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ICICI Prudential Cash Advantage

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ICICI Pru Cash Advantage Plan Review

ICICI Pru Cash Advantage Plan is a non-linked insurance plan. The plan offers guaranteed amount every month for 10 years, a guaranteed lump sum amount at maturity, along with bonuses. 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 Cash Advantage Plan

  • Liquidity – through immediate pay out
  • Guaranteed Maturity Benefit (GMB) – lump sum pay out  
  • Guaranteed Cash Benefit (GCB) – 1% of GMB, every month, for 10 years
  • Limited Premium Paying Term – 5,7, or 10 years
 
COMPARE THIS PLAN WITH OTHER ENDOWMENT PLANS

 

Benefits you get from ICICI Pru Cash Advantage Plan

Death Benefit – In case of death of the Life Insured, irrespective of GCB paid during the tenure, the nominee would get higher of the below:
  • Sum Assured + Bonuses
  • GMB + Bonuses
  • Minimum Death Benefit
Where,
Minimum Death Benefit, is 105% of premiums paid till dates

Cash Benefit - Throughout the pay-out term, GCB is payable in advance, if the life assured is alive and the policy is fully paid. GCB can be received in monthly or annual instalments. GCB is a percentage of the Guaranteed Maturity Benefit (GMB) and depends on cash benefit mode as shown below:

Cash Benefit Mode

Guaranteed Cash Benefit (GCB)

Monthly

1%

Annual

11.5%

Where,
GCB is a percentage of GMB

Maturity Benefit – On maturity, the policy holder gets higher of the below:
  • GMB + Vested Reversionary Bonus
  • 100.1% of total premiums paid 
Where,
GMB is the Sum Assured on Maturity and will be calculated, at inception, based on your premium, premium payment option, premium payment mode, Sum Assured, cash benefit mode, age and gender.

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 Cash Advantage Plan

Age – 35 years, Premium Payment Term – 10 years, Policy Term – 20 years, Annual Premium – Rs. 50,000, Sum Assured – 5 lacs, Premium Payment mode – Yearly, Cash Benefit Mode – Monthly

Benefits

@4 (in Rs.)

@8 (in Rs.)

Guaranteed Cash Benefit

3,17,712

3,17,712

Guaranteed Maturity Benefit (A)

2,64,760

2,64,760

Vested reversionary bonuses (B)

2,51,970

0

Terminal bonus (C)

1,99,480

72,520

Total maturity benefit (A+B+C)

7,16,209

3,37,280

 

ICICI Pru Cash Advantage Plan - Child’s education solution

Criteria:-
Age – 30 years, Premium Payment Term – 10 years, Annual Premium – Rs. 1, 00,000, Premium Payment mode – Yearly

Benefits

Pay out (in Rs.)

Guaranteed Cash Benefit

5,307

Guaranteed Maturity Benefit

5.31 lacs

Bonuses

9.31 lacs

Life Cover

10 lacs

Where,
# Illustrative vested reversionary bonuses plus terminal bonus for assumed returns at 8%. For assumed returns at 4%, the bonuses would be Rs. 1.60 lacs.
Anxiety taken care: Child’s education and security in absence of policy holder.

 

Eligibility conditions and other restrictions in ICICI Pru Cash Advantage Plan

Particulars

Premium Payment Options and Term (in years)

5

7

10

Pay out Term (in years)

10

Policy term (PPT + Pay out term) (in years)

15

17

20

Minimum Annual Premium (in Rs.)

30,000

18,000

12,000

GMB* for: minimum entry age,

annual premium, term, annual

premium, payment mode

74,451

65,364

63,881

Entry Age (in years)

Minimum

Maximum

0,1,3

60

Maturity Age (in years)

18

80

Maximum Annual Premium

Unlimited

Premium Payment Modes

Annual / Half-yearly / Monthly

Cash Benefit Mode

Annual / Monthly

Sum Assured on Death

Entry Age (in years)

Sum Assured

Less than 45

10 times annual premium

45 to 54

10 or 7 times annual premium

Greater than 54

7 times annual premium

 

Additional Features and Benefits of ICICI Pru Cash Advantage 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) + cash value of vested bonuses
  • Non-Guaranteed 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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