ICICI Pru iProtect Smart - ICICI Term Plan

The individual has to choose any one of the four flexible pay-out options:

• Lump sum
• Monthly Income/ Regular Income
• Increasing Income
• Lump sum + Monthly Income

Next, the individual has to choose a flexible premium payment option:

• Single Pay
• Regular Pay
• Limited Pay

Now, let’s understand the further actions of this plan with the help of various benefits offered with this plan.

Terminal Illness Benefit

In this benefit, if the policyholder is diagnosed with a terminal illness like AIDS, the entire life cover will be paid to the policyholder/beneficiary immediately.

Waiver of Premium Benefit

In this benefit, in case of permanent disability due to an accident, all future premiums will be borne by the company and the life cover stays intact.

Critical Illness Benefit (Optional)

In this benefit, if the policyholder is diagnosed with any one of the 34 critical illnesses covered under this plan, then s/he will be paid the critical illness benefit amount immediately at the initial diagnosis stage without any hospital bills.

Accidental Death Benefit (Optional)

In this benefit, if the unfortunate death of the policyholder occurs due to an accident, the beneficiary will be paid a large extra amount. One can add accidental cover of his/her choice during purchase or even after the purchase. The maximum accident cover available with this benefit is Rs 2 crores. One can opt for this benefit under the Life Plus or All-in-One plan options.

Death Benefit Pay-out

In case of the unfortunate death of the policyholder during the policy term, the following death benefits will be paid as per the pay-out option selected by the policyholder:

• Lump Sum Option – The entire benefit amount is payable as a lump sum.
• Monthly/Regular Income – 10% of the benefit amount is payable every year for 10 years. This will be paid in equal monthly installments in advance at the rate of 0.8333% of total benefit amount. The beneficiary can also advance the first year’s income as a lump sum. The monthly income will start from the subsequent month for 9 years at the rate of 0.80% of the total benefit amount. For instance, in case of cover of Rs 1.2 Cr, the nominee will receive Rs 12 Lakh every year (1 lakh per month) for 10 years.
• Increasing Income – The benefit amount is payable in monthly installments for 10 years starting with 10% of the benefit amount per annum in the first year. The income amount will be increased by 10% per annum simple interest every year thereafter.
• Lump Sum + Monthly Income – In this benefit, you have the flexibility to split the life cover amount that you want your nominee to receive as a lump sum and the remaining life cover will be paid in equal monthly payments for 10 years. For instance, in case of cover of Rs 1.2 Cr, the nominee will receive Rs 60 lakhs lump sum and monthly pay-outs of Rs 50,000.