If you want a transparent, guaranteed savings plan that converts disciplined premiums into a fixed maturity cheque (plus guaranteed additions) while keeping life cover, ICICI Pru Assured Savings Insurance Plan is built exactly for that. It’s not market-linked — you trade upside for certainty.
Who this guide is for
This post is written for people who:
- want a guaranteed lump sum at a specific date (education, wedding, down-payment), or
- prefer a conservative savings vehicle bundled with life cover, and
- want to understand the actual mechanics (guaranteed additions, guaranteed maturity benefit, surrender/paid-up rules) before they buy.
If you prefer high long-term upside or need rapid liquidity, this is probably not the best match.
What is Assured Savings Insurance Plan?
ICICI Pru’s Assured Savings Insurance Plan is a non-participating, non-linked savings product. That means the payouts aren’t tied to market returns — the insurer guarantees the structure: an explicit Guaranteed Maturity Benefit (GMB) plus Guaranteed Additions (GAs) that are added each policy year if premiums are paid. The plan also provides a death benefit during the policy term.
Key selling point: certainty. You know the formula (and illustrative factors) at inception — no surprise bonuses, only guaranteed additions as per the product terms.
Key features at a glance
- Guaranteed Additions (GAs): Each policy year, a percentage (9% / 10% / 11% depending on policy term) of total premiums paid is added to the policy.
- Guaranteed Maturity Benefit (GMB): A sum assured on maturity, determined at policy inception based on policy term, premium payment term, age and gender. The maturity payout = GMB + accrued GAs.
- Death benefit: On death during policy term, the nominee receives the highest of one of several measures (Sum Assured + accrued GAs, GMB + accrued GAs, minimum death benefit = 105% of premiums paid, or surrender value).
- Minimum entry & modes: Typical minimum annual premium shown in brochure is ₹50,000 (subject to product options and channels); premium modes include annual, half-yearly and monthly. Age and term limits apply — check brochure for allowed combinations.
- Surrender & paid-up: Surrender value available after 1 full year’s premium; paid-up rules reduce benefits proportionally if premiums stop after one full year.
- Loans: Loans can be taken once a positive surrender value exists — a loan up to 80% of the surrender value is allowed.
(Those are the product’s core guarantees — details and tables are in the policy document.)
The GA & GMB mechanics
Two components make up your maturity cheque:
- Guaranteed Additions (GAs) — Each year, the policy accrues a GA equal to the GA rate × total premiums paid to date. The GA rate depends on your chosen policy term: 9% for a 10-year term, 10% for 12/15 years, and 11% for a 16/20-year term. These additions are contractually defined and paid at maturity.
- Guaranteed Maturity Benefit (GMB) — This is the “sum assured on maturity” that is set at inception and depends on policy term, premium paying term, age and gender. On maturity, the insurer pays GMB + accrued GAs — that’s your maturity cheque.
Important: your GMB could be lower than the Sum Assured on Death; the brochure explains how the GMB factor matrix is set at inception based on a variety of inputs (age, term, PPT). See the policy GMB table for the exact factor applicable to your case.
Death Benefit in Assured Savings Insurance Plan
If the life assured dies during the policy term and the policy is in force, the nominee will receive the highest of:
- Sum Assured on death (usually 10× annualized premium) + accrued GAs,
- GMB + accrued GAs,
- Minimum death benefit (105% of premiums paid to date), or
- The surrender value as on the date of death.
That “highest of” rule is important: it gives nominees a safety net if the policyholder dies early, and ensures the family gets a meaningful protection amount in most scenarios.
Surrender, paid-up, revival & loans
- Surrender: You can surrender Assured Savings Insurance Plan after one full year’s premium; you receive the higher of Guaranteed Surrender Value (GSV) or Special Surrender Value (SSV). GSV uses guaranteed factors printed in the policy; SSV is based on prevailing yields and is reviewed annually. All GSV factors are guaranteed.
- Paid-up: If you stop paying premiums after at least one full year, the policy becomes paid-up. Paid-up benefits (sum assured, GMB, and GAs) are reduced proportionally based on premiums paid — the policy document gives the exact formula.
- Revival: You can revive a lapsed policy within 5 years (subject to underwriting and paying arrears + interest). Revival terms may differ from original terms, and the insurer can refuse revival per its underwriting norms.
- Loans: Loans up to 80% of surrender value are available; outstanding loans (with interest) reduce surrender, maturity or death payouts if not repaid. Loan interest is linked to G-sec yields plus a margin (see CIS/policy for current rate examples).
Bottom line: Assured Savings Insurance Plan lets you access money in emergencies, but the earlier you exit, the less attractive the effective return — this product is designed to be held to maturity.
Plan brochure illustration
The Assured Savings Insurance Plan Brochure includes a fully worked illustration: a healthy 30-year-old male paying ₹50,000 per year for 7 years (policy term 15 years). The brochure lists the Accrued Guaranteed Additions and GMB and shows a maturity benefit figure for that case — check the brochure pages for the illustration and timeline. This concrete example shows how the plan combines premium discipline + GAs + GMB to produce the maturity cheque.
Use this example as a sanity check: the insurer’s illustration demonstrates how premiums you commit translate into a payable benefit at maturity — always ask the insurer for a personalised benefit illustration for your age, premium and term.
Who should consider Assured Savings Insurance Plan?
Good fit
- Parents or savers who need a guaranteed lump sum on a fixed future date (college, wedding, down-payment).
- Conservative savers who prefer certainty over upside — want contractually guaranteed additions instead of market returns.
- People who also want life cover layered on the savings plan, protecting dependents.
Not a fit
- People chasing equity-like returns or immediate liquidity — mutual funds or balanced portfolios may deliver higher expected returns.
- Those who may need the money within a short period — surrender values early on, are low, and paid-up benefits reduce payouts.
Pros & cons of Assured Savings Insurance Plan
Pros
- Contractual guaranteed components (GAs and GMB).
- Protection + savings in a single product.
- Loans and revival options add flexibility in emergencies.
Cons
- Returns are conservative (no market participation).
- Early surrender or discontinuance reduces outcomes significantly.
- Some product features (GMB table, GSV factors) are complex and require a careful read of policy annexures.
Decision checklist
- Decide the goal date and check if the plan term aligns.
- Ask ICICI Pru for a personalised benefit illustration (your age, PPT, policy term, premium mode). Use that to compare alternatives.
- Check surrender & paid-up tables for the exact policy year you may consider exiting.
- Consider a term plan + SIP as an alternative if your priority is growth + protection.
- If you buy Assured Savings Insurance Plan, consider adding contingencies: create an emergency fund so you don’t need to surrender early.
FAQs
What are Guaranteed Additions?
GAs are yearly contractual additions equal to a GA rate × total premiums paid to date; GA rates depend on policy term (9%/10%/11%).
What exactly do I get at maturity?
Maturity benefit = Guaranteed Maturity Benefit (GMB set at inception) + Accrued Guaranteed Additions — payable if all due premiums are paid and policy is in-force.
Can I surrender the policy any time?
You can surrender after one full year’s premium is paid; surrender value is the higher of Guaranteed Surrender Value or Special Surrender Value.
Is there a loan facility?
Yes — loans up to 80% of the surrender value are allowed once the surrender value exists. Outstanding loan reduces payouts if not repaid.
What happens if I stop paying premiums?
If discontinuance occurs after one full year’s premium, the policy becomes paid-up with reduced benefits; if before one full year, it lapses with no benefits (except revival options).
Final word
ICICI Pru Assured Savings Insurance Plan does one thing clearly: it helps disciplined savers convert regular premium payments into a guaranteed maturity cheque plus yearly guaranteed additions — while providing protection during the policy term. If you trade a bit of potential market upside for certainty and protection, this product does that job honestly. Always ask the insurer for a personalised benefit illustration and check the surrender / paid-up tables for your specific term before you commit.
Got more questions? Don’t hesitate to reach out! We’re here to help you get personalised guidance.
This blog post references content from the official ICICI Pru Assured Savings Insurance Plan brochure and policy contract to ensure factual accuracy.
References
Assured Savings Insurance Plan CIS
Assured Savings Insurance Plan Policy Document
Assured Savings Insurance Plan Brochure
Assured Savings Insurance Plan Presentation
About the Author:
Mandar P is the founder of Secure My Wish and brings over two decades of experience in the personal finance space. He’s certified as a POSP under IRDAI and also holds AMFI certification for mutual fund distribution.
Disclaimer:
This article provides general information only and does not constitute financial advice. Financial regulations, product terms, and industry guidelines are revised from time to time. While we have made efforts to ensure the accuracy of the information presented, we do not guarantee its completeness or accuracy. We disclaim any liability for loss or damage arising from actions taken based on the information provided in this article. To make informed financial decisions, please do your own research and consult with a qualified financial professional.