ICICI Pru Smart Insurance Plan Plus (SIP+) Review

If you have been looking for term insurance online, chances are that ICICI Pru Smart Insurance Plan Plus has come up more than once. It is a smart, tax-efficient plan that helps you to invest in market-linked funds while securing your family's future with an efficient life cover.

This guide covers the plan's actual features and whether ICICI Pru as an insurer is one you can rely on when your family needs to file a claim.

What Is ICICI Pru Smart Insurance Plan Plus?

• ICICI Pru Smart Insurance Plan Plus is a non-participating, unit-linked, individual savings life insurance plan. In simple terms, it is a ULIP with market-linked investment funds inside it. The product is designed to give you life cover while also growing your money over time. The plan comes in two versions:
  • Wealth Variant: Suited for people who primarily want investment growth with life cover attached.
  • Assure Variant: Beneficial for people who want stronger family protection features, including a premium waiver and income support after death.

Takeaway: In the Wealth variant, the plan pays the fund value if the life assured survives till maturity. In the Assure variant, the plan can continue even after the life assured's death, with future premiums waived, and the nominee receiving annual income for the remainder of the policy term, depending on the option chosen at inception.

How the SIP+ Model Works: Features and Benefits

The plan works in a standard ULIP framework. You pay a premium, the money gets invested in your chosen funds, and the value grows or falls with market performance. There are 31 fund options across equity, balanced, debt, hybrid, thematic, and index categories, allowing the policyholder to choose based on risk appetite. You also get meaningful control over how money moves inside the policy.

Here’s an overview of the features and benefits of ICICI Pru Smart Insurance Plan Plus:

The five-year lock-in means you cannot freely withdraw money before that period ends. That makes it less flexible than a mutual fund SIP but also pushes the plan firmly toward long-term holding.

Charges, Premiums, and Eligibility

Charges

The SIP+ plan removes two of the most visible ULIP costs. Both the premium allocation charge and the policy administration charge are zero, which means the entire premium goes into the fund from day one. That said, other charges still apply.

Note: If the policy stops during the first five years, the fund value (after deducting discontinuance charges) moves to the Discontinued Policy Fund. A fund management charge of 0.50% per annum (PA) applies there, and the fund earns a minimum guaranteed interest of 4% PA as prescribed by IRDAI. No other charges apply while the money is in that fund.

Mortality charges are deducted monthly and depend on the age, gender, and sum at risk. The fund management charge can be revised, but only up to the regulatory cap of 1.35% PA, and only after written notice to policyholders. The net impact of these charges would reduce the returns by 1.3 to 1.8%.

Premiums

Remember: Top-up premiums cannot be withdrawn for five years from the date of payment, except on full surrender. There is no limit on the number of top-ups. You can also change the premium payment frequency during the premium payment term, though any change takes effect only on a policy anniversary.

Eligibility

For the Wealth variant, if the annualized premium is below ₹6,00,000, the minimum policy term is 75 (minus age at entry). For premiums of ₹6,00,000 and above, the minimum policy term is 15 years. The Assure variant has a tighter age band and maturity age cap, reflecting its stronger protection orientation.

Fund Options and Portfolio Strategies

The plan offers 31 funds spanning large cap, large and mid cap, mid cap, multi cap, balanced, debt, and thematic categories. Risk profiles range from Low (Money Market Fund, Income Fund, Secure Opportunities Fund) to Moderate (Multi Cap Balanced Fund, Active Asset Allocation Balanced Fund, Constant Maturity Fund) to High (most equity and index funds).

Meanwhile, the four portfolio strategies are: 

• Fixed Portfolio Strategy: You choose your funds and proportions. Unlimited free switches are available between funds under this strategy, with a minimum switch value of ₹2,000. Premium redirection (changing how future premiums are split) is also available at no charge.
• Target Asset Allocation Strategy: You choose any two funds and a proportion, and the portfolio is rebalanced quarterly to maintain that allocation.
• Trigger Portfolio Strategy 2: Your money is initially split 75:25 between the Multi Cap Growth Fund and the Income Fund. The allocation rebalances whenever the NAV of the Multi Cap Growth Fund moves 10% in either direction from the previous rebalancing point.
• Lifecycle-based Portfolio Strategy 2: Allocation between Multi Cap Growth Fund and Income Fund shifts automatically as you move through age bands, from 80:20 for those up to age 25, down to 35:65 for those above 65. In the last ten quarters before maturity, holdings in the Multi Cap Growth Fund are transferred to the Income Fund in ten equal installments.

Quick Note: You can switch between portfolio strategies up to four times per policy year at no cost, as long as the money is not in the Discontinued Policy Fund.

Partial Withdrawals and SWP

After the five-year lock-in period, you can make partial withdrawals provided all due premiums have been paid and the money is not in the Discontinued Policy Fund. Withdrawals in a year cannot exceed 20% of the fund value, and the minimum withdrawal is ₹2,000.

Under the Systematic Withdrawal Plan, you can withdraw a fixed percentage of the fund value or a fixed absolute amount on a monthly, quarterly, half-yearly, or yearly basis. 

Is Combining SIP with Insurance a Good Idea?

It depends on the buyer.

A bundled plan can work for someone who wants market-linked investing, life cover, and long-term discipline in one product. If the plan has zero allocation and policy admin charges, more of your premium gets invested from day one. In the Assure variant, the protection layer is stronger because if the breadwinner passes away, the policy continues, future premiums are funded by the insurer, and the family also receives income.

However, for most buyers, the cleaner option is still:

• Term insurance for pure protection
• Mutual fund SIP for wealth creation

This combination is easier to understand, easier to compare, and more transparent on costs and returns. Mutual fund SIPs also do not have mortality charges, discontinuance charges, or a lock-in unless you choose ELSS.

ULIPs like this may suit buyers who are comfortable with a long-term bundled product, understand the charges clearly, and genuinely want insurance and investment in the same wrapper. The five-year lock-in can feel restrictive, but it may also help build investment discipline.

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Conclusion

ICICI Pru Smart Insurance Plan Plus is a ULIP with life cover, not a plain SIP. It does two things at once: build wealth through market-linked funds and protect the family through insurance cover. The zero allocation and administration charges, wide fund choice, four portfolio strategies, top-up flexibility, and systematic withdrawal option make it a reasonably well-featured product in its category.At the same time, it carries ULIP realities: a five-year lock-in, fund-level risk, monthly mortality charges, and discontinuance rules if the policy lapses early. The best way to judge it is not by the name but by the structure. 

• If a bundled investment-plus-insurance product fits your goals and you are comfortable holding it for the long term, it delivers what it promises. 
• If you want simplicity and maximum flexibility, a mutual fund SIP paired with a separate term plan remains the cleaner route. 

We recommend ICICI Prudential as an insurer, but for comprehensive life insurance protection, we would lean towards their ICICI Pru iProtect Smart Plus term plan instead, which is also part of our list of best term insurance plans.