Life Insurance
ICICI Prudential
ICICI Prudential Life Insurance is a joint venture between ICICI Bank and Prudential Plc., a major financial services company based in the UK. Since its commencement in 2000, ICICI Prudential has grown so immensely that today it is the second largest private life insurance company in India.
| Annual Business | ₹17,198 cr. |
| Claims Settled | 97.52% (avg. of last 3 years) |
| Claims settled within 30 days | 92.56% |
Term Insurance offered by ICICI Prudential
iProtect Smart
Highly popular in the market, iProtect Smart is one of the most suitable plans to protect your family upon your untimely demise. It provides a range of plan options and riders so you can choose what best fits your needs.
This plan offers four payout options:
- Lump Sum:
Entire cover amount is paid as lump sum upon demise of the insured
- Income:
A monthly income equivalent to 0.833% of the death benefit is paid for the next 10 years.
- Increasing Income:
Every year 10% of the death benefit is paid in monthly installments for the next 10 years and the income amount increases by 10% every year.
- Lump sum plus Income:
A part of the death benefit is paid in lump sum and the balance is paid out in monthly income equivalent to 0.833% of the death benefit.
You can also opt for additional riders:
- Accelerated Critical Illness Benefit:
You get a lump sum amount in case you’re diagnosed with any of the 34 listed critical illnesses. However, keep in mind this lump sum amount is part of your base cover itself. So your death cover gets reduced by the amount of Critical Illness benefit paid.
- Accidental Death Benefit:
An additional lump sum amount is paid over and above the base death benefit if the cause of death is an accident.
ICICI Prudential Term Insurance plan details
| Plan Name | Entry Age | Sum Assured | Policy payment options |
|---|---|---|---|
iProtect Smart | 18-65 | ₹10,00,000 - unlimited | Single, Yearly, |
ULIP Plans
Unit Linked Insurance Plans or widely known as ULIPs are part insurance, part investment plans. So the premium that you pay, some of it is allocated towards providing a death cover and the rest is invested in equity and debt funds, whichever you choose. So if something were to happen to you, your family either gets death cover or the fund value, whichever is higher at that time.
Say you’re paying a premium of 1 lakh every year for 20 years and for a death cover of 10 lakhs. You die after 15 years and your family naturally gets 10 lakhs. However if at that time the value of your invested premiums is 13 lakhs, your family gets this 13 lakhs. But if the fund doesn’t earn good returns and values at 8 lacs, then you get the death cover. So 10 lacs, i.e., your death cover is the minimum payout. But if you survive after 20 years, then you get all those invested funds back, whatever the value is at that time. That’s your maturity payout.
But there are other things to look for as well. Firstly, there is a lock-in period of 5 years, meaning you won’t be able to get back your premiums before 5 years. It’s only after 5 years that you’re allowed to withdraw some funds and even that is partial withdrawal. You can never withdraw the entire amount. Also, there are different charges that are deducted from your premium every year like premium allocation charge, policy administration charge, fund management charge, etc. So the entire 1 lakh is never invested.
Make sure you read the policy document diligently. And remember ULIPs are largely dependent on how the market is performing, both stocks and bonds.
ULIP Plans offered by ICICI Prudential
| Plan Name | Entry Age | No. of Funds |
|---|---|---|
| ICICI Pru Signature | 0 - 60 | Total: 15 Equity: 12 Debt: 3 |
| ICICI Pru Wealth | 8 - 60 | Total: 9 Equity: 6 Debt: 3 |
| ICICI Pru Life Time Classic | Minimum- 0 Maximum- Single Pay: 75 years, Limited Pay/Regular Pay: 65 years | Total: 13 Equity: 10 Debt: 3 |
| ICICI Pru Guaranteed Wealth Protector | Minimum: 8 years Maximum One pay: 70 5 pay: 60 7 pay: 60 | Total: 2 Equity: 1 Debt: 1 |
| ICICI Pru Smart Life | Regular and one pay: 20-54 limited pay: Minimum- 20 yrs Maximum- 48 yrs | Total: 15 Equity: 12 Debt: 3 |