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ICICI Prudential Assured Savings Insurance

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ICICI Pru Assured Savings Insurance Plan Review

ICICI Pru Assured Savings Insurance Plan is a non-linked insurance plan. The plan offers guaranteed savings benefit, to meet critical milestones like child education, marriage or retirement. In the event of the unfortunate death of the policyholder during the policy term, Sum Assured + Guaranteed Additions is paid to the nominee.


Key Features of ICICI Pru Assured Savings Insurance Plan

Guaranteed Additions (GA) – every year, 9% or 10%
Guaranteed Maturity Benefit (GMB) – lump sum amount at end of the policy term
Flexibility – to choose, premium payment and policy term
Tax Benefits - as per Section 80C and 10(10D) of the Income Tax Act

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Benefits you get from ICICI Pru Assured Savings Insurance Plan

Death Benefit – In case of death of the Life Insured, the nominee would get the higher of the below:
  • Sum Assured plus accrued GA 
  • GMB + accrued GA
  • Minimum Death Benefit
Where,
- Sum assured on death is equal to 10* of annual premium
- Minimum Death Benefit, is 105% of premiums paid till dates

Maturity Benefit – On maturity, the policy holder gets the below benefit:
Maturity Benefit = GA+GMB
Where,
GA will be added to the policy at the end of the every policy year. GA = Guaranteed rate * total premiums paid till date. GA rate depends upon the policy Term chosen – For 10 years GA is 9% and for 12 years its 10%
Benefit Illustration of GA
Criteria:-
Policy Term – 12 years, GA rate – 10%, Annual Premium – Rs. 50,000

Policy Year

Premiums paid (in Rs.)

Total Premiums paid (in Rs.)

GA pay out (in Rs.)

1

50,000

50,000

5000

2

50,000

1,00,000

10,000

-

-

-

-

9

50,000

4,50,000

45,000

10

50,000

5,00,000

50,000

11

50,000

5,00,000

50,000

12

50,000

5,00,000

50,000

Where, GA benefit is 10% of the total premiums paid till date
GMB, will commence at the inception, policy term, premium payment term, age and gender. GMB can be lower than sum assured. Annual premium per Rs. 1000 GMB, is given below for healthy male life:

Premium Payment Term

7

10

7

Age at entry/Policy Term

12

12

10

30

249.61

157.10

204.35

Basis, the above GMB illustration, let’s understand how to calculate GMB:
Criteria,
Age: 30, Annual Premium: 50,000, Premium Payment Term: 10 years, Policy Term: 12 years
GMB = 50,000/157.10*1000
GMB = 3, 18,269

Income Tax Benefit - Life Insurance premiums paid up to Rs. 1, 50,000 are allowed as a deduction from the taxable income each year under section 80C

 

Benefit Illustration of ICICI Pru Assured Savings Insurance Plan

Total benefit payable under this policy, is illustrated below:
Criteria:-
Entry age – 30 years, Policy Term – 12 years, Premium Payment Term – 10 years, Annual Premium – Rs. 50,000, Sum Assured – 5,00,000, Premium Payment mode – Yearly

Benefit Summary (Total Maturity Benefit)

Guaranteed Additions

Rs. 3,75,000

Guaranteed Maturity Benefit

Rs. 3,18,269

Total amount

Rs. 6,93,269

 

Eligibility conditions and other restrictions in ICICI Pru Assured Savings Insurance Plan

Particulars

Minimum

Maximum

Entry age (in years)

6 and 8

60

Maturity age (in years)

18 and 72

Premium (in Rs.)

12,000 and 18,000

Premium Payment modes

Annually, Half yearly, Monthly

Premium payment term

7 and 10

Policy Term

10 and 12

 

Additional Features and Benefits of ICICI Pru Assured Savings Insurance Plan

Riders – No Riders available under this plan

Free look – If the policy is not convinced with the Terms and Conditions of the policy, s/he can cancel the policy within 15 days of receipt of policy document.

 

What happens if?

You stop paying the premium – If the premium is not paid within 30 days from the grace date, the policy will lapse. Lapsed policy can be revived within 2 years of first unpaid premium. If the premium is discontinued after the policy has acquired surrender value, the policy status will be “paid up”

You want to surrender the policy – The policy will acquire surrender value, after 3 years of policy. On surrender, the higher of the below will be paid:
Guaranteed Surrender Value (GSV) +surrender value of accrued GA’s
Special Surrender Value

You want a loan against your policy – yes, loan facility is available under this plan.

 

Exclusions

If the life assured, commits suicide, within a year of policy start 80% of the premiums paid, will be given to nominee. In case of suicide within one year from revival date, 80% of premiums paid or surrender value, whichever is higher would be paid and the policy will terminate.
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