Life Insurance And Tax Benefits: Icici Prudential And 80C

ICICI Prudential Life Insurance offers a range of insurance plans, including term insurance, endowment plans, ULIPs, retirement plans, and child plans. The company is a joint venture between ICICI Bank Limited and Prudential Corporation Holdings Ltd and has been operating in India since 2001.

ICICI Prudential Life Insurance plans offer tax benefits under Section 80C and 10(10D) of the Income Tax Act, 1961. The premiums paid under the policy are eligible for a tax deduction of up to ₹1.5 lakhs per annum. Additionally, the proceeds received under the policy are tax-exempt.

- ICICI Pru iProtect Smart

- ICICI Pru iProtect Return of Premium

- ICICI Pru SmartKid with Smart Life

- ICICI Pru Guaranteed Income For Tomorrow

- ICICI Pru Savings Suraksha

- ICICI Pru Assured Savings Insurance Plan

- ICICI Pru Future Perfect

- ICICI Pru Smart Couple Plan

- ICICI Pru Signature

- ICICI Pru LifeTime Classic

- ICICI Pru Guaranteed Wealth Protector

- ICICI Pru Smart Life

- ICICI Pru Signature Assure

- ICICI Pru Guaranteed Income For Tomorrow Long-term

- ICICI Pru Guaranteed Income For Tomorrow

- ICICI Pru Sukh Samruddhi

- ICICI Pru Guaranteed Pension Plan Flexi

- ICICI Pru Saral Pension Plan

- ICICI Pru Easy Retirement

- ICICI Pru Easy Retirement SP

- ICICI Pru Gold Pension Savings

- ICICI Pru Heart/Cancer Protect

ICICI Pru iProtect Smart

• The plan provides coverage against terminal illness, disability, and death.
• Policyholders can choose to avail of the Accelerated Critical Illness Benefit and Accidental Death Benefit.
• The plan offers special premium prices for non-smokers/tobacco users.
• The premium payment frequency can be one time, for a limited time, or throughout the policy tenure.
• Tax benefits are available on paid premiums as per the prevailing Income Tax laws.
• Policyholders can choose to receive the benefit as a lump sum or as a monthly income for 10 years, or a combination of both.
• The plan offers a lifetime discount of 15% on premiums for women and an additional discount on the first-year premiums for salaried women.
• Women can get cover against breast or cervical cancers under the plan's accelerated critical illness benefit.
• The plan offers special premium rates on life and accelerated critical illness benefit cover.
• The plan provides coverage till the age of 99 years.
• The plan offers easy claim settlement and tax benefits of up to Rs 54,600 under Sections 80C and 80D. The claim amount received is also tax-free under Section 10(10D).

ICICI Pru Protect N Gain

Two Variants

Life Cover

Accidental Death and Disability Cover

The plan also includes Accidental Death and Disability Cover, which provides additional protection for your loved ones in the event of an accident resulting in death or permanent disability.

Market-Linked Returns

With ICICI Pru Protect N Gain, you can invest in 23 funds across equity, balanced, and debt, including index funds, to suit your saving needs and take advantage of market-linked returns.

Tax Benefits

You can avail tax benefits of up to ₹1.5 lakh on premiums paid under the policy as per Section 80C, and the returns received are tax-free subject to conditions prescribed under Section 10(10D) of the Income Tax Act, 1961.

Limited Premium Payment Option

Return of Charges

This plan is cost-effective as it provides a return of 1-2X Premium Allocation Charge and 1-4X Mortality Charge from the 11th policy year onwards, depending on the chosen variant.

Maturity Booster

To reward your loyalty, ICICI Prudential Life adds a 20% Maturity Booster to your fund value at the end of the policy term.

Unlimited Free Fund Switches

You can switch between funds an unlimited number of times without any additional cost, allowing you to stay worry-free and adapt to changing market scenarios.

Portfolio Strategies

• Target Asset Allocation Strategy
• Trigger Portfolio Strategy 2
• Fixed Portfolio Strategy
• Lifecycle-based Portfolio Strategy 2

Partial Withdrawals

The plan allows for partial withdrawals after the initial five policy years, providing financial flexibility in case of emergencies.

ICICI Pru iProtect Return of Premium

Benefits of ICICI Pru iProtect Return of Premium:

• Four plan options: Income Benefit, Return of Premium, Early ROP with Life Stage, and ROP with Life Stage.
• Income Benefit: Receive life coverage throughout the policy tenure and start receiving a monthly income from the age of 60 until the completion of the policy term.
• Return of Premium: Get life coverage throughout the policy tenure and receive 105% of your premium amounts back at maturity.
• Early ROP with Life Stage: Receive life cover that adjusts to different life stages during the policy tenure and get 105% of your premium amounts back upon maturity.
• ROP with Life Stage: Receive life cover that adjusts to different life stages during the policy tenure and receive 105% of your premium amount back on maturity.
• 360-degree protection: This includes protection with a life stage option that adapts to varying responsibilities and life stages, security for 64 critical illnesses with an immediate payout upon diagnosis, and increased protection for accidental death.
• Regular income: Receive a guaranteed monthly income from the age of 60 until the end of the policy term with the 'Income Benefit' plan option.
• Early ROP: Receive 105% of the premium amount back at the age of 60 or 70, along with continued cover until the end of the policy term with the 'Early ROP with Life Stage Coverage' plan option.

Eligibility Criteria:

The eligibility conditions vary depending on whether you opt for a level cover or a life stage cover. For the level cover, the premium payment term ranges from single pay (one time) to regular and limited pay options. For the life stage cover, the premium payment term includes Return of Premium (ROP) with Life Stage, Early ROP with Life Stage coverage at 60 or 70 years of age, and Early ROP with Life Stage at 60 years of age.

Policy Details:

If you are not satisfied with the terms and conditions of the policy, you can return the policy documents to the insurer within 15 days from the date of receiving the policy (for purchases through distance marketing) or 30 days (for e-policies purchased through distance marketing). Upon policy cancellation during the free-look period, the premium will be refunded, subject to certain deductions for expenses such as stamp duty and medical tests.

The plan offers a grace period of 15 days for monthly premium payments and 30 days for other premium payment modes, during which the policy remains active with risk cover. A current policyholder buying this product is eligible for a 5% discount on regular pay and 2% on limited pay for the first year's premium. The policy can be revived within five years from the due date of the first unpaid premium and before the policy termination date.

Policyholders can avail of a loan after the plan attains a surrender value, with the maximum loan amount being 80% of the surrender value. In case of death due to suicide within 12 months from the risk commencement date or policy revival date, the policyholder's nominee will receive at least 80% of the total premium paid or the surrender value, whichever is higher, provided the policy is active.

Tax Benefits:

ICICI Pru Saral Jeevan Bima

One of the key advantages of ICICI Pru Saral Jeevan Bima is the tax benefit it offers under Section 80C of the Income Tax Act, 1961. You can claim a deduction of up to ₹ 1.5 lakh per annum on the premiums paid towards this life insurance plan. This tax benefit is in addition to the financial security and flexible options that the plan provides.

ICICI Pru Precious Life

The plan also offers enhanced protection with the option to add an Accidental Death Benefit. This benefit provides additional financial security to the beneficiary in the event of the policyholder's accidental death.

In conclusion, ICICI Pru Precious Life is a specialised term insurance plan that addresses the needs of individuals with existing health conditions. It provides life cover, tax benefits, flexible payment and payout options, and enhanced protection with the potential addition of an Accidental Death Benefit.

Frequently asked questions