ICICI Pru LifeStage Wealth II Review
Plan Name: LifeStage Wealth II
Insurer: ICICI Pru Life Insurance Company Limited
Category: Unit Linked Insurance Plan
Objective: Financial protection of family and good return on investment.
Major USP of LifeStage Wealth II:
- Multiple investment management strategies
- Flexible premium payment term.
- Loyalty Additions
Eligibility of LifeStage Wealth II
Minimum Entry Age – 7 Years
Maximum Entry Age - 65 Years
Minimum Age at Maturity-18 Years
Maximum Age at Maturity 75 Years
Policy Term – 10, 15,20,25,30 Years
Premium Options in LifeStage Wealth II
Minimum Regular Premium: For regular pay Rs 24,000 per annum
For premium paying term 5 Years: Rs 48,000 per annum
For premium paying term 7 Years: Rs 36,000 per annum
For premium paying term 10 Years: Rs 24,000 per annum
Minimum Premium Paying Term- 5 Years
Maximum Premium Paying Term- Policy Term
Life Cover in LifeStage Wealth II
Minimum Sum Assured for age at entry below 45 years – Higher of 10 times of Annual Premium and (0.5xpolicy term x annual premium).
Minimum Sum Assured for age at entry 45 and above – Higher of 7 times Annual Premium and (0.25 x policy term x annual premium).
What benefits does LifeStage Wealth II offer?
Death benefit: In case the Life Assured passes away during the policy term, the beneficiary will receive Sum Assured and Fund Value.
Maturity Benefit: The fund value as a lump sum is paid to the policyholder.
Flexibility in Premium Payment Term: Either you can opt for regular premium payment or limited pay of five years.
Loyalty Additions: A bonus of 2% of average fund value is added to your fund at the end of 10th year. From 11th year, 0.75% of average fund value is added every year till the end of term. In case of limited pay, 0.5% is added every year.
Settlement Option: Instead of taking maturity amount, you can opt for partial payments which will be paid over period of one to five years. The fund will be invested in the same method and can be withdrawn any time.
Flexible Sum Assured: If you feel that Sum Assured is too high or too low, it can be changed at policy anniversary.
How is my money invested in LifeStage Wealth II? What’s the risk?
ICICI Pru LifeStage Wealth II gives you multiple options to manage your investment:
Fixed Portfolio Strategy: You can choose any of the following eight funds where you want your investment to be allocated and you can anytime switch between funds. The funds available are:
1. Opportunities Fund
2. Multi Cap Growth Fund
3. Bluechip Fund
4. Multi Cap Balanced Fund
5. Income Fund
6. Money Market Fund
7. Return Guarantee Fund
8. Dynamic P/E Fund
Fixed Portfolio Strategy has integrated feature- Automatic Transfer Strategy (ATS) when you can direct chosen monthly amount in one of the funds.
Trigger Portfolio Strategy: The investment is managed as per fixed mechanism. The funds are divided in 75:25 proportion in equity oriented and debt oriented fund respectively. Any gain received is automatically moved in safe fund.
Life Cycle Based Portfolio Strategy: This strategy is based on age. In early stage, major proportion of premium is kept in equity oriented fund. As age increases, the proportion is increased gradually in debt oriented fund to minimize the risks as policy moves towards maturity.
The investment risk is borne by the policyholder.
Compare Returns in Investment Plans!!
How much will you get?
What will be my returns from LifeStage Wealth II?
The important question that customer wants answered is “What will be my gain in LifeStage Wealth II?” Let us take an example:
Nitin aged 30 invests Rs 30,000 for policy term of 20 years. He gets insurance cover of 300,000.
Assume fund value after four years is Rs 2 lacs
Death Benefit: If Ajay passes away after four years, his wife will get both Sum Assured and fund value.
In this case, Rs 500,000 will be given to his wife.
Maturity Benefit: The returns that Ajay will make by investing Rs 18,000 in LifeStage Wealth II can be seen graphically:
He gives in total amount of Rs 600,000 to ICICI Pru. At maturity, assuming growth of 10% the amount he will receive is approximately Rs 1,534,821. The maturity amount could be more depending on the money market scenario. Longer terms typically provide good returns.
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 charges does ICICI Pru LifeStage Wealth II deduct and how much?
Premium Allocation Charges: These charges are deducted as percentage of premium. Insurer deducts these charges on account of expenses incurred by the company – medical examination, policy issuance, underwriting bills. Premium allocation charge is deducted only in 1st year which is 2%.
Fund Management Charge: The annual charges for money market fund is 0.75%, return guarantee fund is 1.25% while the rest of fund have charges of 1.35%.
Policy Administration Charge: These are monthly deductions which start from first month and are for maintaining the policy- paperwork, work force etc. The charge is 0.47% and is from first year to premium payment term.
Mortality Charge: These are charges deducted as a part of life cover provided and are recovered through cancellation of units.
What else should I know about?
Top-Up premium: This is the additional premium which can be added above the usual premium to get more units if you think the particular fund is providing good returns. Top-Up can be made after 1st policy year and not in last 5 policy years. The minimum Top-Up in LifeStage Wealth II is Rs 2,000.
Switch: Switch is made to transfer the fund value from one fund to another. You can make four switches per year and additional switches can be made by paying Rs 100.
Partial Withdrawal: If policyholder is above 18 years and the minimum amount is Rs 2000 and maximum amount is 20% of fund value. One partial withdrawal is free per year.
Grace period: LifeStage Wealth II can be renewed within 30 days from the premium due date. Additional 30 days are given after notice has been sent to revive or discontinue the policy.
Free Look Period: LifeStage Wealth II 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 LifeStage Wealth II?
Policybazaar representatives will assist you in buying LifeStage Wealth II.
What’s Policybazaar opinion on LifeStage Wealth II?
LifeStage Wealth II is a very good ULIP plan which has low charges. There are many investment options in LifeStage Wealth II and you can choose anyone and shift to another whenever you want. Loyalty bonuses get added regularly which does increase the maturity amount.
Compare Returns in Investment Plans!!
How much will you get?