Why is ICICI Pru iProtect Smart special?
ICICI Pru iProtect Smart provides a lump sum pay-out to your nominee in case of an unfortunate event. This amount can be used to help meet regular expenses and repay any loans that you may have.
For example, assume you take a home loan of `25 lakh at the age of 30 and a Life Cover of `1 crore under this plan. In case of an unfortunate event during the policy term, your nominee will receive the entire lump sum amount i.e. `1 crore to pay off the outstanding loan and take care of day to day expenses.
How much money will my family receive in my absence?
With this plan, you can decide how your nominee receives the Life Cover amount in your absence. The company provides pay-out options on the basic Life Cover amount to protect the future of your family. Additionally, the Accident Cover and Critical Illness amount will always be paid-out as a lump sum under this plan.
|Lump Sum||The Life Cover will be paid together as a fixed lump sum. For example, if you choose a Life Cover of `1 crore, your nominee will receive the same lump sum amount, which is also the Sum Assured.|
|Income||You can choose this option if you want your family to receive a regular monthly income. With this option, 10% of the benefit amount is payable every year for 10 years. This will be paid in equal monthly instalments, in advance, at the rate of 0.8333% of the total benefit amount. This means, for a Life Cover of `1 crore, the monthly income paid will be `83,333.
Your nominee can also choose to receive the first year’s income, equal to `10 lakh, as lump sum. After this, the monthly instalments will continue from subsequent month for 9 years at the rate of 0.80% of the total benefit amount, i.e., `80,000 per month.
|Increasing Income||You can choose this option if you want your family to receive an increasing regular income. Your nominee will receive monthly instalments for 10 years. The income amount will increase by 10% p.a. simple interest every year.
For example, if your Life Cover is `1 crore, then your nominee will receive `10 lakh in the first year, `11 lakh in the second year, `12 lakh in the third year and so on.
Depending on the needs of your family, you can choose the events against which you want to secure your loved ones. ICICI Pru iProtect Smart offers complete protection against various unforeseen events such as, death, permanent disability, terminal illness, critical illness and accidental death.
Which events are covered?
ICICI Pru iProtect Smart secures you and your family in case of:
Death and Terminal Illness: Your nominee# receives the Life Cover amount in case of an unfortunate event such as death. Moreover, on the first diagnosis of a terminal illness, you will receive the entire lump sum. Terminal Illness refers to the high likeliness of death within the next six months as diagnosed by medical practitioners that specialise in the same. To know more about the details of Terminal Illness, refer to the information provided in the product brochure.
Permanent Disability: The company pays all due premiums on your behalf in case of permanent disability caused due to an accident. Permanent Disability~ will be triggered if you are unable to perform 3 out of the 6 following activities permanently and consistently for 6 consecutive months:
Mobility: The ability to walk a distance of 200 meters on flat ground.
Bending: The ability to bend or kneel to touch the floor and straighten up again and the ability to get into a standard car, and out again.
Climbing: The ability to climb up a flight of 12 stairs and down again, using a handrail if needed.
Lifting: The ability to pick up an object weighing 2 kg at table height and hold it for 60 seconds before replacing the object on the table.
Writing: The ability to write using a pen or pencil, or type using a computer's keyboard.
Blindness (permanent and irreversible): Permanent and irreversible loss of sight to the extent that even when tested with the use of visual aids, vision is measured at 3/60 or worse, using a Snellen eye chart.
~To know more about the criteria for permanent disability, refer the information provided in the product brochure.
Accidental Death: In case of death due to an accident, your nominee receives a lump sum amount called the Accident Cover*.
Critical Illness (CI): On the first occurrence of any of the covered 34 critical illnesses, you receive a lump sum pay-out*.
*For further details, please refer the information provided in the product brochure.
# Nominee is the person you appoint at the time of purchase for receiving the benefits of your insurance policy in your absence.
Which Benefit Option covers the above mentioned events?
You can choose your level of protection by selecting one of the four benefit options to suit your need. The benefit options are Life, Life Plus, Life & Health and All-in-one.
Death, Terminal Illness and Permanent Disability are covered irrespective of the benefit option chosen as shown below:
|Coverage in case of an unfortunate event||Benefit Option|
|Life||Life Plus||Life & Health||All-in-one|
|Waiver of all future premiums on permanent disability due to accident||Yes||Yes||Yes||Yes|
We understand that if you are diagnosed with a life-threatening disease, the burden of medical costs and liabilities falls upon you and your loved ones. The company pays you Critical Illness (CI) Benefit as a lump sum amount. This will help you meet the cost of medical care and manage regular expenses during difficult times. This pay-out is made irrespective of immediate hospitalisation or medical costs due to the illness.
When do I receive this pay-out?
This benefit is payable when you are diagnosed for the first time with any of the 34 critical illnesses covered by ICICI Pru iProtect Smart.
Does my Life Cover or Premium change after I receive the benefit?
Yes, the Life Cover will reduce by the value of the Critical Illness Benefit@ paid to you. As a result, the future premiums you have to pay will reduce as well.
For example, assume you take Life Cover of `1 crore with lump sum pay-out option for your 32 year old wife, who is a healthy, non-smoking individual. Along with this, you opt for `25 lakh as CI Benefit in the Life & Health Benefit Option. For this, you need to pay yearly premium of `15,458, including all taxes, for a policy term of 25 years under Regular Pay option. If your wife is diagnosed with one of the 34 critical illnesses covered at age 40 (except Angioplasty^), she will be paid `25 lakh.
Here, the Life Cover will reduce to `75 lakh and the future premium will reduce to `6,502 p.a., excluding service tax and cesses. So, if you have a CI benefit of `1 crore and a Life Cover of `1 crore, after the CI Benefit is paid to you, the policy will end.
^The maximum benefit amount payable for angioplasty is `5 lakh.
*The above example has been considered for a healthy 32 year old female. Under this plan, she paid regular premium per year until diagnosed with a covered critical illness@ at age 40.
@The Critical Illness Benefit is accelerated and not an additional benefit which means the policy will continue with the Death Benefit reduced by the extent of the Critical Illness Benefit paid. To know more, please refer the product brochure.
In case of death due to an accident, the company offers a pay-out that is double the Life Cover opted by you. This pay-out is subject to a maximum of ` 2 crore.
To ensure your family is always covered, ICICI Pru iProtect Smart offers you the flexibility to increase the level of protection of your family at key life events such as marriage and birth of a child.
Which life events are covered and how much additional pay-out can my family receive in my absence?
You can opt for an additional cover that pays your nominee a percentage of the Life Cover amount for marriage, childbirth, or adoption* as shown below:
|Event||Additional Life Cover (calculated as a percentage of the original Life Cover)||Maximum Additional Life Cover allowed (`)|
|Birth/Legal Adoption of 1st Child||25%||25,00,000|
|Birth/Legal Adoption of 2nd Child||25%||25,00,000|
*Subject to a maximum limit as per company policy
How much additional premium do I have to pay for this increase in protection?
Additional premium will be calculated according to the increased Life Cover and the remaining policy period. This feature is only available under the Life Benefit option.
With this plan, you can reduce your taxable income by paying up to ` 1.5 lakh under Section 80C towards Life Cover. Additionally, you will get tax benefit of ` 25,000 under Section 80D towards Critical Illness Benefit@ . This will help you save tax. What's more, the Life Cover amount your family receives is also completely tax-free*.
*Tax benefits under the policy are subject to conditions under Section 80C, 80D, 10(10D) and other provisions of the Income Tax Act, 1961. Service tax and applicable cesses will be charged extra, as per prevailing rates. Tax laws are subject to amendments from time to time.
@Critical Illness Benefit is accelerated and not an additional benefit which means the policy will continue with the Death Benefit reduced by the extent of the Critical Illness Benefit paid. To know more, please refer the product brochure.