ICICI Pru Signature Plan: ULIP Review

Quick Overview

The ICICI Pru Signature is a unit-linked insurance plan (ULIP) that combines life insurance (up to age 99) with market-linked investments. It offers zero premium allocation charges, 25+ fund options, 4 portfolio strategies, and wealth boosters for long-term investors.

However, while the plan looks attractive on the surface, it comes with ongoing charges, a 5-year lock-in, and market risk, all of which can affect actual returns. Like most ULIPs, it works best only if you stay invested for the long term (10+ years). For most customers, a term insurance plan and a separate investment combo work best.

If you’ve ever been pitched the ICICI Pru Signature Plan, chances are that you’ve heard that your entire premium gets invested.

And all of this is technically true on paper. But what most people don’t realize is that ULIPs don’t become cheap just because allocation charges are zero. There are still multiple ongoing costs, and they quietly reduce your returns over time.

In this ICICI Pru Signature review, we break down how the plan actually works, where the costs are hidden, and whether it truly delivers better returns or just looks good on paper.

What Is the ICICI Pru Signature Plan?

The ICICI Pru Signature is a ULIP that works as follows:

You pay a premium regularly.
Your entire premium is invested in funds upfront (no allocation charge).
At the same time, the insurer provides a life cover (sum assured).

Key Plan Details

Feature	Details
Minimum Entry Age	0 years
Maximum Entry Age	60 years
Maturity Age	Up to 75 years (99 for whole life option)
Policy Term	10 to 30 years, whole life (99 minus entry age)
Premium Payment Term	5 to 15 years (limited pay), regular pay
Premium Payment Frequency	Annual, half-yearly, or monthly
Sum Assured	For ages 0 to 49: 7x to 10x annual premium, For 50 years and above: 5x to 10x annual premium

ICICI Pru Signature vs ICICI Pru Signature Assure

For more details, you can also check out our guide on ICICI Pru Signature Assure.

Fund Options, Portfolio Strategies & Wealth Boosters

Fund Options

The ICICI Signature Plan offers 25+ funds across different asset classes. You can broadly choose among equity (high risk, high return potential), debt (lower risk, stable returns), and balanced funds (a mix of equity and debt). For more details, you can go through pages 13 to 19 of the official ICICI Pru Signature policy brochure.

Portfolio Strategies

This is one of the key unique selling points of the ICICI Prudential Signature Plan. Instead of just picking funds, you can also choose how your portfolio is managed over time.

Fixed Portfolio Strategy (Do-It-Yourself)

You select your own funds and decide the allocation, giving you full control to actively manage and switch investments whenever needed.

Lifecycle Strategy (Auto-Pilot Mode)

This strategy automatically adjusts your portfolio over time, starting with higher equity exposure for growth when you're younger and gradually shifting toward debt as you approach your goal, with a focus on capital protection.

Trigger Portfolio Strategy (Market-Timing Linked)

Here, you begin with a fixed equity-debt mix, but the portfolio rebalances only when markets hit predefined trigger points, aiming to “buy low and sell high.”

Target Asset Allocation Strategy (Disciplined Rebalancing)

This approach maintains a fixed allocation between equity and debt and periodically rebalances to keep it aligned. For example, shifting gains from equity into debt if stocks outperform.

Wealth Boosters

The ICICI Pru Signature rewards you for staying invested long-term through wealth boosters. 1.75% of your fund value is added as extra units at the end of the 10th year, and 2.5% is added every 5 years from the 15th year onwards.

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Charges, NAV, & Returns

Charges

Fund Management Charge (FMC): Up to 1.35% annually.
Policy Administration Charge: 0.5% monthly (capped at ₹500/month).
Mortality Charges: Depend on age and sum assured, and are deducted monthly.
Discontinuance Charges: Up to 6% of premium/fund value (subject to caps) and applicable if you exit early.

Return of Mortality & Policy Administration Charges at Maturity

At maturity, the insurer adds back the total mortality and policy administration charges paid as extra units to your fund value. This is done in the same proportion as your existing portfolio.

However, this benefit comes with conditions. You must stay invested until maturity, pay all premiums, and not opt for the whole-of-life option. If you exit early, you won’t receive this benefit. Also, not everything is refunded. GST and certain additional charges are excluded, so it’s not a full reimbursement.

Most importantly, the charges are deducted throughout the policy term and returned only at the end. This means your money wasn’t fully invested during those years. You miss out on the potential returns that amount could have generated.

Net Asset Value (How Your Investment Value Is Calculated)

NAV is the price of one unit of your ULIP fund. It goes up or down based on market and fund performance, as well as FMC deductions. So even if the market performs well, charges reduce the net growth reflected in the NAV. While it is often presented as a “clean growth number” because it already accounts for FMC, it still doesn’t show the full impact of charges clearly.

Returns (Illustration from Policy Brochure)

For a 35-year-old paying an annual premium of ₹1 lakh, a premium payment term of 5 years, and a policy term of 15 years, here’s what your returns typically look like:

Assumed Return	Fund Value at Maturity
4% per annum	₹7.03 Lakh (Net Yield: 2.45%)
8% per annum	₹11.28 Lakh (Net Yield: 6.38%)

These 4% and 8% gross returns are mandated by IRDAI guidelines and are not actual expected returns.

Pros, Cons & Should You Invest in ICICI Pru Signature?

Pros	Cons
Zero allocation charge.	Complex product (hard to fully understand).
Wide range of funds and strategies.	Multiple ongoing charges significantly reduce effective returns.
Wealth boosters for long-term investors.	5-year lock-in limits liquidity.
Flexibility to switch between funds, top up, and make withdrawals after the lock-in period.	If the aggregate annual premium across all ULIPs held exceeds ₹2.5 lakh, the maturity proceeds are taxable for ULIPs issued on or after February 1, 2021.

Should You Invest in ICICI Pru Signature?

You can consider the ICICI Signature Plan if:

You prefer a structured, disciplined approach to investing.
A combination of insurance protection and market-linked investment is appealing.
You’re okay with investing for a long-term horizon of 10-15+ years.

However, if the goal is to maximize returns with full flexibility, this type of bundled product may feel restrictive due to lock-in and charges. Those who value simplicity and transparency often find standalone investments, such as mutual funds, easier to track and optimize.

Additionally, when the primary objective is pure life coverage, a term insurance plan typically offers much higher coverage at a lower cost compared to bundled insurance-investment products. For more details, refer to our detailed guide on ULIPs vs. term insurance.

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Frequently Asked Questions

What is the disadvantage of ICICI Pru Signature?

The biggest drawbacks are high ongoing charges, complexity, and taxation rules, which can reduce your effective returns compared to simpler alternatives like mutual funds.

How do I surrender my ICICI Pru Signature policy?

You can surrender the policy by submitting a request through the insurer’s portal or at a branch. If surrendered during the first 5 years, the amount is moved to a discontinued fund and paid after the lock-in period.

Can I withdraw money from ICICI Pru Signature?

Yes, partial withdrawals are allowed after 5 years. You can withdraw up to 20% of fund value annually, subject to conditions.

Is ICICI Pru Signature a good investment?

It can work for long-term disciplined investors, but for most people, term insurance + low-cost mutual funds is a more flexible and efficient strategy.

Last updated on: 19 Apr, 2026