ICICI Prudential iCare 2 is about as sensible and unpretentious a term insurance policy as it can get. It pays out the insurance amount to your family on your death. It has no maturity value if you survive the term and, in return, its premiums are extremely low. ICICI Prudential iCare 2 has a minimum age of 18 and a maximum age of 67.
Regular Premiums or One-time Pay?
ICICI Prudential iCare 2 allows you to pay premiums every year or just once. Paying just once means avoiding the risk of the policy lapsing due to missed payments. People often simply forget to pay insurance premiums or are cash-strapped when the premium becomes due and hence don’t pay premiums. In the one-pay option, you don’t have to face this possibility.
On the flip side, the tax benefits of insurance are only given if the insured amount is at least 10 times the annual premium. Single pay policies such as ICICI Pru iCare 2 don’t meet this criterion. Also the single pay option in ICICI Pru iCare 2 only covers you for five years or 10 years. In the regular pay option you can choose terms ranging from five years to 67 years.
The minimum age to start regular pay plan is 18-65 years, while for single pay plan is 18-60 years.
What term should you choose?
Although the term ranges from 5 to 67 years, note that policy terms below 10 years will not be eligible for tax benefits. Ideally your term should be as long as you have financial dependents. For example if you expect your children to be financially independent by the time you turn 50 and your spouse is not dependent on you, you can choose a term that lasts till you attain the age of 50.
Personal Accident Cover
ICICI Pru iCare 2 has a version (ICIC Pru iCare 2 Option II) which offers an additional payment if the death occurs due to an accident. The additional payout is equal to the basic payout (so you get a double payment under this option). This version is only available if you choose regular payment rather than single payment. The maximum additional payout for personal accident is capped at Rs 2 crore. In case of Regular Pay with Accidental Death Benefit (option II), you can choose to be covered for 5 years to 62 years
How much premium do you have to pay?
This depends on your age and the level of insurance cover you want. However the minimum premium is Rs 2,400 per annum (excluding taxes). You can find premium quotes at different ages below:
|Age||ICICI Pru iCare Option I||ICICI Pru iCare Option II|
|25 lakhs||50 lakhs||75 lakhs||25 lakhs||50 lakhs||75 lakhs|
What if I miss payments?
You get a grace period of 30 days from your premium due date (15 days for monthly premium payments). Failing to pay within the grace period will cause the policy to lapse and you will lose the insurance cover. However, you can revive the policy within two years of the missed premiums by paying unpaid premiums and interest and by showing proof that you are in good health.
More details on the policy here.