Protection of ₹ 2.10 Crore- Life Insurance Cover of ₹ 1 Crore + Accidental Cover of ₹ 1 Crore + Critical Illness Cover of ₹ 10 Lacs through iProtect Smart plan of ICICI-Prudential.
Benefits of iProtect Smart
- Affordable Premium
- Longer Life Cover (till the age of 85 or if you wish till the age of 99)
- It pays on diagnosis of any of the 34 critical illnesses (if opted)
- Accidental Death Benefit up to 2 Crore (optional)
- In-built Terminal Illness Cover - you get the full sum assured if you are diagnosed with a terminal illness
- In-built Premium Waiver on permanent disability due to accident
- Tax benefits up to 54,600 under Section 80C, 80D & 10(10D)
- Choice of 4 pay out options - lump sum, regular income, increasing income and lump sum + regular income
- It gives you option to buy this policy online under MWP Act
iProtect Smart is a Term Insurance policy. A Term Insurance policy is a product of category “Pure Risk Cover” Insurance policies. Normally, with such products, there is no maturity benefit associated with the policy. The policy will only make a payment to the policyholder when the specified event occurs. While this might also mean that a lot of policyholders may not receive the payment, they along with their families are provided valuable financial protection in the event of an unfortunate occurring of a claim.
These are insurance products in their purest form i.e. they are designed and priced so that the policyholders, as a group, are effectively pooling their premiums in order to pay a benefit for a relatively infrequent, but significant event that might occur. This means that for each policyholder the cost of providing the cover is relatively modest in comparison to the benefit that would be provided if that event arises.
As a result, such policies ensure large sum as life cover for affordable premium rates. For those policies, where a claim does occur the payment made is normally many multiples of the premiums that have been paid.
For example, of ₹ 21,171/- annually (exclusive of service tax and educational cess) could help provide a financial cushion of up to ₹ 1 Crore in the event of Death or Terminal Illness of the policyholder (example based on a male policyholder aged 35 years, with a 51 year term or coverage until his 86th birthday).
No investment product can provide the same level of benefit for such a low level of premium.
At the rate of ₹ 21,171/- per annum he would be paying a total of ₹ 10,79,721/- (Ten Lacs Seventy Nine Thousand Seven Hundred Twenty One) for ₹. 1,00,00,000/- (Once Crore) protection.
Further, instead of paying ₹ 21,171/- every year for 51 years, if he opts for limited pay of 5 years payment, the annual premium would be ₹ 89,440/-. In that case he would be paying total ₹4,47,200/- only for the same One Crore rupees protection. (The policy holder would be saving 58.58% over regular payment.)
He can convert this to a 360° protection by adding to the already inbuilt Life & Terminal illness Cover additional Accidental Cover and 34 Critical Illness Cover.
Accidental Cover: The Policy Holder can add another Rupees One Crore Accidental Cover by paying additional ₹5,900/- to his annual premium ₹21,171/-. In that case, the annual premium would be ₹27.071/-.
Critical Illness Cover: He can also add another Rupees Ten Lacs Critical Illness cover by paying additional ₹6,188/-. In such case, the total premium will be ₹33,259/- per year.
This way, the policy holder shall be protected for total Rupees Two Crore Ten Lacs. Whereas, the nominee will receive One Crore in the event of death due to natural causes or in the event of declaration by Doctors of Terminal Illness, the nominee will receive Two Crore in the event of an Accidental Death. Because of the additional Critical Illnesses Coverage, the policy holder will get full 10 Lacs at the time of first diagnosis of any of the 34 Critical Illnesses listed.
Married Women’s Protection Act (MWP Act): Last thing you want after buying a term plan is insurance money not given to your near ones like to your wife or children. Your relatives/creditors may wrongfully claim the insurance amount. You have the option to protect it under Married Women’s Protection Act (MWP Act). This will help in removing that last line of worry from your head and in ensuring the payment of full life insurance claim amount to your wife and/or children.