Mumbai: ICICI Prudential Life Insurance Company has introduced a range of unit-linked products with capital protection combined with market-linked profits. Christened InvestShield, these plans are ideal for people who are keen to buy a unit-linked life insurance plan, but ultimately purchase a traditional policy as they are apprehensive about the risks the markets present.
"Our research has shown us that for most people, life insurance is the ultimate protection tool - it is amongst the safest financial instruments one can have," says Shikha Sharma, managing director and CEO, ICICI Prudential Life Insurance. "Certainly, protection through insurance is a necessary part for sound financial planning, and with the introduction of ULIPs we find that many people are keen to see their money grow. However, they are wary that a market investment could erode their principal. Based on this insight, we launched InvestShield, a unit-linked plan that will help people not only secure the future of their families, but protect them from the dips in the market as well".
These unit-linked capital guarantee insurance plans come in four variations:
The plans are structured so that the invested premiums are invested in a market-linked unit fund to provide potentially higher returns over a long period. A maximum 30 per cent of the fund (in case of Life, Gold and Pension) is invested in equities and the balance is invested in debts or bonds. While the market-linked unit-fund offers the opportunity to get the upside of the markets, the risk on investments due to the downsides in the market, is protected by a guarantee, which keeps increasing every year.
Other features of the InvestShield plans include:
Extended life cover: Apart from the insurance cover during the term of the plan, InvestShield Life also offers an additional insurance protection of 50 per cent of the sum assured for 10 years after the maturity of the plan.
Guaranteed Additions of up to Rs.13,500, which is paid in lumpsum on death or maturity (the higher the premium and term of the plan, the higher will be the amount of guaranteed additions).
The policy also enjoys tax benefits under 80C and 10 (10D) as per the prevailing tax laws.