A ULIP with an extraordinarily low charge structure
Additional allocation of units and loyalty additions to reward long term customers; Launches Dynamic P/E Fund that uses reference to price-earning multiple of NIFTY 50; 100% allocation of the customer’s funds at the time of premium payment.
ICICI Prudential Life Insurance Company Ltd (ICICI Prudential Life) today announced the launch of ICICI Pru ACE – an extremely low charge, wealth creation product that offers the best value for the customer’s hard earned money. The extremely low charge structure of the product ensures that the customer gets an unbeatable rate of return over the tenure of the product.
ICICI Pru ACE rewards customers who have a long term perspective through loyalty additions as well as additional allocation of units as under:
- Additional allocation of units: more than 100% allocation to funds on the premium payment from the 6th policy year onwards
- Loyalty additions: payable at the end of every five policy years, starting from the tenth policy year (This is over and above the Additional allocation of units mentioned earlier)
Charges
A. The unique proposition of ICICI Pru ACE is that there is no premium allocation charge which results in results in 100% allocation of the customer’s funds at the time of premium payment
B. The policy administration charge is fixed at Rs. 60 per month for the term of the policy
This negligible charge structure results in a very high NET YIELD for the customer.
More From This Section
The company has also launched a Dynamic P/E Fund along with this product that provides long term capital appreciation through dynamic asset allocation between equity and debt. The allocation to equity and equity related securities is determined on the basis of the P/E multiple on the NIFTY 50. The remainder is invested in debt instruments, money market and cash. In effect, this enables the customer to buy low and sell high thereby allowing him to capitalize on the upside potential while limiting the downside risk.
A customer can choose to allocate his premiums to the Dynamic P/E Fund in the Fixed Portfolio Strategy.
The features of this product are:
- Top up: flexibility to invest surplus money
- Death Benefit: In the unfortunate event of death during the term of the policy, the policy holder’s nominee will receive higher of the Sum Assured and Fund Value
- Tax benefits on premiums paid
- Change in Portfolio Strategy (CIPS) Depending on how actively a customer wants to manage and structure his portfolio, ICICI Pru ACE provides the customer the option to choose from two unique portfolio strategies
Speaking about Ace, Mr. Pranav Mishra, SVP & Head - Products & Sales, ICICI Prudential Life said, “The launch of ICICI Pru ACE is the latest initiative in our ongoing endeavor of providing feature rich and customer centric products. We have decided to heavily load all our insurance products in favor of the customer by increasing customer allocation and reducing charges. ACE delivers a significantly superior value proposition to the customer as there is 100% allocation of the customer’s funds. Our latest fund offering, the Dynamic P/E Fund is an added innovative fund option that our customers can utilize to create long term wealth creation.”
About ICICI Prudential Life Insurance
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank and Prudential plc. It was one of the first players to commence operations when the insurance industry was opened to the private sector in 2000. For the nine months ended December 31, 2009, the company garnered Rs 10,509 crores of total premiums and has underwritten over 10 million policies since inception. The company has a network of 1,950 offices and over 207,000 advisors, as on February 28, 2010. For the past eight years, ICICI Prudential has maintained its dominant position amongst life insurers in the country, with a wide range of flexible products that meet the needs of the Indian customer at every step in life.
To know more about the company, please visit www.iciciprulife.com
Except for the historical information contained herein, statements in this release which contain words or phrases such as “will”, “would”, “aim”, “will likely result”, “believe”, ”expect”, “will continue”, “anticipate”, ‘”estimate”, “intend”, “plan”, “contemplate”, “seek to”, “future”, “objectives”, “goals”, “project”, “should”, “will pursue”, and similar expressions or variations of such expressions may constitute “forward looking statements”. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to ICICI Prudential’s ability to successfully implement its strategy in the field of insurance, our growth and expansion, technological changes, investment income, cash flow projections, our exposure to market risks as well as the other risks detailed in the reports filed by ICICI Bank (joint promoters of ICICI-Prudential Life Insurance Company Limited) with the Securities and Exchange Commission of the United States. ICICI Bank undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date thereof.