ICICI Pru Ulip To Invest More From Your Premium (10-Mar-2010)
ICICI Prudential Life Insurance Co. Ltd launched one of the cheapest unit-linked insurance policies (Ulip) available in the market.
Its new policy namely ICICI Pru Ace, does not have a premium allocation charge, which gets deducted from the premium in case of other Ulips.
Meanwhile, a zero premium allocation charge means that ICICI Pru Ace will invest a larger portion of your premium in the market.
Sample this: For a 30-year-old male investing Rs1 lakh every year for a term of 20 years, the plan will return Rs54.74 lakh assuming the fund grows at 10%.
This is a return of 9% after accounting for all other costs.
However, the new Ulip charges a policy administration charge of Rs60 per month besides the mortality charges.
It has a fund management charge ranging between 0.75% and 1.35% of the fund value.
Moreover, there are two ways to invest your money through this Ulip, firstly is fixed allocation, where you choose the funds in which the plan will invest.
Here, you have a choice of eight funds that range from pure equity to pre debt funds.
Secondly, the trigger portfolio strategy that works on the principal of buy low, sell high.
This strategy is basically a capital guarantee feature that maintains a constant equity-debt ratio of 75:25.
Therefore, every time the stock market increases, your portfolio allocation will be readjusted to maintain the 75:25 ratios, meaning your fund will shift more towards the debt allocation by selling high.
Similarly, every time the stock market goes down, the funds would move towards equity to buy low while a 15% downward or upward movement will trigger the portfolio allocation.
To encourage you to stick through the term, the Ulip also offers loyalty additions after the 10th year, which will be disbursed every five years.
The loyalty additions would be equal to 2.5% of the fund value while a miss a single premium and you wouldn''t get the loyalty additions.
Another attractive feature is that the insurer will contribute 2% of the premium to your installment after the sixth year.
You need to pay a minimum regular premium of Rs18,000 and the term is 10-30 years.
Earlier, ICICI Prudential Life Insurance has reported a Rs 7-crore profit in Q3 of FY10.
This marks an end to nearly a decade of losses during which promoters infused around Rs 4,500 crore to build a pan-Indian insurance business.
As there are several years of accumulated losses, the company is still far from break-even.
Previously, it was said that an investment arm of ICICI Prudential plans to acquire 40% stake in a residential project of the Ansal API group in Ghaziabad while the investment could be over Rs 100 crore.
The residential project is part of Ansal API''s township project, Aquapolis.
The project will be hived off into a joint venture in which Ansal Landmard, a group company of Ansal API, and an investment arm of ICICI Pru will be partners.
In addition, it was said that XLRI School of Business & Human Resources has been conveying a one-year insurance-specific post-graduate program in management & insurance (PGPMI) course for ICICI Prudential Life Insurance Company.
Meanwhile, ICICI Prudential Life Insurance launched a product that helps customers book profits made in the equity market and protect them from any future market volatility.
The product ''ICICI Prudential LifeTime Maxima'' is a wealth solution based on the ''Trigger Portfolio'' strategy.
Moreover, on 3rd December, India Post entered into a tie up with ICICI Prudential Life Insurance Company. The India Post is aiming to expand its services portfolio to customers.
The Chief Post Master General of West Bengal circle of India Post Rameshwari Handa said that 47 head post offices across the state would distribute different products of ICICI Prudential Life, as per the agreement.
ICICI Prudential is a joint venture between ICICI Bank and Prudential plc engaged in the business of life insurance in India. ICICI Prudential is the largest private insurance company and second largest insurance in India after LIC.
ICICI Prudential was amongst the first private sector insurance companies to begin operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA).
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