ICICI Prudential Life launches ‘SIP+’, targets young investors

Mumbai, June 27, 2025 — In a strategic push to capture the attention of millennial and Gen Z investors, ICICI Prudential Life Insurance has launched a new investment solution, ‘SIP+’, a Systematic Investment Plan (SIP)-based ULIP (Unit Linked Insurance Plan) designed to blend insurance protection with long-term wealth creation. The insurer is positioning this product as a dual-purpose tool aimed at nurturing a disciplined investment habit among India’s young working professionals while offering financial security.

What is SIP+?

SIP+ is structured to mimic the functionality of mutual fund SIPs, but with added benefits exclusive to life insurance-linked products. It enables policyholders to invest a fixed amount monthly while availing life cover and tax benefits under Section 80C and Section 10(10D) of the Income Tax Act.

Key features include:

• Loyalty Additions: Policyholders receive additional units for consistent premium payment.

• Zero Allocation Charges: A customer-centric move where the entire premium is invested from day one.

• Life Insurance Cover: Unlike traditional SIPs, this product offers comprehensive financial protection.

• Long-Term Returns Potential: Funds are market-linked, allowing for wealth accumulation over time.

• Tax Efficiency: Maturity proceeds are tax-free, subject to prevailing tax laws.

Targeting India’s Young Earning Class

The product’s launch is clearly timed with India’s shifting demographic landscape. With over 66% of India’s population below the age of 35, ICICI Prudential Life is hoping to tap into a generation more open to financial planning and digital investing.

N S Kannan, Managing Director & CEO of ICICI Prudential Life Insurance, said during the launch:

“SIP+ is our response to the changing expectations of young investors who seek both growth and protection. This plan is not just about investing; it’s about inculcating discipline, encouraging long-term thinking, and ensuring that the next generation is financially secure.”

Market Context: ULIPs Regaining Favour

While ULIPs had seen muted growth in the past due to cost concerns and market volatility, the post-COVID era has seen a resurgence in investor interest in hybrid products that offer both protection and market participation. With SIPs gaining massive popularity among retail mutual fund investors, insurers are now leveraging this familiarity to make ULIPs more palatable.

Data from IRDAI indicates that new-age digital ULIPs have grown at 13% CAGR in the last three years, driven by improved transparency, reduced charges, and simplified onboarding processes.

Analyst Take: Product Timing and Strategy

Anjali Rawat, a senior analyst at JM Financial, believes SIP+ is strategically timed.

“The launch is well-aligned with the financial literacy trend among young Indians. They want convenience, digital experience, and multi-utility financial products. SIP+ could appeal to salaried millennials who might otherwise lean toward mutual fund SIPs without insurance.”

Vikas Suri, Head of Insurance Advisory at a Mumbai-based wealth firm, echoed a similar view:

“Incorporating the SIP model into a ULIP is clever. The no-allocation charge and loyalty additions make SIP+ more competitive than older-generation ULIPs. It's ideal for individuals in their 20s and 30s who want to start early and benefit from compounding.”

Digital-First Strategy

ICICI Prudential is also leveraging its robust digital distribution network for SIP+, making it available via its mobile app, website, and through digital partners. The onboarding process, including KYC, premium payment, fund selection, and policy issuance, is entirely digital, targeting tech-savvy users who prefer DIY platforms.

Investor Outlook

For young investors, SIP+ offers a compelling proposition—long-term investing discipline, life cover, tax efficiency, and the comfort of dealing with a trusted brand like ICICI. However, experts caution that market-linked returns come with inherent risks, and investors should assess their risk appetite and horizon before committing.

Financial planners also suggest using SIP+ as a complement to mutual fund SIPs rather than a replacement. The dual benefit of insurance and investment adds value, especially in financial planning for goals like retirement, children’s education, or wealth corpus building.

Final Word

With SIP+, ICICI Prudential Life has demonstrated its commitment to product innovation and responsiveness to market trends. By targeting India's youth—a group traditionally underserved by insurance-linked investments—the company is not only diversifying its customer base but also promoting financial literacy and long-term thinking.

The success of SIP+ will ultimately depend on investor education, performance of the underlying funds, and ICICI Prudential’s ability to effectively communicate the product’s hybrid value proposition. However, in an increasingly competitive insurance landscape, SIP+ is a bold step in the right direction.