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ICICI Pru Save N Grow

ICICI Pru Save N Grow Plan: Good or Bad? A Detailed Review

by Holistic Leave a Comment | Filed Under: Insurance

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Is ICICI Pru Save N Grow Plan a Good Choice to Grow Your Wealth and Meet Life Goals?

Can the ICICI Pru Save N Grow Plan truly safeguard your wealth while helping it grow—or is it just another savings plan with limited potential?

Is the ICICI Pru Save N Grow Plan the right fit for your financial journey—or does it fall short when compared to modern investment strategies?

This article takes a closer look at the plan’s features, benefits, and limitations to help you make an informed decision.

Table of Contents:

What is ICICI Pru Save N Grow?

What are the features of the ICICI Pru Save N Grow?

Who is eligible for the ICICI Pru Save N Grow?

What are the benefits of the ICICI Pru Save N Grow?

Research Methodology of ICICI Pru Save N Grow

Benefit Illustration – IRR Analysis of ICICI Pru Save N Grow

ICICI Pru Save N Grow Vs. Other Investments

ICICI Pru Save N Grow Vs. Pure-term + ELSS

Final verdict on ICICI Pru Save N Grow Plan

What is ICICI Pru Save N Grow?

ICICI Pru Grow N Save is a combination of benefits of two individual and separate products:

  • ICICI Pru Ezy Grow and
  • ICICI Pru Guaranteed Income For Tomorrow (GIFT)

We’ve already reviewed the ICICI Pru Guaranteed Income For Tomorrow (GIFT) in detail. You can read the full analysis here: ICICI Pru Guaranteed Income For Tomorrow (GIFT) Review

What are the features of the ICICI Pru Save N Grow?

  • Guaranteed return of all premiums at maturity, offering capital protection
  • Opportunity to grow wealth through a mix of equity and debt investments based on your risk profile
  • Financial security for your family with built-in life insurance coverage
  • Potential tax benefits on both premium payments and maturity proceeds, as per applicable laws

Who is eligible for the ICICI Pru Save N Grow?

Parameter Boundary Condition
Age at Entry (in years) Min: 0 | Max: 55
Premium Payment Term (PPT in years) 5,7,10
Policy Term (PT in years) For 5 PPT:15 | For 7 PPT: 15 | For 10 PPT: 20
Premium Payment Frequency Yearly/ Half-yearly/ Monthly
Sum Assured under ICICI Pru EzyGrow 10 times Annualised Premium
Sum Assured on Death under ICICI Pru Guaranteed Income For Tomorrow 10 times Annualised Premium

What are the benefits of the ICICI Pru Save N Grow?

Maturity benefit

You will receive a lump sum amount. This lump sum will comprise:

  • Total Premiums Paid by you and,
  • Market-linked returns to boost your savings

Research Methodology of ICICI Pru Save N Grow

ICICI Pru Save N Grow is a market-linked investment plan, which means it comes with inherent market risks. As an investor, it’s important to assess whether the potential returns justify the risks taken.

Let’s examine an example from the ICICI Pru Save N Grow Plan policy brochure to estimate the Internal Rate of Return (IRR).

Benefit Illustration – IRR Analysis of ICICI Pru Save N Grow

Consider a 30-year-old male who invests in the ICICI Pru Save N Grow Plan with a sum assured of ₹5 lakhs. The policy term is 15 years, and the premium paying term is 7 years, with an annual premium of ₹50,000.

If he pays all premiums regularly, he will receive the fund value as the maturity benefit.

Male 30 years
Sum Assured ₹ 5,00,000
Policy Term 7 years
Premium Paying Term 15 years
Annualised Premium ₹ 50,000

The brochure provides illustrative scenarios based on assumed annual returns of 4% and 8%. These are not guaranteed and merely serve as examples—they do not represent the actual or expected performance.

At 4% p.a. At 8% p.a.
Age Year Annualised premium / Maturity benefit Death benefit Annualised premium / Maturity benefit Death benefit
30 1 -50,000 5,00,000 -50,000 5,00,000
31 2 -50,000 5,00,000 -50,000 5,00,000
32 3 -50,000 5,00,000 -50,000 5,00,000
33 4 -50,000 5,00,000 -50,000 5,00,000
34 5 -50,000 5,00,000 -50,000 5,00,000
35 6 -50,000 5,00,000 -50,000 5,00,000
36 7 -50,000 5,00,000 -50,000 5,00,000
37 8 0 5,00,000 0 5,00,000
38 9 0 5,00,000 0 5,00,000
39 10 0 5,00,000 0 5,00,000
40 11 0 5,00,000 0 5,00,000
41 12 0 5,00,000 0 5,00,000
42 13 0 5,00,000 0 5,00,000
43 14 0 5,00,000 0 5,00,000
44 15 0 5,00,000 0 5,00,000
45 5,49,271 6,69,258
IRR 3.80% 5.50%

At 4% annual returns, the projected maturity value is ₹5.49 lakhs, translating to an IRR of approximately 3.80% as per the ICICI Pru Save N Grow Plan maturity calculator.

At 8% annual returns, the projected maturity value rises to ₹6.69 lakhs, with an IRR of around 5.50% as per the ICICI Pru Save N Grow Plan maturity calculator.

These returns appear modest given the market-linked nature of the plan. Equity investments are generally expected to outperform inflation and deliver alpha over the long term.

However, the projected returns from this plan are comparable to, or even lower than, those from traditional debt instruments.

As a result, the ICICI Pru Save N Grow Plan may fall short of expectations for investors looking to use it as an equity-oriented vehicle within their portfolio.

ICICI Pru Save N Grow Vs. Other Investments

Although ICICI Pru Save N Grow positions itself as a market-linked product, the returns it offers are not compelling. Compared to other market-based investment options, this plan delivers lower yields and lacks transparency in portfolio allocation.

To better understand the opportunity cost, let’s compare it with an alternative approach using the same financial parameters.

ICICI Pru Save N Grow Vs. Pure-term + ELSS

Consider a pure term life insurance policy with a sum assured of ₹5 lakhs. For a 15-year term and a 5-year premium paying term, the annual premium is approximately ₹5,700. This allows for a surplus of ₹44,300 per year, which can be invested separately.

Pure Term Life Insurance Policy
Sum Assured ₹ 5,00,000
Policy Term 5 years
Premium Paying Term 15 years
Annualised Premium ₹ 5,700
Investment ₹ 44,300

Depending on your risk profile, this amount could be directed toward equity (higher risk, higher return) or debt (lower risk, lower return) investments. In this scenario, we assume the ₹44,300 is invested annually in an ELSS (Equity-Linked Savings Scheme).

At the end of 15 years, the investment grows to ₹12.72 lakhs. After accounting for long-term capital gains tax, the post-tax maturity value is ₹11.69 lakhs.

Term insurance + ELSS
Age Year Term Insurance premium + ELSS Death benefit
30 1 -50,000 5,00,000
31 2 -50,000 5,00,000
32 3 -50,000 5,00,000
33 4 -50,000 5,00,000
34 5 -50,000 5,00,000
35 6 -50,000 5,00,000
36 7 -50,000 5,00,000
37 8 0 5,00,000
38 9 0 5,00,000
39 10 0 5,00,000
40 11 0 5,00,000
41 12 0 5,00,000
42 13 0 5,00,000
43 14 0 5,00,000
44 15 0 5,00,000
45 11,69,616
IRR 10.40%

This combination—pure term insurance and ELSS investment—delivers a post-tax Internal Rate of Return (IRR) of 10.40%, which significantly outperforms the returns projected by the ICICI Pru Save N Grow Plan.

ELSS Tax Calculation
Maturity value after 15 years 12,72,919
Purchase price 3,21,500
Long-Term Capital Gains 9,51,419
Exemption limit 1,25,000
Taxable LTCG 8,26,419
Tax paid on LTCG 1,03,302
Maturity value after tax 11,69,616

This approach not only yields better returns but also outpaces inflation, helping accelerate long-term wealth creation. Clearly, separating insurance and investment remains a more efficient and rewarding strategy.

Final verdict on ICICI Pru Save N Grow Plan

ICICI Pru Save N Grow is essentially a bundled product that combines life insurance with a return of premiums at maturity. While this guaranteed return of premiums may seem attractive, it significantly limits the portion of your premium that is actually invested in market-linked funds.

A large share goes toward life cover and the return guarantee, leaving only a small amount to benefit from potential market growth.

As a result, both the life insurance coverage and the investment performance are compromised. For a product positioned as market-linked, ICICI Pru Save N Grow does not effectively support long-term wealth creation.

Moreover, the sum assured is generally inadequate to meet the actual protection needs of most individuals and it also has a high agent commission.

Given these drawbacks, the ICICI Pru Save N Grow plan is not a suitable option for a growth-oriented investment portfolio. To build meaningful wealth and ensure adequate financial protection, it is more effective to separate insurance from investment.

A pure term insurance plan offers high coverage at a low cost, allowing you to invest the remaining amount in high-potential instruments, such as equity or debt funds, based on your risk profile, financial goals, and investment horizon.

Do Quora, Facebook, and Twitter have the final say when it comes to financial advice?

To make the best decisions for your insurance and investment needs, consider consulting a certified financial planner. They can help design a personalised financial strategy that aligns with your long-term objectives.

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