ICICI Pru Global Wealth Multiplier (GIFT CITY): Good or Bad? An Insightful ULIP Review
Is ICICI Pru Global Wealth Multiplier Plan a suitable global investment solution?
Can ICICI Pru Global Wealth Multiplier Plan help protect your investments against INR depreciation?
What are the key benefits and features of ICICI Pru Global Wealth Multiplier Plan?
This article takes a closer look at these claims and evaluates the plan’s key features, costs, and potential returns through a detailed illustration.
1. What is the ICICI Pru Global Wealth Multiplier?
2. What are the features of the ICICI Pru Global Wealth Multiplier?
3. Who is eligible for the ICICI Pru Global Wealth Multiplier?
4. What are the benefits of the ICICI Pru Global Wealth Multiplier?
5. What are the investment Strategies and fund options of the ICICI Pru Global Wealth Multiplier?
6. What are the charges of the ICICI Pru Global Wealth Multiplier?
7. Grace Period, Discontinuance and Revival of the ICICI Pru Global Wealth Multiplier
8. Free Look Period for the ICICI Pru Global Wealth Multiplier
9. Surrendering the ICICI Pru Global Wealth Multiplier
10. What are the advantages of the ICICI Pru Global Wealth Multiplier?
11. What are the disadvantages of the ICICI Pru Global Wealth Multiplier?
12. Research Methodology of ICICI Pru Global Wealth Multiplier
13. ICICI Pru Global Wealth Multiplier Vs. Other Investment
14. Final Verdict on ICICI Pru Global Wealth Multiplier
ICICI Pru Global Wealth Multiplier is a Non-participating Linked Individual Savings Life Insurance Plan.
It is a USD-denominated plan that helps grow your wealth globally.
It offers market-linked returns through globally diversified funds, along with global life cover to protect your family’s future.
| Minimum Sum Assured | Limited and Regular Pay: 1.05 times Annualised Premium |
| Single Pay: 1.05 times Annualised Premium | |
| Maximum Sum Assured | As per Board-approved underwriting policy |
| Minimum Premium | Limited and Regular Pay: $1500 (Yearly), |
| $750 (Half-yearly), $150 (Monthly) | |
| Single Pay: $5000 | |
| Maximum Premium | As per Board-approved underwriting policy |
| Min/Max Entry Age | Growth Plan – 30 days/ 65 yearsProtect Plan – 18 years/ 65 years |
| Min/Max Maturity Age | Growth Plan – 18 years/ 80 yearsProtect Plan – 28 years/ 80 years |
| Min/Max Policy Term | 10 years/ 25 years |
| Minimum Premium Payment Term | Limited Pay: 3 years |
| Regular Pay: 10 years | |
| Single Pay: Once | |
| Maximum Premium Payment Term | Limited Pay: 15 years |
| Regular Pay: 25 years | |
| Single Pay: Once | |
| Premium Payment Option | Yearly, Half-yearly, Monthly |
Growth Option
The Death Benefit payable under this ICICI Pru Global Wealth Multiplier plan Option shall be the highest of:
Protect Option
The Death Benefit payable under this plan Option shall be the higher of:
Growth Option
Maturity benefit is payable only upon survival of the Life Assured till the Date of Maturity.
On survival of the Life Assured till the Date of Maturity, the company will pay only the Fund Value to you, provided the Policy has not already been terminated.
On payment of Maturity benefit by the Company to you, the Policy will terminate, and all rights, benefits and interests under the Policy will stand extinguished.
Protect Option
Maturity benefit will be payable irrespective of the survival of the Life Assured till the Date of Maturity.
On the Date of Maturity, the Fund Value will be payable to you provided the ICICI Pru Global Wealth Multiplier Policy has not already terminated.
In the event of the death of the Life Assured before the Date of Maturity, the Maturity benefit shall be payable to the Claimant.
On payment of the Maturity benefit by the Company to the Claimant, the Policy will terminate, and all rights, benefits and interests under the Policy will be extinguished
You can choose among the following two asset allocation strategies:
i. Lifecycle-based Portfolio Strategy
At Policy inception, your savings are distributed between two funds, the Multi-Cap Growth Fund and the Income Fund, based on your age.
As you move from one age band to another, your funds are redistributed based on age.
| Age of Policyholder (years) | Multi-Cap Growth Fund | Income Fund |
| Up to 25 | 80% | 20% |
| 26-35 | 75% | 25% |
| 36-45 | 65% | 35% |
| 46-55 | 55% | 45% |
| 56-65 | 45% | 55% |
| 66+ | 35% | 65% |
ii. Fixed Portfolio Strategy
This strategy enables you to manage your savings actively.
Under this strategy, you can choose to save your money in any of the following fund options in proportions of your choice.
You can switch money among these funds using the switch option.
The details of the funds are given in the table below:
| S. no | Fund Name | Asset Allocation | Risk Profile | ||
| Equity and Equity-related Securities | Debt | Money market and cash | |||
| 1 | ICICI Pru US Growth Fund | 90-100% | 0-10% | 0-10% | High |
| 2 | ICICI Pru Global Diversified Fund | 90-100% | 0-10% | 0-10% | High |
| 3 | ICICI Pru Gold Fund | 90-100% | 0-10% | 0-10% | Moderate |
| 4 | ICICI Pru US Medium Term Treasury Bond Fund | 0% | 90-100% | 0-10% | Low |
| 5 | ICICI Pru Liquid Fund ICICI Pru India Fund – Large Cap | 90-100% | 0-10% | 0-10% | High |
| 6 | ICICI Pru Liquid Fund | 0% | 75-100% | 0-25% | Low |
Within the Fixed Portfolio Strategy, you also have the option to select the Automatic Transfer Strategy (ATS).
To protect your savings against market uncertainties, you can save all or part of your savings in one or more debt/ equity fund(s) and transfer a fixed amount regularly to one or more equity/ debt fund(s).
Premium redirection and Unlimited free switches between funds are allowed for Fixed Portfolio Strategy.
i. Premium Allocation Charges
No Premium allocation charge is applicable under this product.
ii. Fund Management Charge
1.75% p.a. FMC shall be levied by the Company on a daily basis. This will be charged by adjustment to the Net Asset Value (NAV).
iii. Policy Administration Charge
Policy Administration Charge will be levied at the beginning of every month by redemption of Units.
Policy administration charges applicable will be as follows:
For Limited & Regular Pay:
Year 1 to 3 – 0.5% of annualised premium per month
Year 4 onwards – $5 per month for the remaining Policy Term.
For Single Pay:
Year 1: 0.2% of Single Premium per month
Year 2 and onwards: $5 per month
iv. Mortality Charges
The company shall deduct mortality charges on a monthly basis by redemption of units and they shall be calculated on the Sum at Risk.
v. Miscellaneous Charges
A flat fee of USD 5 per alteration will be charged for any alterations within the ICICI Pru Global Wealth Multiplier Policy, such as Premium Redirection, change in Premium Payment frequency. The charge shall be levied by cancellation of units at the time of alteration.
vi. Inference from charges: The plan levies multiple charges throughout the policy term, including Discontinuance and Mortality Charges. These deductions reduce the amount available for investment and can adversely affect the overall returns.
Compared with simpler market-linked investment options, ULIPs typically have a more complex charge structure. Over the long term, the cumulative impact of these charges can materially erode the investor’s wealth and reduce the effective returns.
i. Grace Period
For Limited Pay and Regular Pay policies, if you are unable to pay Instalment Premium by the due date, you will be given a Grace Period of 15 days for payment of due Instalment Premium if you have chosen monthly frequency, and 30 days for payment of due Instalment Premium if you have chosen any other frequency, commencing from the Premium due date.
ii. Discontinuance
Upon expiry of the Grace Period, in case of discontinuance of the Policy due to non-payment of Instalment Premium, the Policy will be converted into a Paid-up Policy with original Sum Assured as risk cover.
iii. Revival
In the event the ICICI Pru Global Wealth Multiplier Policy has attained Paid-up Status on account of discontinuance of due Instalment Premium, then the Policy can be revived during the Policy Term, provided the policy has not already been foreclosed.
On receipt of the policy document, whether received electronically or otherwise, you have an option to review the Policy terms and conditions.
If you are not satisfied or have any disagreement with the terms and conditions of the 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.
You can surrender the policy anytime during the policy term after a lock-in period of 30 days from the Risk Commencement Date.
In case of Surrender of the Policy, the surrender value equal to the Fund Value as on the date of surrender, less the Surrender charges, shall be payable to you.
If the number of Premiums paid (in years) under a Policy as on the date of Surrender is less than Premium Payment Term, then the Surrender charges applicable under this scenario shall be as per the table.
This table is not applicable for Single Pay policies
| Number of Premiums paid (in years)*) | Policy Year of Surrender | Surrender Charge (as % of Fund Value) |
| <= 3 | <= Year 10 | 15.00% |
| 4 to 5 | <= Year 10 | 8.00% |
| 6 to 10 | <= Year 10 | 4.00% |
| Any | > Year 10 | 0.00% |
If the number of Premiums paid (in years) under a Policy as on the date of Surrender is equal to the Premium Payment Term, or in case the Policy is a Single Pay Policy, the Surrender charges applicable shall be as per the table
| Policy Year of Surrender | Surrender Charge (as % of Fund Value) |
| Year 1 to 3 | 15% |
| Year 4 to 5 | 8% |
| Year 6 to 10 | 4% |
| Year 11 Onwards | 0% |
The ICICI Pru Global Wealth Multiplier Plan invests in global markets.
To assess its effectiveness, it is useful to evaluate the projected benefits in percentage terms, making the returns easier to compare with other investment options.
The following analysis is based on the benefit illustration provided in the policy brochure.
Consider a 40-year-old male investing in the plan with a sum assured of USD 50,000, a policy term of 25 years, and a premium payment term of 10 years.
He pays an annual premium of USD 5,000. He chooses the Growth Option.
| Male | 40 years |
| Sum Assured | USD 50,000 |
| Policy Term | 25 years |
| Premium Paying Term | 10 years |
| Annualised Premium | USD 5,000 |
At the end of the policy term, the accumulated fund value is payable. The brochure illustrates projected outcomes at assumed growth rates of 4% and 8% per annum.
These rates are not guaranteed and are only illustrative; the actual maturity benefit will depend on the performance of the underlying funds.
| At 4% p.a. | At 8% p.a. | ||||
| Age | Year | Annualised premium / Maturity benefit | Death benefit | Annualised premium / Maturity benefit | Death benefit |
| 40 | 1 | -5,000 | 50,000 | -5,000 | 50,000 |
| 41 | 2 | -5,000 | 50,000 | -5,000 | 50,000 |
| 42 | 3 | -5,000 | 50,000 | -5,000 | 50,000 |
| 43 | 4 | -5,000 | 50,000 | -5,000 | 50,000 |
| 44 | 5 | -5,000 | 50,000 | -5,000 | 50,000 |
| 45 | 6 | -5,000 | 50,000 | -5,000 | 50,000 |
| 46 | 7 | -5,000 | 50,000 | -5,000 | 50,000 |
| 47 | 8 | -5,000 | 50,000 | -5,000 | 50,000 |
| 48 | 9 | -5,000 | 50,000 | -5,000 | 50,000 |
| 49 | 10 | -5,000 | 50,000 | -5,000 | 50,000 |
| 50 | 11 | 0 | 50,000 | 0 | 50,000 |
| 51 | 12 | 0 | 50,000 | 0 | 50,000 |
| 52 | 13 | 0 | 50,000 | 0 | 50,000 |
| 53 | 14 | 0 | 50,000 | 0 | 50,000 |
| 54 | 15 | 0 | 50,000 | 0 | 50,000 |
| 55 | 16 | 0 | 50,000 | 0 | 50,000 |
| 56 | 17 | 0 | 50,000 | 0 | 50,000 |
| 57 | 18 | 0 | 50,000 | 0 | 50,000 |
| 58 | 19 | 0 | 50,000 | 0 | 50,000 |
| 59 | 20 | 0 | 50,000 | 0 | 50,000 |
| 60 | 21 | 0 | 50,000 | 0 | 50,000 |
| 61 | 22 | 0 | 50,000 | 0 | 50,000 |
| 62 | 23 | 0 | 50,000 | 0 | 50,000 |
| 63 | 24 | 0 | 50,000 | 0 | 50,000 |
| 64 | 25 | 0 | 50,000 | 0 | 50,000 |
| 65 | 74,928 | 1,67,535 | |||
| IRR | 1.98% | 6.00% | |||
These returns appear modest for a long-term market-linked investment.
Considering that the plan provides exposure to global markets, the projected IRRs offer limited wealth-creation potential, particularly when compared with the risks associated with market and currency fluctuations.
The life cover is also relatively low at USD 50,000.
For an investor seeking global market exposure, the financial liabilities and long-term goals may be substantially higher, making this level of insurance protection inadequate to meet the family’s future financial needs.
In summary, the ICICI Pru Global Wealth Multiplier Plan appears weak on both investment returns and insurance protection.
The projected returns are not particularly attractive, while the life cover may be insufficient for meaningful financial protection.
As a result, the plan may not serve effectively as a comprehensive wealth-creation and protection solution.
Since the ICICI Pru Global Wealth Multiplier Plan involves investments denominated in foreign currency and exposure to global markets, it is not directly comparable with conventional Indian investment or insurance products.
Before considering this plan, investors should carefully evaluate its suitability based on their individual financial circumstances.
A Resident Indian may be able to invest in such a plan by remitting funds through the Liberalised Remittance Scheme (LRS), subject to applicable regulations and eligibility.
However, investing through LRS can involve additional costs and compliance considerations, including currency conversion charges, transfer fees, and applicable tax collection requirements.
The current LRS limit is USD 250,000 per financial year per individual, subject to prevailing regulations.
The tax treatment of such policies can also differ from that of domestic Indian ULIPs.
While eligible domestic ULIPs may qualify for exemptions under Section 10(10D), subject to the applicable conditions and premium limits, the tax treatment of policies issued from GIFT City to Resident Indians needs to be evaluated separately based on the prevailing tax rules and the specific policy structure.
Investors should therefore assess the post-tax returns rather than focusing only on the projected maturity value.
If you already have a well-diversified portfolio across Indian asset classes and are looking to add global exposure, there may be more flexible ways to achieve this objective.
Direct investment through suitable global investment avenues can provide greater control over asset selection, portfolio allocation, and costs.
However, such investments also carry market, currency, regulatory, and taxation risks that need to be considered.
The name ICICI Pru Global Wealth Multiplier Plan may sound attractive, suggesting that it can help multiply wealth through investments in global markets.
However, a closer analysis reveals that the projected returns are relatively modest compared with other market-linked investment opportunities, including those providing global exposure.
The returns do not appear to adequately compensate for the risks involved, particularly when the impact of the plan’s charges is taken into consideration.
Combining insurance and investment in a single product is generally not the most efficient approach.
A better strategy is to purchase a pure-term life insurance policy that provides adequate financial protection for your family at a relatively lower cost.
The investment component can then be managed separately through a diversified portfolio comprising Indian and global equity, debt, and other suitable asset classes, based on your financial goals and risk profile.
As discussed above, the ICICI Pru Global Wealth Multiplier Plan may not be suitable for every investor and it also has a high agent commission.
The associated costs, complexity, and limited transparency can make it less attractive as a means of building global wealth.
Investors seeking international exposure may find more flexible and transparent alternatives better suited to their long-term financial objectives.
For personalised guidance, consider consulting a Certified Financial Planner (CFP).
Do Quora, Facebook, and Twitter have the final say when it comes to financial advice?
A CFP can help you evaluate your insurance and investment requirements separately and construct an appropriate portfolio, including global investments, in line with your financial goals, risk tolerance, and overall financial plan.
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