A life insurance policy guarantees a sum of money to the beneficiaries of the insured upon his or her death in exchange of premium payments over the life of the policy. This sum is known as the maturity benefit. Certain policies provide the insured with a lump sum amount on the maturity of the policy. These policies are for a fixed period of time.
The basic forms of a life insurance policy are:
Pure Protection Plan: These plans are for the security of the future of the family of the insured after his or her death.
Protection and Savings Plan: These plans help in planning for the long term objectives set by the individual like planning for children’s education, retirement objectives, buying a house etc. and offers the advantage of providing a life cover along with it.
About ICICI Prudential Life Insurance:
ICICI Prudential Life Insurance Company is a joint venture between two organisations, ICICI Bank, a private sector bank in India and Prudential plc, an international financial services provider based in the United Kingdom. The assets under management for the company stood at Rs. 1395 Billion as on March 31, 2018. ICICI Prudential Life Insurance is the first listed insurance company on the NSE and BSE.
ICICI Prudential Life Insurance provides both savings and protection plans to provide for the need of all its customers. The company provides the advantages of superior quality in services, easy and hassle free claim settlement process, provision of cost effective products and consistency in the performance of funds to the customers.
The types of insurance policies on offer by ICICI Prudential Life Insurance are:
- Term Plans– Different term plans offered by ICICI Prudential Life Insurance offer different benefits.
- ICICI Prudential iProtect Smart: This is one of the top selling term plans offered by ICICI Prudential Life Insurance. This plan offers the benefit of payment of claim upon diagnosis of around 34 critical diseases. The benefits offered are:
- Affordability: In case you are on a tight budget, you can take advantage of this plan as it has affordable premiums and the insured also has the option of making annual, half yearly or monthly payment of premiums.
- Longer Cover: The plan offers a longer coverage period at low premiums.
- Accidental Benefit: The individual can take additional benefit of this plan by adding an accidental cover at the time of buying the policy or even after the purchase of the policy.
- Tax Benefits: The insured can avail the advantage of tax benefit of up to Rs. 54600 as per Section 80C and 80D of Income Tax Act.
- Unit Linked Insurance Plans: There are various ULIP’s on offer by ICICI Prudential Life Insurance which provide multiple benefits to the investors.
- ICICI Prudential Lifetime Classic Plan: This plan helps the individual in achieving his/her long term financial plans along with providing a security to the beneficiaries in unforeseen circumstances. Individuals can take advantage of this plan by maximizing their wealth and also enjoy a life cover at the same time. The key benefits of this plan are:
- Choice of portfolio strategy: The insured can take advantage by selecting the portfolio strategy which is best suited to his/her needs. The 4 strategies available are Fixed Portfolio Strategy, Trigger Portfolio Strategy 2, Target Asset Allocation Strategy and Lifecycle Based Portfolio Strategy 2.
- Choice of level of protection: The insured can choose the protection level according to the requirements.
- Loyalty Additions: The individual can take advantage of this plan by earning loyalty additions from Year 6 onwards which increases the fund value of the insured.
- Additional Protection: The insured can avail additional protection by choosing certain riders on an affordable basis.
- Tax Benefits: The individual can avail tax benefits on the premium paid according to the tax laws.
- Traditional Savings/Money Back Plans: These plans offer the benefits of a life insurance policy as well as act as a savings tool.
- ICICI Prudential Cash Advantage Plan: This offers the insured a guaranteed sum of money on a monthly basis for 10 years, a lump sum amount at maturity, bonuses and a life cover. The benefits offered are:
- Cash Benefit: The guaranteed cash payment helps the individual in maintaining a regular stream of income throughout the period of the policy. This ensures liquidity for the policyholder.
- Loans: The insured can take advantage of this plan by taking a loan against the policy in case of urgent needs. The scheme permits the policyholder to avail loans up to 80% of the surrender value.
- Life cover: The policy provides a life cover to the policyholder throughout the policy term.
- Retirement Plans: These plans help the individual in planning for their retirement needs in advance by building funds and offering capital protection.
- ICICI Prudential Easy Retirement Plan: This plan lets the insured to participate in equity markets along with providing the safety of capital protection. The benefits are:
- Risk: The insured can build his/her retirement portfolio according to their risk appetite.
- Pension Boosters: The insured can take advantage of the pension boosters and increase the retirement corpus.
- Tax Benefits: The insured can avail up to one-third of the sum accumulated on retirement as tax-free amount.
- Group Plans: These plans offer the benefit of securing the needs of the insured’s loved ones under a single policy.
- ICICI Prudential Loan Protect: This plan offers life coverage to the individual with a mortgage loan or auto loan from a bank. The benefits are:
- Option of life cover: The policyholder can choose from fixed or reducing cover.
- Flexibility: The individual can take advantage by choosing the years for which premium is to be paid.
- Tax Benefits: The benefit received on death of the policyholder is tax free.
In order to take advantage of the various plans offered by ICICI Prudential Life Insurance, the individual needs to know which type of policy is best suited for him/her. The policy chosen should align with the overall long-term goals of the individual for the individual to derive maximum advantage from the plan. Policies which are in sync with the long-term financial objectives of the individual can be taken advantage of in the best possible manner.