Life Insurance - Meaning

Life Insurance can be defined as a contract between an insurance policy holder and an insurance company, where the insurer promises to pay a sum of money in exchange for a premium, upon the death of the insured person or after a set period. Here, at ICICI Prudential Life Insurance, you pay premiums for a specific term, and in return, we provide you with a Life Cover. This Life Cover secures your loved ones’ future by paying a lump sum amount in case of an unfortunate event. In some policies, you are paid an amount called Maturity Benefit at the end of the policy term.

There are two basic types of Life Insurance plans -

  1. Pure Protection
  2. Protection and Savings

What is Pure Protection Plan?

A Pure Protection plan is designed to secure your family’s future by providing a lump sum amount, in your absence.

What is Protection and Savings Plan?

A Protection and Savings plan is a financial tool that helps you plan for your long-term goals like purchasing a home, funding your children’s education, and more, while offering the benefits of a Life Cover.

Click here to know more about different types of Life Insurance Plans.

Let us understand some commonly used terms in Life Insurance:

  • Life Assured: It is the person who is covered under the insurance policy
  • Proposer: It is the person who pays the premiums of the policy. For example: If you have bought the policy for yourself, then you are both the Life Assured as well as the Proposer. Similarly, if you purchase an insurance policy for a family member, then you are the proposer and the family member is the Life Assured
  • Nominee or Beneficiary: It is the person you appoint at the time of buying the policy to receive the benefits of your insurance policy, in your absence
  • Insurer: The insurance company that sells the life insurance policy is called the Insurer (for example, ICICI Prudential Life Insurance)
  • Life Cover: It is the amount that the Insurer will pay to your Nominee in case of an unfortunate event
  • Maturity Benefit: For Protection + Savings policies, the Insurer pays a certain lump sum of money on completion of the policy term. This amount is known as the Maturity Amount
  • Premium: A premium is the amount you pay to the insurer for receiving the benefits of the insurance policy. These payments can be made on a regular basis throughout the policy duration, for a limited number of years or just once, as per the options available under the policy you choose
  • Premium Payment Term: The number of years for which you pay the premiums is known as the Premium Payment Term
  • Policy Term: The number of years for which the Life Cover continues

Let us understand how Life Insurance works:

In today's era, having a life insurance policy is a must for every individual as it is one of the best ways to secure one's future along with their loved ones. There are many different types of life insurance policies available in the market. However, before choosing one, it is important to understand how a life insurance policy works. Let us look at an example to understand how life insurance works:

Now, let’s see an example:

Mr. Kumar (Life Assured) pays ICICI Prudential Life Insurance (Insurer) an annual amount (Premium) over 5 years (Premium Payment Term) to make sure that his wife (Nominee) gets a certain assured sum of money (Life Cover) in case of an unfortunate event during the 10 years or Lumpsum amount at maturity on survival at the end of policy term.

Life insurance not only covers the risk arising due to an unfortunate event, but also gives you additional benefits like tax benefits, savings and wealth creation over a period of time. The right life insurance plan from a trusted company can help one get long-term risk cover plus savings, i.e. dual benefits from one solution.



1. Is life insurance worth buying?

Yes, life insurance is a worthy purchase. Anybody with financial dependents will find the benefits of buying life insurance attractive. In case of the demise of the only income earner, a life insurance policy becomes a financial safety net that helps your loved ones pay for expenses such as a loan, childcare, education, health, and many other everyday bills. Life insurance is an affordable way to financially protect the people you love most.

2. How to claim life insurance after death?

It is a simple process. You can report your claims online, at our branches, central office, via SMS, e-mail or through our call center as per your convenience. Physical documents will be required to be sent to the nearest branch to start the process. The documents needed are:
  • Claimant Statement Form
  • Death Certificate
  • Medical/Hospitalization Documents, if any
  • Claimant's current address proof, photo identity proof and cancelled cheque / Copy of bank passbook
Next, our claims department/team will assess the claim and inform in case any further documents need to be submitted. Once your claim is intimated and the life insurance company receives all the relevant approvals and then settle all the valid claims through cheque or Electronic Clearance System (ECS)

3. How many beneficiaries can be on a life insurance policy?

There is no limit on the number of beneficiaries you can add to your policy. However, if the insured has a will and it specifies who the amount of the insurance benefit should go to after he/she passes away, then the benefit will go to the person mentioned in the will irrespective of the mentioned nominee.

4. How long does it take to get life insurance amount after a death?

  • With ClaimForSure, we provide guaranteed death claim settlement within one day*, making sure your family receives financial support when it needs it the most. In case there is any delay beyond one working day, your nominee will be paid interest* on the claim amount for every day of delay
To avail ClaimForSure,
  • Policies have to be active for a continuous 3 years with all due premiums paid
  • All mandatory claim documents* should be submitted at the branch before 3 pm on a working day
  • Total claim amount of all policies should be less than or equal to ₹1.5 Crore
  • Claim must be a non-investigative case
Our Claims Settlement Ratio for FY2020-21 is 97.9%~


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*Day 1 is counted from the day of receiving the last document. All due premiums in the policy have been paid and the policy has been active for a continuous period 3 years. Mandatory document to be submitted at Branch Office before 3pm on a working day- Original policy certificate, copy of death certificate by local authority, Nominee’s current address proof, photo identity proof, Cancelled cheque. Copy of bank passbook, Copy of medico legal cause of death, Medical records (Admission notes, Discharge / Death summary, Test reports, etc.). For accidental death – Copy of FIR, Panchanama, Inquest report, Driving license. Interest shall be at the bank rate that is prevalent at the beginning of the financial year in which death claim has been received. In case of breach in regulatory turnaround time, interest will be paid as per IRDAI regulations.

~Claim statistics are for Financial Year FY2020-21 and is computed on individual basis claims settled over total individual claims for the financial year. For details, refer to Public Disclosures in our website.