Which unit linked plan provides guaranteed returns? ICICI Prudential Guaranteed Wealth Builder Plan does. This plan is a unit linked plan which provides market-linked returns while at the same time protecting your invested premiums against market volatility. The plan also accrues Loyalty Additions and Wealth Boosters which increase the overall Fund Value giving the highest returns.
Step 1 – the policyholder chooses the premium amount, plan term and the premium paying term. The Sum Assured is then calculated as per the age of the insured and the premium paying term.
Step 2 – the premiums paid by the policyholder are invested in two funds – Life Secure Fund and Life Growth Fund in a pre-determined ratio. This ratio depends on the age of the insured. Initially, a major proportion of the allocated premium is invested in the Life Growth Fund which gives high returns. As the policy approaches maturity, the funds are transferred systematically to Life Secure Fund which has lower risk to protect the returns from volatile markets. In the last years of the plan, a major portion of the Fund Value is in Life Secure Fund.
Step 3- in case of death during the plan term, the death benefit is paid.
Step 4 – if the insured survives the plan tenure, the maturity benefit is paid which is higher of the Fund Value + Loyalty Additions + Wealth Boosters or Assured Benefit.
Rohan, a 40-year old salaried employee, buys the plan with a premium of Rs.50, 000 and a Sum Assured of Rs.5 lakhs. He pays limited premiums for 5 years.
Option 1 – at first, 60% of the allocated premium of Rs.50, 000 is invested in Life Growth Fund in the first 4 years of the plan. From the 5th year, the Fund Value is systematically transferred every quarter to Life Secure Fund. In the 6th year, only 30% of the Fund Value remains in Life Growth Fund while the remaining is in Life Secure Fund. In the 7th and 8th year the allocation to Life Growth Fund reduces to 20% and in the last two years it becomes 10%.
Option 2 – in case of Rohan’s death, higher of Sum Assured, Fund Value or 105% of premiums paid till death is paid.
Option 3 – if the plan matures, the Fund Value is paid along with Loyalty Additions and Wealth Boosters. If the Assured Benefit is higher than the Fund Value, the Assured benefit is paid.
The Minimum Death Benefit is 105% of premiums paid till death.
The policyholder can take the maturity benefit in lump sum or in instalments in 5 years through Settlement Option.
|Age at entry (in completed years)||8 years||Limited premium - 60 years
Single premium – 70 years
|Age at maturity (in completed years)||18 years||Limited premium - 70 years
Single premium – 80 years
|Term of the plan||10 years|
|Premium paying options||Limited pay or Single Pay|
|Premium Paying term||Single premium – once
Limited premium – 5 years
|Annual premium amount||Limited premiums:
Annually - Rs.24,000
Other modes – Rs.48,000
|Sum Assured||Limited Premium:
If age is below 45 years –10 times the annual premium
Age 45 to 54 years –7 or 10 times the annual premium Age 55 to 60 years – 7 times the annual premium
Single Premium – 1.25 times the single premium
In case of suicide committed within 12 months of inception or revival of the plan, the available Fund Value and is paid to the nominee.
Increase or decrease in Sum Assured is allowed subject to certain terms and conditions which are as follows:
Premiums under the plan can be paid at once or for a limited tenure of 5 years. Limited premiums can be paid annually, half-yearly or monthly.
No, Assured Benefit is applicable only in case of maturity claims.
Loyalty Additions and Wealth Boosters are calculated as a percentage of the average Fund Value over the last eight quarters.
Surrender of the policy is allowed only after the first 5 policy years. If the policyholder surrenders the plan earlier, the Fund Value is transferred to the Discontinued Policy Fund and then paid at the end of the lock-in period of 5 years.