ICICI Prudential Life Insurance
ICICI Pru Smart Life Policy

ICICI Pru Smart Life Plan

ICICI Pru Smart Life is a unit-linked life individual plan that emphasizes savings and security. This plan gives you a variety of saving options so you can build up money for your desired goals as well as a life insurance policy to protect your family even in the tragic event of your passing. Till the conclusion of the fifth year, the Policyholder will not be able to wholly or partially surrender/withdraw the money invested in unit-linked insurance products.

The ICICI insurance plan offers complete safety for you and your family. In the event of a tragic occurrence during the insurance period, your family will be given a lump sum payment. Your loved ones will be able to live the life you have planned for them thanks to this sum. You will receive Loyalty Additions and Wealth Boosters for maintaining your coverage over the long term.

Read on to learn more about the ICICI Pu Smart Life’s eligibility criteria, features and benefits, exclusions, premium calculation, and more.

Eligibility Criteria

Here is the eligibility criteria for ICICI Pru Smart Life.

ParametersDetails
Entry AgeMinimum – 20 Years, Maximum – 54 Years
Maturity AgeMinimum – 30 Years, Maximum – 64 Years
Policy TermMinimum- 10 Years, Maximum- 25 Years
Premium AmountMinimum – Rs. 45, 000 P.A, Maximum – Unlimited
Sum Assured

Minimum: 7 X Annual Premium

Maximum: Higher of (10 X Annual Premium) and (0.5 X Policy term X Annual Premium)

Premium Payment ModeAnnual, Half-yearly, and Monthly

Key Features & Benefits of ICICI Pru Smart Life

Here is the list of the important features and benefits of ICICI Pru Smart Life insurance plan. 

  1. Death Benefit:

Two components of the death benefit would be paid out in the event of the policyholder’s demise.

  • Lumpsum Benefit: A benefit paid out at the moment of the claim to cover any immediate financial obligations of the family is known as a lump sum payout.
  • Smart Benefit: A delayed benefit that guarantees continued savings towards your targeted objective.

The Lump Sum benefit is higher of the two amounts:

  • Sum Assured
  • Minimum Death Benefit

The minimum death benefit is equal to 105% of the total premiums paid, including any top-up premiums that may have been paid before the death.

  1. Maturity Benefit

The Fund Value, along with the Top-up Fund Value, if any, will be payable upon maturity. No matter whether the ensured life survives till the maturity date, this is paid. The Maturity Benefit will be available to you as a lump amount or a structured distribution utilizing the Settlement Option. Only in cases where the Policyholder and Life Assured are the same and the Life Assured lives to the end of the policy term is this choice possible. You can choose to receive payments over a one- to five-year post-maturity period on an annual, biannual, quarterly, or monthly (through ECS) basis.

  1. Smart Benefit

Units equal to the installment premium shall be distributed by the Company on the following premium due dates under this benefit, provided that all due premiums have been paid as of the date of death of the life assured.

  1. Partial Withdrawal Benefit

After five policy years have passed, partial withdrawals are permitted as long as there are no funds in the DP Fund. 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.

  1. Freelook Period

If you did not purchase your insurance through distance marketing, and you are not pleased with the terms and conditions of it, you must return the Policy Document to the Company within 15 days of the day you got it, along with a written explanation of why you wish to cancel.

  1. Income Tax

Depending on current tax legislation, the policy may provide tax benefits. The regulations of the Income Tax Act of 1961 provide restrictions on the policy’s tax benefits. Goods and Services Tax and Cesses, if applicable, will be added on top of the price at the time of purchase. The laws governing taxes may occasionally be amended.

Exclusion Under ICICI Pru Smart Life Plan?

Only the Fund Value, including Top-up Fund Value, if any, as available on the date of notification of death, would be payable to the Claimant if the Life Assured, whether sane or crazy, commits suicide within 12 months of the date of commencement of the policy or from the date of policy revival. 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.

How Does the ICICI Pru Smart Life Insurance Plan Work?

In a private bank, Sarita holds a senior management position. She looks after her relying parents. She wants to make plans for their well-being because she is aware of life’s uncertainty. She purchases ICICI Pru Smart Life to start a fund for her parents and make sure they can support themselves.

Unfortunately, Sarita passes away in an accident 5 years later. Although her departure will always be felt, her parents’ financial independence is assured thanks to ICICI Pru Smart Life. Her parents are given a lump sum death payment that covers their daily expenses. The corporation also receives the maturity benefit after the insurance term and pays future premiums.

Age at entryPremium payment optionAmount of installment premiumPremium payment modeSum AssuredPolicy termTotal Premiums PaidAssumed investment returns
35 YearsRegularRs. 50, 000AnnualRs. 5, 00, 00015 YearsRs.7,50,000

4% P.A

Rs. 8,53,629

8% of P.A.

Rs. 11, 93, 782

Frequently Asked Questions

Beginning with the sixth policy year, guaranteed loyalty adds units will be distributed annually. It is 0.25 percent of the average daily fund value plus any top-ups.

Depending on your financial priorities and outlook for saving, you have the freedom to swap between the various funds whenever you like. Changes are permitted as long as the money is not in the DP Fund. This function is only accessible if your whole account balance is in the Fixed Portfolio Strategy at the time of switching, and the move must be at least Rs. 2000 in value.

You only need to pay the premium once, for a little period, or the whole of the policy term.