ICICI Pru Gift Pro Plan: Good or Bad? A Complete Review & Analysis

Is ICICI Pru Gift Pro Plan a good investment product to secure both your life and life goals?

Will the ICICI Pru Gift Pro Plan provide you with adequate life cover and sufficient corpus to help you achieve your Financial Goals?

Everyone wants to save the required corpus for the goal ahead of time. For this, you need a proper financial plan and investment discipline.

At the same time, you need to protect your family’s financial security with a life insurance cover.

As the name suggests, will ICICI Pru Gift Pro Plan be a PRO in the investment arena?

To find out let’s first analyse the ICICI Pru Gift Pro Plan’s Advantages (Pros) and Disadvantages (Cons). Then let’s proceed to review the Internal Rate of Return section.

This will ultimately guide you to make those wise Investment Decisions.

Table of Contents

1.)What is the ICICI Pru Gift Pro Plan?
2.)What are the Features of the ICICI Pru Gift Pro Plan?
3.)Who is Eligible to invest in the ICICI Pru Gift Pro Plan?
4.)What are the Benefits of the ICICI Pru Gift Pro Plan?
5.)ICICI Pru Gift Pro Plan Grace period, Discontinuance and Revival
6.)ICICI Pru Gift Pro Plan Free Look Period
7.)Surrendering ICICI Pru Gift Pro Plan
8.)Advantages of ICICI Pru Gift Pro Plan
9.)Disadvantages of ICICI Pru Gift Pro Plan
10.)ICICI Pru Gift Pro Plan Research Methodology

• ICICI Pru Gift Pro Plan Benefit Illustration – IRR Analysis

11.)ICICI Pru Gift Pro Plan VS Other Investment Return

• ICICI Pru Gift Pro Plan VS Pure Term + PPF / ELSS
• ICICI Pru Gift Pro Plan VS ICICI Pru Smart Kid Solution Plan.
• ICICI Pru Gift Pro Plan VS ICICI Pru Guaranteed Pension Plan

12.)Final Verdict ICIC Pru Gift Pro Plan

1.) What is the ICICI Pru Gift Pro Plan?

ICICI Pru Gift Pro Plan is a Non-Linked Non-Participating Individual Savings Life Insurance Plan.

It is a Protection And Savings-Oriented Life Insurance Plan to help you build a safety net by providing financial protection to your loved ones along with guaranteed benefits.

2.) What are the Features of the ICICI Pru Gift Pro Plan?

• Flexibility in selecting the duration (number of years) of Guaranteed Income as per your needs.
• Option to receive Guaranteed Income that either remains constant throughout the income duration or increases every year.
• The percentage of the Money- Back Benefit can be chosen as per your requirement.
• Option to withdraw future benefits in advance by converting into a lump sum.

3.) Who is Eligible to invest in the ICICI Pru Gift Pro Plan?

Premium Payment Term (in years)	Policy Term (in years)	Income Period (in years)	Min/Max Age at Entry (in years)	Min/Max Age at Maturity (in years)
5	8 to 10	5/7/10/12/15/20/25/30	18 minus Policy Term / 60	18/70
6	8 to 11			18/71
7	8 to 12			18/72
8	9 to 13			18/73
9	9 to 14			18/74
10	10 to 15			18/75
11	11 to 16			18/75
12	12 to 17			18/75

 

Minimum Annual Premium	50,000
Maximum Annual Premium	Subject to Board
Minimum Sum Assured on Death	₹ 2,50,000
Maximum Sum Assured on Death	Subject to Board
Premium Payment Frequency	Annual, Half-Yearly, Monthly
Income Period starts	Starts at the end of the policy term.

4.) What are the Benefits of the ICICI Pru Gift Pro Plan?

i.) ICICI Pru Gift Pro Plan Death Benefit

Death Benefit is highest of:

• Sum Assured on Death (defined as Death Benefit multiple X Annualized Premium)
• 105% of the Total premiums paid up to the date of death
• Death Benefit Factor X Maturity Sum Assured X {number of months for which premiums are paid up to date of death / (12 X Premium Payment Term)}
• Surrender value payable as on the date of death.

In case of death of the Life Assured during the Income Period, the claimant will continue to receive the Guaranteed Income and Money Back Benefit.

Or he has an option to receive the discounted value of future income and Money-Back Benefit in the form of a lump sum benefit.

ii.) ICICI Pru Gift Pro Plan Income Benefit

It starts after the end of the Premium Paying Term. It could be at the same level throughout or increase every year. The income benefit depends on the Money back benefit percentage.

iii.) ICICI Pru Gift Pro Plan Money Back Benefit

The percentage of money back could be any number between 0 to 100%. It is multiplied by the Sum of the total annualised premium paid. You can pay it either on maturity or at the end of any policy year within the income period.

Inference from the Benefits

Generally, in Money- Back Policies, you receive income/survival benefits as a certain percentage of the Sum assured at regular intervals. The last installment of income/survival benefit is paid at maturity.

In some cases, the Bonuses or Loyalty Additions are payable along with the last payment.

Here in ICICI Pru Gift Pro, the income benefit is not based on the sum assured or the premium paid by you. Rather it depends on the Money-Back benefit percentage that you choose.

This Money- Back Benefit can be taken at maturity or in between in any year during the income period. If you choose a higher percentage for the money-back benefit, the income benefit amount decreases.

Although they give you flexibility in choosing the Income Benefit Period, they also play a role in calculating the income benefit amount you receive.

If you choose a lower Money-Back percentage and limit your Income Benefit Period, the higher will be the Income Benefit amount.

5.) ICICI Pru Gift Pro Plan Grace period, Discontinuance and Revival

Grace period

A grace period of 15 days will be given for payment of due installment premium for monthly frequency, and 30 days for any other frequency, commencing from the premium due date.

Discontinuance

If your premiums are unpaid for the first two years, you won’t be eligible to receive the benefits.

If you stop paying premiums after you have completed payment of premiums for two years, the policy can continue with reduced benefits (paid-up).

Revival

The policy can be revived with all benefits within five years from the due date of the first unpaid premium

6.) ICICI Pru Gift Pro Plan Free Look Period

If you are not satisfied with the terms and conditions of the policy, you can return the policy documents within 15 days from the date you received it, if your policy is not purchased through Distance marketing.

Or 30 days from the date you received it, in the case of electronic policies or if your policy is purchased through Distance marketing.

For more details regarding terms and conditions, you can refer to ICICI Pru Gift Pro Policy Brochure

7.) Surrendering ICICI Pru Gift Pro Plan

At any stage after payment of the first two years premium, you can surrender the policy and the surrender value will be payable.

On policy surrender, a higher Guaranteed Surrender Value (GSV) or Special Surrender Value (SSV) will be payable.

8.) Advantages of ICICI Pru Gift Pro Plan

• Flexibility to receive income on any preferred date with the Save the Date option being an inbuilt feature.
• Flexibility to receive all future benefits as a lump sum benefit at a discounted value.
• Under the Low Cover Income Booster Option, you will be able to enjoy additional income by opting for a Lower Life Cover.
• Once the policy acquires surrender value, you can avail loan of up to 80% of the surrender value.

9.) Disadvantages of ICICI Pru Gift Pro Plan

• Though you have flexibility in choosing various options related to Income Benefits and Money-Back Benefits, those options once chosen at the inception of policy cannot be changed.
• Life cover is not extended during the Income period.
• The income benefit affects your Money- Back Benefit, you need to trade-off between these two.

10.) ICICI Pru Gift Pro Plan Research Methodology

ICICI Pru Gift Pro allows you to design your Income Benefits and Money-Back Benefits. Adding to that all the benefits are guaranteed. So, you may be lured by these features.

But we need to look in detail, to check whether this plan is beneficial for you. This can be done by figuring out the Internal Rate of Return of ICICI Pru Gift Pro. A quote was taken from the ICICI portal. Let us calculate the IRR.

ICICI Pru Gift Pro Plan Benefit Illustration – IRR Analysis

A 35-year-old male opts for ICICI Gift Pro. He selects 30 years of Income Benefit and 100% Money-Back at maturity. The sum assured is 10.7 Lakhs. The premium paying term is 10 years. The annualised premium is 1 lakh.

Male	35 years
Sum Assured	₹ 10.7 Lakhs
Annualised premium	₹ 1 Lakh
Premium Paying Term	10 years
Income benefit period	30 years (level income)
Money-Back Benefit	100% at Maturity

The income benefit starts at the end of the 12th Policy Year. The income is constant throughout the income period.

Age	Year	Annualised premium / Maturity benefit		Death benefit
35	1	-1,00,000		10,70,000
36	2	-1,00,000		10,70,000
37	3	-1,00,000		10,70,000
38	4	-1,00,000		10,70,000
39	5	-1,00,000		10,70,000
40	6	-1,00,000		10,70,000
41	7	-1,00,000		10,70,000
42	8	-1,00,000		10,70,000
43	9	-1,00,000		10,70,000
44	10	-1,00,000		10,70,000
45	11	0		10,70,000
46	12	0		10,70,000
47	13	87,510		10,70,000
48	14	87,510		10,70,000
49	15	87,510		10,70,000
50	16	87,510
51	17	87,510
52	18	87,510
53	19	87,510
54	20	87,510
55	21	87,510
56	22	87,510
57	23	87,510
58	24	87,510
59	25	87,510
60	26	87,510
61	27	87,510
62	28	87,510
63	29	87,510
64	30	87,510
65	31	87,510
66	32	87,510
67	33	87,510
68	34	87,510
69	35	87,510
70	36	87,510
71	37	87,510
72	38	87,510
73	39	87,510
74	40	87,510
75	41	87,510
		10,87,510
	IRR	5.64%

The annual income benefit is ₹ 87,510 Lakhs, and the Money-Back Benefit of  ₹ 10 Lakhs is payable along with the last income benefit. The IRR for this cash flow is  5.64%.

The IRR is lower than the inflation rate. Those who need guaranteed returns may want to settle with this rate. But look at the total investment period which is 40 years.

For such a long period, the investment return should outpace the inflation rate. The IRR of around 5.5% shows that you are losing the purchasing power of your money.

11.) ICICI Pru Gift Pro Plan VS Other Investment Return

Let us make an analogy between ICICI Pru Gift Pro and Other Investment. For this, we need to look for Insurance coverage, Income Benefits, and Money-Back Benefits.

All three aspects need to be covered under the same annual premium of ₹ 1 lakh.

i.) ICICI Pru Gift Pro Plan VS Pure Term + PPF / ELSS

A pure term of a sum assured of ₹ 11 lakhs would cost ₹ 5800 per annum. The policy term is 11 years, and the premium paying term is 10 years.

Pure Term Life Insurance Policy
Sum Assured	₹ 11,00,000
Policy Term	11 years
Premium Paying Term	10 years
Annualised Premium	₹ 5,800
Investment	₹ 94,200

You can choose either PPF investment or ELSS investment as per your risk tolerance. The corpus accumulated in the initial years is utilised for income benefit during the income period.

Age	Year	Term Insurance premium + ELSS	Death benefit
35	1	-1,00,000	11,00,000
36	2	-1,00,000	11,00,000
37	3	-1,00,000	11,00,000
38	4	-1,00,000	11,00,000
39	5	-1,00,000	11,00,000
40	6	-1,00,000	11,00,000
41	7	-1,00,000	11,00,000
42	8	-1,00,000	11,00,000
43	9	-1,00,000	11,00,000
44	10	-1,00,000	11,00,000
45	11	0	11,00,000
46	12	0	11,00,000
47	13	87,510	11,00,000
48	14	87,510	11,00,000
49	15	87,510	11,00,000
50	16	87,510
51	17	87,510
52	18	87,510
53	19	87,510
54	20	87,510
55	21	87,510
56	22	87,510
57	23	87,510
58	24	87,510
59	25	87,510
60	26	87,510
61	27	87,510
62	28	87,510
63	29	87,510
64	30	87,510
65	31	87,510
66	32	87,510
67	33	87,510
68	34	87,510
69	35	87,510
70	36	87,510
71	37	87,510
72	38	87,510
73	39	87,510
74	40	87,510
75	41	87,510
		72,27,451
	IRR	8.01%

ELSS

After 12 years, while redeeming the units, the capital gains tax arises. This tax amount needs to be set aside from the proceeds. The post-tax final maturity value is ₹ 21.65 Lakhs.

The accumulated corpus under the ELSS instrument is invested in a 7% return instrument. For annual withdrawal, the same amount under ICICI Pru Gift Pro income benefit is assumed here as well.

The investment is fully withdrawn at the end of the policy term to match the Money-Back Benefit under ICICI Pru Gift Pro.

ELSS Tax Calculation
Maturity value after 12 years	23,22,474
Purchase price	9,42,000
Long-Term Capital Gains	13,80,474
Exemption limit	1,25,000
Taxable LTCG	12,55,474
Tax paid on LTCG	1,56,934
Maturity value after tax	21,65,539

The IRR for pure term + ELSS combo is 8.01%. The corpus accumulated under the investment strategies can be utilised as per your wish.

In the rising rate scenario, you can shift your investment or even you can utilise it for any other goal. Under ICICI Gift Pro, the funds get locked and you are compelled to settle with Income benefit.

ii) ICICI Pru Gift Pro Plan VS ICICI Pru Smart Kid Solution Plan.

As a parent or as a guardian it is your sole responsibility to guide children to lead a happy and prosperous future. ICICI Pru Smart Kid Solution Plan promises exactly to do the same by facilitating insurance coverage and investment opportunities.

So should this plan be part of your investment portfolio? To help you regarding this you can read our article on: ICICI Pru Smart Kid Solution – Children Education Plan – Review: Should You Buy?

iii) ICICI Pru Gift Pro Plan VS ICICI Pru Guaranteed Pension Plan

A Secondary Source of Income could assist you in a great way in living a stress-free financial life post-retirement. ICICI Pru Guaranteed Pension Plan offers a guaranteed stream of income for policyholders in their post-retirement period.

Will this Guaranteed Stream be sufficient and enough to achieve your futuristic goals? To find out more you can refer to our article on: ICICI Pru Guaranteed Pension Plan: Good or Bad? A Comprehensive Review

12.) Final Verdict ICIC Pru Gift Pro Plan.

This plan offers customisation in terms of Income Benefits and Money- Back Benefits.

The plan offers flexibility in choosing the Premium amount, premium payment term, income period, policy term, Guaranteed Income option, percentage, and year of Money- Back Benefits.

Sometimes these many choices confuse investors. This may result in the wrong choice.

Other than the customization, this is another version of the Money-Back Policy. You pay the premium in the initial years and receive the benefit in the form of regular income. This is the basic skeletal of ICICI Pru Gift Pro.

You need to trade-off between the Regular Income And Lumpsum Benefit. Since this is another Investment cum insurance product, you as an investor need to watch out for High Agent Commission as well.

So we can say that ICICI Pru Gift Pro will not be suitable for your investment basket.

Having a precise understanding of your personal traits and investment objectives will be more beneficial. Rather than seeking out personal financial advice from Social Media Platforms such as Quora, Facebook, Twitter, etc.

Build a diversified investment basket based on your risk profile and life goals.
Also, along with that have adequate life cover by opting for a Pure Term Life
Insurance Policy.

If you need to be a PRO Investor, you can consult a finance professional. He
will customise a financial plan for you.