Premium allocation charge

 1 per cent charge that is levied on the top-up premium.

·         Fund management charge (FMC)

FMC varies from 0.75 per cent to 1.25 per cent per year with a maximum cap of 1.35 per cent. There will be an additional charge of 0.25% p.a. towards the cost of investment guarantee for the Return Guarantee Fund

Policy administration charge and mortality charge

There would be a fixed Policy administration charge of Rs. 60 per month and it will be charged only during first three policy years

Mortality Charges are shown below

  Incentives

1. Maturity benefit

• Fund value is paid at the time of maturity.

2. Death benefit

The nominee will receive higher of Fund Value or basic sum assured.

3. Loyalty Additions 

A Loyalty Addition will be allocated at the end of every fifth policy year,
starting from the tenth policy year. The Loyalty Addition will depend on the
single premium amount as shown below

Loyalty Addition will be calculated on the average of the Fund Values on the
last day of eight policy quarters preceding the said allocation

Recommendations

·         For whom – Conservative investors willing to put money for one time and longer period

·         Risk – High Risk; maturity benefits linked to market returns

·         Investment horizon – 10-30 years

·         Returns –High as charges are low

·         Beats inflation – Yes, it will be able to beat inflation at an assumed growth rate of 10 per cent

·         Tax bracket – Preferable for all tax brackets

·         Alternatives – Mutual funds, PPF with term plan

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