Comparing ICICI Pru Pinnacle and SBI Life Smart ULIP

Posted by Admin on 3

Lets Review and compare two of the most famous guaranteed NAV ULIP plans in the market.

SBI Smart ULIP and ICICI Pru Pinnacle.

Comparing Features:

SBI Life Smart ULIP

ICICI Pru Pinnacle

Min./ Max. Entry age.

8/60 years

8/65 years.

Max. maturity age

70 years.

75 Years.


3 or 5 year/10 years

3 Years./10 Years

Min/Max premium.

50,000 yearly

50,000 yearly

Min/Max Sum Assured.

5 times yearly premium

5 times yearly premium

Both the policy has almost the same features.

However the most important feature is Guarantee of highest NAV.

Guaranteed NAV:

Highest NAV recorded on a daily basis, in the first 7 years (from 24-Oct-2009 to 24-Oct-2016) of the fund for ICICI Pru pinnacle but for SBI smart life there would be two reset dates each month for first seven years and highest NAV is based on the reset dates. SBI Smart ULIP seven year period starts from the subscription day and not from a specified day as in ICICI Pru Pinnacle. This means the early you enter in Pinnacle the more benefits you will get.

Comparing Charges:

SBI Life Smart ULIP

ICICI Pru Pinnacle

Allocation Charges

(% of premium )

15% 1st year, 5% thereafter.

14% first year, 4% 2nd year, 2% 3rd year.

Policy Admin. Charges

Rs. 60 pm throughout term + Rs. 5 per year per thousand SA for first 3 years.

Only for 1st 3 years, between 0.40% to 0.60% pm of annual premium.

Fund Mgt. Charge

Between 0.25 to 1.50% pa

1.35% PA + 0.10% PA (for guarantee of highest NAV)

Surrender Charge(% of Fund value)

3rd Year: 9% , 4th Year: 2%, 5th Year + NIL

3rd Year: 4% , 4th Year: 2%, 5th Year + NIL

Looking at the charge point of view ICICI Pru Pinnacle is more cost effective compared to SBI Smart Life. Not only the allocation charge is less but also the fund mgt charge and policy admin. Charges are much less then Smart ULIP.

Following table shows the example of charges for a yearly premium of Rs. 10,000.

Smart ULIP


Allocation charge

Rs. 2500

Rs. 2000

Policy Admin Charge

10 (year) * 12 (months) * Rs. 60=Rs. 7200 + Rs. 750(5 per thousand SA so 5 * 50 * 3year): Total Rs. 7950

3 (years) * 12(months) * Rs. 40 (.40 % of Rs. 10,000) = Total Rs. 1440

Grand Total

10,450(almost a yearly premium)

Rs. 3,440.

Finally on maturity Pinnacle offers a Addition of amount equal to 3% of fund value (not highest but prevailing NAV on maturity), Smart ULIP does not offer such benefits.

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Abhay said...

Thanks for providing the detailed comparision. You have cleared all the doubts I had in mind and Now I am in better position to decide

Abhay said...

Sir you fogot to put Mortality charge placed by ICICI that is

Mortality charges will be deducted on a monthly basis on the life cover. Life
cover is the difference between the Sum Assured and the Fund Value at the
time of deduction of charges. Indicative charges per thousand Sum Assured
for a healthy male and female life are as shown below:

Bhargav said...

Hi Abhay,
mortality charge varies between different age group and hence for simplicity I have avoided it.
Secondly as rightly pointed out by you it is difference between fund value and sum assured for eg. if fund value > Sum assured then there will be no deduction on account of Mortality charge.

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