ICICI Pru Iprotect Smart Plan

• Life Option: This plan offers (a) death benefits, (b) terminal illness cover and (c) premium waiver on permanent disability.
• Life Plus Option: This plan offers (a) death benefits, (b) terminal illness cover, (c) premium waiver on permanent disability and (d) accidental death benefit.
• Life & Health Option: This plan offer (a) death benefits, (b) terminal illness cover, (c) premium waiver on permanent disability and (d) critical illness benefit.
• All in One Option: This plan offers you (a) death benefits, (b) terminal illness cover, (c) premium waiver on permanent disability, (d) accidental death benefit and (e) critical illness benefit.

• Minimum age of entry: 18 years
• Maximum age of entry: 65 years
• Minimum maturity age: 23 years
• Maximum maturity age: 75 years
• Minimum premium amount: Rs.2,400 p.a. (excluding service tax and cess)

This ICICI Prudential term plan is packed with features including:

• Policy term: You can choose a policy term between 5-40 years subject to type of plan chosen and also the premium payment option selected.
• Premium payment options: Single Pay, Regular Pay, Limited Pay.
• Premium payment term: Once for Single Pay option; equal to Policy Term for Regular Pay option; and Policy Term minus 5 years for Limited Pay option.
• Premium payment frequencies: Single, yearly, half-yearly and monthly.
• Sum Assured: Minimum subject to minimum premium being paid, no maximum limit.

There are several benefits associated with this plan:

• Death benefits: This is paid out in 3 options: (a) entire amount is paid as lump sum; (b) 10% of Sum Assured will be paid annually for 10 years in equated monthly instalments; and (c) benefits will be paid out in monthly instalments at an increasing income basis wherein 10% simple interest will be applicable on payouts from 2^nd year onwards.
• Terminal Illness benefit: 100% Sum Assured paid out in case of terminal illness during policy tenure.
• Critical Illness benefit: Minimum Sum Assured of Rs.1 lakh, maximum as per company policy. A total of 34 critical illnesses are covered.
• Accidental Death benefit: You will receive double the Sum Assured as chosen.
• Premium waiver benefit: In case of permanent disability from an accident, your premium payments will be waived off for the remaining policy tenure.
• Tax benefits: Tax benefits are available as per relevant sections of the Income Tax Act, 1961.
• Surrender benefits: Surrender benefits available on Single Pay option only. Surrender value is calculated as (Single Premium*Surrender Value Factor/100)

Suppose Mr Singh is 32 years old and has taken a 30 year tenure . He has a base cover of Rs.1 crore along with Critical Illness benefit of Rs.25 lakhs. He gets diagnosed with a Critical Illness in the 8^th Policy year. Consequently, he will receive Rs.25 lakhs as lump sum and the policy will continue on a reduced Sum Assured benefit of Rs.75 lakhs. His premium are also reduced from around Rs.15,000 originally to Rs.7,000 now. In case Mr Singh unfortunately expires in the 20^th policy year, his nominees will receive a lump sum of Rs.75 lakhs and the policy will terminate. The payout may also be made on a monthly increasing basis as decided between the parties.