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ICICI Prudential iProtect Smart

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ICICI Pru iProtect Smart Plan Summary

iProtect Smart Plan from ICICI Prudential is a term insurance plan which provides a solid financial protection for your family. It has an in-built Terminal Illness Benefit & a Waiver of Premium on Disability Benefit. This plan has an option to cover 34 critical illnesses also. In addition you can take a increased cover for accidental death. We will these better later in this page.

 

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Key Features of ICICI Pru iProtect Smart

  • Coverage against death, terminal illness and disability
  • Option to receive benefit amount as lump-sum or as monthly income for 10 years
  • Special rates for women
  • Tax Benefits on premiums paid and benefits received

COMPARE THIS PLAN WITH OTHER TERM PLANS
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Variants & their Benefits in ICICI Pru iProtect Smart Policy

The plan has 4 variants to choose from:
 

Variant Name Benefits
Life
  • Death
  • Terminal Illness Benefit
  • Waiver of Premium on Permanent Disability
Life Plus
  • Death
  • Terminal Illness Benefit
  • Waiver of Premium on Permanent Disability
  • Accidental Death Benefit
Life & Health
  • Death
  • Terminal Illness Benefit
  • Waiver of Premium on Permanent Disability
  • Critical Illness Benefit
All-in-One
  • Death
  • Terminal Illness Benefit
  • Waiver of Premium on Permanent Disability
  • Critical Illness Benefit
  • Accidental Death Benefit


Now let us understand each of these benefits in detail.

Death Benefit - In case of the policyholder’s death, the nominee will receive the sum assured.

Terminal Illness Benefit - In case the policyholder is detected with an illness in which there is no chance of survival for more than 6 months, the cover amount is paid out immediately. This includes AIDS which was not earlier covered. This is an in-built feature and no extra premiums needs to be paid for this. 

Waiver of Premium on Permanent Disability - In case the policyholder becomes permanently disabled due to an accident, the future premiums are completely waived off. This is also an in-built feature and no extra premium is charged.

Critical Illness Benefit - In case you are detected with any of the 34 critical illness covered in the plan, you will be paid the additional sum assured which you have chosen. This comes with an additional premium payment. Click here to find the List of 34 critical illnesses covered in ICICI Pru iProtect Smart Plan.

Accidental Death Benefit - In case of death due to an accident, you will get the additional sum assured selected by you. This is in addition to the base sum assured of the plan. You need to pay additional premiums for this. 

We will understand these benefits better with the help of Examples #1 to #4.


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Other Features of the ICICI Pru iProtect Smart Policy

Income Tax Benefits - Premiums paid are exempt from tax under Sec 80C. In the “Life + Health” and “All-in-One” option you are eligible for tax rebate under Sec 80D also. The payouts in this plan are also exempt from tax under Sec 10(10D).


Death Benefit Payouts - You have the following options for the money being received by your nominee:

  • Lumpsum - where the death benefit is paid to the nominee at one go
  • Regular Income - 10% of the benefit amount will be paid every year for 10 years. The payments will be monthly by dividing the 10% in 12 parts.
  • Increasing income - 10% of the benefit amount will be paid in the first year. Every year the payout will increase by 10% of the first year payout. The payments will be monthly by dividing the annual amounts by 12.
  • Lumpsum + Income -  The policyholder can decide what part of the benefit will be paid in lumpsum. The balance amount will be paid in equal monthly payments for 10 years.

We will understand these payout options better with the help of Examples #5 to #7.

Option to enhance your cover - You can increase you cover at certain events in life as follows, without any medical tests. You will have to pay additional premiums when you increase the cover. Also, this feature is only available for the Regular Premium Payment option.

  • Marriage - increase by 50% of original sum assured; Max 50 lakhs
  • 1st Child (Birth or legal adoption) - 25% of original sum assured; Max 25 lakhs
  • 2nd Child (Birth or legal adoption) - 25% of original sum assured; Max 25 lakhs


Premium payment options are as follows:

  • Single Pay - You pay only one premium at the beginning
  • Regular Pay - Same as Policy Term
  • Limited Pay - Policy Term - 5 years

 

Eligibility conditions in the ICICI Pru iProtect Smart Policy

Minimum / Maximum age at entry 18 / 65 years
Minimum / Maximum age at maturity 23 / 75 years
Premium Payment Options Single Pay, Regular Pay, Limited Pay
Minimum Policy term Single Pay: 5 years
Regular Pay: 5 years
Limited Pay: 10 years
Maximum Policy term Single Pay: 20 years
Regular Pay: 75 years minus age at entry
Limited Pay: 40 years
Critical Illness Benefit will be for a period of 30 years or policy term, whichever is lower
Minimum Premium Rs. 2,400 excluding taxes
Accidental Death Benefit Minimum: Rs. 1,00,000
Maximum: Equal to Sum Assured
Critical Illness Benefit Minimum: Rs. 1,00,000
Maximum: Equal to Sum Assured
Minimum Sum Assured Subject to the minimum premium
Maximum Sum Assured No limit
Mode of Premium Payment Single, Yearly, Half-yearly and Monthly

 

Examples - ICICI Pru iProtect Smart Policy

# 01 - Life Option

Suppose Sooraj Nath has taken this plan with Basic Life Cover. He does not consume any form of tobacco.

Age - 30 years
Cover Amount - 1 crore
Policy Term - 35 years
Payment to nominee - Lumpsum amount

His annual premium will be Rs. 11,015 which he has to pay for 35 years.

Benefits under this option are:

  • Lumpsum payment on Death - Sooraj’s nominee will get Rs. 1 crore in case he dies anytime during the policy term and the policy is terminated.



# 02 - Life Plus Option

Suppose Sooraj Nath has taken this plan with Life Plus Option. He does not consume any form of tobacco.

Age - 30 years
Cover Amount - 1 crore
Policy Term - 35 years
Accidental Death Benefit - 50 lakhs
Payment to nominee - Lumpsum amount

His annual premium will be Rs. 13,818 which he has to pay for 35 years.

Benefits under this option are:

  • Lumpsum payment on Death - Sooraj’s nominee will get Rs. 1 crore in case he dies anytime during the policy term and the policy is terminated.
  • Accidental Death - In case of death due to an accident, Sooraj’s nominee will receive an additional 50 lakhs



# 03 - Life + Health Option

Suppose Sooraj Nath has taken this plan with Life + Health Option. He does not consume any form of tobacco.

Age - 30 years
Cover Amount - 1 crore
Policy Term - 35 years
Critical Benefit - 20 lakhs
Payment to nominee - Lumpsum amount

His annual premium will be Rs. 17,997 which he has to pay for 35 years.

Benefits under this option are:

  • Lumpsum payment on Death - Sooraj’s nominee will get Rs. 1 crore in case he dies anytime during the policy term and the policy is terminated.
  • Critical Illness Benefit - In case Sooraj is diagonised with any of the 34 covered under this plan, he will be paid Rs. 20 lakhs. Please note that this benefit is only for 30 years and not for the entire 35 years of the policy term. His death cover will continue. His premiums also will be reduced as the Critical Illness Benefit is no more applicable. 



# 04 - All in One Option

Suppose Sooraj Nath has taken this plan with the All-in-One Option. He does not consume any form of tobacco.

Age - 30 years
Cover Amount - 1 crore
Policy Term - 35 years
Accidental Death Benefit - 50 lakhs
Critical Benefit - 20 lakhs
Payment to nominee - Lumpsum amount

His annual premium will be Rs. 20,800 which he has to pay for 35 years.

Benefits under this option are:

  • Lumpsum payment on Death - Sooraj’s nominee will get Rs. 1 crore in case he dies anytime during the policy term and the policy is terminated.
  • Accidental Death - In case of death due to an accident, Sooraj’s nominee will receive an additional 50 lakhs
  • Critical Illness Benefit - In case Sooraj is diagonised with any of the 34 covered under this plan, he will be paid Rs. 20 lakhs. Please note that this benefit is only for 30 years and not for the entire 35 years of the policy term. His death cover will continue. His premiums also will be reduced as the Critical Illness Benefit is no more applicable.


Now, let us have a look at how the different payout options work.


# 05 - Life Option - Regular Income

Suppose Sooraj Nath has taken this plan with Basic Life Cover. He does not consume any form of tobacco.

Age - 30 years
Cover Amount - 1 crore
Policy Term - 35 years
Payment to nominee - Regular Income

His annual premium will be Rs. 9,363 which he has to pay for 35 years.

Benefits under this option are:

  • Payment on Death - Sooraj’s nominee will a regular monthly income for 10 years. The 1 crore amount will be split into 10 years and a monthly payment will be made.
 
Year Monthly Payment
Year 1 Rs. 83,333
Year 2 Rs. 83,333
Year 3 Rs. 83,333
Year 4 Rs. 83,333
Year 5 Rs. 83,333
Year 6 Rs. 83,333
Year 7 Rs. 83,333
Year 8 Rs. 83,333
Year 9 Rs. 83,333
Year 10 Rs. 83,333



# 06 - Life Option - Increasing Income

Suppose Sooraj Nath has taken this plan with Basic Life Cover. He does not consume any form of tobacco.

Age - 30 years
Cover Amount - 1 crore
Policy Term - 35 years
Payment to nominee - Increasing Income

His annual premium will be Rs. 13,879 which he has to pay for 35 years.

Benefits under this option are:

  • Payment on Death - Sooraj’s nominee will a regular monthly income for 10 years. In the first year, the nominee will receive Rs. 10 lakhs which will increase by 1 lakh every year. The annual amount will be divided by 12 to arrive at the monthly income.
 
Year Annual Amount Monthly Payment
Year 1 Rs. 10 lakhs Rs. 83,333
Year 2 Rs. 11 lakhs Rs. 91,667
Year 3 Rs. 12 lakhs Rs. 1,00,000
Year 4 Rs. 13 lakhs Rs. 1,08,333
Year 5 Rs. 14 lakhs Rs. 1,16,667
Year 6 Rs. 15 lakhs Rs. 1,25,000
Year 7 Rs. 16 lakhs Rs. 1,33,333
Year 8 Rs. 17 lakhs Rs. 1,41,667
Year 9 Rs. 18 lakhs Rs. 1,50,000
Year 10 Rs. 19 lakhs Rs. 1,58,000
  

# 07 - Life Option - Lumpsum + Regular Income

Suppose Sooraj Nath has taken this plan with Basic Life Cover. He does not consume any form of tobacco.


Age - 30 years
Cover Amount - 1 crore
Policy Term - 35 years
Payment to nominee - Rs. 50 lakhs as lumpsum and balance as regular income

His annual premium will be Rs. 10,189 which he has to pay for 35 years.

Benefits under this option are:

  • Lumpsum payment on death - Sooraj’s nominee will receive Rs. 50 lakhs as lumpsum
  • Regular Income - Sooraj’s nominee will also receive a regular monthly income for 10 years. The balance 50 lakhs will be divided over 10 years and paid monthly. 
 
Year Annual Amount Monthly Payment
Year 1 Rs. 5 lakhs Rs. 41,667
Year 2 Rs. 5 lakhs Rs. 41,667
Year 3 Rs. 5 lakhs Rs. 41,667
Year 4 Rs. 5 lakhs Rs. 41,667
Year 5 Rs. 5 lakhs Rs. 41,667
Year 6 Rs. 5 lakhs Rs. 41,667
Year 7 Rs. 5 lakhs Rs. 41,667
Year 8 Rs. 5 lakhs Rs. 41,667
Year 9 Rs. 5 lakhs Rs. 41,667
Year 10 Rs. 5 lakhs Rs. 41,667

 

What happens when? 

You have to surrender your policy: Surrender value is applicable only for Single Pay policies. You can surrender your policy and get the surrender benefit as stated below from year 1.
Surrender Value = (Single Premium* Surrender value factor/100)


Premium is not paid within the grace period? 
A grace period for payment of premium of 15 days applies for monthly premium payment mode and 30 days for other modes of premium payment. If the premium is not paid within the grace period, the policy shall lapse and cover will cease.


What is meant by Terminal Illness?
A Life Assured shall be regarded as terminally ill only if the person insured is diagnosed as suffering from a condition which, in the opinion of two independent medical practitioners’ specializing in treatment of such illness, is highly likely to lead to death within 6 months. The terminal illness must be diagnosed and confirmed by medical practitioners’ registered with the Indian Medical Association and approved by the ICICI. ICICI reserves the right for independent assessment. Terminal illness due to AIDS is excluded. 

 

Our expert  Deepak Yohannan's thoughts on ICICI Pru iProtect Smart Plan. 


Hope this was useful. If you have any questions on this plan, please comment below and we will be happy to share our thoughts.

 
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