I Systematic Insurance Plan

What this product is

A unit-linked plan sold in two variants — iSIP Wealth (general wealth building) and iSIP Young Genius (child-focused) — offering 24 fund choices, zero allocation/admin charges, and a distinctive feature that refunds mortality charges from the 11th year onward.

You might need this if…

• You want a ULIP with a genuinely wide fund shelf — 24 options spanning equity, balanced, and fixed-income risk levels — to build a portfolio inside one policy.
• You want the insurer's mortality charges eventually returned to you: from the 11th policy year, previously deducted mortality charges are added back as extra units, refunded in full by maturity.
• You're saving specifically for a child's future — iSIP Young Genius keeps the policy (and the child's future fund) going even if the parent-policyholder dies, since the insurer takes over premium funding.
• You want zero premium allocation and zero policy administration charges, so more of every rupee goes toward your investment from day one.
• You're a woman investor — a Smart Lady Benefit adds a small extra allocation (0.50% of annualised premium) purely for being a female policyholder.

How it actually works

• Choose iSIP Wealth (entry age from 30 days) for general wealth creation, or iSIP Young Genius (entry age 18+, for the parent, benefiting a child) with policy terms of roughly 10-40 years.
• Charges: nil premium allocation charge, nil policy administration charge; fund management charges range 0.65%-1.35% p.a. depending on fund; a discontinuance charge applies only if you stop premiums within the first 5 years.
• Death benefit (iSIP Wealth): nominee gets the highest of basic sum assured, fund value, or 105% of total premiums paid, and the policy ends. Death benefit (Young Genius): the child's policy continues with the insurer funding future premiums, after an immediate lump-sum payout to the nominee.
• From the 11th policy year, mortality charges deducted so far are progressively credited back as bonus units — a full refund mechanism by maturity, not typical of most ULIPs.
• Wealth Boosters add 1.00%-2.50% of average fund value every 5 years from year 10 onward, scaled to your premium tier.
• Minimum premium is low for entry — ₹1,200/year for iSIP Wealth regular pay (₹6,000/year for Young Genius), or ₹1,000 for single pay — with a wide range of optional riders (health, accidental death, waiver of premium) available on top.

Worked example

The tiers

Charge type	Amount
Premium allocation charge	Nil
Policy administration charge	Nil
Fund management charge	0.65%-1.35% p.a. (by fund)
Discontinuance charge (year 1, regular pay)	5%-20% of premium (capped ₹3,000-6,000)
Discontinuance charge (after year 5)	Nil

Worth knowing before you decide

• Like all ULIPs sold in India, this plan offers no liquidity in the first 5 years — money discontinued early goes into a low-return 'discontinued policy fund' until the lock-in ends.
• If you stop premiums within 12 months of increasing your sum assured and then die by suicide, that increase is forfeited — read the suicide-clause wording carefully.
• Illustrated 8%/4% growth scenarios are standard IRDAI-mandated illustration bounds, not predictions — actual fund performance can fall outside this range in either direction.
• No policy loan facility is available on this plan, unlike some traditional insurance products.

Official source

⌟ Official product brochure

Learn about this category

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