Term Insurance 350 views May 28, 2020

ICICI Pru LifeTime Classic Insurance Plan

Nowadays everyone is concerned about their future that how they are going to manage their financial needs. Some individuals prefer savings and some prefer investments. Savings will only accumulate a certain sum of money but the investment will multiply your funds. You can have a look at the ICICI Pru LifeTime Classic Insurance Plan that is a unit-linked plan. In this insurance, the investment portfolio is controlled and managed by the policyholder. You have a choice of 4 portfolio strategies in which you can manage your investments. Let’s explore some of the features and benefits of this insurance policy and find out how they will help you in the long run.

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Features of ICICI Pru LifeTime Classic Insurance Plan

  1. Choose any Portfolio Strategy among the 4 strategies as per your preference.
  2. Flexibility of choosing the level of protection according to your needs.
  3. Add Accidental Death Rider into your plan.
  4. Enjoy Loyalty Additions after 6 years and increase the value of your funds.
  5. Get a wealth booster after the 10th Policy Years once every 5 years.
  6. Get Deductions under Section 80C of the Income Tax Act.

Benefits of the ICICI Pru LifeTime Classic Insurance Plan

This investment insurance plan includes many benefits that might amaze you. You can enjoy all the benefits of this policy once you buy it.

Death Benefits

The death benefits have 3 clauses depending upon the age and the mode of payment of the premium. So, you will get the following death benefits in case of an unfortunate death.

If the Policy has the Single Pay Option then the death benefits given to the nominee will be the highest of the following:-

  1. Sum Assured including the Top-Up Sum Assured.
  2. Fund Value including the Top-Up Fund Value.
  3. Minimum Death Benefit.

The age of the insured is less than 50 years and has taken a Limited Pay or Regular Pay Policy. The nominee will get the highest of the following:-

  1. Sum Assured including the Top-Up Sum Assured.
  2. Fund Value including the Top-Up Fund Value.
  3. Minimum Death Benefit.

The age of the insured is 50 years and above and has taken a Limited Pay or Regular Pay Policy. The nominee will get the highest of the following:-

  1. Sum Assured including the Top-Up Sum Assured.
  2. Fund Value including the Top-Up Fund Value.
  3. Minimum Death Benefit.

The Minimum Death Benefit will be 105% of the total premium paid including any top-up premium.

Maturity Benefits

After the Maturity of the ICICI Pru LifeTime Classic Plan, the insured will get the Fund Value including the top-up fund value. The Maturity Benefit will be payable as per the choice of the insured in the following manner:-

  1. Lump Sum
  2. Monthly, Quarterly, Yearly, and Half-Yearly.
  3. No Loyalty Addition or Wealth Booster will be given if you choose part
  4. payment of the Maturity Sum.

In Case of death of the insured during the settlement, the nominee will receive the highest of the following:-

  1. Fund Value including the Top-Up Value.
  2. 105% of all the premiums Paid.
  3. After the payment of the death benefit, your policy will be terminated.

Loyalty Additions

The Company will add extra units on all the premiums paid up to that date:-

Wealth Booster

The Company will add extra units as a wealth booster on all the premiums paid up to that date:-

Switch from One Fund to Another

You are free to switch from one portfolio management strategy to another unless and until you have chosen the Fixed Portfolio Strategy. The company gives you permission to make 4 free switches in a year and then is will charge Rs.100 per switch. The minimum amount for switching from one portfolio to another is Rs.2000.

Top-Up Benefits

If you want to increase your investment then you can make payment of Top-Up premiums over and above your basic premiums in the ICICI Pru LifeTime Classic Plan. There are certain terms and conditions of this benefit.

  1. The minimum amount of the top-up premium is Rs.2000.
  2. The Amount of the Sum Assured will also increase with the top-up premium.
  3. You can opt for the Top-Up Premiums in the last 5 years of the policy.
  4. The company will apply a locking period of 5 years for every top-up premium paid.
  5. The amount of the top-up premium will not be more than the basic premium.

Partial Withdrawal Benefits

In case of an emergency, you are allowed to make partial withdrawals but only if you have paid the premiums for the first 5 years regularly. There is no limit for making the partial withdrawals in a year. Your partial withdrawals must not be more than 20% of the Fund Value in a policy year. It is absolutely free of cost and the company doesn’t charge a single penny.

Adjust the Sum Assured

You have the choice to increase or decrease the amount of the Sum Assured in this policy. Increasing or decreasing the amount of the Sum Assured will not affect the amount of premium. You can increase and decrease the amount of Sum Assured in the multiples of Rs.1000 only.

Types of Portfolio Management Strategies

  1. Target Asset Allocation Strategy
  2. Trigger Portfolio Strategy 2
  3. Fixed Portfolio Strategy
  4. Automatic Transfer Strategy
  5. Lifecycle Based Portfolio Strategy 2

Other Details of the ICICI Pru LifeTime Classic Insurance Plan

ParticularsDetails
Premium Paying Terms· Single Premium for the Single Pay Option
5 Years to 10 Years for the Limited Pay Option
Policy Term for the Regular Pay Option
Minimum Policy Term10 Years
Maximum Policy Term25 Years For Regular and Limited Pay
30 Years for Single Pay
Minimum Amount of PremiumRs.50000 for Single Pay
Rs.30000 for Regular Pay and Limited Pay per annum
Maximum Premium AmountNo Limit
Premium Paying FrequencyYearly, Half-Yearly, Monthly, and Single
Minimum Age of Entry0 Years
Maturity Age· 18 Years is the Minimum Age
· 80 Years is the Maximum Age for Single Pay
· 75 Years is the Maximum Age for Limited Pay and Regular Pay

Charges of the Policy

  1. Premium Allocation Charges- 2% to 6%
  2. Fund Management Charge- 0.75% to 1.35%
  3. Policy Administration Charge- 1.14% to 2.40% per annum.
  4. Mortality Charges- 1.02 to 11.54per thousand.

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