Introducing ICICI Pru Platinum: A New ULIP Plan with Unique Features and Benefits

ICICI Prudential Life insurance, one of the leading private insurance companies in India, has recently launched its first unit-linked insurance plan (ULIP) called ICICI Pru Platinum. This new plan aims to bridge the gap between distributors’ interests and policyholders by aligning distributor commissions with the customer’s fund value, incentivizing distributors to encourage their customers to stay invested for the entire policy tenure.

ULIPs are insurance plans that offer the dual benefit of investment to fulfill long-term goals and a life cover to financially protect the family in case of an unfortunate event. Investors pay premiums that are then invested in various funds, with the returns linked to the performance of those funds. These plans are considered safe instruments given a long-term investment horizon, allowing investors to choose from low-risk debt funds, high-risk equity funds, or a mix of both based on their risk appetite.

ICICI Pru Platinum offers customers an array of 21 funds to choose from, including 13 equity funds, four debt funds, and four balanced funds. Additionally, customers can select from four portfolio strategies to suit their investment needs. The plan provides a cost- and tax-efficient way to build long-term wealth and incentivizes distribution partners to encourage customers to stay invested throughout the policy term.

One of the key features of ICICI Pru Platinum is the option for unlimited free switches between asset classes. This flexibility allows policyholders to adjust their investment mix based on market conditions and evolving financial needs without incurring any additional costs or tax implications, maximizing potential returns.

Customers also have the choice between two life cover variants under the plan: Growth Plus and Protect Plus. The Growth Plus variant entitles the nominee to receive either the sum assured or the fund value, whichever is higher, while the Protect Plus variant offers both the sum assured and the fund value to the nominee.

The plan boasts a remarkable claim settlement ratio of 99.2% for FY2024, with an average turnaround time of just 1.3 days. Amit Palta, Chief Distribution Officer at ICICI Prudential Life insurance, stated, “ICICI Pru Platinum is designed to align distributor payouts with their customers’ fund value, promoting the long-term interests of both.”

In FY2023-24, the proportion of linked savings products in the insurer’s overall Annualised Premium Equivalent (APE) increased to 43.2%, up from 35.9% in the previous fiscal year. Meanwhile, the representation of non-linked savings products decreased to 25.8% of APE compared to 37.3% in the previous fiscal year.

Overall, ICICI Pru Platinum offers customers a comprehensive ULIP solution that combines investment opportunities with life cover options, flexibility in asset allocation, and efficient claim settlement processes, making it an attractive choice for long-term wealth creation and financial protection.