A life insurance plan covers the insured against unforeseen incidents like accidental death or partial/permanent disability. With an increasing number of insurance providers in India, ICICI Prudential Life Insurance Company Limited has emerged as one of the dominant insurance companies. The company offers financial products with a customer-centric approach for long-term savings and protection. One such financial product is ICICI Pru Elite Life II insurance plan.
ICICI Prudential Elite Life II Insusrance Plan Details
What is ICICI Pru Elite Life II?
The ICICI Prudential Elite Life II Plan is a unit linked insurance plan that aims at providing a life cover along with helping you grow your wealth efficiently. The benefits you receive from the plan is based on the performance of the fund you have chosen.
Eligibility
| Parameters | Details |
| Entry Age | Min: 0 years
Max: i. Single Pay: 69 years ii. Regular Pay: 69 years iii. Limited Pay: 55 years |
| Maturity Age | Min: 18 years
Max: i. Single Pay: 79 years ii. Regular Pay: 79 years iii. Limited Pay: 75 years |
| Policy Term (PT) | Min: 10 years
Max: 30 years |
| Premium Paying Term (PPT) | Single Pay/ 5 Pay/ Equal to Policy Term |
| Premium Paying Frequency | Monthly/ Single
Bi-Annually Annually |
| Yearly Premium | Min: 2 lakh
Max: No limits |
| Sum Assured | Limited/ Regular Pay
Min: Higher of 10 annual premiums paid/ 0.5% of term annual premiums paid for policyholder below 45 years of age/ higher of 7 annual premiums paid/ 0.25% of term annual premiums paid for policyholder below 45 years of age. Max: As per the sum assured multiples Single Pay Min: 1.25 % of the single premium paid Max: 10 times the single premium paid for policyholder below 40 years age or 1.25% single premium paid for policyholder above 40 years age. |
Features
- You can pay the premiums for a limited term even as you enjoy the benefits of the entire policy term
- You can choose portfolio strategies from
- Fixed Portfolio Strategies
- Life Cycle based Portfolio Strategies
- You can avail loyalty additions and reduce fund management charges
- You can choose the level of protection as per your requirements
- You can avail wealth booster after the 10th policy year
- You get the freedom of making unlimited switches among the funding options
- Grace Period: If you fail to pay the premiums for the monthly mode or other modes, a grace period of 15 days and 30 days respectively is offered. If you do not pay the premium during this grace period, your policy will be terminated.
- Free Look Period: If the policyholder is not content with the policy’s terms and conditions, there is a provision wherein he/she can return the policy within the free look period of 15 days from the policy inception.
How Does ICICI Pru Elite Life II work?
- The ICICI Pru Elite Life II Insurance Plan needs the applicant to choose:
- premium to be paid to buy a policy
- premium payment term
- policy term
- Policy benefits are determined by these three factors, and so one needs to fill them up in the policy documents carefully.
- After finalizing the three options, the applicant needs to make the premium payment.
- The premium paid shall be invested in the fund option of your choice.
- Based on the returns earned by the chosen fund option, your investments will grow.
- On the maturity of the policy, the accrued sum value will be payable to the policyholder.
What are the Available Fund Options for ICICI Pru Elite Life II plan?
Depending on your investment preferences, 7 funding options are offered to you with this ULIP plan. You can choose one or more funding options based on your risk appetite. You can make unlimited switches from one fund to another without any additional charges. You also have an option to choose the Automatic Transfer Strategy, and the Lifecycle based Portfolio Strategy in case you do not wish to opt for the available funding options. Following are the 7 fund options provided with the plan:
- Blue Chip Fund
- Income Fund
- Maximizer V
- Money Market Fund
- Multi-Cap Balanced Fund
- Multi-Cap Growth Fund
- Opportunities fund
What is an Automatic Transfer Strategy?
In an automatic transfer strategy, all of your investment or part of your investment is set aside in the money market or the income fund. This investment is gradually transferred to any of the 7 funding options each month throughout the policy term.
What is a Lifecycle-based Portfolio Strategy?
In a lifestyle-based portfolio strategy, the investment is distributed in a fixed ratio between the income fund and the multi-cap growth fund on the basis of the policyholder’s age.
Riders available with ICICI Pru Elite Life II
Unit Linked Accidental Death Rider: One can get additional protection through this rider. As part of this plan, one can enjoy additional life cover similar to that of base ULIP plan. However, this is subject to maximum sum assured condition. The charge does not depend on age and is Rs 45 per annum for every Rs 1 lakh of Rider Sum Assured. Cancellation of units on a monthly basis is the method of paying for the rider.
On the unfortunate death of the policyholder during the term of the Accidental Death Rider, the nominee will get Rider Sum Assured along with the Sum Assured of the base policy.
Increase/Decrease of Sum Assured under ICICI Pru Elite Life II
You also have the option of increasing or decreasing the Sum Assured during the policy term. This can be done at any of the policy anniversaries. However, to avail this benefit, all due premiums till date should be paid. Some of the features under this facility are:
- Change in the Sum Assured will not affect the premium amount to be paid.
- The increase in Sum Assured depends on underwriting, before the policy anniversary on which the life assured is aged 60 years completed birthday.
- The option of decreasing the Sum Assured can be enjoyed with the minimum allowed amount under the given policy.
Benefits of ICICI Pru Elite Life II
Maturity Benefit
When the policy matures after the determined policy term, the accrued fund value is payable as a maturity benefit. You can choose the mode of receiving your maturity benefit in a lump sum or over a while. You can enhance your fund value in two ways, they are:
Loyalty Additions
From the 6th policy year, 0.30% is added annually to the fund value as a reward for long-term investment. This addition increases to 0.50% from the 11th policy year. Also, you can avail an additional 0.25% on premium payment during the year.
Wealth Boosters
From the 10th policy year,a 1.50% is added to the fund value after every 5 years.
Top Up
You can pay a higher premium payment to enhance your fund value. However, the minimum top up sum should be Rs. 2000.
Life Insurance Benefit
In the incident of the policyholder’s demise before the completion of the policy term, the designated nominee receives a lump-sum fund value known as the death benefit.
The death benefit is higher than the sum assured fund value, or 105% of the total premiums paid.
Partial Withdrawal Benefit
In case of immediate financial requirements, there is a facility to make partial withdrawals from the accumulated fund value. However, this is possible only after the 5th policy year wherein you can withdraw up to 20% of your fund value. But, you need to know that partial withdrawals can directly impact the assured sum value.
Surrender Benefit
After the completion of 5 policy years, the policyholder can choose to surrender the policy. If the policyholder opts to surrender the policy before the completion of 5 policy years, surrender charges will be deducted and transferred to the discontinued policy fund, and the rest amount will be payable to the policyholder. After the completion of 5 policy years, this deducted charge will be paid to the policyholder. If the policyholder opts to surrender the policy after 5 policy years, the entire fund value is payable.
What are the Exclusions of ICICI Pru Elite Life II?
On the death of the policyholder due to suicide within the 1st year of the inception of the policy, the existing fund value is payable including the top up. Any other additional increase in the assured sum will not be payable under the policy.
FAQs
Q1. What are the documents required for ICICI Prudential Life II Plan?
You need to submit regular KYC documents and address proof along with a simple application form.
Q2. What are the riders available with ICICI Pru Elite Life II Insurance Plan?
With this unit linked insurance plan, you get an income benefit rider wherein 10% of the assured sum value is paid to the policyholder on each policy anniversary until the policyholder’s death or the policy maturity.
Q3. What happens if I do not pay premiums after 5 policy years?
You have an option to surrender the policy after 5 policy years or pay off the premiums or choose to continue with the policy for the next two years. If no such actions are initiated from your part, the policy will be automatically surrendered.
Q4. What happens if I do not pay the premiums during the first five policy years?
You can choose to pay off the premiums or discontinue the policy. However, the discontinuation charges will be transferred to the discontinued policy fund. If no such actions are initiated from your part, the policy will be automatically converted to a discontinued policy.
Q5. Can the policyholder take a loan against this policy?
No. There is no availability of loan against your fund value provided with the ICICI Prudential Elite Life II Plan.