ICICI Pru unveils latest Ulip product

ICICI Prudential Life Insurance has launched ICICI Pru Ace, which is one of the cheapest unit-linked insurance policies available in the market. The product does not have a premium allocation charge, which gets deducted from the premium in case of other Ulips.

A zero premium allocation charge means that ICICI Pru Life Ace will invest a larger portion of premium in the market. The new Ulip charges a policy administration charge of Rs. 60 per month, apart from the humanity charges. It has a fund management charge ranging between 0.75 percent and 1.35 percent of the fund value. The Ulip offers two investment options: Fixed allocation and trigger portfolio strategy, in which a 15(%) percent downhill or uphill movement will trigger the portfolio allocation.

To promote investors to stick through the term, the ULIP also offers fidelity additions after the 10th year, which will be disbursed every five years. The loyalty additions would be equal to 2.5(%) percent of the fund value. Another beautiful feature is that the insurer will contribute two percent of the premium to your installment after the sixth year. Investors need to pay a minimum regular premium of Rs. 18,000 and the term is 10-30 years.