ICICI Prudential Guaranteed Savings Insurance Plan Rate of Return & Review

ICICI Prudential Guaranteed Savings Insurance Plan

ICICI Pru Guaranteed Savings Insurance Plan is an endowment plan which is very similar to LIC Jeevan Anand Plan. In this plan premium needs to be paid for either 7 or 10 years and plan covers you for 15 or 20 years. In this plan at maturity of the policy, you will receive sum of:
Sum Assured (SA)- which is sum of all premiums paid in the policy
+
Regular Additions(RA) This regular additions, expressed as a percentage of the SA, will be declared at the beginning of every policy year.
+
Maturity Addition (MA) - A lumpsum amount expressed as a percentage of the SA. On death during the term of the policy, while the policy is in force

Death benefit : Receive a Guaranteed Death Benefit (GDB), which is the higher of sum of all premiums paid till date compounded at the rate of 5% per annum and 10 times of annualized premium

How are Regular Additions Calculated in ICICI Prudential Guaranteed Savings Insurance Plan 

Regular Additions  will accrue at the end of each policy year. It will be disclosed at the start of that policy year. The RA shall be calculated as percentage of the SA. This percentage is guaranteed to be 50% of the annualised gross redemption yield (GRY) of the 10-year G-Sec, rounded down to the lower 0.2%,as at the Review Date immediately preceding the start of the policy year. The Review Date shall be the 7th of the first month of every quarter. In case the 7th is not a working day, the GRY of the next working day shall be considered for this purpose.

Rate of Return of  Regular Additions in ICICI Prudential Guaranteed Savings Insurance Plan 

This is the rate of return offered by policy so far

Period	Rate
January'11 - March'11	4.1%
April'11 - June'11	4.0%
July'11 - Sept'11	4.2%
October'11 - December'11	4.4%
January'12 - March'12	4.1%
April'12 - June'12	4.4%
July'12 - Sept'12	4.1%
October'12 - December'12	4.1%
January'13 - March'13	4.0%

Regular Addition (RA) mentioned above is a percentage of the Sum Assured. These rates would be declared at the beginning of every policy year and would be guaranteed once declared. RA would accrue to the policy at the end of each policy year.

LIC Jeevan Anand vs ICICI Prudential Guaranteed Savings Insurance Plan

Since the year of launch Rate of returns are almost same in both the plans .

 ICICI Prudential Guaranteed Savings Insurance Plan Rate of Return Example

Suppose you have invested with a premium of Rs 30,000 yearly for a period of 10 years . Then on Maturity you will get Rs 602,000.
Out of this 292,000 is guaranteed ( Sum of all premium paid less taxes) and Rest is assumed at the current rate of return you will get a Regular Addition of Rs 1,75,200 and Maturity addition of Rs 137,330