Why Do You Need Life Insurance?

1. Secure your family's financial future

Life insurance is all about securing you and your family financially. All parents want their children to be taken care of even when they are not around. Life insurance makes sure your loved ones won't suffer financially in your absence.

2. Accomplish your financial goals

We all have some goals in life, for which money needs to be saved. Life insurance plans help you achieve those goals by helping you build a financial corpus with the protection of a life cover. Life insurance plans inculcate a habit of disciplined saving. Paying a little amount as an insurance premium each month will help you accumulate funds. What's even better is that this small monthly amount only keeps growing. So years from now, you'll have enough wealth accumulated to accomplish your more substantial and long-term financial goals.

3. Brings peace of mind

Having life insurance will give you peace of mind. Life is uncertain, and life insurance can offer financial assistance to your family when you are no longer around. You can also plan your retirement by taking a retirement plan where you will receive a monthly income.

4. Save tax

Generally, you can claim an income tax deduction on your life insurance premiums under Section 80Cof the Income Tax Act, 1961**. Pay-outs for death claims are tax-free under Section 10(10D) of the Income Tax Act, 1961**.

Reasons to Have a Life Insurance Plan

1. Long term financial goal

Life insurance plans help you create a substantial financial corpus for your long term financial goals by helping save money with the protection of life cover.

2. Protect the child's future

Every parent wants to provide their child with the best possible future. Life insurance plans ensure your child to have the best possible future even when you are not around.

3. Loans and liabilities

If you have bought a loan then you should always consider buying a term plan. It makes sure that the burden of your loan doesn’t fall up on your dependents in your absence. Term insurance plans are the most affordable way to protect home loan amount and safeguard the shelter of policyholder's family in case of his/ her untimely death.

4. Child’s education planning

Child education plans help you save and build a financial corpus for your child’s future education expenses. These plans provide life cover so that the child gets the sum assured even in the case of policyholder’s untimely demise. 

5. Dependent spouse 

If your spouse is financially dependent on you, then you must buy a life insurance plan.This will ensure that so that your spouse lives a financially independent life in case of your absence.

6. Leave a tax free legacy

As life insurance pay-outs are tax-free under Section 10(10D) ** of the Income Tax Act, 1961, you can leave a tax free legacy for your loved ones.

7. Retirement planning

Life insurance plans help you invest and build a financial corpus for your retirement so that you can live your post-retirement life comfortably

✅ Should you buy life insurance only for the tax** benefit option?

Section 80C** of the Income Tax Act, 1961 offers deductions up to ₹1.5 lakh paid towards your life insurance premiums. Thus, life insurance acts as a valuable tax-saving tool.

But you should not buy life insurance only for the tax** benefit. Your investments must match your long-term life goals, such as children's higher education and financial freedom in retirement. Also, you need to secure your loved ones with sufficient insurance cover to overcome the uncertainties of life.

ICICI Prudential Life offers a wide range of pure protection, savings, wealth creation, and retirement income plans. You should assess your financial needs and buy a policy best suited to your goals.

✅ Which type of life insurance should you buy based on life stages?

When you start earning: Buying life insurance early in life can help you get a substantial cover at comparatively lower premiums. You are also likely to have fewer financial obligations at this stage. Thus, you can choose to profit from investments in the capital market with unit-linked insurance plans (ULIPs). In addition to this, you can also consider protecting your income from unforeseen disabilities or critical ailments. A term insurance plan with a critical illness rider or a permanent disability rider can be ideal at this stage.

After marriage and children: With increasing liabilities, the need for a higher cover amount also increases. The ICICI Pru iProtect Smart Term Plan lets you enhance your life cover` at key events of your life* like marriage and the birth or adoption of up to two children. The enhanced cover safeguards your family's financial future in case of any unfortunate event.

Moreover, if you need to start planning for life goals, such as buying property or saving for your children's higher education, you can consider savings and investment-based life insurance plans like ULIPs or endowment plans to earn sufficient returns for your needs.

Approaching retirement: You can purchase a retirement plan to save and earn high returns to support your expenses in retirement. Retirement plans offer great features that can secure your loved ones and offer you a steady flow of income in your non-working years. You can also buy an annuity plan that can provide you with a guaranteed income to help you maintain your preferred lifestyle in your retirement years.

✅ Can you have life insurance for a specific tenure?

You can choose a specific tenure for your term life insurance plan and stay protected for a defined period, such as the repayment tenure of a loan or the years until your retirement. For instance, ICICI Pru iProtect Smart Term Plan offers coverage up to 99 years under the whole life insurance option.

✅ How much time does it take to get a life insurance death benefit claim?

We need relevant documents as evidence for the claim's validity. We might also carry out investigations in case of any discrepancies.

However, ICICI Prudential Life's Claim Settlement Ratio for FY2022 is 97.8%^ as per the annual report 2021-22. It reflects our commitment to honouring our liabilities to our policyholders and our claim handling efficiency. Our average claim settlement duration is 1.5 days< after receiving all claim documents and when no enquiries are necessary.

✅ Should you buy life insurance only for the tax** benefit option?

Section 80C** of the Income Tax Act, 1961 offers deductions up to ₹1.5 lakh paid towards your life insurance premiums. Thus, life insurance acts as a valuable tax-saving tool.

But you should not buy life insurance only for the tax** benefit. Your investments must match your long-term life goals, such as children's higher education and financial freedom in retirement. Also, you need to secure your loved ones with sufficient insurance cover to overcome the uncertainties of life.

ICICI Prudential Life offers a wide range of pure protection, savings, wealth creation, and retirement income plans. You should assess your financial needs and buy a policy best suited to your goals.

✅ Which type of life insurance should you buy based on life stages?

When you start earning: Buying life insurance early in life can help you get a substantial cover at comparatively lower premiums. You are also likely to have fewer financial obligations at this stage. Thus, you can choose to profit from investments in the capital market with unit-linked insurance plans (ULIPs). In addition to this, you can also consider protecting your income from unforeseen disabilities or critical ailments. A term insurance plan with a critical illness rider or a permanent disability rider can be ideal at this stage.

After marriage and children: With increasing liabilities, the need for a higher cover amount also increases. The ICICI Pru iProtect Smart Term Plan lets you enhance your life cover` at key events of your life* like marriage and the birth or adoption of up to two children. The enhanced cover safeguards your family's financial future in case of any unfortunate event.

Moreover, if you need to start planning for life goals, such as buying property or saving for your children's higher education, you can consider savings and investment-based life insurance plans like ULIPs or endowment plans to earn sufficient returns for your needs.

Approaching retirement: You can purchase a retirement plan to save and earn high returns to support your expenses in retirement. Retirement plans offer great features that can secure your loved ones and offer you a steady flow of income in your non-working years. You can also buy an annuity plan that can provide you with a guaranteed income to help you maintain your preferred lifestyle in your retirement years.

✅ Can you have life insurance for a specific tenure?

You can choose a specific tenure for your term life insurance plan and stay protected for a defined period, such as the repayment tenure of a loan or the years until your retirement. For instance, ICICI Pru iProtect Smart Term Plan offers coverage up to 99 years under the whole life insurance option.

✅ How much time does it take to get a life insurance death benefit claim?

We need relevant documents as evidence for the claim's validity. We might also carry out investigations in case of any discrepancies.

However, ICICI Prudential Life's Claim Settlement Ratio for FY2022 is 97.8%^ as per the annual report 2021-22. It reflects our commitment to honouring our liabilities to our policyholders and our claim handling efficiency. Our average claim settlement duration is 1.5 days< after receiving all claim documents and when no enquiries are necessary.

ADVT: W/II/0028/2022-23

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** Tax benefits subject to conditions under Section 80C, 80D,10(10D), 115BAC and other provisions of the Income Tax Act,1961. Good and Service 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 above.

^ Claim statistics are for Financial Year 2021-22 and is computed on individual basis claims settled over total individual claims for the financial year. For details, refer to our latest annual report on the website.

` Life cover is the benefit payable on the death of the Life Assured during the policy term.

< Average turnaround time for non-investigated retail death claims from receipt of last requirement as per Annual report for FY2022.

* ICICI Pru iProtect Smart offers the flexibility to increase the level of protection at key life stages of marriage and child birth, without any medicals as below.

Event Additional Death Benefit (percentage of original Death Benefit) Maximum additional Death Benefit allowed
Marriage 50% ₹ 50,00,000
Birth / Legal adoption of 1st child 25% ₹ 25,00,000
Birth / Legal adoption of 2nd child 25% ₹ 25,00,000

Additional premium will be calculated based on the increased Sum Assured and outstanding policy term as per your age at the time of each such increase.

ICICI Pru iProtect Smart UIN 105N151V06 (A Non-Linked Non-Par Life Individual pure risk premium product)

COMP/DOC/Feb/2020/62/3207

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