Term Insurance Benefits

Term insurance plans secure your family’s financial future even when you are not around. These plans are considered by many as one of the basic financial necessities of life, especially in today’s times. Term insurance plans also have multiple features and benefits, right from affordable premiums to riders for additional covers.

What are the benefits of term insurance?

Term insurance offers multiple benefits to customers. Here are a few you should be aware of:

Affordable Premiums - You can get a high-value life cover^!a from a term insurance plan by paying an affordable premium amount of ₹ 460/- p.m^2a. Premium payments can be made either monthly/half-yearly/yearly. The earlier you buy a term insurance plan, the lower the premium amount you have to pay
Whole Life Cover^!a - Term insurance plans offer substantially longer coverage. Whole life insurance plans offer coverage till the age of 99 years
Payout of Sum Insured - In case of the unfortunate demise of the person insured, the family members will receive the sum assured as a payout. The policyholder can choose for this payout to be in the form of a lump sum, an income that is either monthly or annual, a combination of lump sum and income or an increasing income at the inception. This will help take care of financial needs and household expenses among other costs
Critical Illness Coverage - In case optional Critical Illness Coverage¹ is included in your term insurance plan, you will get a lump sum payout upon diagnosis of any critical illness¹ that is covered in the plan
Accidental Death Benefit - You can add the Accidental Death Benefit³ to your term insurance plan. This will offer protection against any mishaps in the future
Coverage for Terminal Illnesses -Term insurance plans can give you lump sum payouts in case of diagnosis of terminal illnesses² such as AIDS
Tax^** Benefits -You can get tax^** benefits on premiums paid under Section 80C along with premiums paid towards critical illness benefit under Section 80D. The lump sum amount received by nominees as the sum assured/death benefit is also exempted from taxes subject to Section 10 (10D) of the Income Tax Act, 1961

Why choose term insurance plans?

Term insurance plans offer financial security for the entire family in case of the unfortunate death of the policyholder. Also, you can get optional coverage for critical illnesses or accidental death. You are covered for a long duration, while the premiums are affordable.

The ICICI Pru iProtect Smart term insurance plan offers the regular benefits of a term insurance plan with extensive Critical Illness Coverage. Here are a few key features of the same:

Longer coverage with the option to be covered until 99 years of age
Extensive coverage for 34 critical illnesses¹ (optional)
Receive payouts upon the first diagnosis of any critical illness¹ covered under the plan
Receive full payout of life coverage upon diagnosis of any terminal illness²
Pay lower premiums starting from ₹ 460/- per month^2a
Choose from four payout options, namely Lump Sum, Lump Sum + Income, Increasing Income and Income

You can also buy term insurance online under the MWP (Married Women’s Property) Act⁴, ensuring that your insurance amount is protected and handed over to your spouse and/or children without being claimed wrongfully by creditors⁴.

Term Insurance Calculator

Frequently asked questions

1. What are the tax** benefits of a term plan?

Term plans offer significant tax benefits. You can claim a deduction of up to ₹ 1.5 lakh under Section 80C** and up to ₹ 25,000 under Section 80D^** of The Income Tax Act, 1961, for the premiums paid toward your term insurance plan. Additionally, the insurance payout is exempted subject to conditions prescribed under Section 10(10D)^** which provides you with further financial advantages.

2. What are the optional term plan benefits?

Optional benefits of a term plan include riders that can be added to an existing term plan. These provide additional financial protection and the option to customise your plan according to your needs. These flexible options cater to your diverse needs and preferences and enhance the overall value and utility of your term insurance policy.

3. Does a term insurance plan give maturity benefits?

The maturity benefits of a term plan do not typically apply to traditional term insurance plans. However, a return of premium term plan is an exception to this rule. In such plans, if the policyholder survives the policy term, all the premium payments are returned. While traditional term plans focus primarily on providing financial protection in case of the policyholder's absence, return of premium plans offer a unique combination of protection and savings. This makes them an attractive option.

COMP/DOC/Apr/2024/24/5798

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Disclaimer

^* The given premium is applicable for an 18-year-old healthy male life with the monthly mode of payment and premiums paid regularly for the policy term of 18 years with an income payout option with a Life Cover of ₹ 1 crore. Goods and Services Tax and/or applicable Cesses (if any) as per applicable rates will be charged extra.

^** Tax benefits under the policy are subject to conditions under Sections 80C, 80D, 10(10D), 115BAC 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 more details.

¹ Critical Illness Benefit (CI Benefit) is optional and available under Life & Health and All in One option. This benefit is payable, on the first occurrence of any of the 34 illnesses covered. Medical documents confirming the diagnosis of critical illness need to be submitted. The benefit is payable only on the fulfilment of the definition of the diagnosed critical illness. The CI Benefit is accelerated and not an additional benefit, which means the policy will continue with the Death Benefit reduced by the extent of the CI Benefit paid. The future premiums payable under the policy will reduce proportionately. If CI Benefit paid is equal to the Death Benefit, the policy will terminate on payment of the CI Benefit. To know more in detail about the CI Benefit and terms & conditions governing it, kindly refer to the sales brochure. CI Benefit term would be equal to the policy term or 30 years or (75-Age at entry), whichever is lower.

² A Life Assured shall be regarded as Terminally Ill only if that Life Assured is diagnosed as suffering from a condition which, in the opinion of two independent medical practitioners specialising in the treatment of such illness, is highly likely to lead to death within 6 months. The terminal illness must be diagnosed and confirmed by medical practitioners registered with the Indian Medical Association and approved by the Company. The Company reserves the right for independent assessment.

³ Accidental Death Benefit (ADB) is up to ₹ 2 Crore. ADB is available in Life Plus and All in One option. In case of death due to an accident, Accidental Death Benefit will be paid out in addition to Death Benefit. Accidental Death Benefit will be equal to the policy term or (80-Age at entry), whichever is lower.

⁴ Nothing herein contained shall operate to destroy or impede the right of any creditor to be paid out of the proceeds of any policy of assurance, which may have been effected with intent to defraud creditors. In case of any third-party claim in the Courts of India with regards to the insurance proceeds, the amount shall be subject to the judiciary directions. Please seek professional legal advice for the applicability of this provision.

ICICI Pru iProtect Smart UIN .

Advt No.: W/II/2009/2020-21

^2a The premium of ₹ 460 p.m. has been approximately calculated for a 18-year-old healthy male life with monthly mode of payment and premiums paid regularly for the policy term of 31 years with income payout option (income for 20 years) with Life Cover of ₹1 crore. Goods and Services tax and/or applicable cesses (if any) as per applicable rates will be charged extra.

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

^!jClaim settlement ratio is for Financial Year FY2023-24 and is computed on individual basis claims settled over total individual claims for the financial year. For details, refer to ICICI Prudential Annual Report 2023-24 in Public Disclosure section on ICICI Prudential website.

ADVT: W/II/0194/2024-25