The Life Cover for all members of the group can be flat or graded. In a flat cover, all members have the same Life Cover, whereas, in graded cover, pre-decided grades determine the Life Cover. The assured sum may have a link with loans, other liabilities, and salaries for formal groups. The Life Cover is a multiple of the annual salary. For example, if a person’s annual salary is 20,00,000 INR, and the multiple is 2; then the Life Cover is 40,00,000 INR.
Eligibility Criteria of ICICI Pru Group Term Plan
To be eligible for ICICI Pru Group Term Plan, a person should have a minimum age of 15 years. The maximum age cannot exceed 79 years. The minimum permissible Life Cover is 5000 INR for each member. There are two types of allowable groups: formal and informal. For a formal group, the minimum requirement is ten members to be part of the ICICI Pru Group Term Plan. For informal groups, the minimum required a number of members increases to 50.
Salient Features of ICICI Pru Group Term Policy
The ICICI Pru Group Term Plan feature is that as an administrator or employer, the Main Policy Holder can cover the well-being of the members and their families. When the employer acts as the administrator, the members may be employees. Such a group is formal. The group can also be informal, where the administrator is not an employer. With the ICICI Pru Group Term Plan, one can provide Life Cover to a group of individuals at a nominal cost. Some examples of the groups can be banks, micro-finance institutions, non-banking financial institutions, or general professional groups.
- All the members get Life Cover at a nominal cost.
- This plan covers unfortunate events. Therefore, this ICICI Pru Group Term Plan disburses a Death Benefit to the deceased's nominee if an unfortunate event occurs.
- Finally, this particular plan also protects against liabilities, which may include loans and other forms that any member might have.
Benefits and Advantages of the Plan
There are many benefits associated with the ICICI Pru Group Term Plan. In a formal plan, there are benefits for employers:
- The members, who are employees of the organization, will experience life cover at a token cost.
- A Life Cover is a significant benefit for an employee and, therefore, can act as a retention tool. This can also build loyalty towards employers from employees.
- All paid premiums are tax-deductible as per prevailing laws.
- The ICICI Pru Group Term Plan is administratively simple. The addition and deletion of group members do not require tons of paperwork.
- In a formal plan, benefits extend to the employees as well:
- The employees get a Life Cover. Life Cover secures their lives and the well-being of their loved ones too.
- While the benefit mentioned above is the primary advantage, there are other positives associated with this plan. Every group has an assigned free cover limit. For Life Cover up to this limit, the coverage extends without the need for any medical examinations.
- Furthermore, employees remain covered in unfortunate or unforeseeable an event, which gives them peace of mind.
- However, benefits are not limited to formal groups and extend to informal groups too. Both the group administrator and members, as they are known, get distinct advantages. The administration is also simple. Benefits include
- The administrator can offer members life cover by paying their premiums. There is an added flexibility that members themselves can pay the premiums instead, where the premiums are low because of a group plan.
- As per existing Income tax rules, which can be subject to change, the premiums' payer can avail tax benefits on those amounts. (Tax benefit is subject to changes in tax laws.)
The Process to Purchase the Plan
Online is the best mode to buy the ICICI Pru Group Term Plan. It is quick and does not involve an intermediary. Hence, there are both time and cost benefits. The transaction takes place directly with the provider.
The plan's point is that the assured sum should provide for the members in case of the absence of the main policyholder. Consider the following requirements before purchasing:
- The current income of the policy purchaser
- The number of members in the group
- Existing liabilities such as mortgages and loans
- The aimed-for fund which will be sufficient to cover all the members
- The premium each member of the main policy holder has the capacity to pay at the designated regular intervals
- Factor inflation in all the calculations
- The assured sum's recommended amount is 15 to 20 times the main policy holder's current annual income. There are certain other steps that one should follow while purchasing the plan.
- Calculate the premium: Online term calculators are available. For a particular assured sum, they should be able to tell you how much one has to invest per month as a premium. The premium should be within the budget the investor can spare at the designated intervals.
- Input the details: Details entered can change the composition of a plan. Ensure to enter the correct details pertaining to Age (Date of Birth), Gender, Periodic Income, Contact Details, etc.
- Input the assured sum and policy tenure – One important point to note here is that it is always advisable to begin the term plan as early in life as possible. This is because younger investors have lesser premiums. Furthermore, tenure is generally longer for younger people and shorter for middle-aged and older persons.
- Add Appropriate Riders – Over any plan, an investor can add a rider to get maximum benefits. Riders add a safety net on all those invested in the plan and the nominees, as per the terms. For example, consider a critical illness cover and the term plan in case there is a history of ailments in the family that affect hearts, kidneys, or other vital organs. There are other riders, such as Additional Death Cover Rider. Such riders payout over and above the death benefit that already exists with the package. For example, if a person were to die in an accident, their nominees would receive layouts for an accident cover in addition to the death cover.
- Complete the KYC Form – The KYC form requires name, address, and contact details. Ensure to fill in the beneficiary details with utmost care.
- Declare Health Details – Health Details such as height, weight, tobacco and alcohol consumption, medical conditions, hospitalization, hazards at work, etc., are mandatory for declaration. Not disclosing them in full could lead to the nullification of future claims.
- Read Terms and Conditions – One must fully understand terms and conditions before proceeding with payment.
- Payment – Credit Cards, Debit Cards, Net Banking, etc., are acceptable modes of payment. On successful completion, the provider will mail you the soft copy. The hard copy will follow in most cases after that.
For the ICICI Pru Group Term Plan, the only time administrators or members need to submit documents are when they are filling up the KYC form. Identity proofs such as PAN Card or Aadhar Card are mandatory. Driving license or utility bills are admissible as address proof. A passport copy can provide proof of age, while income tax returns are the best proof of income. Recent passport size photographs are generally a requisite during the process, as well.
Terms and Conditions
- The ICICI Pru Group Term Plan has a few general conditions. The Insurance Act and its clauses 38, 39, and 45, respectively, govern the provider's obligations to the policyholder on the Assignment of Benefit, Nomination, Incontestability and Non-Disclosure, and Fraud.
- The provider considers any receipt duly signed by the Master Policy Holder or any other authorized person as applicable discharge. On the issued cheque's encashment or the credit of the amount to the authorized bank account, the provider will have met their obligation.
- For claim payments, there are various terms that govern them. However, some documents are mandatory for raising the claim. They include the Claim Intimation Form, Member Policy Schedule, Death Certificate issued by the approved authority (only in the case of a death claim), and any other documents that the provider might require.
- The provider can recover only if any disbursement is erroneous due to the fault of the Master Policy Holder. In case of fault on the part of the provider, they cannot initiate recovery proceedings.
- The ICICI Pru Group Term Plan's jurisdiction is within India, and courts of India retain exclusive jurisdiction. Payouts are all in Indian currencies.
- The contact established in this plan can be in the form of hand, post, facsimile, or email. All electronic communications will be legally binding.
- Note that all terms and conditions are subject to legislative changes within India.
For the ICICI Pru Group Term Plan, the following exclusions are enforceable. This particular exclusion is only valid for informal groups, i.e., between administrators and members, and NOT employees and employers. The exclusion states that if a member was to die a natural death within 45 days of joining the policy while the cover is still in force, the provider would nullify the cover for that particular member. The member shall also be eligible for a refund of the premium, except the proportional charges that the provider accrues on issuing the cover. This lien period of 45 days is only applicable for natural deaths and does not apply to accidents. It is also not valid for members whose benefit exceeds the free cover limit, which means that the member has undertaken medicals.
A1. The Company issues a certificate to a Member to confirm the latter’s insurance cover under the Master Policy. That is known as the Certificate of Insurance.
A2. The earning spouse or the earning guardian is a person who is a relative in that sense to a member, as the case may be, and additionally has fixed periodic income.
A3. Extra benefits can be granted under medical underwriting. However, even without medical underwriting, a member gets a benefit, and that is known as the Free Cover Limit.
A4. The Financial Year in India, which is applicable for this policy, begins on the 1st of April of a Calendar Year and finishes by the 31st of March of the next calendar year.
A5. There are two dates in a policy; when it begins and then when it must be renewed. A year from either of those dates is a policy year.
A6. Insurance cover under a policy begins on a specific date, and that is known as the Policy Commencement Date.
A7. In the Policy Schedule and the Member annexures, there is a specific amount mentioned. That is known as the Sum Assured.
A8. The Master Policy Holder stipulates the Terminal Age. At this age, under the Rules of Scheme, the membership ceases. The Terminal Date can mean either the date when a Member reaches the maximum risk cover ceasing age or the date when he or she stops being a member, whichever is earlier.
A9. Riders are an additional charge over and above the premium, but they ensure that in the event of any critical event taking place, a lump sum amount will be available on the diagnosis. These riders can be a boon to assist with the generally significant expenses required for healthcare. This covers costs associated with the accident and not merely the death.