The breadwinner of a family has many financial responsibilities and setting aside money for investment is an important one. It is important to use the right investment tools to cope with sudden requirements of life, such as the unit linked insurance plan (ULIP), a blend of both investment and insurance. One such protection and savings-oriented ULIP plan is ICICI Pru Smart Life insurance plan. Multiple investment choices are available with this plan for high returns from investment along with providing a life cover to the policyholder.
ICICI Prudential Smart Life Insurance Plan Details
Eligibility
Below mentioned are the eligibility details for availing ICICI Pru Smart Life plan:
| Parameter | Details |
| Entry Age | Min: 20 years
Max: 54 years |
| Maturity Age | Min: 30 years
Max: 64 years |
| Policy Term (PT) | Min: 10 years
Max: 25 years |
| Premium Paying Term (PPT) | Single Pay/ Equal to Policy Term |
| Premium Paying Frequency | Monthly
Bi-Annually Annually |
| Yearly Premium | Min:
Single Premium Payment: Rs. 48000 Regular Premium Payment: Rs 45000 Max: No limits |
| Sum Assured | Regular Pay
Min: Higher of (10 x annual premiums paid) and (0.5% of term annual premiums x policy term paid) for policyholder below 45 years of age/ higher of 7 x annual premiums paid/ 0.25% of term annual premiums x policy term paid for policyholder below 45 years of age. Single Pay Min: 1.25 % of the single premium paid Max: 10 times the single premium paid for policyholder below 35 years age or 1.25% single premium paid for policyholder above 35 years of age. |
Features of ICICI Pru Smart Life
- ICICI PruSmart Life allows you to enjoy potential returns from investment as well as to grow your money by investing in market-linked funds.
- The plan offers all-round protection to the policyholder as well as his/her family members. On the death of the policyholder, the family of the policyholder will receive death benefits in a lump sum.
- With long-term investments, the insurance company will reward you with loyalty additions that are added to your assured sum.
- Wealth boosters are added to the assured sum value apart from the loyalty additions that enhance the sum value.
- This plan offers premium payment options viz. regular and single premium payment.
- Apart from the fund options, the policyholder can choose to invest in Automatic Transfer Strategy wherein all the invested money is put in money market fund or income fund and later is transferred to any of the fund options mentioned above.
Investment Fund Options
Under the fixed portfolio strategy, 11 fund options are available for investment, they are:
- Bluechip Fund
- Income Fund
- Maximize India Fund
- Maximizer V
- Money Market Fund
- Multi-Cap Balanced Fund
- Multi-Cap Growth Fund
- Opportunities Fund
- Value Enhancer Fund
- Secure Opportunities Fund
- Active Asset Allocation Balanced Fund
Riders under ICICI Pru Smart Life
This ULIP offers additional benefit and coverage through a rider called Unit Linked Accidental Death Rider. Under this rider, you get additional life cover which is similar to that of base ULIP plan. However, this depended on maximum sum assured conditions. Cancellation of units on a monthly basis is how you are charged for this rider.
Investment Strategies under ICICI Pru Smart Life
You have the facility to choose an investment strategy as per your financial goals or risk appetite. The available investment strategies are:
Fixed Portfolio Strategy
With a fixed portfolio strategy, you can manage your funds by choosing to invest in debt fund or equity fund as per your risk appetite.
Life Cycle-Based Portfolio Strategy
Here, the insurance company manages your investment in order to create an equal balance between both the fund options, i.e., the debt fund and the equity fund based on your age.
Exclusions under ICICI Pru Smart Life
In the incident of death of the policyholder due to suicide within the 1st year of the inception of the policy, the existing fund value is payable, including the top up. Any other additional increase in the assured sum will not be payable under the policy.
What are the Documents Required to Purchase the Plan?
You need to submit the following documents in order to purchase this ULIP plan:
- A duly filled application form
- Regular KYC documents
- Address proof
What is the Premium to be paid for ICICI Pru Smart Life?
The premium paid to purchase this plan is dependent on the category of age the applicant belongs to. Following are the age categories and the premiums to be paid accordingly:
Regular Pay Premium Amount
| Entry Age | Regular Premium Payment
(Minimum premium per annum) |
| 20-49 years | Rs 45,000 p.a |
| 50-52 years | Rs 1,20,000 p.a |
| 53-54 years | Rs 5,00,000 p.a |
Single Pay Premium Amount
| Entry Age | Single Premium Payment
(Minimum premium per annum) |
Sum Assured |
| 35-54 years | Rs 48,000 | 1.25 x single premium paid |
| 20-28 years | Rs 48,000 | 10 x single premium paid |
| 29-35 years | Rs 1,25,000 | 10 x single premium paid |
Limited Pay Premium Amount
| Entry Age | Limited Premium Payment
(Minimum premium per annum) |
| 20 years | Rs 45,000 |
Benefits of ICICI Pru Smart Life
Like every ULIP plans, this plan has a lot more to offer you, they are:
- During the policy maturity, the insured receives the complete fund value, including the top up value.
- The policyholder can opt to take the maturity amount in a lump sum or within a specified time of 5 years.
- In the incident of the death of the policyholder, the death benefits are paid to the chosen nominee including the smart benefit in a lump sum amount.
- Under the smart benefit option, all the future premiums are waived off in the incident of the death of the policyholder during the premium paying term. Even after the policyholder’s death, the policy will remain active until the chosen policy term.
- After the 5th policy year, loyalty additions at the rate of 0.25% of the total premiums paid are added annually to the assured sum.
- After the 10th policy year and after every 5 years thereafter, wealth boosters are added to the assured sum at the rate of 1.50% for the single premium payment and 3.25% for other payment options.
- Under Sections 10 (10D) and 80C of the Income Tax Act, you can avail tax benefits for this ULIP plan.
- If the policyholder is not content with the policy’s terms and conditions, there is a provision wherein he/she can return the policy within the free look period of 15 days from the policy inception.
- If you fail to pay the premiums for the monthly mode or other modes, a grace period of 15 days and 30 days respectively is offered. If you do not pay the premium during this f=grace period, your policy will be terminated.
- After the completion of 5 policy years, the policyholder can choose to surrender the policy. If the policyholder opts to surrender the policy before the completion of 5 policy years, surrender charges will be deducted and transferred to the discontinued policy fund, and the rest amount will be payable to the policyholder. After the completion of 5 policy years, this deducted charge will be paid to the policyholder. If the policyholder opts to surrender the policy after 5 policy years, the entire fund value is payable.
- Multiple partial withdrawals are permitted with this ULIP plan annually. However, the combined partial withdrawals should not exceed 20% of the accrued sum value.
- Unlimited free switches are allowed with the ICICI Pru Smart Life Insurance Plan. The policyholder can switch among the fund options for as many times as he/she wants to without paying any additional charges based on their risk appetite.
- In order to enhance the fund value, you can use top-ups. However, the minimum top up value must be Rs 2,
- The policyholder is provided with the freedom to change the portfolio strategy once a year without paying any additional charges.
- In case the policyholder chooses for premium redirection, the future premiums will be redirected to a new fund.
FAQs
Q1. Does the ICICI Pru Smart Life Insurance Plan provide any riders?
Yes, you have an option to choose the unit linked accidental death rider by paying an additional premium for the same.
Q2. Is the plan eligible for bonuses?
No. This ULIP plan does not attract any kind of bonuses.
Q3. What are the settlement options offered by ICICI Prudential?
After the policy maturity, the policyholder can choose to receive the maturity benefits in a lump sum or a period of 5 years with the settlement option. The settlement option allows you to receive the maturity amount in a monthly, quarterly, half-yearly, or yearly basis.
Q4. What are the charges applicable to the plan?
Following are the charges applicable to this ULIP plan offered by ICICI Prudential:
- Premium Allocation Charges
- Policy Administration Charges
- Mortality Charges
- Fund Management Charges
- Discontinuation Charges
- Taxable Charges as per the Indian Income Tax Act
Q5. Can I change the portfolio strategies?
Yes, you have an option to change your selected portfolio strategies once per policy year without any additional charge.