ICICI Prudential Life Insurance
ICICI Pru Lakshya Lifelong Income Policy

ICICI Pru Lakshya Lifelong Income Plan

Our future financial needs depend on various factors, such as the inflation rate, the quality of lifestyle, the dreams to be fulfilled, etc. The assurance of financial needs determines our safety and security in the future. To achieve this financial safety, we need to invest in some savings plans, and when it comes to a savings plan, ICICI Prudential Life Insurance Company is worth mentioning. This company has come up with a brilliant savings plan, ICICI Pru Lakshya Lifelong income, that promises to protect you and your family against the uncertainties of life. It is a protection and savings-oriented conventional participating life product to fulfill your financial needs by offering you guaranteed capital protection, regular income, regular additions, as well as life cover, and many more. To know more about this policy, have a look at the following mentions.

Eligibility Criteria

ParametersWealth PlanLife Income Plan
Premium payment optionLimited payLimited pay
Premium payment term5 years7 years10 years12 years10 years12 years15 years
Policy term12, 15, 20, 25, and 30 years15, 20, 25, and 30 years99 minus age at entry
Minimum annual premiumPPT/PT (In years)121520, 25, 30Rs. 30,000
5Rs. 50,000Rs. 40,000
7Rs. 30,000
10/12NARs. 24,000Rs. 12,000
Minimum and maximum age at entry (In years)PPT/PT (In years)121520, 25, 300/550/530/50
56/453/500/ (70 minus policy term)
76/503/55
10NA3/55
123/50
Age at maturity

Minimum – 18 years

Maximum – 70 years

Income Start Date (Policy anniversary)
151720
Sum assured on deathHigher of (10 times Annualised Premium or PPT X Annualised Premium)Higher of (10 times Annualised Premium or PPT X Annualised Premium)
Premium payment frequencyYearly, half-yearly, and monthly

What Are Benefits of ICICI Pru Lakshya Lifelong income?

This policy has come up with a sack full of benefits and facilities that help you to build a financial corpus and promise to keep you and your family safe and protected. These benefits ensure that your future dreams must be fulfilled. To know about these specifications, have a look at the following mentions. 

Death Benefits:

  • Wealth plan – On the death of the life assured during the policy term, provided all due premiums have been paid, the Death Benefit will be higher of (A, B) where,

A = Sum Assured on Death, + Accrued Regular Additions net of encashment (if any), + Interim Regular Addition (if declared), + Terminal Bonus (if declared).

B = 105% of Total Premiums paid as of the date of death.

Sum Assured on Death = Higher of (10 X Annualised Premium or PPT X Annualised Premium).

  • Lifelong income plan – On the death of the life assured during the policy term, provided all due premiums have been paid, the Death Benefit will be higher of (A, B), where,

A = Sum Assured on Death + Bonuses

B = 105% of Total Premiums paid as of the date of death

Sum Assured on Death = Higher of (10 X Annualised Premium or Premium Payment Term X Annualised Premium)

Maturity Benefits:

  • Wealth plan – The Maturity Benefit comprises guaranteed benefits and bonuses as explained below.

Maturity Benefit = Sum Assured on Maturity + applicable Guaranteed Value Benefits + accrued Regular Additions net of encashment if any + Terminal bonus if declared.

  • Lifelong income plan – On receipt of all due premiums and on survival till maturity, you will receive the Maturity Benefit, which is comprised of guaranteed benefits and bonuses.

Maturity Benefit = Sum Assured on Maturity + Terminal bonus if declared.

Guaranteed Value Benefits:

GVBs are designed to enhance the total guaranteed benefits payable at maturity. It is available under the Wealth Plan. GVBs will be set at policy inception based on the 4 components as explained below.

  • Start Early – Start saving now and be eligible for a higher GVB. Experience the joy of saving from an early age and benefit with more GVB towards a confident financial future.
  • Stay More – Let your money work for you through the power of compounding and get more GVB by staying invested for longer policy terms.
  • Save More – More savings lead to better future readiness. The company gives you the incentive to commit to a higher premium.
  • For women – This product offers additional GVB to support and encourage women to create their financial independence. GVB is equal to 5% of the Annualised Premium for all women customers.

Survival benefit under the Lifelong Income Plan:

On survival of the life assured till the Income Start Date (ISD), which is the fifth policy anniversary after the Premium Payment Term, the accrued Regular Additions net of encashment, if any, till that date will be payable as a lump sum. After the Income Start Date, on every policy anniversary, till the end of the policy term or death, whichever is earlier, Guaranteed Income (GI) and Cash Bonus (if declared) is payable. 

Surrender Value:

The Policy will acquire a Guaranteed Surrender Value on payment of at least 2 full years’ premiums. On policy surrender, a Surrender Value equal to the higher of the following will be payable:

  • Guaranteed Surrender Value (GSV) which includes the guaranteed surrender value of accrued Bonuses declared in the form of Regular Additions, net of encashment if any.
  • Special Surrender Value (SSV)

On payment of Surrender Value, the policy will terminate and all rights, benefits, and interests under the policy will stand extinguished.

Loan Facility:

You can also avail of loans under this policy after the policy acquires surrender value. A loan amount of up to 80% of the Surrender Value can be availed. The Company shall be entitled to call for repayment of the loan with all due interest by giving three months’ notice if the amount outstanding is greater than the surrender value and if the policy is in a paid-up state.

Free look period:

You have the option to review the policy within 15 days from the date you receive it, 30 days in case of electronic policies or policies sourced through distance marketing.

Grace Period:

If the policyholder is unable to pay an installment premium by the due date, a grace period of 15 days will be given for payment of the due installment premium for monthly frequency, and 30 days will be given for payment of the due installment premium for any other frequency.

Key Highlights of ICICI Pru Lakshya Lifelong income

Apart from the above benefits and facilities, this policy has presented a bunch of special advantages and features that have made the policy unique and popular among consumers. Here are the mentions of those special features.

Bonuses for the Wealth Plan:

Bonuses in the form of Regular Additions may be declared annually from the first year and will be payable on death or maturity. Terminal Bonus, if declared by the company, will be payable at policy maturity or on death.

Payout Options for the Wealth Plan:

There are two pay-out options to receive the Maturity Benefit under Wealth Plan.

  • Lump sum: This is ideal for those looking to build a wealth corpus. Under this option, the entire maturity benefit will be payable as a single payout at the end of the policy term.
  • Income: This is ideal for those looking to receive regular income for a fixed number of years. Under this option, you will receive the Maturity Benefit in installments over a chosen period. You can choose to receive the entire Maturity Benefit or a part of it in regular installments over a period of 5, 10, or 15 years offered by the Company from time to time. The interest rates applicable for arriving at the installment payments for the chosen period will be as fixed by the Company on a monthly basis.

Paid-up policy:

If premium payment is discontinued, before the end of the PPT but after the policy has acquired a surrender value, the policy can continue as a paid-up policy with reduced benefits. A paid-up policy will not be entitled to future regular additions, cash bonuses, or terminal bonuses. A paid-up policy will not be entitled to cash out the accrued regular additions.

  • Death Benefits (Paid-up policy):
    1. Wealth Plan – On death during the policy term, the paid-up Sum Assured on Death, along with accrued Regular Additions net of encashment, if any, and contingent reversionary bonuses, if declared, will be payable.

Paid-up Sum Assured on Death = Sum Assured on Death X {number of months for which premiums are paid / (12 X Premium Payment Term)}.

    1. Lifetime Income Plan – On death within ISD, the paid-up Sum Assured on Death, along with accrued Regular Additions net of encashment, if any, and contingent reversionary bonuses, if declared, will be payable. The paid-up Sum Assured on death will be payable on death after ISD.
  • Maturity Benefits (Paid-up policy):
  1. Wealth Plan – On survival till the end of the policy term, the paid-up Sum Assured on Maturity and paid-up GVBs, along with accrued Regular Additions net of encashment, if any, and Contingent Reversionary Bonus, if declared, will be payable.
  1. Lifelong Income Plan – On survival till the end of the Policy Term, the paid-up Sum Assured on Maturity will be paid.
  • Survival Benefits – On survival of the life assured till ISD, accrued Regular Additions net of encashment (if any) and Contingent Reversionary Bonus, if declared, will be paid as a lump sum on ISD. Further, on every policy anniversary after ISD, paid-up GI shall be payable till the end of the policy term or death, whichever is earlier, where:

Paid-up GI = GI X {number of months for which premiums are paid / (12 X Premium Payment Term)}.

Revival of the policy:

A policy that has discontinued payment of premiums may be revived subject to underwriting and the following conditions:

  • The application for revival is made within 5 years from the due date of the first unpaid premium and before the termination date of the policy.
  • The policyholder furnishes, at his own expense, satisfactory evidence of the health of the life assured as required by the Company.
  • The arrears of premiums together with interest at such rate as the Company may charge for late payment of premiums are paid.

Tax exemption benefits:

Tax benefits under the policy will be as per the prevailing Income Tax laws. Goods and Services tax will be charged extra, as per applicable rates. The tax laws are subject to amendments from time to time.

Death benefit in installments:

This option is available for both Wealth Plan and Lifelong Income Plan. Death Benefit can be taken in installments over a chosen period instead of a lump sum amount under an in-force as well as a paid-up policy. The installments shall be paid in advance at yearly or half-yearly or quarterly or monthly intervals, as opted for, subject to minimum installment amount for different modes of payments being as under:

Mode of installment paymentMinimum installment payment
YearlyRs. 12,000
Half-yearlyRs. 6000
QuarterlyRs. 3000
MonthlyRs. 1000

General Exclusions of ICICI Pru Lakshya Lifelong income

Understanding a policy is not completed if you do not go through the exclusions of the policy thoroughly. Therefore, to offer you a better idea of the policy, and to avoid future complications, here are the exclusions of ICICI Pru Lakshya Lifelong income policy.

  • Anything that does not satisfy the terms and conditions of the company and the policy will fall under the category of exclusions.
  • If there is any kind of breach of law with criminal intent, that will be permanently excluded from the policy.
  • In case of death due to suicide within 12 months from the date of commencement of risk under the policy or from the date of revival of the policy, as applicable, the nominee or beneficiary of the policyholder will be entitled to 80% of the total premiums paid till the date of death or the surrender value available as on the date of death whichever is higher, provided the policy is in force.

How Does ICICI Pru Lakshya Lifelong Income Policy Work?

Here is an example to explain the plan’s working.

Mr. Dutta, a 36-year-old businessman, bought ICICI Pru Lakshya Lifelong Income Policy for himself. Let us find out how much premium amount he has to pay to avail of the benefits of the policy for the given data.

ParametersCredentials
Age36 years
Premium payment term10 years
Policy term20 years
Sum assuredRs. 12 lakhs
Policy forSelf
Premium payment modeMonthly
Applicable premiumRs. 10000

Frequently Asked Questions

The premiums you pay during the policy term are protected with this benefit. Sum Assured on Maturity is equal to your total contribution throughout the policy term. 

Sum Assured on Maturity = Annualised Premium X Premium Payment Term.

Annualized Premium is the premium amount payable in a year, excluding taxes, rider premiums, and underwriting extra premiums, if any.

In the case of minor life assured, the policy does not vest in the name of the life assured when he/she turns major during the policy term and all policy benefits will continue to be paid to the policyholder. In case of the death of the policyholder, the legal heir of the policyholder can continue the policy.

Paid-up Sum Assured on Maturity = Sum Assured on Maturity X {number of months for which premiums are paid / (12 X Premium Payment Term)}.

Paid-up GVBs = GVBs X {number of months for which premiums are paid / (12 X Premium Payment Term)}

Revival interest rates will be set monthly and are equal to 150 basis points in addition to the prevailing yield on 10-year Government Securities. The revival interest rate applicable for December 2019 is 7.97% p.a. compounded half-yearly.

The followings will happen if you revive your paid-up policy:

  • Wealth plan – On the revival of a paid-up policy, the paid-up Sum Assured on Death, paid-up Sum Assured on Maturity, and paid-up GVBs will be restored to the original Sum Assured on Death, Sum Assured on Maturity and GVBs respectively. All applicable regular Additions declared since premium discontinuance up to the date of revival will accrue to the policy and the Contingent Reversionary Bonus attached to the policy will be reversed.
  • Lifelong Income Plan – On the revival of a paid-up policy, the paid-up Sum Assured on Death, paid-up Sum Assured on Maturity, and paid-up GIs will be restored to the original Sum Assured on Death, Sum Assured on Maturity and GIs, respectively.

Under the Wealth Plan – The GSV will be calculated as follows:

  • GSV = GSV Factor for premiums X total premiums paid, plus GSV Factor for Bonus X accrued Regular Additions net of encashment if any X Surrender timing factor.

Under the Lifelong Income Plan – The GSV will be calculated as follows:

  • GSV = GSV Factor for premiums X total premiums paid, less Guaranteed Income paid if any, plus GSV Factor for Bonus X accrued Regular Additions net of encashment if any X Surrender timing factor.

All the factors applicable to Guaranteed Surrender Value calculation are guaranteed throughout the policy term. However, if you discontinue your premiums before your policy has acquired a surrender value, no benefits will be payable under the policy.

For monthly and half-yearly frequencies of premium payments, the proportion of applicable GVBs or GI is given below.

Frequency of premium paymentThe proportion of GVBs under the Wealth PlanThe proportion of GI under the Lifelong Income Plan
Monthly90%98%
Half-yearly95%99%
annual100%100%

Premium payment terms and policy term that was chosen at the inception of the policy cannot be changed.

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