Icici Term Insurance: Unraveling The Benefits And Features

ICICI Pru iProtect Smart is a term insurance plan that offers financial protection to your family against a fixed premium paid for a specified term. It provides a large amount of term insurance cover (sum assured) at affordable premiums. The nominee receives the term insurance amount in case of death of the policyholder.

Lump-sum payout

ICICI Pru Life Insurance offers term insurance plans with a range of features and benefits. One of the key features of ICICI term insurance is the option of a lump-sum payout. A term insurance plan provides life cover in exchange for a premium, which is determined by factors such as the sum assured and the tenure of the plan. ICICI Pru iProtect Smart offers four flexible payout options, including the lump-sum payout.

Under the lump-sum payout option, the entire life cover amount is paid to the nominee all at once. This option is particularly useful for individuals who want to ensure their family can pay off any large outstanding loans, such as a home loan, in the event of their demise. The lump sum can also help secure finances for children's higher education and other long-term financial goals. It is the most preferred option for ICICI's online buyers, as it can save the family from the hassle of managing and investing a large sum of money.

The lump-sum payout can also be beneficial in the event of a critical illness. If the policyholder is diagnosed with a covered critical illness during the policy term, a lump sum amount can be paid out to cover medical expenses, treatment costs, and other financial needs. Additionally, ICICI Pru iProtect Smart provides an accelerated payout in case of a terminal illness, paying out the term insurance cover even before death.

When considering a term insurance plan, it is important to choose a well-known and financially strong brand, such as ICICI Prudential Life Insurance, which has a high claim settlement ratio and an easy claim settlement process. The ICICI term plan calculator is a helpful tool that allows individuals to calculate the estimated premium amount and determine the appropriate coverage for their specific needs. By inputting basic personal information, individuals can make informed decisions about their term insurance plans.

Monthly income payout

ICICI Prudential Life Insurance is a well-known and trusted private sector life insurance company in India. It offers term insurance plans that provide life cover in exchange for a premium. The premium is directly proportional to the sum assured and tenure of the plan.

ICICI's Pru iProtect Smart term insurance plan offers the option of a monthly income payout. This means that, in the event of your untimely demise, your nominee will receive the sum assured in monthly instalments instead of a one-time, lump-sum payout. This acts as a replacement for your salary, providing your family with regular income to cover their day-to-day expenses. For example, with the ICICI Pru iProtect Smart – Life Option, your loved ones will receive a monthly income of 50,000 for 10 years if anything happens to you during the 25-year policy term. Similarly, for a 20-year policy term, the payout will be 75,000 per month for 10 years.

The monthly income payout option can be especially beneficial if you are concerned about your family's financial management skills. While a lump-sum payout provides access to funds, it does not guarantee effective utilisation. With the monthly income option, you can ensure your family receives a steady income stream, safeguarding their finances and helping them maintain their standard of living.

ICICI Prudential also offers a term insurance calculator, a free and simple-to-use online tool. By providing basic information such as your name, age, and annual income, you can estimate the premium amount for your desired plan. This can assist in determining the right coverage amount and premium cost, ensuring that your chosen plan aligns with your budget and your family's future requirements.

Increasing monthly income payout

ICICI Pru Life Insurance is a well-known and trusted private sector life insurance company in India. It offers term insurance plans, which provide life cover in exchange for a premium. The premium is directly proportional to the sum assured and the tenure of the plan. ICICI Pru Life Insurance also offers a term insurance calculator, which is an online tool that helps individuals calculate the term insurance premium for their desired plan. This calculator is simple, free to use, and hassle-free.

One of the payout options available with ICICI Pru Life Insurance's term plans is the increasing monthly income payout. Under this option, the life cover payout increases by 10% every year for 10 years. This means that the overall payout to the nominee will be higher than the life cover chosen at the time of purchase. The nominee has complete freedom to utilize the income as they see fit, whether it be for day-to-day expenses, loan payments, or investments. This increasing monthly income payout is designed to keep up with inflation and the increasing costs of goods and services, ensuring that the nominee's financial needs are met without any burden.

The increasing monthly income payout option is particularly suitable for those who opt for a longer policy term, such as coverage until the age of 75 or a whole life term. By choosing this payout option, individuals can ensure that their family's financial needs are taken care of, even as their expenses increase over time.

In addition to the increasing monthly income payout, ICICI Pru Life Insurance also offers other payout options, such as lumpsum and regular income. The regular income payout option provides a fixed payout for a specified period, while the lumpsum option offers a one-time payment. Individuals can choose the payout option that best suits their needs and financial goals.

Lump-sum plus monthly income payout

Term insurance is a pure protection policy that provides coverage for a specified period. ICICI Prudential Life Insurance offers term insurance plans that allow your family to receive their life insurance payout as a lump sum, income, or a combination of both.

The ICICI Pru iProtect Smart term insurance plan provides options for how your nominee receives the sum assured. Apart from a one-time, lump-sum payout, you can also select the 'Monthly Income' option. This option pays the sum assured to the nominee in monthly instalments, acting as a replacement for your salary. This provides your family with regular income to cover their day-to-day expenses, instead of having to manage a large sum of money.

The ICICI Pru iProtect Smart term insurance plan also offers a 'Regular Income' payout option, where the payout will be for a period of 10 years. This plan ensures your family receives a monthly income of Rs. 50,000 for the next 10 years, replacing your income and providing for their needs. They can budget their expenses and set aside a sum every month for future needs, building a corpus through systematic investments.

The 'Lump-sum plus monthly income' payout option combines the benefits of both payout types. Your nominee receives a substantial amount of money upfront, which can be invested or used for immediate financial needs. At the same time, they also receive regular monthly payments that provide a steady income stream to cover their ongoing expenses. This option can be especially beneficial if your nominee is not financially savvy, as it provides both a lump sum for future security and regular income to cover their day-to-day living costs.

ICICI Pru iProtect Smart also provides additional benefits, such as accelerated pay-out in the case of terminal illness and protection against other claims. You can also add optional riders or add-ons to enhance the coverage of your plan. When selecting a term insurance plan, it is important to consider factors such as brand reputation, financial strength, and claim settlement processes to ensure you choose a reliable and trusted provider.

Critical illness benefit

ICICI term insurance offers a critical illness benefit as an optional add-on to its term insurance policies. This benefit provides coverage for the costs of treatment for any of the listed ailments in the policy.

The critical illness benefit offers a lump-sum payment without deductions upon the diagnosis of a critical illness. This payout can be used to cover hospital bills, ambulance charges, doctor's fees, medicine costs, or any other expenses. The benefit covers a range of critical illnesses, including cancer, heart attack, stroke, kidney failure, and more.

The ICICI Pru iProtect Smart Term Insurance Plan is an affordable option, offering a life cover of ₹ 1 crore at a low premium. With this plan, you can add the critical illness benefit as an optional extra at a minimal cost. The benefit provides coverage for 34 critical illnesses, ensuring that you and your family have peace of mind.

Some of the critical illnesses covered by the ICICI Term Insurance plan include:

• Cancer of Specified Severity
• Permanent Paralysis of Limbs
• Myocardial Infarction (first heart attack of specified severity)
• Stroke resulting in permanent symptoms
• Surgery to Aorta Heart & Artery Benefit
• Valve/Heart Surgery (Open Heart Replacement or repair of Heart Valves)
• Motor Neuron Disease with Long-lasting Symptoms
• Multiple Sclerosis with persisting symptoms
• End-Stage Liver Failure (Chronic Liver Disease)
• Kidney Failure Requiring Regular Dialysis

Frequently asked questions