ICICI Prudential Smart Life Plan

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ICICI Prudential Smart Life Plan is a Unit Linked Insurance Plan, designed to increase savings through participation in capital markets and also to provide life insurance coverage for future financial protection.

ICICI Prudential Smart Life - Key Features

  • This ULIP plan provides both regular and single premium payment options.
  • There are two investment options offered by the plan-

Fixed Portfolio Strategy- this strategy provides 8 fund options for investment. 

  • Opportunities Fund
  • Multi Cap Growth Fund
  • Bluechip Fund
  • Maximiser V
  • Multi Cap Balanced Fund
  • Income Fund
  • Money Market Fund
  • Maximise India Fund 
  • Moreover, the insured can choose an option of Automatic Transfer Strategy(ATS). Under this strategy, all or part of your money gets invested in income fund or money market fund and is transferred systematically to any one of the following funds: Maximiser V, Blue Chip Fund, Maximise India Fund, Opportunities Fund and Multi Cap Growth Fund.

Lifecycle Based Portfolio Strategy- This strategy provides investment choice based on the policyholder’s age. Between the two fund options i.e. Multi Cap Growth Fund and Income Fund, the investment is divided equally depending on the age of the policyholder.  To protect the invested amount against market volatility, the fund is transferred to the income fund. The fund will be re-balanced quarterly for maintaining uniformity throughout the policy tenure.

ICICI Prudential Smart Life -  Benefits

  • At the time of the policy maturity, the insured receives the total fund value that includes top-up fund value. 
  • The insurance holder can avail the maturity benefits in equal installments through the settlement option, over a period of 5 years.
  • On death, the lump sum benefit and the smart benefit are paid to the nominee
  • The lump sum benefit is higher of the Sum Assured which includes Top-up Sum Assured or 105 percent of all premiums paid till death.
  • As per the Smart Benefit option, after the policyholder’sdeath, all future premiums will be waived off and paid by the company. The policy will remain active till the end of the term whereupon the maturity benefit will be paid out.
  • From the 6th year of the policy, at the rate of 0.25%, loyalty additions and additional loyalty additions are added every year.
  • In every 5 years after the completion of 10th policy year, wealth boosters are added to the Fund Value at 1.50% for single pay and 3.25% for regular pay options.
  • All these additions are expressed as a % of the average Fund Value over the last 8 quarters.
  • The plan offers tax benefit under section 80c and (10D) of Income Tax Act. 

ICICI Prudential Smart Life - Product Specification:

 

Minimum

Maximum

Entry Age (Last Birthday)

20 years

 54 years

Maturity Age (Last Birthday)

30 years

64 years

Policy Term (PT) in years

10

25

Premium Paying Term (PPT) in years

Single Pay or equal to policy term

Premium Paying Frequency

Yearly, half-yearly, monthly

Yearly Premium

Regular Pay – 45,000

Single Pay – 48,000

No limit

Sum Assured

Regular Pay – Higher of 10*annual premium or 0.5*term*annual premium for ages<45 yrs. or higher of 7*annual premium or 0.25*term*annual premium for ages>=45 yrs.

Single Pay – 1.25*SP

Regular Pay – 30*annual Premium

Single Pay – 10*SP for ages<35 yrs. or 1.25*SP for ages>=35 yrs.

 

Details About Premium

Illustration for a policy term and PPT of 15 years:

Age

35 years

Premium

50,000

Sum Assured

500,000

Fund Value @ 4% including all additions

865,753

Fund Value @ 8% including all additions

12,11,187

 

ICICI Prudential Smart Life - Policy Details

Grace Period: A grace period of 15 days is allowedfor the payment of due premiums that the policyholder had failed to pay within the allotted period for premium payments.

Policy Termination or Surrender Benefit: In case the insurance holder wants to surrender the policy before completion of the first 5 years of the policy term, then the plan will be ceased and the fund value will be transferred to the discontinued policy fund where a minimum 4% per annum growth is earned. In case the insured dies during this period then only the accumulated fund value is provided to the beneficiary of the policy. In case of policy surrenders after the completion of the 5thyear of the policy, the fund value which also includes top-ups is paid to the insured immediately and the tenure of the policy terminates.

Free Look Period:  The policyholder can cancel the policy within 15 days if he/she is not satisfied with the coverage provided by the policy. Cancellation during free look period is acceptable only if there is no claim that has already beenmade during this period.

  • The policy features multiple partial withdrawals annually. However, the aggregate of the annual withdrawals should not exceed 20% of the fund value.
  • The insured can switch between funds as per his/her investment strategy.       
  • The insured can use top-ups in order to increase the fund value. However, Rs.2000 is the minimum top-up amount.
  • The policyholder can change the portfolio strategy once every year free of cost.
  • The premium redirection option allows the future premiums to be redirected to anew fund. 

Additional Features or Riders

    The Sum Assured and the policy term can be decreased based on certain terms and conditions.

Exclusions

The benefit paid in case of suicide within 12 months of the policy inception is the fund value as on that date.

Documents Required 

Documents like address proof, KYC and an accurate medical history are required while filling the application form.

You may also like to read :  ICICI Prudential ULIP Plans

Frequently Asked Questions: 

Q. What are the two investment options offered by the plan?

The two investment optionsoffered by the plan are: 

(a). Fixed portfolio strategy.

(b). Lifecycle based portfolio strategy.

Q. Is partial withdrawal available under the plan?

Only after the completion of 5 years of policy, the partial withdrawal is allowed. A maximum 20% of the fund value is allowed to withdraw each year.

Q. Can I avail loan under ICICI Prudential Smart Life Plan?

No, there is no loan facility available under this policy.

Q. What happens if I stop paying premiums after 5 years?

If you stop paying premiums after 5 years, then your policy will be surrendered automatically, unless you have already opted for converting your policy into a paid-up policy. If you do not want your policy to get surrendered, then you must pay all your outstanding premiums immediately to keep your policy active.