ICICI Pru Signature Assure Plan: Good or Bad? An Insightful ULIP Review
Does the ICICI Pru Signature Assure Plan offer the flexibility and growth potential you need, or are its benefits overshadowed by its costs?
Is the ICICI Pru Signature Assure Plan your key to long-term financial security, or does it leave room for better options in the market?
Is the ICICI Pru Signature Assure Plan truly a game-changer for savvy investors, or does it fall short of expectations?
This review delves into the key features, benefits, and limitations of the plan, supported by detailed illustrations to help you make an informed decision.
What is the ICICI Pru Signature Assure?
What are the features of the ICICI Pru Signature Assure?
Who is eligible for the ICICI Pru Signature Assure?
What are the benefits of the ICICI Pru Signature Assure?
What are the investment strategies and Fund options available in the ICICI Pru Signature Assure?
What are the charges under the ICICI Pru Signature Assure?
Grace Period, Discontinuance and Revival of ICICI Pru Signature Assure
Free Look Period for ICICI Pru Signature Assure
Surrendering ICICI Pru Signature Assure
What are the advantages of the ICICI Pru Signature Assure?
What are the disadvantages of the ICICI Pru Signature Assure?
Research Methodology of ICICI Pru Signature Assure
Benefit Illustration – IRR Analysis of ICICI Pru Signature Assure
ICICI Pru Signature Assure Vs. Other Investments
ICICI Pru Signature Assure Vs. Pure-term + PPF/ELSS
Final Verdict on ICICI Pru Signature Assure
ICICI Pru Signature Assure is a Non-participating Linked Individual Savings Life Insurance Plan. It is a savings and protection-oriented life insurance plan. This plan offers you wealth creation opportunities and protects your family’s goals in case of any unforeseen event.
| Age at entry | Premium paying term | Minimum/Maximum age at entry | Minimum/Maximum age at maturity | Policy term |
| 18-45 | 5 to 15 | 18/50 | 33/65 | 15-25 |
| 46-50 | 7 to 15 | |||
| Policy term | Minimum premium (Yearly) | |||
| 15-19 | ₹ 48,000 yearly; ₹ 24,000 half yearly; ₹ 4,000 monthly | |||
| 20-25 | ₹ 30,000 yearly; ₹ 15,000 half yearly; ₹ 2,500 monthly | |||
| Base policy | Minimum Sum Assured: 7 times Annualised PremiumMaximum Sum Assured: 10 times Annualised Premium | |||
| Top-ups | 1.25 times Top-up Premium or 10 times Top-up Premium | |||
On survival of the ICICI Pru Signature Assure Plan policy holder till date of maturity, provided he has paid all due premiums, he will get a lump sum corpus as the Maturity Benefit (i.e. Fund Value). Fund Value payable on maturity of the policy shall include Loyalty Additions.
Under the Maturity Protect benefit, on the date of maturity, policy policyholder gets a return of all premiums paid during the policy term.
On the death of the ICICI Pru Signature Assure Plan policyholder during the Policy Term, provided all due Premiums have been paid and the monies are not in the Discontinued Policy Fund, a lump sum benefit will be payable to the Claimant, which will be the higher of:
Under Future Secure benefit, the company waive all future premiums payable under the policy after the date of death and will allocate units equivalent to the instalment premium net of premium allocation charges into the policy, as and when due.
Under the Family Income Benefit, the nominee shall also receive an income (as a percentage of the sum assured) every year on the policy anniversary till the end of the ICICI Pru Signature Assure Plan policy term.
You can choose from four portfolio strategies to save your money in, as per your risk appetite. These are given below:
A.)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 among these funds using the switch option.
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 the 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 |
| 23 | MidSmallCap 400 Momentum Quality 100 Index Fund | 90-100% | 0-10% | 0-10% | High |
| 24 | India Consumption Fund | 90-100% | 0-10% | 0-10% | High |
B.)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 Signature Assure 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.
C.)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 the Income Fund, a debt-oriented fund, in a 75%: 25% proportion.
The fund allocation may subsequently be altered due to market movements. They will rebalance funds in the portfolio based on a trigger event.
D.)Lifecycle-based Portfolio Strategy 2
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% |
a) Fund Management Charge
Fund management charge is 1.35% p.a. for all funds except the Money market fund, for which the charge is 0.75%.
b) Policy Administration charge
Policy Administration Charge will be levied at the beginning of every month by redemption of units, subject to a maximum of Rs 500 per month for the entire policy term.
c) Mortality charge
Mortality charge will be levied every month by redemption of units and shall be calculated based on the Sum at Risk.
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 plan applies multiple charges before investing your premium, including Premium Allocation, Discontinuance, and Mortality Charges, which persist throughout the ICICI Pru Signature Assure Plan 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
The grace period for payment of the premium is 15 days for the 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 Signature Assure 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 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)
The revival period is three years from the date of the first unpaid premium.
If you are not satisfied with the terms and conditions of this policy, you can return the Policy Document within 30 days from the date you received it, whether received electronically or otherwise.
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 on the date of surrender, shall be payable to you.
If you’re aiming to build long-term wealth through market-linked products, it’s essential to assess whether the ICICI Pru Signature Assure Plan aligns with that objective.
One effective way to do this is by estimating the Internal Rate of Return (IRR) using the benefit illustration provided in the ICICI Pru Signature Assure Plan policy brochure. This calculation helps investors make more informed decisions.
Let’s consider an example: A 35-year-old male opts for the plan with a sum assured of ₹10 lakhs, an annual premium of ₹1,00,000, a policy term of 25 years, and a premium payment term of 10 years.
| Male | 35 years |
| Sum Assured | ₹ 10,00,000 |
| Policy Term | 25 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 1,00,000 |
The illustration assumes returns of 4% p.a. and 8% p.a.—purely for demonstration purposes. These figures are neither guaranteed nor reflective of actual returns, as the final fund value depends on market performance and other variables.
| At 4% p.a. | At 8% p.a. | ||||
| Age | Year | Annualised premium / Maturity benefit | Death benefit | Annualised premium / Maturity benefit | Death benefit |
| 35 | 1 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 36 | 2 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 37 | 3 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 38 | 4 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 39 | 5 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 40 | 6 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 41 | 7 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 42 | 8 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 43 | 9 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 44 | 10 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 45 | 11 | 0 | 10,00,000 | 0 | 10,00,000 |
| 46 | 12 | 0 | 10,00,000 | 0 | 10,00,000 |
| 47 | 13 | 0 | 10,00,000 | 0 | 10,00,000 |
| 48 | 14 | 0 | 10,00,000 | 0 | 10,00,000 |
| 49 | 15 | 0 | 10,00,000 | 0 | 10,00,000 |
| 50 | 16 | 0 | 10,00,000 | 0 | 10,00,000 |
| 51 | 17 | 0 | 10,00,000 | 0 | 10,00,000 |
| 52 | 18 | 0 | 10,00,000 | 0 | 10,00,000 |
| 53 | 19 | 0 | 10,00,000 | 0 | 10,00,000 |
| 54 | 20 | 0 | 10,00,000 | 0 | 10,00,000 |
| 55 | 21 | 0 | 10,00,000 | 0 | 10,00,000 |
| 56 | 22 | 0 | 10,00,000 | 0 | 10,00,000 |
| 57 | 23 | 0 | 10,00,000 | 0 | 10,00,000 |
| 58 | 24 | 0 | 10,00,000 | 0 | 10,00,000 |
| 59 | 25 | 0 | 10,00,000 | 0 | 10,00,000 |
| 60 | 12,35,067 | 10,00,000 | 31,47,336 | 10,00,000 | |
| IRR | 1.03% | 5.69% | |||
At an assumed 4% return, the fund value at maturity is ₹12.35 lakhs, resulting in an IRR of just 1.03% as per the ICICI Pru Signature Assure Plan maturity calculator.
At an assumed 8% return, the fund value increases to ₹31.47 lakhs, translating to an IRR of 5.69% as per the ICICI Pru Signature Assure Plan maturity calculator.
Even under the higher return scenario, the potential returns are lower than what many traditional debt instruments offer. This defeats the core purpose of investing in a market-linked product, leading to slower wealth accumulation and a possible shortfall in meeting financial goals.
Additionally, inflation continually increases the cost of future goals. Investing in a low-yield product like the ICICI Pru Signature Assure Plan could derail your financial plans over the long term.
ICICI Pru Signature Assure is positioned as a long-term investment plan. However, despite the extended investment horizon, the potential returns remain relatively modest.
A more effective strategy is to separate insurance from investment, which can lead to significantly better outcomes. Let’s consider a more optimised approach using the same annual premium of ₹1,00,000 as in the earlier illustration:
A pure term insurance policy with a sum assured of ₹10 lakhs, a 25-year policy term, and a 10-year premium-paying term, costs just ₹9,800 per year. This leaves ₹90,200 available annually for investment.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 10,00,000 |
| Policy Term | 25 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 9,800 |
| Investment | ₹ 90,200 |
Choosing the right investment product based on your risk profile is crucial. While conservative investors might opt for debt, this example assumes investment in an Equity-Linked Savings Scheme (ELSS) — a tax-efficient equity product.
| Term insurance + ELSS | |||
| Age | Year | Term Insurance premium + ELSS | Death benefit |
| 35 | 1 | -1,00,000 | 10,00,000 |
| 36 | 2 | -1,00,000 | 10,00,000 |
| 37 | 3 | -1,00,000 | 10,00,000 |
| 38 | 4 | -1,00,000 | 10,00,000 |
| 39 | 5 | -1,00,000 | 10,00,000 |
| 40 | 6 | -1,00,000 | 10,00,000 |
| 41 | 7 | -1,00,000 | 10,00,000 |
| 42 | 8 | -1,00,000 | 10,00,000 |
| 43 | 9 | -1,00,000 | 10,00,000 |
| 44 | 10 | -1,00,000 | 10,00,000 |
| 45 | 11 | 0 | 10,00,000 |
| 46 | 12 | 0 | 10,00,000 |
| 47 | 13 | 0 | 10,00,000 |
| 48 | 14 | 0 | 10,00,000 |
| 49 | 15 | 0 | 10,00,000 |
| 50 | 16 | 0 | 10,00,000 |
| 51 | 17 | 0 | 10,00,000 |
| 52 | 18 | 0 | 10,00,000 |
| 53 | 19 | 0 | 10,00,000 |
| 54 | 20 | 0 | 10,00,000 |
| 55 | 21 | 0 | 10,00,000 |
| 56 | 22 | 0 | 10,00,000 |
| 57 | 23 | 0 | 10,00,000 |
| 58 | 24 | 0 | 10,00,000 |
| 59 | 25 | 0 | 10,00,000 |
| 60 | 86,19,178 | 10,00,000 | |
| IRR | 10.84% | ||
Investing ₹90,200 annually in an ELSS fund for 25 years could grow the corpus to ₹97.03 lakhs. After accounting for capital gains tax, the post-tax corpus is ₹86.19 lakhs, delivering a post-tax IRR of 10.84%.
This alternative strategy offers two major advantages:
Higher returns through long-term equity participation (alpha generation)
Greater liquidity, as ELSS funds come with a shorter lock-in of just 3 years compared to ULIPs
| ELSS Tax Calculation | |
| Maturity value after 25 years | 97,03,775 |
| Purchase price | 9,02,000 |
| Long-Term Capital Gains | 88,01,775 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 86,76,775 |
| Tax paid on LTCG | 10,84,597 |
| Maturity value after tax | 86,19,178 |
This comparison clearly highlights that combining insurance and investment, as in the ICICI Pru Signature Assure Plan, can compromise both returns and liquidity, making it less suitable for achieving long-term financial goals.
Under the ICICI Pru Signature Assure Plan, the premium you pay is first allocated towards life insurance coverage, and the remaining amount is invested in market-linked funds.
In case of an unfortunate event, the premium waiver benefit ensures that the ICICI Pru Signature Assure Plan policy continues even after the death benefit is paid. Beyond this feature, however, the plan functions as a basic ULIP (Unit Linked Insurance Plan).
An analysis of returns clearly shows that the ICICI Pru Signature Assure Plan delivers low yields. Despite being a market-linked product, its returns often fall short even when compared to traditional debt instruments.
This is primarily due to the multiple charges levied under the plan, which significantly reduce overall gains and it also has a high agent commission.
Combining investment and insurance in a single product typically results in inefficiencies, making it difficult to achieve either objective effectively.
A more optimal approach would be to:
Opt for a pure-term insurance policy to secure your family’s financial future at a low cost
Invest the remaining funds in a diversified investment portfolio aligned with your financial goals and risk tolerance
To make informed investment choices based on your risk profile, investment horizon, and objectives, consider working with a qualified financial advisor. They can help design a personalised plan tailored to your unique financial needs and long-term aspirations.
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