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As the name suggests, Wealth Builder II is a wealth maximizing unit linked plan offered by ICICI Prudential Life Insurance Company. The plan offers dual investment strategies. The policyholder can choose a strategy for his funds to be managed by the company or he can manage his investments himself. There are three choices of premium payments – single, regular or limited. Loyalty benefits are also added to the plan and the policyholder can also choose the level of protection as per his requirement.
Step 1 – the policyholder chooses the premium amount, plan term and the premium paying term. The minimum and maximum Sum Assured is then calculated using the age of the insured and the plan term. The policyholder can choose any Sum Assured from the minimum and maximum range.
Step 2 – the policyholder also chooses the investment strategy. There are 2 strategies which are as follows:
Step 3 – the policyholder can make partial withdrawals or switch his investments if Fixed Portfolio Strategy is chosen.
Step 4 – top-ups can be done to increase the investment in a chosen fund.
Step 5 – in case of death during the plan term, the death benefit is paid.
Step 6 – if the insured survives the plan tenure, the maturity benefit is paid.
Rahim, a 40-year old salried employee, buys Wealth Builder II with a premium of Rs.50, 000 and a Sum Assured of Rs.5 lakhs. He pays regular premiums for his policies.
Option 1 – He opts for Fixed Portfolio Strategy and allocates 100% of the premiums in Blue Chip Fund. In case of death during the tenure, the death benefit would be paid to the nominee which would be the Sum Assured and the Fund Value since Rahim was below 50 years of age when he bought the policy. If, however, Rahim survives the plan tenure, the Fund Value is paid on maturity which Rahim can take in lump sum or instalments over 5 years.
Option 2 – He chooses Life cycle Based Portfolio Strategy. The allocated premium is invested in Multi-Cap Growth Fund and Income Fund in the ratio 65%: 35% depending on Rahim’s age. Every time Rahim’s age band changes the fund moves from equity-oriented funds to Income Fund. On death, the Sum Assured plus Fund Value is paid. If, however, Rahim survives the plan tenure, the Fund Value is paid on maturity which Rahim can take in lump sum or instalments over 5 years.
Rahim can make partial withdrawals, switch between funds and also pay top-up premiums during the plan tenure.
The Minimum Death Benefit is 105% of premiums paid till death.
|Age at entry (in completed years)||0 year||Single premium – 69 years
Limited premium – 55 years
Regular premium – 65 years
|Age at maturity (in completed years)||18 years||Single premium – 79 years
Limited premium –69 years
Regular premium – 75 years
|Term of the plan||Regular or limited premium:
Ages 0-39 years – 10,15,20,25 years
Ages 40-54 years – 10,15 years
Ages 55 years and above – 10 years
Single premium – 10 years
|Premium paying options||Regular pay, limited pay or Single Pay|
|Premium Paying term||Regular premium - Equal to plan term
Single premium – once
Limited premium – 5,7,10 years
|Annual premium amount||Regular or limited premiums:
|Sum Assured||Regular or Limited Premium:
If age is below 45 years – higher of 10 times the annual premium or 0.5*term*annual premium
If age is 45 years and above – higher of 7 times the annual premium or 0.25*term*annual premium
Single Premium – 1.25 times the single premium
As per age related multiples
If age is up to 33 years – 10 times the single premium
If age is 34 years and above – 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 any top-up premium Fund Value is paid.