Whole Life Insurance

What is Whole Life Insurance?

As the name suggests, a whole life insurance plan offers financial security and insurance coverage for the rest of your life. This type of insurance protects you and your loved ones by providing you with a life cover^! for up to 99 years. This can safeguard the financial interests of your family in your absence.

What are the Key Features of Whole Life Insurance Policies?

Affordable Premiums

Whole life insurance offers insurance coverage^! with affordable premiums for a lifetime. It is a cost-effective way to secure lifelong protection.

Financial safety net

A whole life policy ensures your loved ones have a dependable financial safety net in case of any unfortunate event, giving you peace of mind that they will be protected in your absence.

Sum Assured

Whole life insurance plans provide a substantial sum assured, that can help your family manage their day-to-day expenses as well as long-term financial goals in your absence.

Whole Life Coverage

With lifetime coverage ranging up to the age of 99 years, whole life insurance offers unmatched financial security.

Add-on Riders

Another benefit of whole life insurance is that you get to enhance your policy coverage with additional riders for a comprehensive lifelong protection.

How Does Whole Life Insurance Work?

Whole life insurance policies remain active from the day of purchase until the policyholder reaches the age of 99 years. The plan offers death benefit in case of an unfortunate event during the policy tenure, securing the financial security of your loved ones.

The life insured pays a fixed premium to the insurance company throughout the term. Whole life insurance policy coverage continues as long as all premium payments are made in full and on time. The coverage is discontinued upon the completion of the policy term i.e., when the policyholder turns 99.

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What are the different types of Whole Life Insurance Policy?

Whole life insurance can be categorised into the following types:

Limited Payment Whole Life Insurance

If you select limited payment whole life insurance, you need to pay the policy premium for a limited period during the policy term. In most cases, you can pay the premium for the first 10 or 20 years and continue to enjoy policy coverage for a lifetime. The premium may be relatively high for these plans as you have a limited period to pay the premium but the overall savings on premiums would be higher than a regular payment life insurance plan.

Single Premium Whole Life Insurance Policies

If you select single premium whole life insurance, you pay the premium in a lump sum as a one-time payment at the time of purchase. Moreover, your coverage remains constant for the entire policy term and the nominee enjoys uninterrupted financial protection.

Non-Participating Whole Life Policy

A non-participating whole life policy provides a fixed, guaranteed benefit* at maturity. It does not include dividends or bonuses from the insurer’s profits.

Modified Whole Life Insurance

If you select modified whole life insurance, you pay varying amounts at different intervals of the policy term. In most cases, the premium is relatively low at the beginning of the tenure and gradually increases with time. However, irrespective of the premium amount, your policy coverage and benefits stay the same for the whole term.

Variable Whole Life Insurance

A variable whole life insurance policy offers life cover for the entire policy term, protecting your loved ones against any financial contingencies in your absence. Additionally, it also helps you meet your investment goals by investing your money. You can invest in this plan to enjoy tax benefits, build savings, and ensure financial protection for your loved ones.

Joint Whole Life Insurance

A joint whole life term insurance covers two people instead of one. The premium is paid for both policy owners, and the sum assured is offered for both lives. The insurance payout is given on a first-death basis. These types of plans are suitable for couples planning to save for the financial needs of their children in their absence.

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What is the difference between Term Insurance and Whole Life Insurance?

Choose Term Insurance if	Choose Whole Life Insurance if
You are looking for a life cover^` for shorter duration	You are looking for a lifelong life cover^`
You are not looking for any maturity benefit	You are looking for a cash value payout at maturity
You are looking for lower premiums	You are willing to pay relatively high premiums due to the presence of savings component in the whole life insurance

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Benefits of Buying Whole Life Insurance

Whole Life Cover - The policy covers you for 99 years. This protects your family for an extended period of time. Many people have financial dependents even in their old age, and such a policy can take care of their financial dependents

Level Premium - Your premiums remain fixed for the entire term of the policy, allowing you to benefit from an amount that will become lighter on your wallet over time. You also have certainty about the premium amount and hence can plan your expenditure accordingly

Tax^#- The insurance premiums paid are eligible for deductions of up to ₹ 1.5 lakh under Section 80C and the maturity amount is exempt from tax^# subject to Section 10(10)(D).

Whole Life Insurance Eligibility Chart

These conditions differ from one insurance company to another. However, the following eligibility conditions are there for ICICI Pru iProtect Smart

1.	Minimum Age of Entry	18 years
2.	Maximum Age of Entry	65 years
3.	Maturity of the policy	At the age of 99
4.	Minimum policy premium	₹ 2400

Premium payment options available in ICICI Pru iProtect Smart Whole Life Cover

The premium payment term of a whole life policy can be limited or regular. A limited payment period involves premiums for a specific term of 10 years or 60 years less age at entry but the policy still covers you for your entire life. A regular payment term involves having to pay premiums for the entire duration of the policy. The type of payment term you should opt for depends on your preferences and regularity of income.

Additional Riders and Features available in ICICI Pru iProtect Smart

Riders are optional benefits that may be attached to a whole life policy. These will differ from one provider to the next. The following riders & features are commonly found in whole life policies:

1. Accidental Death Benefit⁺- This rider pays out an additional amount if the policyholder’s death during the policy term is caused by an accident. For example, if the life insurance cover is ₹ 1 crore and the accidental death benefit cover is ₹ 25 lakh, then an accidental death benefit rider will payout an additional ₹ 25 lakh if the death is caused by an accident.

2. Critical Illness Benefit^{^}- This rider pays out on the diagnosis of 34 Specified critical illnesses such as heart attack, kidney failure or cancer. It helps you fight the illness and pay the expenses incurred in medical treatment. For example, if you have a critical illness cover of ₹ 30 lakh and are diagnosed with cancer, you will be paid ₹ 30 lakh, immediately on the diagnosis.

3. Terminal Illness Benefit- This rider pays out on the diagnosis of a terminal illness^##. A terminal illness, as distinguished from a critical illness is one which most likely leads to death. If you have a term insurance cover of ₹ 50 lakh, this amount will be paid to you on the diagnosis of a terminal illness.

4. Permanent Disability Benefit- This type of rider can waive future premiums if the policyholder suffers from permanent disability^$. The insurance cover is kept intact but future premiums do not need to be paid. For example, say you pay ₹ 10,000/- per annum as premiums and you have a life cover^! of ₹ 50 lakh. You suffer from a permanent disability. All your future premiums of ₹ 10,000/- will be waived but your life cover^! of ₹ 50 lakh will be kept intact.

5. Lump Sum or Income Payment- Some policies will allow you to choose between income payment or lump sum payment to your nominees from the policy. On the death of the policyholder, his or her family may not want a large lump sum but instead, need an income to pay their monthly bills. This feature of payout options will give them this flexibility. For example, assume the policyholder has a life cover^! of ₹ 1 crore but has opted to receive the same as income. On his death, the family of the policyholder will receive income of say, ₹ 10 lakh per annum in equal monthly instalments for 10 years rather than a lump sum payout of ₹ 1 crore. This income will be tax-free^# subject to Section 10(10)(D)^#.

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Frequently asked questions

1. Is whole life insurance a good retirement investment?

Will your spouse, children, a disabled relative, or parents depend on you financially after your retirement? If yes, then whole life insurance should be a part of your retirement plan. The payouts can sustain their old age needs and medical costs. In your absence, it can also help repay any loan that remains in your retired years. Thus, along with dedicated pension plans, you need to invest in whole life term insurance for your family’s all-round financial security.

2. Should I buy whole life insurance for my child?

Life insurance provides financial protection to a breadwinner’s dependents against eventualities. Whole life insurance provides payouts to your nominee when an unwanted event occurs. Thus, you need to consider if your child will need financial support even when you reach an advanced age. If they do, then you can buy a whole life term insurance policy with your child as the nominee.

3. Is whole life insurance costly?

Many people compare the cost of whole life insurance with other policies and make a decision based on premiums alone. However, they fail to take into account this hidden benefit of whole life insurance - its ability to help you create an inheritance for your family at an affordable cost.

4. How much coverage should I opt for while buying Whole Life Insurance?

You need to assess the amount that will cover your family’s living costs and future expenses before selecting your life cover^!. You should consider your family’s household expenses and your unpaid loans, if any, to ensure your loved ones face no financial burden. Also, you need to factor in inflation. Financial experts recommend opting for a life cover^! equal to 10-12 times your annual income¹. You can also use a human life value calculator to estimate the adequate amount.

5. Can whole life insurance help you create a legacy?

Yes, whole life insurance can help you leave behind a legacy/inheritance for your family. This is because the whole life policies cover you till the age of 99. If the insured person dies before this age, the beneficiaries of his life insurance policy will get the sum assured. Insurance payouts are also exempt from tax under Section 10(10)(D).^#

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Disclaimers:

^*Guaranteed benefits are payable depending on the plan option chosen, subject to all due premiums being paid.

^#Tax benefits of ₹ 54,600/- (₹ 46,800/- under Section 80C & ₹ 7,800/- under Section 80D) is calculated at the highest tax slab rate of 31.20% (including cess excluding surcharge as per old tax regime) on life insurance premium under Section 80C of ₹ 1,50,000/- and health premium under Section 80D of ₹ 25,000/-. Tax are benefits subject to conditions under Sections 80C, 80D, 10(10D), 115BAC and other provisions of the Income Tax Act, 1961. Goods 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 the above.

⁺Accidental Death Benefit is up to ` 2 Crore. Accidental Death Benefit is available in Life Plus and All in One option. Accidental Death Benefit is only applicable up to the age of 80.

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

^##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.

^$On the diagnosis of Permanent Disability (PD) due to an accident, the future premiums under your policy for all benefits are waived. To know more about the definitions and terms & conditions applicable for permanent disability due to an accident, kindly refer to the sales brochure of ICICI Pru iProtect Smart.

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

^!j Claim settlement ratio is computed basis individual claims settled over total individual claims for the financial year. For details, refer to ICICI Prudential Financial Information- Business Presentation (FY2025).

^{^^}Tax benefits are subject to conditions under Section 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 details. Tax benefits of ₹ 54,600(₹ 46,800 u/s 80C & ₹ 7,800 u/s 80D) is calculated at highest tax slab rate of 31.20% (including cess excluding surcharge) on life insurance premium u/s 80C of ₹ 1,50,000 and health premium u/s 80D of ₹ 25,000.

^bA discount as follows will be offered on first year’s premium of Death Benefit, Terminal Illness and Waiver of Premium on permanent disability (excluding rider premiums, underwriting extra premiums and taxes) to salaried customers opting for sum assured greater than or equal to ₹10,000,000:

Premium Payment Option	Discount
Limited Pay	15%
Regular Pay	10%

^aThe online discount percentages vary according to age, policy term, premium payment term and sum assured chosen by the customer and can range between 1%-5%. The exact 5% discount appears at the following scenario: ICICI Pru iProtect Smart for ₹1 Crore of life cover for a 30-year-old healthy non-smoker male (occupation: non-salaried) for a policy term of 40 years with regular pay and lumpsum payout option. The offline annual premium inclusive of taxes will be ₹17,190 & online annual premium inclusive of taxes will be ₹16,279.

¹ Day is a working day, counted from the date of receipt of all relevant documents from the claimant, additional information sought by the Company and any clarification received from the claimant. The Company will be calling the claimants for verification of information submitted by the Claimant which will also be considered as part of relevant documents. Working day will be counted as Monday to Friday and excluding National holidays /Bank holidays/Public holidays:

All due premiums in the policy have been paid and the policy has been active for 3 consecutive years preceding life assured’s death
Mandatory documents to be submitted at Branch Office- Claimant statement form, Original policy certificate, Copy of death certificate issued by local authority, AML KYC documents- Nominee’s recent photograph ,Copy of Nominee’s pan card, 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, Panchnama, Inquest report, Postmortem report, Driving license
Total claim amount of all the life policies held by the Life Assured <= ₹1.5 Crore.
Claim does not require any on-ground investigation.

1 Day is a working day, counted from date of receipt of all relevant documents from the claimant, additional information sought by the Company and any clarification received from the claimant. The Company will be calling the claimants for verification of information submitted by the Claimant which will also be considered as part of relevant documents. Working day will be counted as Monday to Friday and excluding National holidays/Bank holidays/Public holidays. 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. Under ULIP policies, if claim is submitted prior to 3 pm then the claim will be considered under Claim For Sure on the same day. If claim is submitted post 3pm or if the policy is inactive at the time of claim notification, then the claim will be considered under Claim For Sure the next day as per availability of NAV.

ICICI Pru iProtect Smart UIN .

ADVT No: W/II/2140/2020-21

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