ICICI Prudential Life Insurance launches its first ULIP with fund value-based distributor payouts

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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ICICI Prudential Life Insurance has launched ICICI Pru Platinum, the company’s first unit-linked product (ULIP) which aligns distributor payouts to their customers’ fund value. The distributor commissions are linked to their customers’ Assets under Management (AUM), the insurer said.

In a ULIP, the premiums paid by customers are invested in various funds, and the returns on these investments are linked to the performance of those funds.

What sets ICICI Pru Platinum apart is that it aligns the commissions paid to distributors with the value of their customers’ funds.

Essentially, distributors will receive payouts based on the performance and growth of their clients’ investments in the ULIP.

This move aims to promote the sustained growth of assets under management while providing customers with a cost and tax-efficient avenue for wealth accumulation over extended periods, ICICI Prudential Life Insurance said.

Another aspect of ICICI Pru Platinum is its provision for unlimited free switches between asset classes, devoid of any associated costs or tax implications.

It consists of 21 funds encompassing equity, debt, and balanced categories, along with four portfolio strategies.

ICICI Pru Platinum offers customers a choice between two life cover variants: Growth Plus and Protect Plus, each catering to varying preferences regarding nominee entitlements.

Amit Palta, Chief Distribution Officer at ICICI Prudential Life Insurance, highlighted the company’s commitment to innovation in delivering products and processes that prioritise simplicity and customer-centricity.

While the launch of ICICI Pru Platinum represents a significant milestone for ICICI Prudential Life Insurance, investors should conduct thorough due diligence and consult with financial advisors to assess whether this product aligns with their investment objectives and risk tolerance.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow