ICICI Pru Protect N Gain Life Calculator

The nominee of the policy is liable to receive a fixed amount in case of the demise of the policy holder during the policy term. This amount is called the Sum Assured. When purchasing a ULIP, you must ensure that the Sum Assured you opt for is sufficient for your dependents to continue with their lives in case something happens to you.

The premiums you pay in a ULIP are invested in funds, which grow over time. The fund value indicates the total value of the your fund on the current date. This is calculated by multiplying the number of units you own by the Net Asset Value (NAV) or the monetary value of each unit.

In a ULIP, Net Asset Value (NAV) means the value of a single unit of your investment. An investment fund, which is a pool of investments from multiple investors (minus any liabilities), is divided by the number of outstanding units. The NAV of a fund is therefore the price of a single unit.

Premiums are the payments you make towards your plan. As an investor, you can pay premiums monthly, quarterly, half-yearly, or annually as per the mode selected by you while investing. Failure to pay the premiums on time may lead to the lapse of the ULIP Policy.

The death benefit is the total amount payable to the nominee by the insurance company on the policyholder’s unfortunate demise. It can either be the sum assured or the fund value, whichever is higher. What your beneficiary gets would depend on the plan you opt for. The nominees can obtain the death benefit either as a lump-sum or in monthly instalments.

Maturity benefit is offered to the policyholder when the policy tenure gets over. You can avail tax-free* maturity amount as per Section 10 (10D) of the Income Tax Act 1961, subject to the provisions stated therein.

Riders or add-ons are the additional benefits provided by insurance companies, which enhance the value of the coverage. Typically, the most common riders offered are critical illness rider, waiver of premium rider, accidental cover, and so forth. However, these riders vary depending upon the company.

Lock-in period is a stipulated time till which you cannot withdraw your investments. In case of ULIP, if a policyholder surrenders the policy before the completion of the lock-in period, the fund value is shifted to a discontinuation fund. The policyholder can withdraw the amount once the lock-in period is over. A ULIP has a lock-in period of 5 years.

A ULIP plan allows an individual to invest in multiple fund options at the same time. However, the policyholders also have the freedom to switch between these ULIP funds. The number of switches allowed depends on the company’s policies. ICICI Pru’s Protect-N-Gain plan allows unlimited free switches⁶ between funds.

The returns of a ULIP policy depend upon the performance of the market as well as your fund selection. One needs to stay invested for long term to be able to maximise their returns.

As the name suggests, the top-up premium is an additional amount paid over base premium. If a ULIP policyholder wants to increase the amount of his/her investment in funds, he/she can do so through top-ups.

Insurance companies levy certain charges on a ULIP. Under a ULIP, a few of the levied charges are as follows: