Recently, ICICI Pru Life launched new online term insurance plan “ICICI Pru iProtect Smart”. This plan is called as one of a comprehensive term insurance plan in the market.
This plan I think combines all the features a term plan must have. Premium payment flexibility (Single, Yearly, Half-Yearly, or Monthly), Maximum Term of up to 40 Years, Riders like Accidental and Critical Illness, and a variety of benefit amount payment option.
Features of ICICI Pru iProtect Smart
Below are some silent features of this plan. You notice that accidental and critical illness riders maximum limit is not disclosed and I feel depends on individual cases.
- It is a pure online term plan.
- Coverage against death, terminal illness, and disability.
- Provides riders like accidental and critical.
- Special premiums for women.
- Covers s female organ cancers such as breast cancer and cervical cancer.
- You can enhance the sum assured at the later stage based on the increase in financial responsibilities, like your marriage, the birth of a first or second kid.
- Different benefits payout options.
- The surrender value is applicable only to Single premium policies. You can surrender policy and get the surrender benefit. This is calculated as-Surrender Value = (Single Premium*Surrender value factor/100)
Benefit options of ICICI Pru iProtect Smart
First, let us look at the benefits options this plan provides.
- Life-Nominee will receive the benefit only in case of death of a policyholder, terminal illness of policyholders. Along with that, if the policyholder diagnoses with Permanent Disabilities (PD) due to an accident, then the future premiums are waived off. The policy will continue as usual without any premium payment from the policyholder.
- Life Plus-Along with “Life” option, this option provides you accidental rider benefit.
- Life & Health-Along with “Life” option, this option provides you critical illness rider benefit. It covers around 34 major illnesses. The list of this is available HERE. The policyholder will receive the full benefit irrespective of the actual cost of treatment. This benefit can be exercised only once during the policy period. Once the CI benefit paid, then the policy will continue as usual (without CI rider benefit). Please note that, if the CI benefit and death benefit (SA) opted are equal, then after the CI benefit payment, the policy terminates there itself. In addition, if the incident is covered under accidental rider as well as in CI rider, then policyholder will receive the benefit from both the features.
I tried to explain the same in a simple graphical way as below.
- I assumed that incidents of death or terminal illness occurred at 40 years of age.
- Critical Illness is equal to death benefits sum assured.
What is Terminal Illness?
It is an illness, which is highly likely lead to death within 6 months. It must be diagnosed and confirmed by medical practitioners’ registered with the Indian Medical Association and approved by the Company.
Death benefits payout options–
This plan offers three types of payout option of benefits. These are explained in below image.
ICICI Pru iProtect Smart premium illustration–
Look at the premium chart once. You notice that the cheapest option is for “Regular Income” and costliest one is “Increasing Income”. Regular Income option is cheap because they keep the death benefit with them and pay you yearly for rest 10 years. However, Increasing Income is costliest-Because they have to pay 10% per year for 10 years with the increase in inflation at 10%.
If you wisely educate your nominee about how to utilize the claim amount, then your family will have control over money and they are capable of handling any emergency. However, in regular income and increasing income option, they don’t have control and further liquidity. In case of emergency, they can’t withdraw the additional money from this death claim.
Life Stage Protection feature–
Along with all these features, ICICI Pru iProtect Smart offers “Life Stage Protection” feature. You can increase the sum assured when you reach the important milestones of your life. The details are as below.
- Marriage-You can increase another 50% of additional death benefit available to original death benefit (maximum limit is Rs.50, 00,000).
- Birth/Legal adoption of 1st Child-You can increase another 25% of additional death benefit available to original death benefit (maximum limit is Rs.25, 00,000).
- Birth/Legal adoption of 2ndt Child-You can increase another 25% of additional death benefit available to original death benefit (maximum limit is Rs.25, 00,000).
The premium for this enhanced death benefit will be calculated based on the increasing sum assured and remaining policy term. This feature is available ONLY for LIFE OPTION.
My take on this plan–
- Don’t wait, but buy the PURE ONLINE TERM PLAN immediately.
- Each feature of this plan is charged indirectly. So never ever, think that it is a free add-on. However, think whether there is a necessity of adding features.
- There are many limitations in the case of a critical illness rider. Hence, I suggest to go for standalone critical illness insurance than buying as a rider. Buy this insurance only in case you have a family history of such diseases. It is one the complicated rider or insurance, which hardly understandable to the common person.
- In this plan, an accidental rider will be an option only in case of DEATH due to an accident. If you met with an accident, then maximum benefit you can opt is PWB and that too in case of permanent total disability. However, you will not receive any compensation if you are bedridden. This is the reason, it is always best to go for standalone accidental insurance rather than riders with life insurance. In case of standalone accidental insurance plans, you get benefits based on the disability %, which is not the case with accidental rider.
- Critical Illness option is payable only once during the life of the policy. Also, if your critical illness rider is equal to sum assured you offered in the basic plan, then after the payout of critical illness the plan ceases there itself. Therefore, at the later stage, you may have to survive without any life protection.
- In case of benefit payout options, I suggest to go for a lump sum and at the same time educate your nominee or family members of how to use the claim amount wisely. If not educate your family about how efficiently they can use the death claim, then it is WASTE TO BUY TERM INSURANCE. Because, in your absent anyone can trap your family and create a bad investment choice for your family. The two other options “Income” and “Increasing Income” options are good only if you feel that they can’t handle money and along with that they have enough emergency cash to meet any emergencies.
- The enhanced feature is only for marriage and up to 2 kids. What if you have other financial obligations like your spouse education, kid’s education, or some other financial goals? One will not enhance his term insurance only because of marriage and kids. But there are many other financial obligations which we can’t predict. The enhancing feature has restrictions on the sum assured and available with LIFE OPTION only. Hence, I think this just eyewash.
- Considering all these factors, what I feel is buy pure standalone lump sum payable term insurance. I think, ICICI launched this plan just to be in this competitive market as other insurance companies offering lots of add-on features to their term insurance plan.
View Comments
I had purchased iprotect ismart policy of 5000000 at 10163 yearly. I am still going with it but some reviews in YouTube make me confused company's credibility if they would fulfil my future unwanted requirement because so much confused exclusions are injected to escape their payment. Please make me confident with your valuable comment as you usually do.
Dear Subrata,
How can you compare your future death with the so-called Youtube experts examples of deaths and reasons?
Dear Basu
I am salaried person and already have term plan from icici and good going.
My wife is housewife. I like to buy term plan for her also but she is not earning member.
I checked with ICICI on this. They said they can give me term plan for my housewife based on my term plan but maximum cap would be 50% of the sum assured of my term plan.
This policy is issued under icici pru Smart term plan.
Just looking for your comment on this if possible.
Dear Naveen,
Do you need a LIFE INSURANCE for your spouse? If she is not working, then Life Insurance is a waste for her.
Hello sir,
I have seen two term insurance from icici pru iprotect smart POS and iprotect smart. Which one I can go. I am salaried person working in IT industry. Is waiver of premium is good to take for a term insurance . Please suggest.
Dear Dileep,
Let them LAUNCH 100000 VARIANT products :) Go with simple Term Life Insurance without riders.
Hi sir, My doubt is if a person has taken the icici I protect smart term plan, if that policy holder immediately dies in the same year.Does his nominee can claim? what are the minimum premiums had to be paid in such case?
Dear Sravanthi,
YES, the nominee can claim. Even if the single premium is paid and the policy is issued, then the nominee has a right to claim.
I bought icici iprotect smart life term plan a year ago. Recently i checked my documents and it has four different plan .life. life plus. Life health. All in one. I belong to Life . I am bit confused whether life policy covered against death due to accident. It shows no to accident death which means if i die on accident my nominee wont get nothing based on this policy. Please clear my doubt as I want to cancel this policy.
Thank you
Dear Jos,
Who said death due to accident not covered?
Sir I have already taken ICICI Pru i smart term plan of 85Lakhs of 85 years of age . In this policy category shown Non Medical .
Any medical tests not completed till today . Please give me suggestion
Thanking you sir
Dear Ganapathi,
What suggestion you looking for when you already purchased it?
Sir I have purchased ICICI term policy but not completed medical tests .
Dear Ganapathi,
If you are uncomfortable, then better not to proceed.
Hi Sir,
I am taking a home loan if Rs4450000 in HDFC, they are asking me to take insurance for the same, insurance name is HDFC flexi grow. Yearly premium is about 120000, can i go with that? Please advise, i dont have any idea about that.
Dear Shiv,
Stay away from such dangerous people and products.
I have already taken I care 2(term insurance) with 59lakh sum assured with premium 25487 from 2012 (total term 30 years) till my age of 71 years.now they have advised me to change the policy to I protect smart with premium 58000 for 5 years with policy term 37 years.my present age 48 . will it be good to change?
Dr.Shaji,
Stay away from such SELLING tactics.
Dear Sir
Your blogs are very nice. Can you please give your opinion on Edelweiss Tokyo Zindagi+ term insurance plan.
This company is pretty new. Is it advisable to go for a term insurance with this company. Your comments will be very much helpful.
Dear Srinivasan,
It is better to go with well established.
Please don't get bluff and spend your energy with ICICI iProtect Smart term plan. Their management is worst to response and bluff you with no valid reason.
In my case, they reject my application -OB10963288 based on my past medical history which I clearly stated in application form and provided most medical reports. The worst part it - they send me 37 KM for USG test one way and no major difference in my old and new USG observation.
If my medical condition is so worst to process my application further, they should reject it in first instance rather ICICI made me go through all this medical process.
As far as learn from term plan market, diabetes, high/low bp are more severe conditions and they accept such cases with high premium. However, my premium was low 3.75 lakhs for 10 years for 1 CR term plan. So, might be they won't get benefited in my case and simply rejected.
Please don't spend your energy and money with them. They are worst, energy-sucking and pain giving players in market.
Dear Geeta,
Sad to hear your bad experience. However, this may not be considered as company specific. If the underwriter feels there is a risk, then they may load the premium, reduce the sum assured or reject your proposal. Hence, better you search different option.