Here are some useful suggestions that will help you understand your Life Insurance requirement and make the right decision regarding the life insurance plan for your family:

1. Know your current life stage

As you grow older, you will pass through various stages. Some of these life stages are getting your first job, your marriage, the birth of your child, his or her teenage years, and your retirement. At these different life stages, you will have different goals and plans. Planning for these goals in advance will help you achieve them.

2. Plan for a specific financial goal

It is advisable to keep clear, specific and measured goals. For example, “I want to have a comfortable retirement “or, “I want to fund my child’s higher education” are not specific and measured goals. An example of a specific and measured goal would be, “I want to send my child to an international business school in 10 years. This costs ₹ 22 lakh* today and would cost ₹ 43.27 lakh** 10 years from now. I need to plan for it.” You can arrive at your specific goals by using our goal calculators.

3. Calculate the amount of Life Cover!a that you need

The Life Cover!a that you need depends on your liabilities, number of dependents, your current & future income along with other factors like your assets and any existing Life Cover!a that you may have. Ideally, your Life Cover!a should be at least 10 times your yearly income. For example, if your annual income is ₹ 10 lakh per year, then you should have a minimum Life Cover!a of ₹ 1 crore. To know the amount of Life Cover!a you need, use our Human Life Value Calculator.

4. Choose the longest possible term

The longer you stay invested, the more your money can grow with the power of compounding. For example, if you invest ₹ 1 lakh every year for 5 years, you would have saved ₹ 5,63,298/- @ 4% interest rate and ₹ 6,33,593/- @ 8% interest rate. Whereas, staying invested for just another 5 years (total of 10 years), your savings would be ₹ 12,48,635/- @ 4% interest rate and ₹ 15,64,549/- @ 8% interest rate.

5. Verify all charges and benefits

Always take time to understand the charges attached to your life insurance plan. You should also check the tax^ benefits available under the insurance policy.

6. Understand the claim aspects

You can learn about a company’s claim settlement process by checking the quality and speed of the claim settlement process. You can also check the Claim Settlement Ratio of a company. This ratio is an indication of the claims settled by the company compared to the number of claims received by the company. It is advisable to select a company that has a higher Claim Settlement Ratio.

7. Stay informed about all servicing options offered

Check the service touchpoints that the insurance company offers. You should check if the company has a wide network of branches, the number of services offered on digital platforms, and other similar information. These details help you get convenient servicing at a later stage in your policy.

 

 

 

Our Tax Saving Plans
ICICI Pru iProtect Smart - Term Plan

Save tax up to ₹ 54,600/-1 under Section 80C

ICICI Pru1 Wealth - Wealth Plan

Save tax up to ₹ 46,800/-3 under Section 80C

ICICI Pru LifeTime Classic - Wealth Plan

Save tax up to ₹ 46,800/-3 under Section 80C

SmartKid with ICICI Pru Smart Life - Child Plan

Save tax up to ₹ 46,800/-3 under Section 80C

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*Source: MBA fee for 2 year flagship course of IIM - Ahmedabad

**Assuming 7% rate of inflation

1 Tax benefit of ₹ 54,600/- (₹ 46,800/- under Section 80C & ₹ 7,800/- under Section 80D) is calculated at the highest tax slab rate of 31.2% (including Cess excluding surcharge) on life insurance premium under Section 80C of ₹ 1,50,000/- and health premium under Section 80D of ₹ 25,000/-. Tax benefits under the policy are subject to conditions under Sections 80C, 80D, 10(10D) and other provisions of the Income Tax Act, 1961. Goods and Services Tax and Cesses, if any, will be charged extra as per prevailing rates. Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for details, before acting on the above.

2 Tax benefit of ₹ 7,800/- is calculated at the highest tax slab rate of 31.2% (including Cess excluding surcharge) on health premium under Section 80D of ₹ 25,000/-. Tax benefits under the policy are subject to conditions under Sections 80D, 10(10D) and other provisions of the Income Tax Act, 1961. Goods and Services Tax and Cesses, if any, will be charged extra as per prevailing rates. Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for details, before acting on the above.

^ Tax benefits under the policy are subject to conditions under Sections 80C, 80D, 80CCC, 80CCE, 80G, 80GG, 80E, 10(10D), 10(10A), 10(13A) and other provisions of the Income Tax Act, 1961. Goods and Services Tax and Cesses, if any, will be charged extra as per prevailing rates. Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for details, before acting on the above.

3 Tax benefit of ₹ 46,800/- is calculated at the highest tax slab rate of 31.2% (including Cess excluding surcharge) on life insurance premium under Section 80C of ₹ 1,50,000/-. Tax benefits under the policy are subject to conditions under Sections 80C, 80D, 10(10D) and other provisions of the Income Tax Act, 1961. Goods and Services Tax and Cesses, if any, will be charged extra as per prevailing rates. Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for details, before acting on the above.

!aLife cover is the benefit payable on the death of the life assured during the policy term.

ICICI Pru1 Wealth UIN

SmartKid with ICICI Pru Smart Life UIN 105L145V08

ICICI Pru Life Time Classic UIN

ICICI Pru iProtect Smart UIN

COMP/DOC/Jan/2019/31/1941

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