ICICI Pru Raksha Plan

Usually, the whole life of an individual passes by earning and living the dreams. But most of them don’t think for a moment what will happen to their loved ones if they are not with them. Who will take care of their families after their death? Therefore it is necessary for such an environment of unfortunate death to take a term insurance plan. One such plan is ICICI Pru Raksha Plan that gives a life cover to you and after your death; your family will receive the Sum Assured. You can also enjoy tax benefits with the help of this policy when you are alive.

Key Features of Raksha Plan

1. Your family will receive the Sum Assured as a lump sum after your death.
2. This plan is available at an affordable amount of premium.
3. Flexibility of choosing the sum assured.
4. Flexibility of Choosing the Premium Paying Term.
5. Get Tax Deductions while computing your income under Section 80C of the Income Tax Act 1961.

Benefits of ICICI Pru Raksha Plan

There are some benefits of the term insurance plan that might amaze you. You can secure the future of your loved ones with the help of this plan. So, let’s take a look at the benefits of this term insurance plan.

Death Benefits

As you know that almost every term insurance plan has a death benefit so this plan also has the same. During the unfortunate demise of the insured the nominee is entitled to receive the highest of the following:-

Sum Assured

1. 10 Times of the Annualized Premium.
2. 105% of all premiums paid until the date of the death.

Tax Benefits

If your yearly income is taxable and you are paying a lot of taxes then you can show the amount of the premium you are paying yearly while computing your income. You are allowed to take deductions under section 80C of the Income Tax Act 1961 and save some money paid as taxes.

Policy Term of 5 Years

This term insurance plan only has a policy term of 5 years and you will have to pay the premiums regularly. There is no option for the single pay or limited pay in this term insurance plan.

Affordable Premium

The monthly premiums are also affordable starting from just Rs.140 per month. The premium paying term will be equal to the policy term and there is only the option for the regular pay in this plan. In the ICICI Pru Raksha Plan, the amount of the premium remains the same throughout the policy term and it is neither increased nor decreased.

Multiple Options for the Sum Assured

There is a range of the Sum Assured. The minimum amount of the sum assured is Rs.50000 and the maximum amount of the Sum Assured in this policy is Rs.500000. You have the choice to decide the amount of the sum assured at the time of inception of the policy. Once the Sum Assured is decided and the premium is paid then you can’t change the Sum Assured Amount.

Details of ICICI Raksha Term Plan

Terms and Conditions

1. If the insured commits suicide within 1 policy year from the date of inception of the policy then the policy will become void and it will be
   terminated.
2. If the insured discontinue paying the premium on the due date or within the grace period then the policy will lapse and it will be terminated. No benefits will be paid to the nominee after the death of the insured if the policy has lapsed.
3. You are not allowed to change the amount of the Sum Assured in the middle of the policy term.
4. You are not eligible to take any loan against this policy.

Exclusions

There are two major exclusions in this policy.

Surrender Benefits

There are no surrender benefits in the ICICI Pru Raksha Plan. You cannot surrender the policy and take the amount of the premiums you have given to the company.

Maturity Benefits

This policy also doesn’t have any maturity benefit. It simply means that you will get nothing if you survive the policy period. At the time of maturity, if you are alive then the company will not give you a single penny as the maturity benefits.

The dilemma in the Term Insurance Plan

As you can see that there is no maturity benefit in the ICICI Pru Raksha Plan so many individuals think that all their premiums will be wasted if they survive the policy period. But you must be unaware of the fact that the nominee is entitled to the full maturity amount even if the insured dies after paying only one premium.

The term insurance plans are meant to give a cover to your family in your absence. It is not meant for you to enjoy the benefits. So if you really care for your loved ones then it is better to think for their future and not for your future. You can make other investments for yourself but when it is about your family’s future then the term insurance plan would be the best option.