ICICI Pru Wealth Builder II Plan from ICICI Prudential is a savings oriented Unit Linked Insurance Plan (ULIP). This plan serves as financial protection for you, and your family in your absence. ICICI Prudential offers you multiple choices under this plan, along with providing you a life insurance cover. Under this plan, policyholders do not have the freedom to withdraw or surrender the amount invested in unit linked insurance products till the end of contract of five years. The ICICI Pru Wealth Builder II Plan helps you generate wealth for future use.
Under the ICICI Pru Wealth Builder II Plan, policyholders have the option to choose a portfolio strategy based on their requirements. There are two options:
When you apply for the ICICI Pru Wealth Builder II Plan, you are required to select the premium amount, premium payment option, and the Sum Assured. After which, you must choose the preferred portfolio strategy. Once your policy matures, you will get your maturity benefit as a lump sum or through settlement as a structured payout. In case of your demise during the policy term, your family receives the Death Benefit.
As the ICICI Pru Wealth Builder II Plan is a unit linked insurance plan, apart from Death Benefits, Maturity Benefit, it comes with Loyalty Additions and the flexibility to choose from multiple portfolio strategies. Given below are certain eligibility criteria that need to be met when applying for the ICICI Pru Wealth Builder II Plan:
|Type of plan||United Linked Insurance Plan|
|Minimum age at entry||0 years|
|Maximum age at entry||One Pay – 69 years Limited Pay – 55 years Regular Pay – 65 years|
|Minimum age at maturity||18 years|
|Maximum age at maturity||One Pay – 79 years Limited Pay – 69 years Regular Pay – 75 years|
|Premium payment term||Option||Term|
|One pay||Single Premium|
|Limited Pay||5, 7 or 10 years|
|Regular Pay||Equivalent to policy term|
The table given below indicates the sum assured, premium range, the frequency of payment, and the payment mode under the ICICI Pru Wealth Builder II Plan.
|Minimum Sum Assured||Entry age||Minimum Sum Assured|
|0 – 44 years||Higher of (10 X Annual Premium) and (0.5 X Policy term X Annual Premium)|
|45 years and above||Higher of (7 X Annual Premium) and (0.25 X Policy term X Annual Premium)|
|Maximum Sum Assured||As per Maximum Sum Assured Multiples depending on age|
|Minimum Premium||One Pay – Rs.48,000 Limited and Regular Pay – Rs.24,000 p.a.|
|Maximum Premium||No limit|
|Premium Payment Mode||Single, Yearly, Half-yearly, and Monthly|
|Premium Payment Option||Single, Limited, Regular|
|Policy Term||One Pay – 10 years|
|0 – 39 years||10, 15, 20, 25|
|40 – 54 years||10, 15|
|55 years and above||10|
*Premiums vary based on age, location, plan term and other factors
|Death Benefit||In the event of death of the insured, the nominee or the legal heir receives Death Benefit|
|Maturity Benefit||As a lump sum or as a structured payout, ,along with the Fund Value and its top-up, if any|
|Loyalty Additions||Allocated as extra units at the end of every policy year, starting from the sixth year|
|Wealth Boosters||Percentage of the average of Fund Values, including top-up Fund Value|
|Partial Withdrawal Benefit||Allowed, after completion of five policy years provided monies are not in Discontinued Policy (DP) Fund|
|Surrender Benefit||After surrender, monies are moved to DP Fund|
|Tax Benefit||Subject to conditions under Section 10 (10D) and Section 80C of the Income Tax Act, 1961|
|Choice of Portfolio Strategies||
|Multiple Fund Options||7 diverse funds to choose from|
|Protection Level||Choice of protection level|
Death Benefit: In case of death of Life Assured, the Death Benefit is paid to the nominee or legal heir.
Death Benefit is either the Sum Assured with the Top-up, or Fund Value including Top-up, or minimum Death Benefit, whichever is higher
For entry age below 50 years, Death Benefit is the Sum Assured including Top-up, or Fund Value including Top-up, or minimum Death Benefit, whichever is higher
For entry age at 50 years and above, Death Benefit is the Sum Assured including Top-up (Deducting applicable partial withdrawals), or Fund Value including Top-up, or minimum Death Benefit, whichever is higher
Minimum Death Benefit is 105% of the total premiums paid including Top-up premiums, if any.
Maturity Benefit: On maturity of policy, ICICI grants the Fund Value inclusive of the Top-up Fund Value. There is a choice of receiving the Maturity Benefit as a lump sum or as a payout using settlement option.
On choosing the settlement option, the following conditions are applicable:
Loyalty Additions: Under the Wealth Builder II Plan from ICICI Prudential, the policyholder avails Loyalty Additions in the form of extra units at the end of every policy year. Loyalty Additions are allocated at the end of sixth policy year, provided monies have not been moved to the DP Fund. Each unit is equal to 0.25% of the average of the Fund Values inclusive of the Top-up Fund Value, if any. All Loyalty Additions are allocated in proportion to the total units held in each fund.
Wealth Boosters: Under the plan, the policyholder gets extra units as Wealth Boosters at the end of every fifth policy year commencing at the end of the tenth policy year. Each unit is a percentage of the average of Fund Values inclusive of Top-up Fund Value, if any, as shown below:
Partial Withdrawal Benefit: Whichever policy strategy you choose, you can partially withdraw from the policy once five policy years are completed, provided monies are not places in the DP Fund. There is no limit on the number of partial withdrawals, however it should not be more than 20% of the Fund Value in a policy year. However, there are certain conditions for making partial withdrawals.
Surrender Benefit: If you wish to surrender your policy during the first five policy years, the Fund Value inclusive of the Top-up Fund Value is transferred to the DP Fund, after deduction of applicable Discontinuance Charge.
Portfolio Strategies: There are two types of portfolio strategies to choose from:
|Fund Name||Risk-Reward Profile|
|Multi Cap Growth Fund||High|
|Multi Cap Balanced Fund||Moderate|
|Money Market Fund||Low|
|Age of Policyholder||Multi Cap Growth Fund||Income Fund|
|Up to 25 years||85%||15%|
|26 – 35||75%||25%|
|36 – 45||65%||35%|
|46 – 55||55%||45%|
|56 – 65||45%||55%|
|66 – 80||35%||65%|
Unit Linked Accidental Death Rider: Under the ICICI Pru Wealth Builder II Plan, the policyholder can opt for additional protection through riders. ICICI Prudential allows you to take up a Unit Linked Accidental Death Rider, under which you can get additional life cover similar to that of the base ULIP plan, subject to maximum Sum Assured conditions. The charge for adding on the rider is deducted by cancelling units on a monthly basis.
Top-up: Under this policy, the policyholder can invest any surplus money as Top-up, in addition to the base premiums. However, the minimum Top-up premium is Rs.2,000 and can be paid at any time in the last five years of the policy term, provided all due premiums have been paid.
There are certain charges that are levied on the policyholder of the ICICI Pru Wealth Builder II Plan, they are:
|Policy year/Premium Payment Mode||Year 1||Year 2||Year 3||Year 4 - 5||Year 6 onwards|
|Half-yearly or Monthly||4%||4%||3.5%||3%||2%|
All Top-up premiums are subject to a 2% allocation charge.
|Policy Discontinuance Year||Charges|
|1||Lower of 1% of (SP or FV), subject to a maximum of Rs.6,000|
|2||Lower of 0.5% of (SP or FV), subject to a maximum of Rs.5,000|
|3||Lower of 0.25% of (SP or FV), subject to a maximum of Rs.4,000|
|4||Lower of 0.1% of (SP or FV), subject to a maximum of Rs.2,000|
|5 and above||None|
Limited and Regular Pay
|Policy Discontinuance Year||Charges|
|Annual Premium equal or less than Rs.25,000||Annual Premium above Rs.25,000|
|1||Lower of 20% of (AP or FV), subject to a maximum of Rs.3,000||Lower of 6% (AP or FV), subject to a maximum of Rs.6,000|
|2||Lower of 15% of (AP or FV), subject to a maximum of Rs.2,000||Lower of 4% of (AP or FV), subject to a maximum of Rs.5,000|
|3||Lower of 10% of (AP or FV), subject to a maximum of Rs.1,500||Lower of 3% of (AP or FV), subject to a maximum of Rs.4,000|
|4||Lower of 5% of (AP or FV), subject to a maximum of Rs.1000||Lower of 2% of (AP or FV), subject to a maximum of Rs.2,000|
|5 and above||None||None|
AP: Annualised Premium
SP: Single Premium
FV: Fund Value including Top-up Fund Value
Indicative annual charges per thousand life cover for a healthy male and female at a Sum Assured amount of Rs.10 lakh is:
|Age||30 years||40 years||50 years||60 years|
Suicide Exclusion: Under the ICICI Pru Wealth Builder II Plan, if the Life Assured commits suicide despite being either sane or insane, within a year from the policy’s commencement date or policy revival, the policy is considered void and is thereby terminated. Only the Fund Value along with the Top-up Fund Value, if any, as available on the date of demise, is payable. If the Life Assured, whether sane or insane, commits suicide within one year from the effective date of increase in Sum Assured, then the increased amount is not considered while calculating the Death Benefit.
|Grace Period||Monthly mode – 15 days Other modes – 30 days|
Applicable only for Limited Pay and Regular Pay Policies Two options:
The ICICI Pru Wealth Builder II Plan helps you avail some tax benefits, while availing a protection through this plan.
ICICI Prudential allows you to avail many other benefits through their registered website. You can connect with the customer care by filling in an online form with personal information and requesting a call back from the company. Through the website, you can also connect with financial advisors who will guide you about which plan to choose or which policy is best suited for you. Important information such as brochures and leaflets of policies are available online for download. If you are planning to purchase the ICICI Pru Wealth Builder II Plan, you can avail the following benefits:
ICICI Prudential Life offers a wide range of financial products in a variety of sectors ranging from investment, to savings, to protection. The company has a robust customer base owing to its cost-effective initiatives, superior quality of services, consistent fund performance, and hassle-free settlement. The company operates on four key values – Passion, Customer focus, Integrity, Humility, and Boundaryless, thereby making it a trustworthy company to purchase a policy from.
A. The minimum Top-up Premium allowed under the ICICI Pru Wealth Builder II Plan is Rs.2,000.
A. Yes, you can change your portfolio strategy once very policy year. There is no charge levied for making this change. It is referred to as CIPS (Change in Portfolio Strategy) and any unutilised CIPS cannot be forwarded to the next policy year.
A. Yes, you can increase or decrease your Sum Assured during your policy term at any policy anniversary, provided all premiums have been paid on the due date. However, there are certain terms and conditions to be followed for the change.
A. You can increase your Premium Payment Term by informing ICICI Prudential. This change is possible only if you have paid all your premiums on time for a minimum of five years. The increase should always be in multiples of one year.
A. If you are unable to pay your premium within the grace period, ICICI Prudential sends you a notice within 15 days from the date of expiry of grace period. You are then given a notice period of 30 days from receipt of such a notice to choose between two options, they are:
· If the pay the overdue premiums within the notice period and continue the policy, the policy will continues as is with risk cover, charges, and benefits as per the policy’s terms and conditions.
· If you discontinue the policy by moving the monies to the DP Fund, Fund Value including Top-up, if any is credited to the DP Fund, after deducting applicable Discontinuance Charge.
A. No, there are no loan options available under the ICICI Pru Wealth Builder II Plan.
A. Yes, in exceptional cases such as unusually high volume of sale of investments in a short span of time, market conditions, exceptional redemption, or any political or economic ‘Force Majeure’ conditions, partial withdrawal of units may be deferred until normality returns, based on directions from IRDAI.
A. Under this policy, the Life Assured can assign a nominee under Section 39 of the Insurance Act, 1938, at any time before the policy termination or maturity. If the nominee is a minor, the policyholder can also assign an appointee, who receives the money in place of the minor.
A. Yes, the company charges a FMC, which is adjusted from the NAV on a daily basis. The charge is a percentage of the Fund Value.
A. You can only switch between funds based on your investment plan and financial priorities, provided you choose the Fixed Portfolio Strategy and the minimum value of a switch is Rs.2,000 at the time of the switch.