Product Details
ICICI Pru Elite Life, as the name suggests, is a Type I unit linked insurance plan for high net worth individuals who can afford a minimum annual premium of Rs 2 lakh. The plan offers insurance for 10-30 years on single premium or five-year limited premium payment option. It offers a large bouquet of funds for investment in both equity and bond market. The only flipside of this plan is its low death coverage.
Our View
Even though the basic cost structure of the product is high, the loyalty addition in the plan brings down the overall cost. The performance of most of the funds in the scheme has not been attractive, but funds such as Maximiser has a history of generating more than 20% returns over a period of 10 years. Investors may consider adding term insurance to the scheme as it does not provide for adequate insurance.
ICICI Pru Elite Life, as the name suggests, is a Type I unit linked insurance plan for high net worth individuals who can afford a minimum annual premium of Rs 2 lakh. The plan offers insurance for 10-30 years on single premium or five-year limited premium payment option. It offers a large bouquet of funds for investment in both equity and bond market. The only flipside of this plan is its low death coverage.
Our View
Even though the basic cost structure of the product is high, the loyalty addition in the plan brings down the overall cost. The performance of most of the funds in the scheme has not been attractive, but funds such as Maximiser has a history of generating more than 20% returns over a period of 10 years. Investors may consider adding term insurance to the scheme as it does not provide for adequate insurance.
Unique Feature
The scheme offers loyalty additions from the sixth year onwards till the policy matures. This makes the net cost of the product slightly low and further improves the net yield earned.
For Existing Customers
Those already invested in the plan should remain invested as the plan has a low cost structure and includes a range of funds. High-risk investors may switch to income funds to protect returns. However, going ahead it would be more beneficial to switch to equity funds to earn better returns.
For Those Looking to Invest
High net worth individuals interested in investing more in insurance should consider this plan. However, for a more informed decision, it is advisable to look at other similar products such as SBI Elite
Name- Akansha Arora
Pgdm (2010-12) 3rd
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