ICICI Pru Wealth Elite Pro
Can the ICICI Pru Wealth Elite Pro Plan truly help you build substantial long-term wealth, or do its costs and conditions reduce its investment appeal?
Does the ICICI Pru Wealth Elite Pro Plan offer the right combination of market-linked growth and life protection, or are there better alternatives available?
Is the ICICI Pru Wealth Elite Pro Plan a smart choice for long-term investors, or would separating insurance and investment offer greater flexibility?
This article examines the plan in detail, covering its key features, benefits, limitations, and a benefit illustration to assess its effectiveness as an investment option.
What is the ICICI Pru Wealth Elite Pro?
What are the features of the ICICI Pru Wealth Elite Pro?
Who is eligible for the ICICI Pru Wealth Elite Pro?
What are the benefits of the ICICI Pru Wealth Elite Pro?
What are the investment strategies and fund options in the ICICI Pru Wealth Elite Pro?
What are the charges of the ICICI Pru Wealth Elite Pro?
Grace Period, Discontinuance and Revival of the ICICI Pru Wealth Elite Pro
Free Look Period for the ICICI Pru Wealth Elite Pro
Surrendering the ICICI Pru Wealth Elite Pro
What are the advantages of the ICICI Pru Wealth Elite Pro?
What are the disadvantages of the ICICI Pru Wealth Elite Pro?
Research Methodology of ICICI Pru Wealth Elite Pro
Benefit Illustration – IRR Analysis of ICICI Pru Wealth Elite Pro
ICICI Pru Wealth Elite Pro Vs. Other Investments
ICICI Pru Wealth Elite Pro Vs. Pure-term + Equity Mutual Fund
Final Verdict on the ICICI Pru Wealth Elite Pro
ICICI Pru Wealth Elite Pro is a Non-Participating Linked Individual Savings Life Insurance Plan.
Along with a life cover to secure your family in case you are not around, this plan offers flexible savings options to help you achieve your goals, and it boosts your fund value where premium allocation charges don’t cost you- they compound with a wealth booster benefit.
Under this policy, on survival of the life assured till the date of maturity, the company will pay only the fund value to you, provided the ICICI Pru Wealth Elite Pro Plan policy has not already been terminated.
On payment of maturity benefit to the claimant by the company, the policy will terminate, and all rights, benefits and interests under the policy will stand extinguished.
Wealth Boosters will be allocated as extra units at the end of the 15th Policy Year, provided the policy is in force, and all due premiums have been paid to date.
Wealth Booster allocated will be equal to the accumulated value of premium allocation charges deducted (excluding top-up premium allocation charges) during the ICICI Pru Wealth Elite Pro Plan policy term, net of taxes, at a guaranteed rate of 7% p.a. compounded annually.
In the unfortunate event of death of the Life Assured during the term of the policy, provided the monies are not in the Discontinued Policy Fund, the following will be payable to the Claimant.
The Death Benefit payable shall be the highest of,
Minimum Death Benefit will be 105% of the total premiums including Top-up premiums, if any, received up to the date of death.
A. 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 Wealth Elite Pro 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.
B. 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.
C. 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 | 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 | 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 |
D. Lifecycle-based Portfolio Strategy 2
At ICICI Pru Wealth Elite Pro Plan 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% |
i. Premium Allocation Charge
Premiums are allocated to the chosen funds after deducting the Premium Allocation Charges as shown below. The charges shown are as percentages of annualized Premium.
| For Annual Mode | |
| Year 1-7 | 5% |
| Year 8-10 | 3.5% |
| Thereafter | 0% |
| Single Pay | 3% |
| Top-up premium | 2% |
ii. 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%.
iii. Policy Administration Charge
For Annual mode of premium payment: 0.183% p.m. limited to ₹500 p.m. during the first 15 policy years.
For Non-Annual Mode: 0.116% p.m., limited to ₹500 p.m. during the first 15 policy years
Single Pay: 0.06% p.m. of Single Premium (limited to ₹500 p.m.) during the first 15 policy years.
From policy year 16 onwards, no policy administration charge is applicable
iv. Mortality charge
Mortality charge will be levied every month by redemption of units and shall be calculated based on the Sum at Risk.
v. 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 your premium is invested, including Premium Allocation, Discontinuance, and Mortality Charges. While some of these charges are returned, the benefit is available only at the end of the policy term. Such charges can reduce the amount invested and, consequently, affect the overall returns from the ULIP over the long term.
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 cove
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)
Revival
The revival period is three years from the date of the first unpaid premium.
On receipt of the Policy Document, whether received electronically or otherwise, you have an option to review the ICICI Pru Wealth Elite Pro Plan 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.
If you wish to surrender the ICICI Pru Wealth Elite Pro Plan policy, the Fund Value, after deduction of applicable Discontinuance Charge, shall be credited to the Discontinued Policy Fund and 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, on the earlier of death or the expiry of the lock-in period. Currently, the lock-in period is five years from policy inception.
After the completion of the lock-in period, on receipt of intimation to surrender the Policy, you will receive the Surrender Value (equal to Fund Value) as on the date of surrender.
No surrender penalty will be levied, and policy surrender will extinguish all rights, benefits and interests under the policy.
The primary objective of investing in a market-linked product is to build wealth at a faster pace.
To assess whether the ICICI Pru Wealth Elite Pro Plan achieves this objective, let us examine its Internal Rate of Return (IRR) based on the benefit illustration provided in the policy brochure.
Consider a 35-year-old male who opts for the ICICI Pru Wealth Elite Pro Plan with a Sum Assured of ₹50 lakh.
He pays an annual premium of ₹5 lakh for 5 years, with a policy term of 40 years.
| Male | 35 years |
| Sum Assured | ₹ 50,00,000 |
| Policy Term | 40 years |
| Premium Paying Term | 5 years |
| Annualised Premium | ₹ 5,00,000 |
The benefit illustration assumes two investment return scenarios — 4% p.a. and 8% p.a.
These rates are purely illustrative, are not guaranteed, and do not represent the actual returns of the underlying funds, which depend on market performance and investment decisions.
| At 4% p.a. | At 8% p.a. | ||||
| Age | Year | Annualised premium / Maturity benefit | Death benefit | Annualised premium / Maturity benefit | Death benefit |
| 35 | 1 | -5,00,000 | 50,00,000 | -5,00,000 | 50,00,000 |
| 36 | 2 | -5,00,000 | 50,00,000 | -5,00,000 | 50,00,000 |
| 37 | 3 | -5,00,000 | 50,00,000 | -5,00,000 | 50,00,000 |
| 38 | 4 | -5,00,000 | 50,00,000 | -5,00,000 | 50,00,000 |
| 39 | 5 | -5,00,000 | 50,00,000 | -5,00,000 | 50,00,000 |
| 40 | 6 | 0 | 50,00,000 | 0 | 50,00,000 |
| 41 | 7 | 0 | 50,00,000 | 0 | 50,00,000 |
| 42 | 8 | 0 | 50,00,000 | 0 | 50,00,000 |
| 43 | 9 | 0 | 50,00,000 | 0 | 50,00,000 |
| 44 | 10 | 0 | 50,00,000 | 0 | 50,00,000 |
| 45 | 11 | 0 | 50,00,000 | 0 | 50,00,000 |
| 46 | 12 | 0 | 50,00,000 | 0 | 50,00,000 |
| 47 | 13 | 0 | 50,00,000 | 0 | 50,00,000 |
| 48 | 14 | 0 | 50,00,000 | 0 | 50,00,000 |
| 49 | 15 | 0 | 50,00,000 | 0 | 50,00,000 |
| 50 | 16 | 0 | 50,00,000 | 0 | 50,00,000 |
| 51 | 17 | 0 | 50,00,000 | 0 | 50,00,000 |
| 52 | 18 | 0 | 50,00,000 | 0 | 50,00,000 |
| 53 | 19 | 0 | 50,00,000 | 0 | 50,00,000 |
| 54 | 20 | 0 | 50,00,000 | 0 | 50,00,000 |
| 55 | 21 | 0 | 50,00,000 | 0 | 50,00,000 |
| 56 | 22 | 0 | 50,00,000 | 0 | 50,00,000 |
| 57 | 23 | 0 | 50,00,000 | 0 | 50,00,000 |
| 58 | 24 | 0 | 50,00,000 | 0 | 50,00,000 |
| 59 | 25 | 0 | 50,00,000 | 0 | 50,00,000 |
| 60 | 26 | 0 | 50,00,000 | 0 | 50,00,000 |
| 61 | 27 | 0 | 50,00,000 | 0 | 50,00,000 |
| 62 | 28 | 0 | 50,00,000 | 0 | 50,00,000 |
| 63 | 29 | 0 | 50,00,000 | 0 | 50,00,000 |
| 64 | 30 | 0 | 50,00,000 | 0 | 50,00,000 |
| 65 | 31 | 0 | 50,00,000 | 0 | 50,00,000 |
| 66 | 32 | 0 | 50,00,000 | 0 | 50,00,000 |
| 67 | 33 | 0 | 50,00,000 | 0 | 50,00,000 |
| 68 | 34 | 0 | 50,00,000 | 0 | 50,00,000 |
| 69 | 35 | 0 | 50,00,000 | 0 | 50,00,000 |
| 70 | 36 | 0 | 50,00,000 | 0 | 50,00,000 |
| 71 | 37 | 0 | 50,00,000 | 0 | 50,00,000 |
| 72 | 38 | 0 | 50,00,000 | 0 | 50,00,000 |
| 73 | 39 | 0 | 50,00,000 | 0 | 50,00,000 |
| 74 | 40 | 0 | 50,00,000 | 0 | 50,00,000 |
| 75 | 63,66,315 | 2,77,58,908 | |||
| IRR | 2.49% | 6.53% | |||
Maturity Benefit at the End of 40 Years:
At 4% assumed return: Fund Value of ₹63.66 lakh, with an IRR of 2.49% as per the ICICI Pru Wealth Elite Pro Plan maturity calculator
At 8% assumed return: Fund Value of ₹2.77 crore, with an IRR of 6.53% as per the ICICI Pru Wealth Elite Pro Plan maturity calculator
Even under the higher 8% assumed return, the IRR of 6.53% appears modest considering the market-linked nature of the investment and the associated risks and long-term lock-in.
This raises concerns about whether the plan adequately compensates investors for taking market risk.
The relatively modest IRR could limit the plan’s ability to generate inflation-beating returns and may result in a lower corpus than expected for long-term financial goals.
For an investor seeking wealth creation through market-linked investments, the key question is whether the additional complexity, charges, and restrictions of the ULIP are justified by the returns it delivers.
The returns analysis highlights a key concern — the ICICI Pru Wealth Elite Pro Plan may struggle to deliver inflation-beating returns.
For a long-term investment spanning 30–40 years, this can significantly impact wealth creation.
Investors need their money to grow at a rate that meaningfully outpaces inflation, which the illustrated returns of this plan may not achieve.
A more efficient approach is to separate insurance from investment, using the same annual premium of ₹5 lakh from our earlier example.
A pure term insurance policy with a Sum Assured of ₹50 lakh costs approximately ₹30,300 per year for a 35-year-old, assuming a 30-year policy term and a 5-year premium-paying term.
This leaves approximately ₹4.70 lakh per year available for investment.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 50,00,000 |
| Policy Term | 30 years |
| Premium Paying Term | 5 years |
| Annualised Premium | ₹ 30,300 |
| Investment | ₹ 4,69,700 |
The remaining amount can be invested based on the investor’s risk profile. A PPF or other suitable debt instrument may be considered by conservative investors, while investors with a higher risk appetite may consider equity mutual funds for long-term wealth creation.
| Term insurance + Equity Mutual Fund | |||
| Age | Year | Term Insurance premium + Equity Mutual Fund | Death benefit |
| 35 | 1 | -5,00,000 | 50,00,000 |
| 36 | 2 | -5,00,000 | 50,00,000 |
| 37 | 3 | -5,00,000 | 50,00,000 |
| 38 | 4 | -5,00,000 | 50,00,000 |
| 39 | 5 | -5,00,000 | 50,00,000 |
| 40 | 6 | 0 | 50,00,000 |
| 41 | 7 | 0 | 50,00,000 |
| 42 | 8 | 0 | 50,00,000 |
| 43 | 9 | 0 | 50,00,000 |
| 44 | 10 | 0 | 50,00,000 |
| 45 | 11 | 0 | 50,00,000 |
| 46 | 12 | 0 | 50,00,000 |
| 47 | 13 | 0 | 50,00,000 |
| 48 | 14 | 0 | 50,00,000 |
| 49 | 15 | 0 | 50,00,000 |
| 50 | 16 | 0 | 50,00,000 |
| 51 | 17 | 0 | 50,00,000 |
| 52 | 18 | 0 | 50,00,000 |
| 53 | 19 | 0 | 50,00,000 |
| 54 | 20 | 0 | 50,00,000 |
| 55 | 21 | 0 | 50,00,000 |
| 56 | 22 | 0 | 50,00,000 |
| 57 | 23 | 0 | 50,00,000 |
| 58 | 24 | 0 | 50,00,000 |
| 59 | 25 | 0 | 50,00,000 |
| 60 | 26 | 0 | 50,00,000 |
| 61 | 27 | 0 | 50,00,000 |
| 62 | 28 | 0 | 50,00,000 |
| 63 | 29 | 0 | 50,00,000 |
| 64 | 30 | 0 | 50,00,000 |
| 65 | 31 | 0 | 50,00,000 |
| 66 | 32 | 0 | |
| 67 | 33 | 0 | |
| 68 | 34 | 0 | |
| 69 | 35 | 0 | |
| 70 | 36 | 0 | |
| 71 | 37 | 0 | |
| 72 | 38 | 0 | |
| 73 | 39 | 0 | |
| 74 | 40 | 0 | |
| 75 | 15,47,08,673 | ||
| IRR | 11.43% | ||
If ₹4.70 lakh is invested annually in equity mutual funds, it could potentially grow to approximately ₹17.64 crore.
After accounting for long-term capital gains tax, the corpus would be around ₹15.47 crore, translating to a post-tax IRR of approximately 11.43%.
| Equity Mutual Fund Tax Calculation | |
| Maturity value after 40 years | 17,64,56,555 |
| Purchase price | 23,48,500 |
| Long-Term Capital Gains | 17,41,08,055 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 17,39,83,055 |
| Tax paid on LTCG | 2,17,47,882 |
| Maturity value after tax | 15,47,08,673 |
This comparison demonstrates the potential advantage of keeping insurance and investments separate.
A pure term plan provides the required life cover, while the remaining money can be invested independently for wealth creation.
This approach can offer greater return potential, better liquidity, and more flexibility than combining both objectives within a ULIP.
Therefore, for investors primarily focused on long-term wealth creation, the ICICI Pru Wealth Elite Pro Plan may not be the most efficient option.
In the ICICI Pru Wealth Elite Pro Plan, premiums can be paid for a limited period and receive the fund value at the end of the policy term (for other than Whole Life Options), at death or 99 years for the whole Life option.
However, only a portion of the premium is invested after various charges are deducted. While the maturity benefit is linked to the fund value, the illustrated returns may not adequately compensate for the market risk undertaken.
The plan’s high charges can erode the investment value over time and it also has a high agent commission.
In addition, the long-term lock-in (whole Life option) limits liquidity, while the life cover may not be sufficient to provide meaningful financial protection.
Together, these factors can hinder rather than support long-term wealth creation.
The fundamental issue is the combination of insurance and investment within a single product, which can result in compromises on both fronts.
A more effective approach is to opt for a pure-term life insurance plan for adequate protection at a lower cost and invest the remaining funds separately through a diversified portfolio aligned with your financial goals.
Investment decisions should be based on your risk appetite, investment horizon, and financial objectives.
A well-structured portfolio can help you pursue your goals more efficiently while providing greater flexibility and transparency.
Do Quora, Facebook, and Twitter have the final say when it comes to financial advice?
If you are unsure how to structure your investments, consulting a qualified financial advisor can help you develop a customised strategy suited to your needs.
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