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Knowledge Base Life Insurance Investment / Pension ICICI Pru LifeStage Wealth II Plan Review
Tuesday, 15 March 2011 18:41

ICICI Pru LifeStage Wealth II Plan Review

Written by  Yashish Dahiya
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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 The fund will be invested in the same method and can be withdrawn any time.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?

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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:

wealth_II

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?

get_quote
24 comments
  • Comment Link seema tiwari Wednesday, 20 July 2011 17:55 posted by seema tiwari

    i want to cancel this policy. my policy no is 15749524 and application no is LL43391184 for icici Pru life stage wealth ii

  • Comment Link Administrator Thursday, 21 July 2011 15:44 posted by Administrator

    Hi Seema
    You have to visit any of ICICI Pru branch with policy documents and wriiten application for the same to cancel the policy.

  • Comment Link caroline Elias Gracias Thursday, 28 July 2011 12:37 posted by caroline Elias Gracias

    I am investing a sip of 4000/- in icici pru lifestage wealth II plan from Jan 2011 onwards. How long should i invest in this plan. I would like to know how much will i get after 7 or 10 yrs

  • Comment Link Administrator Friday, 29 July 2011 10:10 posted by Administrator

    Hi Caroline
    There are many factors like your age, investment fund chosen that will determine maturity amount. If you have chosen equity fund, return will depend on stock market over the period. You can find out expected maturity amount from the following link:

    http://loginassistant.iciciprulife.com/admin/inputpage.aspx

  • Comment Link rajneet Thursday, 25 August 2011 15:59 posted by rajneet

    I am new to SIP plans. kindly advise about life wealth stage 2 plan. Is this a good SIP.

  • Comment Link Administrator Thursday, 25 August 2011 18:42 posted by Administrator

    Hi Rajneet
    Can you kindly tell us your requirements. For example- are you looking for short 10 year term or longer 25 year term, the amount you want to invest, do you require comprehensive death benefit?

    Life Stage Wealth II is a good plan which has many features- you get flexible premium payment term, you get loyalty additions, comprehensive death cover and charges are low as well.

  • Comment Link Anand Vardhan Thursday, 08 September 2011 01:49 posted by Anand Vardhan

    Which ULIP pension plan is best plan in terms of return?

  • Comment Link Administrator Thursday, 08 September 2011 10:14 posted by Administrator

    The returns are directly dependent on equity market. You can check the fund performance of the preferred insurer to gauge the returns. Though fund performance would not guarantee similar future trend, it does give you a fair idea.

  • Comment Link Jagdish More Friday, 16 September 2011 18:55 posted by Jagdish More

    HI,
    This is jagdish.I have just now taken this policy.Can any body give me opinion about to hold or quit?

  • Comment Link Administrator Monday, 19 September 2011 11:38 posted by Administrator

    Hi Jagdish
    ICICI Pru LifeStage Wealth II is a nice ULIP with low charges and loyalty additions. You should continue till the end of the policy term to derive maximum benefits.

  • Comment Link Abu Saturday, 01 October 2011 02:57 posted by Abu

    hi,

    i would like to invest in life stage wealth 2, yearly payement would be 30k, what will be the returns if i want to quit after 10 years from now

    what will be the minimum yearly premium if i want to pay for 5 years

    Abu

  • Comment Link jasu Tuesday, 11 October 2011 04:01 posted by jasu

    I have paid one premium for this policy of Rs. 50000. now i want to cancel this policy. how much amount will i get if i withdraw this policy?

  • Comment Link Ashwani Thursday, 29 December 2011 20:08 posted by Ashwani

    Hi,

    I am 26 yrs old. I am planning to buy a retirement plan(around 30 yrs of policy). Planning to invest Rs 30000 per year. Please advice me about this plan. Also in comparison to Birla Sun Life Vision which is better?

  • Comment Link Sanjiv Wednesday, 01 February 2012 12:42 posted by Sanjiv

    I am 29 year old & looking for a corpus value of Rs 1 Cr at the end of 30 years. The premium for LSW-II is coming around Rs 75,000 pa for 30 years. But i am confused whther to opt for 25 year period or 30 year period. can you suggest?

  • Comment Link Administrator Wednesday, 01 February 2012 18:40 posted by Administrator

    Hi Sanjiv It depends on at what age you want the maturity amount. You also have the option of going for 25 year plan and then choosing settlement option which basically means your amount will remain invested for certain period in the same manner as before but without the life cover. The investment risk will be borne by you.

  • Comment Link Administrator Thursday, 02 February 2012 18:58 posted by Administrator

    Hi Ashwani
    ICICI LifeStage Wealth II is market linked plan where returns are based on performance of markets. Birla Sun Life Vision is a whole life traditional plan. The two plans are pretty different as one is unit linked insurance plan and other is traditional endowment plan.

  • Comment Link Naga Wednesday, 02 May 2012 17:53 posted by Naga

    I have invested in this. Dont go for this. Fund performance is not good. see icici pru website regarding the performance. even I dont have my principal amount now

  • Comment Link Partha Paul Thursday, 17 May 2012 20:05 posted by Partha Paul

    Moreover Guy please be aware.....The charges are very very high. Agent will tell you no allocation charge from 2nd year onwards, but what they won't tell you is a huge administration charge.

  • Comment Link Harsha Monday, 04 June 2012 15:01 posted by Harsha

    I am paying monthly premium amount of 5000 for the last 3 months. Now i want to cancel the plan. Please tel em what is the procedure.
    Will i get my money immediately after cancelling the policy or do i need to wait for some time?

    What if i stop paying the premium amount every month.

  • Comment Link denesh Saturday, 15 September 2012 12:39 posted by denesh

    Harsh is absolutely right, its a bogus plan , even i have this policy from last 3 years and my fund value is less than principal amount .

  • Comment Link Raman Monday, 01 October 2012 19:13 posted by Raman

    Hi
    I would like to know whether an NRI is eligible for this policy .
    ICICI Pru LifeStage Wealth II Plan.

  • Comment Link Administrator Thursday, 04 October 2012 10:53 posted by Administrator

    Hi Raman
    NRI can apply for ICICI Pru LifeStage Wealth II provided if they have residential proof of India. They also need to visit India to apply for the plan.

  • Comment Link Pramod Wednesday, 07 November 2012 15:36 posted by Pramod

    I have taken this policy as the agent told me that it also a pension plan. But no where in the document it is mentioned as pension plan. Please let me know if this plan also has an pension option

  • Comment Link James Friday, 22 February 2013 12:55 posted by James

    Do not invest in ULIP's my friend. Anyone who advices is financially ignorant. Sorry to be so frank. Your money is better put in a bank FD or mutual funds. If you are looking for life insurance.. just get a simple life insurance. If you are looking for investing money ULIP is not the place. ULIPs are poorly designed systems, its frustrating and inefficient.

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