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Could ICICI Pru Platinum be the right investment choice to help you achieve your dreams?
Is ICICI Pru Platinum the Plan that combines flexibility, tax benefits, and wealth creation?
Can the ICICI Pru Platinum Plan adapt to your unique financial goals and provide better returns?
In this article, we’ll explore the features, benefits, drawbacks, and costs of ICICI Pru Platinum to help you make an informed decision. Let’s dive in!
Table of Contents:
What is the ICICI Pru Platinum?
What are the features of the ICICI Pru Platinum?
Who is eligible for the ICICI Pru Platinum?
What are the benefits of the ICICI Pru Platinum?
What are the investment strategies and the fund options in the ICICI Pru Platinum?
What are the charges of ICICI Pru Platinum?
Grace Period, Discontinuance and Revival of ICICI Pru Platinum
Free Look Period for ICICI Pru Platinum
Surrendering ICICI Pru Platinum
What are the advantages of the ICICI Pru Platinum?
What are the disadvantages of the ICICI Pru Platinum?
Research Methodology of ICICI Pru Platinum
Benefit illustration – IRR Analysis of the ICICI Pru Platinum
ICICI Pru Platinum Vs. Other Investments
ICICI Pru Platinum Vs. Pure-term + PPF / ELSS
Final Verdict on the ICICI Pru Platinum
What is the ICICI Pru Platinum?
ICICI Pru Platinum is a Linked, Non-Participating, Individual, Savings, Life insurance plan. ICICI Pru Platinum Plan is designed to safeguard your family with an adequate life cover and grow your wealth to fulfil your long-term goals.
What are the features of the ICICI Pru Platinum?
- Select from two life cover options tailored to your life stage and requirements.
- Enjoy monthly payouts for supplemental income needs with the Systematic Withdrawal Plan (SWP).
- Boost your savings with the Top-up feature to align with your changing financial goals.
- Benefit from a cost-effective structure with no Premium Allocation Charge.
- Grow your wealth through market-linked returns with access to 22 fund options.
- Avail tax benefits on premiums paid and benefits received, subject to prevailing tax laws.
Who is eligible for the ICICI Pru Platinum?
| Plan option | Premium paying term | Policy term | Minimum/Maximum age at entry | Age at maturity | Minimum premium (Yearly) |
| Growth Plus | 5 years | 70 minus Age at entry | 0/50 years | 70 years | ₹ 60,000 |
| 6-9 years | 75 minus Age at entry | 75 years | ₹ 60,000 | ||
| 10-30 years | 75 minus Age at entry | 0/60 years | 75 years | ₹ 60,000 | |
| Single pay | 75 minus Age at entry | 0/60 years | 75 years | ₹ 2,50,000 | |
| Protect Plus | 5-30 years | 60 minus Age at entry | 0/45 years | 60 years | ₹ 60,000 |
What are the benefits of the ICICI Pru Platinum?
1. Maturity benefit
Under both the plan options, upon policy maturity, you will receive the Fund Value.
2. Death benefit
Under the Growth Plus option, the Death Benefit will be the highest of:
- Sum Assured, including top-up sum assured, if any
- Fund Value of this policy as available on the date of intimation of death or Date of Foreclosure or Date of Maturity whichever is earlier
- Minimum Death Benefit
Under the Protect Plus option, the Death Benefit will be the highest of:
- Sum Assured, including top-up sum assured, if any + Fund Value of this policy as available on the date of intimation of death or Date of Foreclosure or Date of Maturity whichever is earlier
- Minimum Death Benefit
What are the investment strategies and the fund options in the ICICI Pru Platinum?
You can choose from four portfolio strategies to save your money as per your risk appetite. These are given below:
i.) Fixed Portfolio Strategy
Under this strategy, you can choose to save your money in any of the following fund options in the proportions of your choice. You can switch your investment amount amongst these funds using the switch option.
Within the Fixed Portfolio Strategy, you also have the option to select 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.
| S. no | Fund Name | Asset Allocation | Risk Profile | ||
| Equity and Equity-related Securities | Debt | Money market and cash | |||
| 1 | Focus 50 Fund | 90-100% | 0-10% | 0-10% | High |
| 2 | India Growth | 80-100% | 0-20% | 0-20% | High |
| 3 | Opportunities Fund | 80-100% | 0-20% | 0-20% | High |
| 4 | Value Enhancer Fund | 85-100% | 0-15% | 0-15% | High |
| 5 | Multi Cap Growth Fund | 80-100% | 0-20% | 0-20% | High |
| 6 | Blue-chip Fund | 80-100% | 0-20% | 0-20% | High |
| 7 | Maximiser V | 75-100% | 0-25% | 0-25% | High |
| 8 | Maximise India Fund | 80-100% | 0-20% | 0-20% | High |
| 9 | Multi Cap Balanced Fund | 0-60% | 20-70% | 0-50% | Moderate |
| 10 | Active Asset Allocation Balanced Fund | 30-70% | 30-70% | 0-40% | Moderate |
| 11 | Secure Opportunities Fund | 0% | 60-100% | 0-40% | Low |
| 12 | Income Fund | 0% | 40-100% | 0-60% | Low |
| 13 | Money Market Fund | 0% | 0-50% | 50-100% | Low |
| 14 | Balanced Advantage Fund | 65-90% | 10-35% | 0-35% | High |
| 15 | Sustainable Equity Fund | 85-100% | 0-15% | 0-15% | High |
| 16 | Mid-Cap Fund | 85-100% | 0-15% | 0-15% | High |
| 17 | Mid-Cap Hybrid Growth Fund | 65-80% | 20-35% | 0-15% | High |
| 18 | Constant Maturity Fund | 0% | 75-100% | 0-25% | Moderate |
| 19 | Mid-cap Index Fund | 90-100% | 0-10% | 0-10% | High |
| 20 | Mid-cap 150 Momentum 50 Index Fund | 90-100% | 0-10% | 0-10% | High |
| 21 | Multicap 50 25 25 Index Fund | 90-100% | 0-10% | 0-10% | High |
| 22 | Mid-Small Cap 400 Index Fund | 90-100% | 0-10% | 0-10% | High |
ii.) Target Asset Allocation Strategy
This strategy enables you to choose an asset allocation that is best suited to your risk appetite and maintains it throughout the ICICI Pru Platinum Plan policy term.
You can allocate your premiums between any two funds available with this ICICI Pru Platinum Plan policy, in the proportion of your choice. Your portfolio will be rebalanced every quarter to ensure that this asset allocation is maintained.
iii.) Trigger Portfolio Strategy 2
Under this strategy, your savings will initially be distributed between two funds Multi Cap Growth Fund, an equity-oriented fund, and Income Fund, a debt-oriented fund in a 75%: 25% proportion.
The fund allocation may subsequently get altered due to market movements. They will re-balance funds in the portfolio based on a trigger event.
iv.) Lifecycle-based Portfolio Strategy 2
At Policy inception, your savings are distributed between two funds, Multi Cap Growth Fund and Income Fund, based on your age. As you move from one age band to another, your funds are re-distributed 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% |
What are the charges of ICICI Pru Platinum?
A. Fund Management charge
It is 0.75% p.a. for Money market fund and 1.35% p.a. for all other funds. For discontinued policy funds, it is 0.50% p.a.
B. Policy Administration Charge
The monthly policy administration charge in this product is 0.25% of the annual premium for limited pay and 0.03% of the single premium for single pay
C. Mortality Charges
It is the cost of the life insurance cover and depends on your age, gender & chosen sum assured. These charges will be levied every month by redemption of units based on the Sum at Risk.
| Age | 30 | 40 | 50 |
| Male | 1.07 | 1.85 | 4.88 |
| Female | 1.04 | 1.60 | 3.89 |
D. Discontinuance charge
It depends on the year of discontinuance and the annualised premium amount. There is no discontinuance charge from the 5th policy year.
Inference from charges: The ICICI Pru Platinum Plan applies multiple charges before investing your premium, including Premium Allocation, Discontinuance, and Mortality Charges, which persist throughout the policy term.
In contrast, other market-linked products typically have lower charges and offer more transparency in their investment processes. These higher charges in ULIPs can significantly affect your returns over time.
Grace Period, Discontinuance and Revival of ICICI Pru Platinum
Grace Period
The grace period for payment of premium is 15 days for monthly mode of premium payment and 30 days for other modes of premium payment commencing from the premium due date.
Discontinuance
In case of discontinuance during the first five policy years: the Fund Value including Top-up Fund Value, if any, shall be credited to the DP Fund after deduction of applicable discontinuance charges and the risk cover and rider cover, if any, shall cease.
If you do not exercise the option to revive the ICICI Pru Platinum Plan policy, the monies will remain in the DP fund and will be paid out at the end of the lock-in period (5 years).
In case of discontinuance after the first five policy years: the ICICI Pru Platinum Plan policy will be converted into a reduced paid-up policy with a paid-up sum assured.
Reduced paid-up Sum Assured = Original Sum Assured X (Total number of premiums paid till the date of discontinuance/ Original number of premiums payable as per applicable terms and conditions of the policy)
Revival
The revival period is three years from the date of the first unpaid premium.
Free Look Period for ICICI Pru Platinum
If you are not satisfied with the terms and conditions of this ICICI Pru Platinum Plan policy, you can return the Policy Document within 30 days from the date you received it, whether received electronically or otherwise.
Surrendering ICICI Pru Platinum
During the first five policy years: the Fund Value including Top-up Fund Value, if any, after deduction of applicable Discontinuance Charge, shall be transferred to the Discontinued Policy Fund (DP Fund).
The proceeds of the discontinued policy shall be refunded only upon completion of the lock-in period (5 years)
In case of surrender of the policy after the lock-in period, the surrender value, as of the date of surrender shall be payable to You
What are the advantages of the ICICI Pru Platinum?
- Choose to receive the Maturity Benefit as structured payouts or as an income stream for up to 5 years after maturity.
- Add extra funds to your plan with the Top-up premium feature.
- Make partial withdrawals once the lock-in period is over.
- Use the Systematic Withdrawal Plan (SWP) to regularly withdraw a fixed percentage or amount from your fund value.
- Adjust the frequency of your premium payments at your convenience.
- With no Premium Allocation Charges, your entire premium is invested in the fund of your choice.
What are the disadvantages of the ICICI Pru Platinum?
- The plan has a 5-year lock-in period for surrenders or partial withdrawals.
- Loan facilities are not available under this plan.
- Fund options are not distinctive and often have overlapping investment strategies.
- Premiums are invested only after deducting multiple charges.
- The fund value becomes accessible at the age of 70 or 75, depending on the chosen plan option, resulting in an extended policy term.
Research Methodology of ICICI Pru Platinum
Investing in a market-linked product aims to accelerate wealth accumulation. To evaluate if the ICICI Pru Platinum Plan fulfils this objective, we can estimate potential returns by calculating the Internal Rate of Return (IRR) based on the benefit illustration in the policy brochure.
Benefit illustration – IRR Analysis of the ICICI Pru Platinum
Consider a 45-year-old male who chooses the ICICI Pru Platinum Plan with a sum assured of ₹15 lakhs. The annual premium is ₹1,50,000, the policy term is 30 years, and the premium payment term is 15 years.
| Male | 45 years |
| Sum Assured | ₹ 15,00,000 |
| Policy Term | 30 years |
| Premium Paying Term | 15 years |
| Annualised Premium | ₹ 1,50,000 |
The illustration assumes returns of 4% p.a. and 8% p.a. for demonstration purposes only. These rates are neither guaranteed nor indicative of the maximum or minimum returns, as the fund value depends on factors like future investment performance.
| At 4% p.a. | At 8% p.a. | ||||
| Age | Year | Annualised premium / Maturity benefit | Death benefit | Annualised premium / Maturity benefit | Death benefit |
| 45 | 1 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 46 | 2 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 47 | 3 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 48 | 4 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 49 | 5 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 50 | 6 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 51 | 7 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 52 | 8 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 53 | 9 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 54 | 10 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 55 | 11 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 56 | 12 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 57 | 13 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 58 | 14 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 59 | 15 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 60 | 16 | 0 | 15,00,000 | 0 | 15,00,000 |
| 61 | 17 | 0 | 15,00,000 | 0 | 15,00,000 |
| 62 | 18 | 0 | 15,00,000 | 0 | 15,00,000 |
| 63 | 19 | 0 | 15,00,000 | 0 | 15,00,000 |
| 64 | 20 | 0 | 15,00,000 | 0 | 15,00,000 |
| 65 | 21 | 0 | 15,00,000 | 0 | 15,00,000 |
| 66 | 22 | 0 | 15,00,000 | 0 | 15,00,000 |
| 67 | 23 | 0 | 15,00,000 | 0 | 15,00,000 |
| 68 | 24 | 0 | 15,00,000 | 0 | 15,00,000 |
| 69 | 25 | 0 | 15,00,000 | 0 | 15,00,000 |
| 70 | 26 | 0 | 15,00,000 | 0 | 15,00,000 |
| 71 | 27 | 0 | 15,00,000 | 0 | 15,00,000 |
| 72 | 28 | 0 | 15,00,000 | 0 | 15,00,000 |
| 73 | 29 | 0 | 15,00,000 | 0 | 15,00,000 |
| 74 | 30 | 0 | 15,00,000 | 0 | 15,00,000 |
| 75 | 36,20,000 | 91,25,000 | |||
| IRR | 2.07% | 6.13% | |||
If all premiums are paid, the maturity benefit equals the fund value. At an assumed 4% return, the fund value is ₹36.20 lakhs, resulting in an IRR of 2.07% as per the ICICI Pru Platinum Plan maturity calculator.
At 8%, the fund value grows to ₹91.25 lakhs, with an IRR of 6.13% as per the ICICI Pru Platinum Plan maturity calculator.
The potential returns from the ICICI Pru Platinum Plan are lower than those from traditional debt instruments.
This defeats the purpose of a market-linked investment, slowing wealth accumulation and potentially causing a financial shortfall. Consequently, investing in the ICICI Pru Platinum Plan could derail your financial goals.
ICICI Pru Platinum Vs. Other Investments
ICICI Pru Platinum is a long-term investment where the maturity benefit is available only at the age of 70/75 years. However, the potential returns after this extended duration are relatively low.
Let’s explore better alternatives that can generate higher returns by investing the same premium as illustrated earlier.
ICICI Pru Platinum Vs. Pure-term + PPF / ELSS
A pure term life insurance policy with a sum assured of ₹15 lakhs costs ₹32,700 annually for a 25-year policy term and a 10-year premium-paying term.
This leaves ₹1,17,300 from the original annual premium of ₹1,50,000, which can be invested separately to achieve higher returns.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 15,00,000 |
| Policy Term | 25 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 32,700 |
| Investment | ₹ 1,17,300 |
Unlike the 15-year premium-paying term in ICICI Pru Platinum, the pure-term policy has a 10-year payment period.
For the first 10 years, the balance after paying the insurance premium is invested. In the following 5 years, the full premium amount is available for investment.
Selecting the right investment avenue based on your risk appetite is essential. High-risk investors may prefer equity, while low-risk investors might choose debt instruments. Here’s how these investments perform over 30 years:
| Term Insurance + PPF | Term insurance + ELSS | ||||
| Age | Year | Term Insurance premium + PPF | Death benefit | Term Insurance premium + ELSS | Death benefit |
| 45 | 1 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 46 | 2 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 47 | 3 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 48 | 4 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 49 | 5 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 50 | 6 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 51 | 7 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 52 | 8 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 53 | 9 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 54 | 10 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 55 | 11 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 56 | 12 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 57 | 13 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 58 | 14 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 59 | 15 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 60 | 16 | 0 | 15,00,000 | 0 | 15,00,000 |
| 61 | 17 | 0 | 15,00,000 | 0 | 15,00,000 |
| 62 | 18 | 0 | 15,00,000 | 0 | 15,00,000 |
| 63 | 19 | 0 | 15,00,000 | 0 | 15,00,000 |
| 64 | 20 | 0 | 15,00,000 | 0 | 15,00,000 |
| 65 | 21 | 0 | 15,00,000 | 0 | 15,00,000 |
| 66 | 22 | 0 | 15,00,000 | 0 | 15,00,000 |
| 67 | 23 | 0 | 15,00,000 | 0 | 15,00,000 |
| 68 | 24 | 0 | 15,00,000 | 0 | 15,00,000 |
| 69 | 25 | 0 | 15,00,000 | 0 | 15,00,000 |
| 70 | 26 | 0 | 15,00,000 | 0 | 15,00,000 |
| 71 | 27 | 0 | 15,00,000 | 0 | 15,00,000 |
| 72 | 28 | 0 | 15,00,000 | 0 | 15,00,000 |
| 73 | 29 | 0 | 15,00,000 | 0 | 15,00,000 |
| 74 | 30 | 0 | 15,00,000 | 0 | 15,00,000 |
| 75 | 94,65,910 | 2,47,33,282 | |||
| IRR | 6.29% | 10.54% | |||
– Debt Scenario (PPF): The maturity value in a Public Provident Fund (PPF) at the end of 30 years is ₹94.65 lakhs, delivering an IRR of 6.29%. However, as a debt instrument, PPF can potentially outperform the returns of a market-linked product.
– Equity Scenario (ELSS): Investing in an Equity-Linked Savings Scheme (ELSS) yields a corpus of ₹2.80 crores after 30 years. After deducting capital gains tax, the post-tax value is ₹2.47 crores, with a post-tax IRR of 10.54%.
| ELSS Tax Calculation | |
| Maturity value after 30 years | 2,80,81,179 |
| Purchase price | 11,73,000 |
| Long-Term Capital Gains | 2,69,08,179 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 2,67,83,179 |
| Tax paid on LTCG | 33,47,897 |
| Maturity value after tax | 2,47,33,282 |
This approach offers two key advantages over ICICI Pru Platinum: higher returns (alpha generation) and liquidity.
The comparison clearly demonstrates that combining investment and insurance compromises both returns and liquidity, making it less effective in achieving financial goals.
Final Verdict on the ICICI Pru Platinum
Under the ICICI Pru Platinum Plan, you pay premiums for a limited period, and the fund value becomes accessible only at the age of 70/75 years.
The life cover extends for the entire term, which increases your premium cost. However, in personal finance, life cover is typically recommended only until retirement.
At maturity, you receive the fund value, but by that time, most of your financial goals would likely already be achieved. Despite the long wait, the potential returns are underwhelming.
Even as a market-linked plan, the returns from ICICI Pru Platinum fall below those of traditional debt instruments.
Moreover, the sum assured is inadequate. The combination of low returns, lack of liquidity, and insufficient coverage makes ICICI Pru Platinum an unsuitable choice for your portfolio and also it has a high agent commission.
A better alternative is a pure-term insurance plan, which provides affordable life cover to protect your family’s financial future. For wealth accumulation, building a diversified investment portfolio is a more effective strategy.
When it comes to financial advice, are Quora, Facebook, and Twitter the final word?
Combining investment and insurance in a single plan often fails to achieve either goal efficiently. To select suitable investment products based on your risk appetite, time horizon, and financial objectives, consider consulting a financial advisor.
They can help you create a customized financial plan tailored to your unique needs and goals.
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