ICICI Pru LifeTime Classic Plan
ICICI Pru LifeTime Classic is a unit-linked life insurance plan that combines savings and protection. This plan gives you a variety of saving options to help you reach your financial objectives combined with a life insurance policy to safeguard your family in the event of your untimely death. Till the conclusion of the fifth year, the Policyholder will not be allowed to fully or partially surrender/withdraw the funds invested in unit-linked insurance products.
In this policy, the Policyholder is responsible for assuming the investment portfolio’s risk. For the first five years of the contract, unit-linked insurance policies do not provide any liquidity. Additionally, the plan includes 4 portfolio methods from which you can choose based on your investment requirements.
Read on to know more about ICICI Pru LifeTime Classic plan’s eligibility criteria, features and benefits, exclusions, premium calculation, and more.
Here is the eligibility criteria for ICICI Pru LifeTime Classic Insurance Plan:
|Age at entry|
Minimum entry age: 0
Maximum entry age: Single Pay: 75 years, Limited Pay/Regular Pay: 65 years
|Age at maturity|
Minimum maturity age: 18
Maximum maturity age: Single Pay: 80 years, Limited Pay/Regular Pay: 75 years
Limited Pay and Regular Pay:
Minimum Sum Assured: 7 X Annualized Premium
Maximum Sum Assured: As per maximum Sum Assured multiples
Annualized Premium / Annual Premium is the premium amount payable in a year excluding the taxes, rider premiums, and underwriting extra premium on riders if any
Single Pay: 50,000
Limited Pay and Regular Pay: `30,000 p.a.
|Maximum premium||Subject to Board-Approved Underwriting Policy|
|Premium payment modes||Single, Yearly, Half-yearly, and Monthly|
Key Features & Benefits of ICICI Pru Lifetime Classic
Listed below are the important features and benefits of ICICI Pru LifeTime Classic insurance plan.
- Death Benefit
If the life assured passes away while the policy is still in effect, the following Death Benefit is payable:
The greater the sum assured plus the top-up sum assured fund value plus top-up fund value, or minimum death benefit applies to single-pay policies. It is the greater of the sum of the amount assured including the top-up sum assured, the fund value including top-up fund value, or the minimum death benefit for regular/limited pay policies (age at entrance less than 50 years). It is the higher of the Sum Assured including Top-up Sum Assured, Fund Value including Top-up Fund Value, or Minimum Death Benefit for age at entry 50 years and over.
The Minimum Death Benefit is 105% of the total premiums paid.
- Maturity Benefit
The Total Fund Value, including Top-up Fund Value, is payable at maturity if the life insured survives until the conclusion of the policy term. By choosing the “Settlement Option,” you can choose to get this benefit in a single payment or over time.
- Loyalty Additions
According to the terms of the policy, Loyalty Additions are distributed as additional units after each policy year. Each Loyalty Addition is shown as a percentage of the daily fund values, including Top-up Fund Value, on average.
- Premium Redirection
Only if you chose the Fixed Portfolio Strategy and provided that there are no funds in the DP Fund, is this functionality relevant. If you chose the Fixed Portfolio Strategy, you must specify the funds and the percentage of premiums that will be saved in the funds at the start of the policy. The split may be altered at no fee at the time that successive premiums are paid. This won’t be considered a switch. The Single Pay option is not eligible for this bonus.
- Partial Withdrawal Benefit
Regardless of the portfolio strategy you choose, partial withdrawals are permitted after the first five policy years have passed and upon full payment of the first five policy years’ premiums. As long as the total number of partial withdrawals in a year does not exceed 20% of the Fund Value in a policy year, you are permitted to make an unlimited number of partial withdrawals. Partial withdrawals are cost-free.
- Increase / Decrease of Sum Assured
If all past-due premiums have been paid and there are no funds in the Discontinued Policy Fund, you can choose to change your Sum Assured at any policy anniversary throughout the policy term.
- Surrender Benefit
After deducting any applicable discontinuance charges, the Fund Value, including Top-up Fund Value, if any, shall be transferred to the Discontinued Policy Fund during the first five policy years after receipt of your notification that you desire to cancel the policy (DP Fund). Upon your death or the conclusion of the lock-in term, whichever occurs first, you or your nominee, as the case may be, shall be entitled to collect the Discontinued Policy Fund Value. The lock-in period is currently five years from the start of the policy.
- Policy Revival
Three years have passed since the first unpaid premium date to begin the resurrection phase. Revival will be determined by the current, by the Board authorized underwriting standards. The firm will collect all due and unpaid premiums from You if discontinued insurance is revived during the lock-in term, free of interest or other fees.
- Tax Benefit
Tax benefits are offered by the ICICI Pru Lifetime Classic Plan under Sections 10(10D) and 80C of the Income Tax Act of 1961.
What Are The Things Not Covered Under ICICI Pru LifeTime Classic?
If the Life Assured, no matter whether he or she is mentally stable or not, commits suicide within 12 months from the date of commencement of the policy or the date of policy revival, then only the Fund Value, including Top-up Fund Value would be payable to the Claimant. The fund value as it existed on the date of the death notification shall be increased by any charges, excluding Fund Management Charges and guarantee charges, if any, that are recovered after the date of death. The amount of the increase will not be taken into account when calculating the death benefit if the Life Assured, whether sane or crazy, commits suicide within 12 months after the effective date of the increase in Sum Assured.
How Does The ICICI Pru LifeTime Classic Policy Work?
Rahul is a 30-year-old male who purchased the ICICI Pru LifeTime Classic with a policy term of 20 years. Rahul decided to pay Rs. 3000 per month as a premium for 20 years and the life cover for the plan was Rs. 3.6 lakh. So, as per the parameters, he will get the benefit follows:
|Policy Term||Premium Per Month||Premium Payment Term||Life Cover Amount||Maturity Benefit|
|20 Years||Rs. 3, 000||20 Years||Rs.3, 60, 000|
@ 4% ARR (Assumed Rate of Return)
@ 8% ARR (Assumed Rate of Return)
Frequently Asked Questions
Here is the list of the frequently asked questions related to ICICI Pru LifeTime Classic plan.
The free look time under this policy is 15 days, or 30 days if it was purchased using an electronic or distance marketing approach.
You have the option to select the Accidental Death Benefit Rider under the ICICI Pru LifeTime Classic Plan, but you will have to pay an additional rider premium.
Notifying the company of an increase or decrease in the policy term is required. The increase is permitted under certain restrictions.