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Can the ICICI Pru Gift Select Plan truly secure your loved ones’ future, or is there a better alternative?
Does the ICICI Pru Gift Select Plan offer real value, or are you better off exploring other options?
Is the ICICI Pru Gift Select Plan the ultimate financial safety net, or does it fall short of expectations?
In this review, we’ll analyse its features, benefits, and drawbacks, along with detailed illustrations to help you make an informed decision.
Table of Contents:
What is the ICICI Pru Gift Select Plan?
What are the features of the ICICI Pru Gift Select Plan?
Who is eligible for the ICICI Pru Gift Select Plan?
What are the benefits of the ICICI Pru Gift Select Plan?
Grace Period, Discontinuance and Revival of the ICICI Pru Gift Select Plan
Free Look Period of the ICICI Pru Gift Select Plan
Surrendering the ICICI Pru Gift Select Plan
What are the advantages of the ICICI Pru Gift Select Plan?
What are the disadvantages of the ICICI Pru Gift Select Plan?
Research Methodology of ICICI Pru Gift Select Plan
Benefit Illustration – IRR Analysis of ICICI Pru Gift Select Plan
ICICI Pru Gift Select Plan Vs. Other Investments
ICICI Pru Gift Select Plan Vs. Pure Term + ELSS Investment
Final Verdict on ICICI Pru Gift Select Plan
What is the ICICI Pru Gift Select Plan?
ICICI Pru Gift Select Plan is a Non-Participating and Non-Linked Individual Savings Insurance Plan. It is a life insurance savings product designed to support your goals every step of the way.
The product combines protection for those you love with a guaranteed income stream, which can be utilized as a supplementary source of income during your golden years or to fund life’s big moments.
What are the features of the ICICI Pru Gift Select Plan?
- Leave a lasting legacy with the security of life insurance coverage.
- Ensure a steady income with guaranteed payouts starting from the first policy month.
- Receive an immediate reward through the Instant Cashback benefit upon policy issuance.
- Safeguard your savings from inflation with guaranteed income that grows annually (compounded).
- Maximize your earnings by opting for a lower life cover to enhance your guaranteed income.
- Enjoy flexible cash flow options, including the ability to accumulate income for future withdrawals.
- Optimize your tax savings, as premiums paid and benefits received may qualify for tax benefits under prevailing tax laws.
Who is eligible for the ICICI Pru Gift Select 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) |
| 7 | 17 to 30 | Minimum: 1 year Maximum: Equal to Policy term |
0/55 years | 18/75 |
| 8 | 18 to 30 | |||
| 9 | 19 to 30 | |||
| 10 | 20 to 30 | |||
| 11 | ||||
| 12 |
| Minimum Annual Premium | 50,000 |
| Maximum Annual Premium | Subject to Board |
| Minimum Sum Assured on Death | 3,50,000 |
| 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. |
What are the benefits of the ICICI Pru Gift Select Plan?
1. Instant cash back benefit
You can opt to receive instant cashback benefit, i.e. a percentage of the Annualized Premium chosen by you on ICICI Pru Gift Select Plan policy inception.
This benefit is only available if you have opted to pay premiums with a yearly premium payment frequency and receive Guaranteed Income annually with an income term starting from the second or later policy year.
This benefit is paid only once, and you will receive this benefit amount within one working day of the realisation of the first year’s premium.
2. Guaranteed Income Benefit
If the option of Level Guaranteed Income has been chosen by you, you will receive a level guaranteed income (GI) from the chosen GI start date till the date of maturity, provided all due premiums are paid and on survival of the Life Assured on respective GI due dates.
The GI will remain constant during the entire income term.
If you choose to receive income that increases every year, your guaranteed income, payable starting from the chosen GI start date until the date of maturity, will increase every policy year at a rate of 5% p.a. on a compounding basis.
3. Maturity benefit
You have an option to receive a percentage of the sum of Annualized Premiums payable under the ICICI Pru Gift Select Plan policy as a lump sum benefit on the date of maturity. You need to select this benefit at policy inception.
Grace Period, Discontinuance and Revival of the ICICI Pru Gift Select Plan
Grace Period
A grace period of 15 days will be given for payment of the due instalment premium for monthly frequency, and 30 days will be given for payment of due instalment premium for any other frequency, commencing from the premium due date.
Discontinuance
If you have not paid at least one full policy year’s premium, then the ICICI Pru Gift Select Plan policy will lapse on the expiry of the grace period.
If you do not revive the lapsed policy by the end of the revival period, it will be foreclosed (terminated), and all rights and benefits under the policy shall stand extinguished.
If your premium payment is not made within the grace period after you have completed payment of premiums for one full policy year, then your policy is said to have become “paid-up”. In such a case, your policy will continue with reduced benefits.
Revival
You can revive your ICICI Pru Gift Select Plan policy benefits for their full value within five years from the due date of the first unpaid premium and before the date of maturity, whichever is earlier.
Free Look Period of the ICICI Pru Gift Select Plan
If you are not satisfied or have any disagreement with the terms and conditions of the ICICI Pru Gift Select Plan Policy or otherwise and have not made any claim, the policy document needs to be returned to the company with reasons for cancellation within 30 days from the date of receipt of the policy document, whether received electronically or otherwise.
Surrendering the ICICI Pru Gift Select Plan
You can surrender the policy any time after payment of at least one full policy year’s premium. Prior to receipt of one full policy year’s premium, no surrender value is payable.
The Surrender Value is equal to the higher of the Guaranteed Surrender Value (GSV) or Special Surrender Value (SSV).
What are the advantages of the ICICI Pru Gift Select Plan?
- Opt for the “Low Cover Income Booster” to receive a higher guaranteed income by choosing a lower life cover.
- Policies with an Annualized Premium above ₹50,000 are eligible for an additional guaranteed income benefit.
- With the Flexi Save Option, you can choose to accumulate your accrued Guaranteed Income (GI) instead of receiving it during the income term.
- Avail a loan of up to 80% of the surrender value when needed.
What are the disadvantages of the ICICI Pru Gift Select Plan?
- The income benefit reduces the maturity benefit, requiring a trade-off between the two.
- The sum assured is insufficient.
- The returns are relatively low.
Research Methodology of ICICI Pru Gift Select Plan
The ICICI Pru Gift Select Plan offers the flexibility to design your income and maturity benefits with guaranteed payouts. While these features may seem appealing, it’s essential to evaluate whether the plan truly delivers value. A key factor in this analysis is the Internal Rate of Return (IRR).
Benefit Illustration – IRR Analysis of ICICI Pru Gift Select Plan
A quote from the ICICI portal for a 35-year-old male shows the following details:
Income Benefit Duration: 11 years
Maturity Benefit: 100% Money Back
Sum Assured: ₹15 Lakhs
Premium Paying Term: 10 years
Annualized Premium: ₹1.5 Lakhs
Income Type: Level Income
Payout Start: End of the 10th year
Guaranteed Income: ₹1,22,295 per year
Maturity Payout: ₹15 Lakhs (paid with the last income instalment)
| Male | 35 years |
| Sum Assured | ₹ 15,00,000 |
| Policy Term | 20 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 1,50,000 |
| Age | Year | Annualised premium / Maturity benefit | Death benefit |
| 35 | 1 | -1,50,000 | 15,00,000 |
| 36 | 2 | -1,50,000 | 15,00,000 |
| 37 | 3 | -1,50,000 | 15,00,000 |
| 38 | 4 | -1,50,000 | 15,00,000 |
| 39 | 5 | -1,50,000 | 15,00,000 |
| 40 | 6 | -1,50,000 | 15,00,000 |
| 41 | 7 | -1,50,000 | 15,00,000 |
| 42 | 8 | -1,50,000 | 15,00,000 |
| 43 | 9 | -1,50,000 | 15,00,000 |
| 44 | 10 | -1,50,000 | 15,00,000 |
| 45 | 11 | 1,22,295 | 15,00,000 |
| 46 | 12 | 1,22,295 | 15,00,000 |
| 47 | 13 | 1,22,295 | 15,00,000 |
| 48 | 14 | 1,22,295 | 15,00,000 |
| 49 | 15 | 1,22,295 | 15,00,000 |
| 50 | 16 | 1,22,295 | 15,00,000 |
| 51 | 17 | 1,22,295 | 15,00,000 |
| 52 | 18 | 1,22,295 | 15,00,000 |
| 53 | 19 | 1,22,295 | 15,00,000 |
| 54 | 20 | 1,22,295 | 15,00,000 |
| 55 | 16,22,295 | ||
| IRR | 5.03% | ||
The calculated IRR for this cash flow is 5.03% as per the ICICI Pru Gift Select Plan maturity calculator,, which is significantly lower than the inflation rate.
Over a 20-year investment horizon, returns should ideally outpace inflation to maintain purchasing power.
However, with an internal rate of return (IRR) of just 5%, this plan fails to achieve that, leading to real value erosion over time.
Would you consider locking in your money for two decades with returns that struggle to keep up with inflation?
ICICI Pru Gift Select Plan Vs. Other Investments
Let’s compare the ICICI Pru Gift Select Plan with alternative investment strategies by evaluating three key aspects: insurance cover, income benefit, and maturity benefit—all within the same annual premium of ₹1.5 lakh.
ICICI Pru Gift Select Plan Vs. Pure Term + ELSS Investment
A pure term insurance policy with a ₹15 lakh of sum assured costs ₹12,400 per annum for a 20-year policy term.
In the earlier illustration, the premium-paying term for the ICICI Pru Gift Select Plan was 10 years, meaning that in the first 10 years, after paying for life insurance, the remaining ₹1,37,600 per year can be invested separately.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 15,00,000 |
| Policy Term | 20 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 12,400 |
| Investment | ₹ 1,37,600 |
Depending on risk tolerance, this balance can be invested in either PPF or ELSS. For this comparison, we assume it is invested in an ELSS fund. After 10 years, when redeeming the investment, capital gains tax applies, reducing the post-tax final maturity value to ₹25.54 lakh.
| ELSS Tax Calculation | |
| Maturity value after 10 years | 27,04,471 |
| Purchase price | 13,76,000 |
| Long-Term Capital Gains | 13,28,471 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 12,03,471 |
| Tax paid on LTCG | 1,50,434 |
| Maturity value after tax | 25,54,037 |
| Term insurance + ELSS | |||
| Age | Year | Term Insurance premium + ELSS | Death benefit |
| 35 | 1 | -1,50,000 | 15,00,000 |
| 36 | 2 | -1,50,000 | 15,00,000 |
| 37 | 3 | -1,50,000 | 15,00,000 |
| 38 | 4 | -1,50,000 | 15,00,000 |
| 39 | 5 | -1,50,000 | 15,00,000 |
| 40 | 6 | -1,50,000 | 15,00,000 |
| 41 | 7 | -1,50,000 | 15,00,000 |
| 42 | 8 | -1,50,000 | 15,00,000 |
| 43 | 9 | -1,50,000 | 15,00,000 |
| 44 | 10 | -1,50,000 | 15,00,000 |
| 45 | 11 | 1,22,295 | 15,00,000 |
| 46 | 12 | 1,22,295 | 15,00,000 |
| 47 | 13 | 1,22,295 | 15,00,000 |
| 48 | 14 | 1,22,295 | 15,00,000 |
| 49 | 15 | 1,22,295 | 15,00,000 |
| 50 | 16 | 1,22,295 | 15,00,000 |
| 51 | 17 | 1,22,295 | 15,00,000 |
| 52 | 18 | 1,22,295 | 15,00,000 |
| 53 | 19 | 1,22,295 | 15,00,000 |
| 54 | 20 | 1,22,295 | 15,00,000 |
| 55 | 32,16,217 | ||
| IRR | 8.10% | ||
This accumulated corpus is then invested in an instrument yielding 7%, allowing annual withdrawals similar to the ICICI Pru Gift Select Plan while also ensuring that the remaining funds are fully withdrawn at the end of the policy term to match the Maturity benefit.
Outcome Comparison
Annual Withdrawal: ₹1.22 lakh (same as the ICICI plan)
Final Corpus Value: ₹32.16 lakh (double that of the ICICI Pru Gift Select Plan)
IRR of Term + ELSS Combo: 8.10% (significantly higher than the 5.03% IRR of ICICI Pru Gift Select Plan)
Key advantages:
- The Term + ELSS approach provides higher returns and greater flexibility.
- The accumulated corpus can be utilized as per your financial goals.
- In a rising interest rate scenario, you can shift investments or reallocate funds.
In contrast, the ICICI Pru Gift Select Plan locks your funds, forcing you to settle for its structured income benefit.
Would you rather settle for lower returns with restrictions or opt for a strategy that offers better growth and complete control over your money?
Final Verdict on ICICI Pru Gift Select Plan
The ICICI Pru Gift Select Plan follows a simple structure—you pay premiums during the initial years and later receive benefits in the form of regular income.
While the plan offers customization in income and maturity benefits, the wide range of choices, including premium amount, payment term, income period, policy term, Guaranteed Income option, and maturity benefit percentage, can sometimes overwhelm investors, leading to suboptimal decisions.
Beyond its flexibility, this remains a traditional insurance plan where you must trade-off between regular income and a lump sum maturity benefit.
The returns are subpar, and the sum assured is inadequate, making this plan unsuitable for both your investment and insurance needs and it also has high agent commission. .
Instead of locking funds in a low-return plan, build a diversified investment portfolio based on your risk profile, life goals, and investment horizon. For financial security, ensure you have adequate life coverage through a Pure Term Insurance Policy.
Do Quora, Facebook, and Twitter have the final say when it comes to financial advice?
Being an informed investor means analysing financial products carefully before committing. If you need guidance, consider consulting a financial professional who can help you create a personalized financial plan tailored to your needs.
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