ICICI Pru Pinnacle Concepts - Misleading fundamentals


ICICI Pru Pinnacle guarantees highest NAV recorded on daily basis for the first seven years (from24/10/09 to 24/10/16).

Main features (As Advertised):
- IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER – What do you mean by guarantee then?
- Addition of amount equal to 3% of fund value (not highest but prevailing NAV on maturity). This will enhance the return further.
- Partial withdrawal allowed from 6th year and once in a year then onwards.
- Death benefit: Higher of sum assured (5 times annual premium) or fund value.

Actual ICICI Pru Pinnacle Concepts – Misleading concepts
“Let’s prove your NAV will grow like fixed deposit only”

ICICI pre Pinnacle policy has single fund and fund Objective is
Equity and Equity Related Securities   - MIN 0% and MAX 100%
Debt Instruments and derivatives       - MIN 0% and MAX 100%

It indicates that it has no minimum or compulsory equity exposure so most of the money will be invested in debt fund like bank deposit, govt. bonds and infrastructure bonds which does not give more than 7% to 8% annual return. They have mentioned about investing in equity in initial years in brochure but it is not guarantee as there is no minimum barrier. This is similar to LIC wealth plus and SBI life smart ULIP fund.

For ICICI Pru Pinnacle fund ‘s NAV grow from Rs 10 to Rs 10.61 from launch date 24th OCT’09 to 20th MAR’10.I don’t think NIFTY and Sensex has given around 5% return for last six months.
Check ICICI Pru pinnacle Fund performance (You can check same performance on iciciprulife website)

Additionally, you are not getting enough insurance also. They are giving Just 5 times of your annual premium as your insurance coverage. If you consider annual premium of Rs 40,000 then also you will get Sum assured of Rs 2 lakh only.

Partial withdrawal are allowed very late after fifth year and you will not get guarantee highest NAV return for partial withdrawal.So,You have to remain invested for long term.

Summary: ICICI Pru Pinnacle fund ULIP plan does not give enough insurance coverage and return too because it might have limited or no flavour of Equity. Rather, you will bet higher sum assured using Term Insurance and high return using SIP in any diversified mutual funds over next 7 years.

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