ICICI Pru Protect N Gain Whole Life Plan
Can the ICICI Pru Protect N Gain Whole Life Plan truly deliver lifelong protection along with meaningful wealth creation, or does combining both come with important trade-offs?
Does the ICICI Pru Protect N Gain Whole Life Plan offer the right balance between market-linked growth and life insurance, or are there better alternatives available?
Can the ICICI Pru Protect N Gain Whole Life Plan help you achieve your long-term financial goals, or do its costs and restrictions deserve closer scrutiny?
This article takes a closer look at the key features, benefits, and potential drawbacks of the ICICI Pru Protect N Gain Whole Life Plan. It also examines whether combining decreasing life coverage with market-linked investments is the right financial strategy for securing your family’s future.
What is the ICICI Pru Protect N Gain Whole Life?
What are the features of the ICICI Pru Protect N Gain Whole Life?
Who is eligible for the ICICI Pru Protect N Gain Whole Life?
What are the benefits of the ICICI Pru Protect N Gain Whole Life?
What are the investment strategies and fund options in the ICICI Pru Protect N Gain Whole Life?
What are the charges of the ICICI Pru Protect N Gain Whole Life?
Grace Period, Discontinuance and Revival of the ICICI Pru Protect N Gain Whole Life
Free Look Period for the ICICI Pru Protect N Gain Whole Life
Surrendering the ICICI Pru Protect N Gain Whole Life
What are the advantages of the ICICI Pru Protect N Gain Whole Life?
What are the disadvantages of the ICICI Pru Protect N Gain Whole Life?
Research Methodology of ICICI Protect N Gain Whole Life
Benefit Illustration – IRR Analysis of ICICI Pru Protect N Gain Whole Life
ICICI Pru Protect N Gain Whole Life Vs. Other Investments
ICICI Pru Protect N Gain Whole Life Vs. Pure-term + Equity Mutual Fund
Final Verdict on the ICICI Pru Protect N Gain Whole Life
ICICI Pru Protect N Gain Whole Life is a Non-Participating, Linked, Individual, savings life insurance plan. It is a protection-oriented unit-linked savings life insurance plan, designed to safeguard your family while supporting your evolving life goals.
| Plan Option | Limited pay |
| Premium Payment Term (in years) | 7 – 12 years |
| Policy term | 99 years less Entry age |
| Minimum/maximum age at entry | 18/50 years |
| Minimum/maximum age at maturity | 99 years |
| Minimum Sum Assured | ₹ 50,00,000 |
| Premium Payment Frequency | Annual, Half-yearly, Monthly |
| Minimum premium | Corresponding to the minimum sum assured |
| Maximum Premium and Sum assured | Board approval |
If the person whose life is covered by this ICICI Pru Protect N Gain Whole Life Plan policy (known as the Life Assured) passes away the Policy Term, the insurance cover amount will be paid out as a lump sum to the Cl, provided the policy is in force, and the monies are not in the Discontinued Policy Fund.
Death Benefit will be the highest of:
The death benefit factors will vary by Policy Years as per the table:
| Policy year | Death Benefit Factor |
| ≤ 66 less Entry Age | 1 |
| 67 less Entry Age | 0.8 |
| 68 less Entry Age | 0.6 |
| 69 less Entry Age | 0.4 |
| 70 less Entry Age | 0.2 |
| ≥ 71 less Entry Age | 0.1 |
On survival of the Life Assured until the end of the ICICI Pru Protect N Gain Whole Life Plan policy term, i.e. at policy maturity, provided the policy has not already terminated, you will receive the Fund Value.
On payment of Maturity Benefit, the policy will terminate, and all rights, benefits and interests under the policy will be extinguished.
Return of charges:
Return of premium allocation charge: From the beginning of the 11th policy year, the premium allocation charges (excluding taxes and top-up premium allocation charges) deducted from the policy in the 120th month prior to the policy month will be added back to the fund value in the form of addition of units in a corresponding manner.
Return of mortality charges: Starting from the 11th policy year, at the beginning of each policy month, the mortality charge (excluding underwriting extra premium, extra mortality charges and taxes), deducted from the policy in the 120th month prior to the policy month, will be added back to the Fund Value in the form of addition of units.
Loyalty Additions
Loyalty Additions will be allocated as extra units from Policy Year (67 less Entry Age) and onwards, at the end of each Policy Year, provided all due premiums have been paid. Each Loyalty Addition will be 0.50% of the average of Fund Values on the last business day of the last eight policy quarters.
Maturity Booster
Maturity Booster will be allocated as extra units at the end of the ICICI Pru Protect N Gain Whole Life Plan Policy Term to boost your Fund Value, provided the policy is in force.
This Maturity Booster will be 20% of the average of the Fund Value on the last business day of the last eight policy quarters.
Choice of Funds
As per your savings outlook & risk appetite, you can choose from a range of funds to save your money.
The names of various funds available along with their risk-reward profile 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 | 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 | MidSmall cap 400 Index Fund | 90-100% | 0-10% | 0-10% | High |
| 23 | MidSmallCap 400 Momentum Quality 100 Index Fund: | 90-100% | 0-10% | 0-10% | High |
| 24 | Smallcap 250 Momentum Quality 100 Index Fund | 90-100% | 0-10% | 0-10% | High |
| 25 | India Consumption Fund | 90-100% | 0-10% | 0-10% | High |
| 26 | Nifty Alpha 50 Index Fund | 90-100% | 0-10% | 0-10% | High |
| 27 | BSE 500 Enhanced Value 50 Index Fund | 90-100% | 0-10% | 0-10% | High |
| 28 | Sector Leaders Index Fund | 90-100% | 0-10% | 0-10% | High |
| 29 | Dividend Leaders 50 Index Fund | 90-100% | 0-10% | 0-10% | High |
| 30 | Smallcap 250 Index Fund | 90-100% | 0-10% | 0-10% | High |
| 31 | BSE Enhanced Value 30 Index Fund | 80-100% | 0-20% | 0-20% | High |
| 32 | Large & Mid Cap Advantage Fund | 80-100% | 0-20% | 0-20% | High |
| 33 | BSE 500 Momentum Value 50 Index Fund | 80-100% | 0-20% | 0-20% | High |
Choice of Portfolio Strategies
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.
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 Protect N Gain Whole Life Plan policy term.
You can allocate your premiums between any two funds available with this 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 rebalance 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 redistributed based on your 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% |
A. Premium allocation charges
It shall be levied in the first 7 policy years as a percentage of the premium as follows:
| Year | % of premium |
| Year 1 – 3 | 6% |
| Year 4 – 7 | 3% |
| Thereafter | NIL |
B. 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 o.50% p.a.
C. Policy Administration charges
It will be levied from the 4th policy year at the beginning of every month. It is 0.34% of the annual premium for the 4th policy year, and thereafter, it will increase by 5% p.a. every year.
D. 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 | 1.17 | 2.02 | 5.32 |
| Female | 1.13 | 1.74 | 4.24 |
E. 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 plan deducts multiple charges before the premium is invested, including Premium Allocation, Discontinuance, and Mortality Charges. These charges can significantly reduce the amount actually invested and impact long-term returns. Compared with other market-linked investment options, ULIPs generally involve higher and more complex charges, making the investment process less transparent.
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
Premium discontinuance during lock-in period: the Fund Value shall be credited to the Discontinued Policy Fund after deduction of applicable discontinuance charges, and the risk cover and rider cover, if any, shall cease. The proceeds of the Discontinued Policy Fund applicable to your policy shall be payable to You at the end of the revival period or lock-in period, whichever is later.
Premium discontinuance after the lock-in period: the ICICI Pru Protect N Gain Whole Life Plan policy will be converted into a reduced paid-up policy with paid-up sum assured. The policy shall continue to be in reduced paid-up status without rider cover, if any. At the end of the revival period or on the date of maturity, whichever is earlier, the Fund Value (as applicable at the end of the revival period) or the Maturity Benefit (as payable on Date of Maturity) shall become payable to you, and the policy shall terminate.
Revival
You can revive your ICICI Pru Protect N Gain Whole Life Plan policy benefits for their full value within three years from the due date of the first unpaid premium.
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.
On surrender during the lock-in period, the unit fund value, after deducting applicable discontinuance charges, shall be credited to the discontinuance policy fund, and the risk cover and rider cover, if any, shall cease.
The fund management charges of the discontinued policy fund will be applicable during this period, and no other charges will be applied.
You or the Claimant, as the case may be, will be entitled to receive the Discontinued Policy Fund Value applicable to your policy, on the earlier of death of the Life Assured or the expiry of the lock-in period. Currently, the lock-in period is five years from policy inception.
In case of surrender of policy after the lock-in period, the surrender value, as on the date of surrender, shall be payable to you.
The ICICI Pru Protect N Gain Whole Life Plan is a whole-of-life policy with a maturity benefit payable at the age of 99.
It provides a death benefit to the nominee, equal to the higher of the applicable Sum Assured or the Fund Value.
However, the Sum Assured reduces significantly over the ICICI Pru Protect N Gain Whole Life Plan policy term.
Let us examine this structure and calculate the Internal Rate of Return (IRR) based on the figures provided in the policy brochure.
Consider a 40-year-old male who opts for the ICICI Pru Protect N Gain Whole Life Plan with a Sum Assured of ₹1 Crore.
The policy term is 60 years (100 minus age 40), with a premium-paying term of 10 years and an annual premium of ₹1,33,333.
| Male | 40 years |
| Sum Assured | ₹ 1,00,00,000 |
| Policy Term | Whole Life |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 1,33,333 |
As the Sum Assured reduces with age, the death benefit payable would be the higher of the following:
| Age | Death benefit will be the higher of |
| Till Age 65 | ₹ 1 Crore or Fund Value |
| 66 | ₹ 80 Lakh or Fund Value |
| 67 | ₹ 60 Lakh or Fund Value |
| 68 | ₹ 40 Lakh or Fund Value |
| 69 | ₹ 20 Lakh or Fund Value |
| 70 and above | ₹ 13.99 Lakh or Fund Value |
The policy illustration considers two assumed rates of investment return—8% p.a. and 4% p.a. These are only assumed rates and are not guaranteed. They should not be interpreted as the maximum or minimum returns that the fund may generate.
| At 4% p.a. | At 8% p.a. | ||
| Age | Year | Annualised premium / Maturity benefit | Annualised premium / Maturity benefit |
| 40 | 1 | -1,33,333 | -1,33,333 |
| 41 | 2 | -1,33,333 | -1,33,333 |
| 42 | 3 | -1,33,333 | -1,33,333 |
| 43 | 4 | -1,33,333 | -1,33,333 |
| 44 | 5 | -1,33,333 | -1,33,333 |
| 45 | 6 | -1,33,333 | -1,33,333 |
| 46 | 7 | -1,33,333 | -1,33,333 |
| 47 | 8 | -1,33,333 | -1,33,333 |
| 48 | 9 | -1,33,333 | -1,33,333 |
| 49 | 10 | -1,33,333 | -1,33,333 |
| 50 | 11 | 0 | 0 |
| 51 | 12 | 0 | 0 |
| 52 | 13 | 0 | 0 |
| 53 | 14 | 0 | 0 |
| 54 | 15 | 0 | 0 |
| 55 | 16 | 0 | 0 |
| 56 | 17 | 0 | 0 |
| 57 | 18 | 0 | 0 |
| 58 | 19 | 0 | 0 |
| 59 | 20 | 0 | 0 |
| 60 | 21 | 0 | 0 |
| 61 | 22 | 0 | 0 |
| 62 | 23 | 0 | 0 |
| 63 | 24 | 0 | 0 |
| 64 | 25 | 0 | 0 |
| 65 | 26 | 0 | 0 |
| 66 | 27 | 0 | 0 |
| 67 | 28 | 0 | 0 |
| 68 | 29 | 0 | 0 |
| 69 | 30 | 0 | 0 |
| 70 | 31 | 0 | 0 |
| 71 | 32 | 0 | 0 |
| 72 | 33 | 0 | 0 |
| 73 | 34 | 0 | 0 |
| 74 | 35 | 0 | 0 |
| 75 | 36 | 0 | 0 |
| 76 | 37 | 0 | 0 |
| 77 | 38 | 0 | 0 |
| 78 | 39 | 0 | 0 |
| 79 | 40 | 0 | 0 |
| 80 | 41 | 0 | 0 |
| 81 | 42 | 0 | 0 |
| 82 | 43 | 0 | 0 |
| 83 | 44 | 0 | 0 |
| 84 | 45 | 0 | 0 |
| 85 | 46 | 0 | 0 |
| 86 | 47 | 0 | 0 |
| 87 | 48 | 0 | 0 |
| 88 | 49 | 0 | 0 |
| 89 | 50 | 0 | 0 |
| 90 | 51 | 0 | 0 |
| 91 | 52 | 0 | 0 |
| 92 | 53 | 0 | 0 |
| 93 | 54 | 0 | 0 |
| 94 | 55 | 0 | 0 |
| 95 | 56 | 0 | 0 |
| 96 | 57 | 0 | 0 |
| 97 | 58 | 0 | 0 |
| 98 | 59 | 0 | 0 |
| 99 | 60 | 46,90,019 | 3,82,62,848 |
| 2.33% | 6.32% |
Now consider the Fund Value at age 99. Under the 4% return scenario, the Fund Value is ₹46.9 Lakh, translating into an IRR of just 2.33% as per the ICICI Pru Protect N Gain Whole Life Plan maturity calculator.
Under the 8% return scenario, the Fund Value grows to ₹3.82 Crore, with an IRR of 6.32% as per the ICICI Pru Protect N Gain Whole Life Plan maturity calculator.
However, there is an important limitation. This accumulated Fund Value cannot be freely accessed or utilised during your lifetime unless the policy is surrendered. In other words, a substantial portion of the corpus remains locked within the policy for the duration of the plan.
Moreover, these IRRs are calculated over the entire policy period, effectively up to age 99. If the returns are calculated for an earlier exit or holding period, the IRR would be even lower.
This raises a fundamental question about the suitability of using such a product for wealth creation.
When the returns are market-linked but access to the accumulated corpus remains restricted for most of your lifetime, the very purpose of investing in a market-linked product is undermined.
Although the ICICI Pru Protect N Gain Whole Life Plan is a unit-linked product, it may not be suitable for achieving life goals because the accumulated funds remain largely inaccessible during the policy term.
It also provides whole-of-life insurance coverage, which is generally unnecessary from a personal financial planning perspective.
For most individuals, life insurance is primarily required during their working years, when their income needs to be protected for their dependants.
With these limitations in mind, let us consider an alternative strategy that provides adequate life cover while keeping the investment corpus accessible.
For life cover up to age 65, a pure-term life insurance policy with a Sum Assured of ₹1 Crore costs ₹28,900 annually.
With a 25-year policy term and a 10-year premium-paying term, this leaves ₹1,04,433 from the annual amount available for investment.
This balance is invested in an equity mutual fund, a market-linked investment vehicle.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 1,00,00,000 |
| Policy Term | 25 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 28,900 |
| Investment | ₹ 1,04,433 |
At the end of 25 years, the investment grows to approximately ₹1.12 Crore. After accounting for capital gains tax, the post-tax corpus is approximately ₹99.76 Lakh.
This amount can then be moved to a debt instrument earning an assumed return of 7% p.a. and allowed to grow until age 99.
Under this strategy, the overall IRR works out to approximately 8.32%.
| Term insurance + Equity Mutual Fund | ||
| Age | Year | Term Insurance premium + Equity Mutual Fund |
| 40 | 1 | -1,33,333 |
| 41 | 2 | -1,33,333 |
| 42 | 3 | -1,33,333 |
| 43 | 4 | -1,33,333 |
| 44 | 5 | -1,33,333 |
| 45 | 6 | -1,33,333 |
| 46 | 7 | -1,33,333 |
| 47 | 8 | -1,33,333 |
| 48 | 9 | -1,33,333 |
| 49 | 10 | -1,33,333 |
| 50 | 11 | 0 |
| 51 | 12 | 0 |
| 52 | 13 | 0 |
| 53 | 14 | 0 |
| 54 | 15 | 0 |
| 55 | 16 | 0 |
| 56 | 17 | 0 |
| 57 | 18 | 0 |
| 58 | 19 | 0 |
| 59 | 20 | 0 |
| 60 | 21 | 0 |
| 61 | 22 | 0 |
| 62 | 23 | 0 |
| 63 | 24 | 0 |
| 64 | 25 | 0 |
| 65 | 26 | 0 |
| 66 | 27 | 0 |
| 67 | 28 | 0 |
| 68 | 29 | 0 |
| 69 | 30 | 0 |
| 70 | 31 | 0 |
| 71 | 32 | 0 |
| 72 | 33 | 0 |
| 73 | 34 | 0 |
| 74 | 35 | 0 |
| 75 | 36 | 0 |
| 76 | 37 | 0 |
| 77 | 38 | 0 |
| 78 | 39 | 0 |
| 79 | 40 | 0 |
| 80 | 41 | 0 |
| 81 | 42 | 0 |
| 82 | 43 | 0 |
| 83 | 44 | 0 |
| 84 | 45 | 0 |
| 85 | 46 | 0 |
| 86 | 47 | 0 |
| 87 | 48 | 0 |
| 88 | 49 | 0 |
| 89 | 50 | 0 |
| 90 | 51 | 0 |
| 91 | 52 | 0 |
| 92 | 53 | 0 |
| 93 | 54 | 0 |
| 94 | 55 | 0 |
| 95 | 56 | 0 |
| 96 | 57 | 0 |
| 97 | 58 | 0 |
| 98 | 59 | 0 |
| 99 | 60 | 10,65,17,749 |
| 8.32% |
| Equity Mutual Fund Tax Calculation | |
| Maturity value after 25 years | 1,12,34,970 |
| Purchase price | 10,44,330 |
| Long-Term Capital Gains | 1,01,90,640 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 1,00,65,640 |
| Tax paid on LTCG | 12,58,205 |
| Maturity value after tax | 99,76,765 |
More importantly, this approach addresses the key shortcomings of the ICICI Pru Protect N Gain Whole Life Plan.
You receive ₹1 Crore of life cover until age 65, while the investment corpus remains accessible throughout the investment period and can be utilised whenever required for your life goals.
The key difference is simple: term insurance provides the required protection, while investments remain available to fund your goals.
By separating insurance from investment, you gain greater liquidity, flexibility, and control over your money.
A unit-linked product is typically chosen for its potential to generate higher returns, with investors accepting market-related risks.
However, despite being a ULIP, the ICICI Pru Protect N Gain Whole Life Plan offers relatively modest return potential.
More importantly, the Fund Value remains largely inaccessible during the policyholder’s lifetime. It can be used by the nominee as a death benefit, or by the policyholder on surviving until age 99.
Accessing it earlier may require partial withdrawal or surrender, subject to the policy conditions. This significantly limits its usefulness for achieving financial goals.
The relatively low returns, combined with the various charges, make the investment proposition less attractive and it also has a high agent commission.
Combining insurance and investment in one product does not necessarily optimise either objective.
The whole-of-life cover also adds limited value for most individuals while increasing mortality charges.
A pure-term insurance policy covering the working years, combined with a diversified investment portfolio for wealth creation, is generally a more effective approach.
Do Quora, Facebook, and Twitter have the final say when it comes to financial advice?
For selecting the right combination of insurance and investments, a Certified Financial Planner (CFP) can help structure a plan based on your risk profile, time horizon, and financial goals.
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