Frequently Asked Questions (FAQ’s)
Why is life insurance essential for my family?
It is important that we ensure the financial security of our family in case of an unfortunate event like death of the income earning member of the family. We need to ensure that even in the absence of the breadwinner the family is able tide over the financial stress and emergencies caused due the loss of the earning member which can be compensated to a large extent if the Life Assured has taken adequate Life Insurance Cover. Also in case one is not able to provide for one’s family in case a major illness strikes, family will be protected against the income shock arising out of expenses incurred on the treatment.
How much life cover do I need?
You can take a cover of at least 15 times your annual income. You can get a life insurance cover basis your annual income at nominal premium rates. For self-employed individual income surrogates will be ITR of 3 years, for agriculturists Mandi receipt will act as income surrogates.
I already have a life insurance plan. Should I think of upgrading it?
Having a life insurance plan with adequate cover is a recommended way to safeguard your loved ones. With growing dependents in the family your responsibility towards protecting them would also increase, hence it is advisable to have an insurance cover which matches with your responsibilities. Hence it is recommended that one should revisit the life insurance cover according the rising financial income and need of the family.
What all should I look for in a company before buying a life insurance plan?
You can look for these 5 factors in a company before buying a life insurance plan
- Company’s claim settlement ratio
- Asset Under Management (AUM) which is an indicator of company’s financial health & consumer trust
- Brand value of the company/reputation of the company
- Company’s presence (geographical & digital)
- Ease and convenience provided to the customer
What is the benefit that I or my family will get during the policy term in a life insurance plan?
Apart from death benefit, a life insurance plan can also give you a terminal illness benefit where you can get the life cover before the policy term in case you get detected with a terminal illness. Also you can look for riders like critical illness & accidental death benefit that will only enhance your life cover.
What is Critical Illness benefit?
Critical Illness benefit: In addition to the benefits under the Life Option, you are also covered for the Critical Illness (CI) Benefit. The CI Benefit offers you coverage against 34 critical illnesses. When a major illness strikes, it can place a huge burden on your family, not only because of the cost of medical care but also because you may not be able to work. To protect you against this, we will pay you the CI Benefit, as a lump sum to meet your financial needs. The benefit is payable irrespective of the actual expenses incurred by the policyholder. This benefit is payable, on first occurrence of any of the covered 34 illnesses. The CI Benefit, is accelerated and not an additional benefit which means, the policy will continue with the Death Benefit reduced by the extent of the CI Benefit paid. Premium payment on account of CI Benefit will cease after payout of CI Benefit and the future premiums payable under the policy for death benefit will reduce proportionately. If CI Benefit paid is equal to the Death Benefit, the policy will terminate on payment of the CI Benefit. In case of incidences covered under accidental Permanent Disability as well as Critical Illness, benefits shall be paid out under both the options.
What is Accidental Death Benefit?
Accidental Death benefit: In addition to the benefits under the ICICI Pru iProtect Smart - Life Option, you are also covered for Accidental Death (AD) Benefit. In case of death due to an accident, your nominee/legal heir will be paid AD Benefit as lump sum. This benefit ensures that you enhance your coverage significantly at very affordable rates. The policy will terminate on payment of these benefits.
What is the Free-look Cancellation Period?
If you are not satisfied with the policy, you may cancel it by returning the policy document to the ICICI Prudential Life Insurance Company Limited (ICICI Life) within 30 days from the date you received it. On cancellation of the policy during the free look period, ICICI Life will return the premium paid subject to the deduction of: a. Stamp duty paid under the policy, b. Expenses borne by ICICI Life on medical examination, if any and c. Proportionate risk premium for the period of the cover. The policy shall terminate on payment of this amount and all rights, benefits and interests under this policy will stand extinguished.
What are the key exclusions under ICICI iPru iProtect Smart?
In case of death due to suicide within 12 months:
- from the date of inception of the policy, the nominee or beneficiary of the Life Assured shall be entitled to 80% of the premiums paid, provided the policy is in force or
- from the date of revival of the policy the nominee or beneficiary of the Life Assured shall be entitled to an amount which is higher of 80% of the premiums paid till the date of death or the surrender value as available on the date of death.
On payment of this all rights, benefits and interests under the policy will stand extinguished.