ICICI Pru iProtect Smart Term Plan

The policyholder can choose a convenient payout in varieties of a lump sum, monthly income, increasing income, and a combination of a lump sum and monthly income. All these are added to the longest term possible with an option for whole life coverage and an added incentive in this pandemic, accommodating death due to Covid-19 complications. 

Key Features of ICICI Pru iProtect Smart Term Plan 

• The plan provides coverage against terminal illness, disability, and death

• Policyholders have the option to choose Accelerated Critical Illness Benefit and Accidental Death Benefit. 

• The plan offers special premium prices for non-smokers/tobacco users. 

• Flexibility to pay premium one time, or for a limited time, or throughout the policy tenure. 

• Get tax benefits on paid premiums as per the prevailing Income tax laws

• Policyholders can also choose to receive a benefit in form of a lump sum or as a monthly income for 10 years or as a combination of both. 

Eligibility Criteria of ICICI Pru iProtect Smart Term Plan

Benefits of ICICI Pru iProtect Smart Term Plan 

The ICICI Pru iProtect Smart Term Plan received the best Term Insurance provider 2017-18 by MoneyToday Financial Awards. Some of the stand-out benefits offered by the plan are:

1. Flexible Protection Options:

   The policyholder is entitled to choose from any of the following plan variants:

   • Life: The coverage includes a death benefit, terminal illness benefit, and premium waiver in case of disability. 

   • Life Plus: The coverage includes all the above and accidental death benefit up to a maximum of Rs.2 cr.

   • Life and Health: A critical illness benefit is added, covering 34 illnesses and in addition to the coverage provided under the Life variant. 

   • All-in-One: True to its name, the coverage encompasses all that is covered under the other variants.

2. Flexible Payout Options:

   Like the protection options, the policyholder is entitled to choose the mode of death benefit payment in the unfortunate event of demise from among the following four:

   • Lump-Sum: By far the preferred payout, in which the sum assured is paid to the beneficiary upon the policyholder’s death during the policy term.

   • Regular Income: The death benefit is disbursed at 10% to the beneficiary for 10 years in equal monthly installments. The beneficiary has the option to receive the first year's benefit in a lump sum. 

   • Increasing Income: The death benefit is paid in incremental monthly installments for ten years at the rate of 10% simple interest applied per annum. 

   • Lump-Sum plus Income: The death benefit is split in a partial lump-sum payment, and the residual in monthly installment is spread over ten years.

3. Enhanced Protection:

   It is a unique feature offered in the ICICI Pru iProtect Smart Term Plan, where the accidental death benefit coverage is enhanced based on life-stage events. The option is available only under the regular premium payment option for all the variants. The option is availed of for the following events:

   • Marriage: The original death benefit is augmented by up to 50%, subject to a maximum of Rs.50 lacs

   • Birth of 1st Child: Up to 25% of the original accidental death benefit increases subject to a maximum of Rs.25 lacs

   • Birth of 2nd Child: Up to 25% of the original accidental death benefit is increased as subject to a maximum of Rs.25 lacs

4. Tax Benefits:

   All life insurance products are governed by the extant tax laws defined under the Income Tax Act, 1961. Accordingly, the premium paid for the ICICI Pru iProtect Smart Term Plan in a financial year is tax-exempt under Section 80 C. Benefit receipts are exempt likewise under Section 10 (10D). 

   “Tax benefit is subject to changes in tax laws. Standard T&C apply.”

Premium Illustration

It has already been described how the policyholder can select the premium payment options from single pay, limited pay, and regular pay in annual, semi-annual, quarterly, and monthly installments. While this is only a general description, an illustration will provide the needed clarity while purchasing the ICICI Pru iProtect Smart Term Plan.

The above grid demonstrates how the premium amount pans out for two age ranges and relative sum assured in the maximum possible policy terms. 

Additional Riders

Any coverage enhancing option is called a rider against payment of additional premium. We are already aware of how different options are distributed in the ICICI Pru iProtect Smart Term Plan variants. The policy also offers an additional accidental Death Benefit (ADB) rider under the two variants of Life Plus and All-in-One. The rider augments the coverage by up to Rs.2 cr and can be opted at policy inception or later at renewal. 

What are the Documents Required to Buy the Policy?

The ICICI Pru iProtect Smart Term Plan is conveniently purchased online at the insurer portal. Several aggregators also facilitate online policy purchases. The advantage is financial with a concessional premium rate and needs upload of bare minimum document of policy issue. The mandatory documents required for purchasing the ICICI Pru iProtect Smart Term Plan are:

• PAN card: The document doubles up as an ID and Age proof

• Age and address proof

• Income proof

• Recent photograph

How to Buy ICICI Pru iProtect Smart Term Plan online?

The insurer portal provides a seamless option to buy the ICICI Pru iProtect Smart Term Plan in four well-defined steps detailed below:

• Step 1: Input the life coverage amount, DOB, and select the gender and smoking habit to create the plan contours 

• Step 2: Input personal information like name, mobile number, and email ID to help to send the premium quote

• Step 3: Select the protection option and the modes of benefit payouts and complete the online application form

• Step 4: By clicking continue, the purchase process is initiated considering that the purchaser has confirmed all the inputs. Upload the requisite document copies and complete the premium payment using the convenient gateway to complete the purchase to await policy document issue. 

Policy Details

1. Grace Period

   15 days of grace period is allowed for monthly premium payment mode whereas 30 days is allowed for the other premium payment modes. If you do not pay premiums within the grace period, the policy lapses and the cover will terminate or cease. 

2. Freelook period

   If you are not satisfied with the terms and conditions or the features of the policy, you have the option to cancel it by returning the policy documents to the insurance company within 15 days from the date of receiving it. 30 days of free look period is allowed in case of digital policies through distance marketing. 

3. Surrender

   In the case of single pay plans, unexpired risk premium amounts will be payable if the life assured voluntarily closes or terminate the plan within the policy tenure. 

   Unexpired risk premium vale is defined as = (Single Premium X Unexpired risk premium value factor/100)

4. Discontinuance of premiums 

   If the premium amount is not paid on the premium due date or within the grace period, all the benefits available under the plan will cease.

Exclusions

Exceptions in the ICICI Pru iProtect Smart Term Plan apply with relation to terminal illness, critical illness, and accidental disability benefits. The situations described below are only indicative, and the policyholder needs to consult the policy document for greater clarity. 

• Terminal Illness: It is paid only when a medical practitioner certifies that the diagnosed illness can lead to death within six months from the diagnosis date. 

• Critical Illness: The benefit payment is confined to the first diagnosis of any of the 34 listed illnesses, which under no circumstance should be pre-existing. The following conditions also apply:

  • The ACI benefit is not available for the single premium payment option.

  • The benefit is applicable for a policy term of 30 years, whichever is lower. 

  • The minimum ACI benefit is Rs.1 lac

• Permanent Disability: It should be caused by an accident or any willful, hazardous, and criminal acts.

• Suicide: If the policyholder commits suicide within 12 months from the date of inception of the policy, the insurance company will refund the higher amount of 80 percent of the total paid premiums (including the additional premiums) till the death date or unexpired premium risk will be paid by the insurer.

FAQ's