ICICI Pru Gift Select: A Fixed Income Plan for Long-Term Financial Stability
ICICI Prudential Life Insurance has introduced a new long-term savings plan, ICICI Pru Gift Select, designed to provide fixed income along with financial security. This plan offers customers a guaranteed income stream, flexible payout options, and a life insurance cover, making it an excellent choice for those seeking financial stability in the face of inflation.
Key Features of ICICI Pru Gift Select
One of the standout features of this plan is the increasing income option, where income grows at a compounded rate of 5% per year. This ensures that policyholders' income keeps pace with inflation, helping them manage their finances effectively over time.
Amit Palata, Head of Product and Distribution at ICICI Prudential Life Insurance, emphasized that this scheme is designed to offer guaranteed fixed income as per an individual’s financial goals and cash flow requirements. The company's high claim settlement ratio of 99.3% in the first nine months of the financial year 2024-25 further reassures customers about its reliability.
Why Choose ICICI Pru Gift Select?
3. Instant Cashback Benefit: Unlike traditional savings plans, this one offers an instant cashback option upon policy issuance. You receive the benefit within just one working day after the realization of your first-year premium. This feature helps policyholders access immediate financial relief or invest in other financial avenues without waiting.
4. Inflation Protection: The cost of living keeps rising, and a fixed income that doesn’t grow can lose its value over time. With the ICICI Pru Gift Select Plan, you can choose the increasing income option, where your income grows by 5% every year. This feature ensures that you maintain your purchasing power and can manage your future expenses comfortably.
5. Flexible Payouts: Life is unpredictable, and financial needs vary from person to person. This plan gives you the flexibility to accumulate your income and withdraw it later as a lump sum when required. Whether you need funds for an emergency, a planned expense, or just as a retirement corpus, you have full control over how you access your payouts.
6. Tax Benefits: The premiums paid for the ICICI Pru Gift Select Plan qualify for tax deductions under Section 80C of the Income Tax Act, 1961. Additionally, the maturity and death benefits received may be tax-free under Section 10(10D), subject to applicable tax laws. This makes the plan not only a great investment option but also a tax-efficient one.
ICICI Pru Gift Select Benefits in Detail
If you’re considering ICICI Pru Gift Select, it’s essential to understand the benefits it offers. This policy is designed to provide financial security, guaranteed returns, and flexibility, making it a great choice for those looking to plan for the future.
1. Instant Cashback Benefit
One of the standout features of this policy is the Instant Cashback Benefit. Unlike many traditional insurance plans where benefits are received only after years of premium payments, this plan allows customers to get an immediate cashback. When you opt for this feature at the time of purchasing the policy, you will receive the cashback within one working day after your first year’s premium has been successfully processed. This means you don’t have to wait long to start enjoying the financial benefits of your investment. It can be a great option if you want some quick liquidity right at the beginning of your policy term.
2. Guaranteed Income Benefit
A major advantage of ICICI Pru Gift Select is the Guaranteed Income Benefit (GI). Unlike investments tied to market performance, which can be unpredictable, this benefit provides a stable and assured source of income. This ensures you have financial security regardless of economic conditions.
What makes it even more appealing is the option to receive an increasing income. If you choose this feature, your guaranteed income will increase at a 5% compounded annual rate. In simple terms, the amount you receive every year will keep growing, helping you counter inflation and ensuring that your income remains sufficient for future needs. This is particularly useful for long-term financial planning, as it provides a steady cash flow that keeps improving over time.
3. Maturity Benefit
The Maturity Benefit ensures that you receive a lump sum payout at the end of your policy tenure. This benefit is calculated based on a proportion of the total premiums you have paid throughout the policy duration. When your policy reaches maturity, you have the flexibility to receive this amount as a lump sum, which can be used for various financial goals—be it retirement planning, funding a child’s education, or reinvesting for future growth.
How the ICICI Pru Gift Select Plan Works
Consider Mr. Aryan, a 35-year-old self-employed or salaried professional. He opts for ICICI Pru Gift Select Plan with an annual premium of ₹1 lakh and chooses to start receiving income from the second policy year for a period of 19 years. He also benefits from 100% Guaranteed Maturity Benefit at the end of the policy term. His income will increase yearly due to the Increasing Guaranteed Income option, ensuring better financial planning.
Death Benefit
In case of the policyholder’s demise during the policy term, the highest of the following amounts will be paid to the nominee:
- Sum Assured on Death (Death Benefit multiple x Annualized Premium)
- 105% of the total premiums paid up to the date of death
- Surrender value as of the date of death
If the Low Cover Income Booster option is chosen, the Death Benefit multiple is 7. Otherwise, it remains 10.
Additional Flexibilities
1. Low Cover Income Booster
Customers can choose a lower life cover in exchange for higher income, making the plan adaptable to different financial needs.
2. Flexi Save Option
Policyholders can defer their Guaranteed Income payouts, which will accumulate loyalty additions based on the Reverse Repo Rate published by the Reserve Bank of India (RBI).
ICICI Pru Gift Select Plan at a Glance
|
Premium Payment Term |
Policy Term |
Income Term |
Entry Age |
Maturity Age |
|
7-12 years |
17-30 years |
1 year to policy term |
0-55 years |
18-75 years |
Other Details:
- Minimum Annual Premium: ₹50,000
- Premium Payment Frequency: Annual, Half-Yearly, Monthly
- Minimum Sum Assured on Death: ₹3,50,000
- Maximum Sum Assured on Death: Subject to Underwriting Policy
Public FAQs
1. What is the gift plan of ICICI Pru?
ICICI Pru Gift Select Plan is a long-term savings plan that provides guaranteed income, life insurance cover, and flexible payout options. It ensures financial security by offering increasing income benefits and tax advantages.
2. How does the increasing income option work?
The increasing income option ensures that policyholders’ income grows at a compounded rate of 5% per year, helping them keep up with inflation and maintain their purchasing power.
3. Who is eligible for ICICI Pru Gift Select Plan?
Anyone between the ages of 0 to 55 years can opt for this plan. The policy matures when the policyholder reaches 75 years of age.
4. What is the minimum premium required for this plan?
The minimum annual premium required for ICICI Pru Gift Select Plan is ₹50,000, with flexible payment options available (annual, half-yearly, and monthly).
5. What happens if I miss a premium payment?
If you miss a premium payment, the policy may enter a grace period. If premiums remain unpaid after the grace period, the policy may lapse. However, policyholders may have options to reinstate the policy within a specified timeframe.
Read also: What Are the Types of Life Insurance and How Do They Work?
Final Thought
ICICI Pru Gift Select Plan is a well-structured financial product that ensures both income security and life insurance coverage. With flexible payout options, increasing income benefits, and tax savings potential, it is an excellent plan for individuals seeking a reliable long-term savings solution.
If you are looking for a guaranteed income plan that aligns with your financial goals while offering protection and flexibility, ICICI Pru Gift Select could be the right choice for you.
