ICICI HFC Life Insurance Policy & Plans

Term Life insurance is a pure and most cost-effective form of life insurance. This type of life insurance provides financial protection to the nominee in case policyholder dies during policy term. Term Insurance policies provides high life cover at lower premiums. For eg: Premium for 1 Cr Term Insurance cover could be as low as 4852 p.m. These fixed premiums can be paid at once or at regular intervals for the entire policy term or for a limited period of time. Premium amount varies basis the type of the premium payment method opted by the buyer.

Your family depends on you: The term insurance money can be used to meet your family’s monthly expenses and important goals like your child’s education.

Your assets need protection: You may take loans for assets like a house or a car. However, if something happens to you, your family might be burdened with loan repayments. In such a situation, the term insurance payout which your family will receive can be utilized in paying off outstanding loans.

Lifestyle risks: Modern day lifestyle problems can lead to a host of ailments. Some term insurance plans don’t just protect your family after death but also during your lifetime by offering critical illness## protection. This feature pays out on the diagnosis of certain critical ailments like cancer or heart attack.

Anyone with financial dependents should buy a term insurance policy. This includes young professionals with dependent parents, married couples, parents, businessmen and self-employed, SIP investors, and in some cases, even retirees.

Life Insurance premiums paid are deductible from taxable income under Section 80C and hence carry a double benefit for taxpayers – protection and tax-saving. The payment (maturity value) received under an insurance policy is also exempt subject to conditions under Section 10(10D) of the Income Tax Act, 1961^. Term insurance also has among the lowest premiums among the different types of insurance policies.

Hence, individuals who derive any of the three major benefits associated with term insurance should consider buying such policies. The three major benefits are – life protection, tax saving and affordable premiums.

• Parents: Parents are generally the sole source of financial support for their children. The needs of children extend from school fees and living expenses to hefty university fees, later on in life. The unexpected demise of a parent can jeopardize this future and deprive children of life’s opportunities. Parents must ensure that this scenario does not come to pass, by taking out a term insurance policy. This policy will pay out a lump sum and/or income to satisfy their children’s expenses, in the event of the death of the parent(s).
• Newly-married: Roses, chocolates and movie tickets are great, but here’s a truly long lasting gift for your spouse – term insurance. This gift will give your spouse more than momentary joy, it will secure their life’s future. Term insurance assures the spouse of financial support in case the insured person passes away and should be purchased as soon as possible by married couples.
• Working Women: The women of today are on an equal footing with men, whether it be managing their finances or providing for their family. Today, a family is as dependent on the woman’s income as it is on the man’s. This dependency brings with it the need to financially secure your family in case something happens to you. A term insurance plan assures that your parents/spouse/children are financially secured even in your absence. It ensures that your family does not have to compromise on their lifestyle and can continue with the goals you set for them. The term insurance cover amount also helps to take care of any outstanding liabilities like home loan, auto loan, education loan etc. Not only this, some term insurance plans come with the added benefit of a critical illness## cover that provides a payout in case you are diagnosed with a serious illness like breast or cervical cancer
• Young Professionals: Young professionals are just starting their careers. Many of them are not yet married and have no financial dependents. However this is likely to change in the future as they get married or support their parents/relatives. Such individuals should buy term insurance now rather than wait. This is because once a policy is purchased, the premiums stay the same throughout an individual’s life. On the other hand waiting to buy term insurance in the future can force customers to pay higher premiums because term insurance premiums rise with age.
• Taxpayers: Term insurance premiums paid are allowed as deduction from taxable income under Section 80C of the Income Tax Act, 1961^. The term insurance payouts on maturity are also exempt from tax subject to conditions under Section 10(10D). Hence taxpayers can use term insurance to significantly reduce their tax burden.
• Self Employed: As a self-employed person, you face many challenges. Unlike salaried individuals, you do not earn a fixed monthly income; you have an uneven source of income that depends on the ups and downs of the market. Plus, you may have also taken a business or personal loan from creditors, banks, or even your family and friends. Hence, buying a term insurance plan to secure your family becomes even more important for you. A term life insurance policy can ensure that your family remains financially secure even in your absence.
• Retirees: Retired persons need to have term insurance if they have dependent spouses or families. Buying term life insurance can also be a way of leaving an inheritance for their families. This is because, term insurance is paid out to nominees on the death of the insured person. The payment of term insurance is also tax free subject to conditions under Section 10(10D) of the Income Tax Act,1961^.
  

• It fits in your tight budget: After paying your monthly rent, phone and light bills, a term insurance premium can be difficult. ICICI Pru iProtect Smart’s affordable premiums make sure it isn’t.
• It gives you longer cover: The best time to buy life insurance is now. Buying now will ensure that you get life cover at low premiums for the desired term. ICICI Pru iProtect Smart can cover you till the age of 85 and you also have option to get whole life insurance till age 99.
• It gives you option to cover 34 critical illnesses## ICICI Pru iProtect Smart pays accelerated critical illness (ACI) benefit on first occurrence of any of the covered 34 illnesses. No hospital bills are required.
• It provides you option to take Death Benefit as lump sum, income, increasing income or as a combination of lump sum and income:  . A lump sum payment is the entire benefit amount paid to the nominee on the death of the insured person. An income payment is a series of annual or monthly payments, made to the nominee on the insured person’s death. If income payout option is chosen under ICICI Pru iProtect Smart, 10% of the benefit amount is payable every year for 10 years.. The latter option can save your family from the hassle of managing and investing a large sum of money. In Lump sum and Income option percentage of the Sum Assured to be paid out as lump sum is chosen at inception. The balance Sum Assured will be paid out in equal monthly installments in advance at the rate of 0.83333% per month over 10 years. In Increasing Income option the benefit amount is payable in monthly installments for 10 years starting with 10% of the benefit amount per annum in the first year. The income amount will increase by 10% per annum simple interest every year thereafter.
• It gives you accelerated pay out in case of terminal illness3: ICICI Pru iProtect Smart pays out your insurance cover even before death, if you are diagnosed with terminal illness.
• It provides you Protection against other claims: You can buy the insurance policy under the Married Woman’s Property Act++. This protects the money paid under the policy from other claims. It thus provides an additional layer of protection to your family.