ICICI Pru Guaranteed Income For Tomorrow

Review: ICICI Pru Guaranteed Income For Tomorrow (GIFT)- Full Detail

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In this pandemic time, Life is simply not about enjoying but at the same time creating the best of memories with the family. However, life is uncertain and any eventuality never comes with prior notice. Thus, to safeguard family members against any eventuality the assurance of life cover is needed. At the same time, it is of utmost importance to plan for different life objectives such as the wedding, child education, retirement, and so forth.

ICICI Pru Guaranteed Income For Tomorrow (GIFT)

Life is full of unpredictable events. All our lives we work to ensure that our loved ones are secured and we have enough savings for unforeseen events. Recently ICICI Prudential has launched “Gift” plan which is an insurance cum investment plan. Guaranteed income for tomorrow (GIFT) by ICICI Prudential life insurance aims to provide coverage for these uncertain events as well as other important goals that require finances. This may include important events like marriage, education, or just a peaceful retirement.

What is ICICI Pru Guaranteed Income For Tomorrow (GIFT) all about? What are the pros and cons of this GIFT Plan from ICICI?

Can you opt this Gift Plan to get regular income?

What makes ICICI Pru Guaranteed Income For Tomorrow suitable for you?

  • Guaranteed Benefits in the form of a lump sum or regular income to match your needs
  • Option to receive guaranteed income from 2nd year onwards
  • Higher Benefits for women
  • Life Insurance Cover for financial security of your family
  • Get Guaranteed Income when you want it with Save the Date feature
  • Tax benefits may be applicable on premiums paid and benefits received as per the prevailing tax laws
  • Option of taking Loan against policy to help you in case of financial emergencies

Why ICICI Pru Guaranteed Income For Tomorrow?

  • Life insurance covers the financial safety of the family.
  • Guaranteed benefits in the form of regular income or a lump sum and enable one to save for the life objectives.
  • In case of any financial emergencies, the ICICI Pru Guaranteed Income For Tomorrow offers the option to take a loan.
  • With ‘Save the Date’ feature, avail the guaranteed income when needed.
  • From the second year onwards, an option to receive the guaranteed income.
  • The plan also offers higher benefits for women.
  • The tax benefits will apply to the paid premiums and the benefits received as per the existing tax laws.

ICICI Pru Guaranteed Income For Tomorrow Plan at a Glance

Plan OptionEntry Age (Minimum)Entry Age (Maximum)Maturity Age (Minimum/ Maximum)Premium Payment TermPolicy Term
Income18 minus the Policy Tenure60  18/7105 years06
07 years08
10 years11
Lump-sum6018/8005 years10, 12
06 years12
07 years12, 15
10 years15, 20
For the Sum Assured on Demise: 10X: 45 1.25X: 6018/ For the Sum Assured on Demise: 10X: 60 1.25X: 75One-time (Single Pay)05, 10 or 15
Single Pay IncomeFor the Sum Assured on Demise: 10X: 45 1.25X: 6018/ For the Sum Assured on Demise: 10X: 55 1.25X: 70One Time10
Early Income6018/ 7107  years08
10 years11

Note: For all the lives including the minor lives, the beginning of risk will be from the date the policy is accepted or issued, whichever is later. In case the life assured is minor the policy will not vest in the life assured’s name and when the person turns major within the policy tenure the benefits will continue to be paid to the policyholder. In case of demise of the policyholder, the legal heir will continue the policy.

The Premium Payment Frequency: Monthly, Single Pay, Half-yearly and Yearly

Minimum Premium

  • For the Option of Single Pay Income: Rs 1 lakh
  • For the Lump-sum Plan Options Single Pay: Rs 50,000
  • Other than the Single Pay: Rs 6,000 per annum
  • For the Option of Income and Early Income Plan: Rs 30,000 per annum

Maximum Premium: Unlimited

What is death benefit payable under this plan?

This plan provides survival benefit which we would discuss in subsequent paragraphs, it also provides death benefit i.e life insurance risk coverage.  This would be highest of the following:

1) Sum Assured on Death (10 times of the Annualized premium)

2) 105% of Total Premiums Paid up to the date of death

3) Sum Assured on Maturity X Death Benefit factor for Lump sum plan option

1) What is early income option in ICICI Pru Guaranteed Income For Tomorrow (GIFT)?

  • This policy has two types of income that can be opted by the policyholder other than the lump sum option.
  • One can choose 7 years or 10  years premium payment term (PPT).
  • Policy term would be PPT + 1.
  • Under this option, early income would start from the second year after the first premium payment has been done and continues till the time the last premium payment is done.
  • The amount received during this phase is referred to guaranteed early income and the amount received after the premium payment  is referred to as a guaranteed income.
  • Death benefit is payable in case of death of the policy holder.

Early Income Option explained with an example

Mr. Saurav, 35 year old male, paying an annual premium of Rs 1 lakh. He wants to create an alternate source of income for himself so that he can plan to retire early. Moreover, he wants some income to start off from the very next year to take care of his son’s school fees.

Premium Payment Term – 7 years

Pay for 7 years

Income from 2nd year till 8th year – Rs 20,000

Income from 8th year till 14th year – Rs 116,640

Premium Payment Term – 10 years

Pay for 10 years

Income from 2nd year till 11th year – Rs 25,000

Income from 11th  year till 20th year – Rs 132,321

Mr Saurav also have an option to get this money every month. In this case, he would get Rs 141,061 (higher amount) / 12 months = 11,755 every month for 10 years.

2) What is a lump sum option in ICICI Pru Guaranteed Income For Tomorrow (GIFT)?

The policy also offers a lump sum plan option under which the policyholder would pay premiums for a certain period and when the policy term ends, he or she would receive a guaranteed lump sum amount as stated in the policy.

What are the hidden factors in ICICI Pru GIFT Plan?

Here are some hidden factors.

1) If you stop paying premiums for two years, no benefits would be payable

2) In case of death due to suicide within 12 months, nominee would get only 80% of premiums paid.

3) These plans provide low returns of approx. 5.5% along with life insurance coverage.

Should you opt for ICICI Pru Guaranteed Income For Tomorrow (GIFT)?

ICICI Pru GIFT is a good option for those who have fixed goals and knows the approximate happening of a certain event. This can be related to the long-term goals of a child’s education, marriage, and retirement. The approximate returns are 5.5% + life insurance coverage, which is low. This plan is for low-risk investors who do not want to take risks from equity or mutual funds and willing to comprise with such guaranteed low returns.

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