ICICI Pru iProtect Smart is a term life insurance policy which also offers critical illness cover for 34 specified illnesses. Term life insurance is life insurance that pays out only on death and has no maturity value. Critical illness cover is a policy cover that pays out on the diagnosis of a specified illness whether or not you die as a result of it. Commonly covered illnesses include heart attacks and some types of cancer. We explain why this particular combination is a growing trend in the life insurance industry, here.
The critical illness cover is an optional ‘add-on’ or ‘rider’ in this policy. The main policy has several other features such as:
- Option to receive your payout as a lump-sum or in instalments
If your family faces monthly expenditure such as EMIs or school fees and may have trouble managing a large lump-sum, this policy will allow them to get their insurance money in monthly instalments. Alternatively, you can opt for a combination of the two: some money as a lump sum and some money as monthly instalments. You can also structure these instalments to increase. Note that your premium may vary based on the payout you choose.
- Terminal Illness cover
This feature pays out your life insurance money on the diagnosis of a terminal illness. A terminal illness is one which results in your death in a short period of time, typically six months. Don’t worry if you actually recover from the illness, the insurer will not demand your money back. Note however that you cannot make fraudulent claims under this feature. Two independent medical practitioners must make the terminal illness diagnosis and the life insurance company can make an independent assessment.
- Protection under the Married Women’s Property (MWP) Act
The payout under the policy is protected from your creditors under the Married Women’s Property Act. The policy is considered to be held in trust for your wife and children and hence cannot be attached by a court on application by creditors. However, you must actively choose to cover your policy under this Act while buying the policy cover.
- Accidental Benefit Rider
If you die as a result of an accident (such as a road or train accident), you can get a higher payout under this policy. This ‘accidental cover’ is a separate optional ‘add-on’ for which you pay a higher premium. You can add it even after the purchase of your life insurance policy.
Critical Illness Rider
We now come to the critical illness rider. This rider or add-on covers 34 different types of illnesses. It will pay out on the diagnosis of a critical illness and this payout is separate from the life cover you get under the principal component of the policy. The minimum critical illness cover is Rs 1 lakh and there is no maximum limit.
Major Diseases Covered:
Cancer of specified types and severity
Heart Valve Surgery
Surgery of Aorta
Chronic Lung Disease
Chronic Liver Disease
Benign Brain Tumor
The list is indicative and general. For an exhaustive list with detailed definitions, go to https://www.iciciprulife.com/content/dam/icicipru/brochures/ICICI-Pru-iProtect-Smart-Illustrated-Brochure.pdf
Key Policy Features
Age: 18 to 65 years
Term: 75 years minus age of entry for regular pay; 40 years for limited pay and 20 years for single pay. Limited pay is policy term minus five years.
Sum Assured: Minimum is as specified for a minimum premium of Rs 2,400 per annum, no maximum limit.
Disclaimer: The author may have ongoing commercial engagements with ICICI Prudential Life Insurance, independent of his role at RupeeIQ.com. The article has been separately and independently reviewed by the RupeeIQ editorial team