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Knowledge Base Life Insurance Guaranteed Plan ICICI Pru Guaranteed Savings Insurance Plan (GSIP) Review
Tuesday, 04 October 2011 18:02

ICICI Pru Guaranteed Savings Insurance Plan (GSIP) Review

Written by  Yashish Dahiya
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ICICI Pru Guaranteed Savings Insurance Plan (GSIP) Review


Plan Name: Guaranteed Savings Insurance Plan

Insurer: ICICI Pru Insurance Company Limited

Category: Traditional Plan

Objective: Financial protection of family and returns on investment

 

Major USP of ICICI Pru Guaranteed Savings Insurance Plan


Guaranteed  Benefits

Loan available


Eligibility of ICICI Pru Guaranteed Savings Insurance Plan


Minimum Entry Age: 0 Years

Maximum Entry Age: 60 Years

Maximum Age at Maturity: 75 Years

Policy Term:  15, 20 Years

Premium Payment Term: 7, 10 Years

Minimum Premium: Rs 12,000 per annum

Premium Payment Mode: Yearly, Half Yearly or Monthly


What benefits does ICICI Pru IAssure offer?


Death benefit:

In case of unfortunate death of the life insured, guaranteed death benefit which is equal to sum of all premiums paid till date compounded at the rate of 5% per annum.


Maturity Benefit:

At the end of policy term, Sum Assured (equal to all premiums paid), regular additions and maturity additions will be paid.


Loans:

You can apply for loans against the policy. You can get maximum of 80% of the surrender value.


Are there any tax benefits?


Under Section 80C you can avail tax benefit, yearly premium (not more than 1lac) will be deducted from taxable income.

Under Section 10(10D) death claim is completely tax free.


What else should I know about?


Surrender Value: You can surrender the policy after 1st policy year. The guaranteed surrender value will be equivalent to 35% of all premiums paid less the first years’ premium.


Free Look Period: GSIP plan can be cancelled within 15 days of receiving the policy contract. A written application can be submitted to any branch for the same. The premium will be paid back minus some charges like stamp duty, medical reports.


How can I buy ICICI Pru Guaranteed Savings Insurance Plan?


Policybazaar representatives will assist you in buying Guaranteed Savings Insurance Plan.

 

Compare Returns in Guaranteed Plans!!

How much will you get?

get_quote

 

 

 

 

 

6 comments
  • Comment Link santosh Saturday, 08 October 2011 09:40 posted by santosh

    which one is better...Aviva Dhan Varsha Review or ICICI Pru Guaranteed Savings Insurance Plan (GSIP) Review ?

  • Comment Link Administrator Monday, 10 October 2011 11:44 posted by Administrator

    Hi Santosh
    Aviva Dhan Varsha provides guaranteed additions and you can opt for riders with it as well. ICICI Pru GSIP provides loan facility which is not available with Aviva Dhan Varsha.

  • Comment Link rviswawt Friday, 10 February 2012 17:53 posted by rviswawt

    I feel I have wrongly selected this ICICI gurantee saving insurance plan policy. I am still continuing it. If i discontinue in the middle I have lose huge money. I am paying monthly Rs10,000. People will always think positive and expect the high returns at the end of 15th or 20th years.. good if you are getting it.. There are other sides of this policy tooo.. If the policy holders passed away in the middle (ie before 15/20 years) Did you know how much the nominee will receive? he/she will receive only the Sum assured with 5% interest. no extra benefits/bonus.

    To get the entire benefit this policy, policy holder should survive for 15years in the case of 7 years premium paying term or 20 years if the premium paying term is 10 years.

    great risky policy ...

  • Comment Link Vikram Monday, 13 February 2012 15:10 posted by Vikram

    In my personal opinion it’s a waste. May be a simple FD will give you better.

    1. This is no insurance. In case of claim, only the amount you paid and 5% compounded interest. If you make FD you will get better even after paying taxes its 6.219% compounded on amount paid.
    Get a Guaranteed Death Benefit (GDB) (Conditions Apply ) which is sum
    of all premiums paid till date compounded at the rate of 5 percent per
    annum
    2. They say FD rate can go down. So is their regular addition (which they don’t tell, and project is as high and constant). I will assume mostly they will go up and down with same rate.
    Regular Additions (RA)
    This guaranteed addition, expressed as a percentage of the SA, will
    be declared at the beginning of every policy year

    Regular Addition (RA): The RA will accrue at the end of each policy
    year. It will be disclosed at the start of that policy year. The RA shall be
    calculated as percentage of the SA. This percentage is guaranteed to be
    50% of the annualised gross redemption yield (GRY) of the 10-year G-Sec,
    rounded down to the lower 0.2%,as at the Review Date immediately
    preceding the start of the policy year. The Review Date shall be the 7th of
    the first month of every quarter. In case the 7th is not a working day, the
    GRY of the next working day shall be considered for this purpose.

    According to their projection if I pay 1L premium per year (i.e. 7L in total) I will just above 14L after 15Yrs (suggested by their agent to whom I met recently). Here they assumed constant 4.5% addition (i.e. 9% return on G-Sec which is on higher side for G-sec) (In Dec’11 actual rate of RA was 4.3%). I am sure if FD rates are going down then surely will be returns of 10 Yr G-sec so will be RA of GSIP.

    So to make it apple to apple I will assume constant FD rate of 9% (30.9% tax each year so effective rate of 6.219% after tax adjustments). Let’s say we put 1L for 7 Yr and take out all money at end of 15Yrs.
    1L invested for 15Yr @6.219%compounded ~= 2.47L
    1L invested for 14Yr @6.219%compounded ~= 2.33L
    1L invested for 13Yr @6.219%compounded ~= 2.19L
    1L invested for 12Yr @6.219%compounded ~= 2.06L
    1L invested for 11Yr @6.219%compounded ~= 1.94L
    1L invested for 10Yr @6.219%compounded ~= 1.83L
    1L invested for 9Yr @6.219%compounded ~= 1.72L

    Total after 15Yrs 14.54L with all taxes paid for FD.

    Other benefits of FD over GSIP:
    1. No hard commitment. If you have more than 1L put it more. If you don’t have no loss like in GSIP where not paying premium will attract penalty/deductions.
    2. If you want money before 15 Yrs (I am adding this point as its not insurance, you are only covered with amount that you paid), in GSIP there will be deductions from what you paid but in FD you will get it all.
    3. After DTC tax don’t know how much will be tax benefit for payout as sum assured is only (max) 7x of annual premium.
    4. Only guarantee made is RA is 50% of 10Yr GSec. No guarantee on how much maturity addition, just addition a high amount to artificially show returns higher.

    I am not saying FD is very good investment instrument, but from calculations and other terms it seems GSIP is surely not better than FD by any angle.

    Disclaimer: This is my personal opinion and calculation sharing with you. Use your own judgment. If I missed any point and mistake in calculation here please let me know, I will also love to invest in better plans ;-). I used the terms & conditions defined in their policy brochure at http://www.iciciprulife.com/public/Brochures/GSIP_brochure_FINAL.pdf

  • Comment Link Rahul Saturday, 18 February 2012 14:25 posted by Rahul

    Just Curious..If I want to cancel this plan now and not suffer any loss or suffer minimal loss what should be done?

  • Comment Link djrocks4u Saturday, 12 January 2013 01:00 posted by djrocks4u

    Dear Rvisawant,
    just wanted to mention a point.. that in GSIP insurance cover is given which is 10 times of premium paid, means in case of death of policy holder paying 1 lac premium, nominee will get 10 lacs as a death benefit. So this is just a additional benefit available over FD.

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