ICICI Pru Life introduces debt fund like features in ULIP

ICICI Prudential Life Insurance has introduced a new feature in their ULIP through which investors can invest in debt securities called ICICI Pru Constant Maturity Fund.

This debt oriented ULIP will offer tax free returns on investment of up Rs.2.50 lakh a year. However, the fund comes with 5-year lock-in period.

The fund has come after the government removed LTCG benefits from debt mutual funds. This is the first debt oriented ULIP, claims the company.

In a press release, Arun Srinivasan, Head of Fixed Income, ICICI Prudential Life Insurance said, "With the interest rate cycle closer to its peak, it is a great opportunity for customers to channelise investments to the ICICI Pru Constant Maturity Fund. We suggest investors apportion a share of their savings ULIP debt funds for capital preservation and long-term wealth creation.”