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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.
