ICICI Prudential Cash Advantage Plan

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Introduction/Overview

ICICI Prudential Cash Advantage Plan is a traditional participating savings plan which provides guaranteed monthly incomes for regular cash requirements and also provides life insurance coverage

Key Features

  • It is a participating plan with limited premium payment option
  • Guaranteed Cash Benefit is paid every month after the completion of the premium payment term
  • The rate of Guaranteed Cash Benefits depends on the policy term, age and the PPT
  • Vested Reversionary Bonuses, Interim Bonus and Terminal Bonus increase the benefits payable

Benefits

  • On maturity, higher of the Guaranteed Maturity Benefit +reversionary bonuses + terminal bonus, if any or 100.1% of all premiums paid less Guaranteed Cash Benefits already received is paid to the policyholder
  • Guaranteed Cash Benefits @ 1% of the Guaranteed Maturity Benefit in case of monthly mode or 11.5% in case of annual mode is paid from the end of PPT till end of term or death whichever is earlier
  • Guaranteed Maturity Benefit is the basic Sum Assured on Maturity depending on the premium, policy term, age, PPT and gender.
  • On death of the policyholder, higher of the Sum Assured plus bonuses (reversionary bonus, interim bonus and Terminal Bonus) or Guaranteed Maturity Benefit plus bonuses or 105% of all premiums paid till death is payable to the nominee
  • Income tax benefit on the premium paid as per Section 80C and on the claims received as per Section 10(10D) of the Income Tax Act.

Product Specification:

 

Minimum

Maximum

Entry Age (Last Birthday)

0 years

60 years

Maturity Age (Last Birthday)

18 years

80 years

Policy Term (PT) in years

15, 17 or 20

Premium Paying Term (PPT) in years

5, 7 or 10 respectively

Premium Paying Frequency

Annual, half-yearly, monthly

Yearly Premium

12,000

No limit

Sum Assured

7 or 10 times Annual Premium depending on age

 

Details About Premium

Annual premium in Rupees for a policy term of 20 years and PPT 10 years

Age

35 years

Premium

50,000

Sum Assured

500,000

 

Benefits @ 4%

Benefits @ 8%

Total Guaranteed Cash Benefit

317,712

317,712

Guaranteed Maturity Benefit

264,760

264,760

Total Reversionary Bonuses

0

251,970

Terminal Bonus

72,520

199,480

Total Maturity Benefit

337,280

716,209

 

Policy Details

Grace Period: 15 days’ grace period is allowed for premium payment in monthly mode and 30 days in other modes. If policyholder fails to make payment within the grace period, the policy lapses

Policy Termination or Surrender Benefit: Policyholder is allowed to surrender the policy after 2 / 3 years’ premium has been paid. The Surrender Value will be higher of the Guaranteed Surrender Value or the Non -Guaranteed Surrender Value.

GSV = GSV Factor * annual premiums + GSV of Vested Bonuses

Free Look Period: If you would not be pleased with the coverage, and terms and conditions of the policy, you have the option of canceling the policy within 15 days of receipt of the policy documents, provided there has been no claim.

Additional Features or Riders

  • The Guaranteed Cash Benefits can be availed monthly or annually

Inclusions

  • A loan of a maximum of 80% of the Surrender Value is available under the plan

Exclusions

  • In case of suicide committed within 12 months of policy inception only 80% of premiums paid are returned to the nominee. In case of suicide within 12 months of revival, higher of 80% of premiums paid or acquired Surrender Value is paid

Documents Required

Policyholder has to fill up an ‘Application form/ proposal form’ with accurate medical history along with the address proof and other KYC documents. Medical examination may be required in some cases, based on the sum assured and the age of the person.