Term Insurance Benefits

Term insurance plans secure your family’s financial future even when you are not around. These plans are considered by many as one of the basic financial necessities of life, especially in today’s times. Term insurance plans also have multiple features and benefits, right from affordable premiums to riders for additional covers.

What are the benefits of term insurance?

Term insurance offers multiple benefits to customers. Here are a few you should be aware of:

Financial Protection

One of the greatest benefits of term insurance is financial protection of your family in case of an unfortunate event. The sum assured of your term plan can be sufficient to cover all their needs.

Affordable Premiums

You can get a high-value life cover^!a from a term insurance plan by paying an affordable premium amount of ₹ 460/- p.m^2a. Premium payments can be made either monthly/half-yearly/yearly. The earlier you buy a term insurance plan, the lower the premium amount you have to pay

Whole Life Cover^!a

Term insurance plans offer substantially longer coverage. Whole life insurance plans offer coverage till the age of 99 years

Payout of Sum Insured

In case of the unfortunate demise of the person insured, the family members will receive the sum assured as a payout. The policyholder can choose for this payout to be in the form of a lump sum, an income that is either monthly or annual, a combination of lump sum and income or an increasing income at the inception. This will help take care of financial needs and household expenses among other costs

Critical Illness Coverage

In case optional Critical Illness Coverage¹ is included in your term insurance plan, you will get a lump sum payout upon diagnosis of any critical illness¹ that is covered in the plan

Accidental Death Benefit

You can add the Accidental Death Benefit³ to your term insurance plan. This will offer protection against any mishaps in the future

Coverage for Terminal Illnesses

Term insurance plans can give you lump sum payouts in case of diagnosis of terminal illnesses² such as AIDS

Tax^** Benefits

You can get tax^** benefits on premiums paid under Section 80C along with premiums paid towards critical illness benefit under Section 80D. The lump sum amount received by nominees as the sum assured/death benefit is also exempted from taxes subject to Section 10 (10D) of the Income Tax Act, 1961

What are the benefits of buying term insurance at an early age?

Below are some benefits of a term life insurance policy if bought early:

Lower Premiums

The premium^~” of a term insurance plan is significantly lower if you purchase one at a young age. Younger individuals are generally healthy and active so the likelihood of a death claim is lower for them. Insurance companies factor in this reduced risk and, as a result, offer a high life cover^!a at more affordable premiums.

Extended Protection

Buying a term insurance plan at a young age allows you to opt for a longer policy term ranging up to 20, 30 or even 40 years. This ensures that your plan covers your loved ones for a longer time and through all the important stages of your life, such as getting married, raising children, paying off a home loan and more.

Peace of Mind

Buying a term insurance plan at a young age can offer you peace of mind and alleviate your stress. Life cover^!a ensures your loved ones are protected in your absence. Knowing your family is financially protected helps you to focus on your personal and professional growth.

How can a term plan secure your family's future?

A term insurance plan can secure your family’s future in the following ways:

Income Replacement

The death benefit from a term insurance plan can be used to replace the income earned by the deceased policyholder, if alive, and provide crucial financial support to the family. This can help the grieving family manage their expenses and maintain their current standard of living.

Debt Coverage

The money received from a term insurance plan can be used to settle outstanding loans. If you have debt like a home, car or any other loan, it can help to buy a term insurance plan with a life cover^!a that is high enough to cover your loan. This ensures that your loved ones have the necessary means to repay the loan in your absence.

COMP/DOC/Nov/2024/1811/7650

Why choose term insurance plans?

Term insurance plans offer financial security for the entire family in case of the unfortunate death of the policyholder. Also, you can get optional coverage for critical illnesses or accidental death. You are covered for a long duration, while the premiums are affordable.

The ICICI Pru iProtect Smart term insurance plan offers the regular benefits of a term insurance plan with extensive Critical Illness Coverage. Here are a few key features of the same:

Longer coverage with the option to be covered until 99 years of age
Extensive coverage for 34 critical illnesses¹ (optional)
Receive payouts upon the first diagnosis of any critical illness¹ covered under the plan
Receive full payout of life coverage upon diagnosis of any terminal illness²
Pay lower premium starting from ₹ 460/- per month^2a
Choose from four payout options, namely Lump Sum, Lump Sum + Income, Increasing Income and Income

You can also buy term insurance online under the MWP (Married Women’s Property) Act⁴, ensuring that your insurance amount is protected and handed over to your spouse and/or children without being claimed wrongfully by creditors⁴.

Term Insurance Calculator

Frequently asked questions

1. What are the tax** benefits of a term plan?

Term plans offer significant tax benefits. You can claim a deduction of up to ₹ 1.5 lakh under Section 80C** and up to ₹ 25,000 under Section 80D^** of The Income Tax Act, 1961, for the premiums paid toward your term insurance plan. Additionally, the insurance payout is exempted subject to conditions prescribed under Section 10(10D)^** which provides you with further financial advantages.

2. What are the optional term plan benefits?

Optional benefits of a term plan include riders that can be added to an existing term plan. These provide additional financial protection and the option to customise your plan according to your needs. These flexible options cater to your diverse needs and preferences and enhance the overall value and utility of your term insurance policy.

3. Does a term insurance plan give maturity benefits?

The maturity benefits of a term plan do not typically apply to traditional term insurance plans. However, a return of premium term plan is an exception to this rule. In such plans, if the policyholder survives the policy term, all the premium payments are returned. While traditional term plans focus primarily on providing financial protection in case of the policyholder's absence, return of premium plans offer a unique combination of protection and savings. This makes them an attractive option.

4. Why is term insurance more affordable than other types of life insurance?

Term insurance is more affordable than other types of life insurance primarily because it provides pure financial protection without any investment or savings components.

5. How does term insurance help with debt repayment?

In the event of your untimely demise, the death benefit from a term insurance policy can be used by your family to settle any debts you may have. This plan provides a lump sum payout that allows your family to clear your dues and protect your financial assets.

6. Are Death benefits from Term Insurance taxable?

No, the death benefit from term insurance are not taxable. These benefits are exempt from income tax under Section 10(10D)^** of The Income Tax Act, 1961. This ensures that the financial support provided to your beneficiaries in the event of your death is received without any tax liability.

COMP/DOC/Apr/2024/24/5798

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Disclaimer

^* The given premium is applicable for an 18-year-old healthy male life with the monthly mode of payment and premiums paid regularly for the policy term of 18 years with an income payout option with a Life Cover of ₹ 1 crore. Goods and Services Tax and/or applicable Cesses (if any) as per applicable rates will be charged extra.

^** Tax benefits under the policy are subject to conditions under Sections 80C, 80D, 10(10D), 115BAC and other provisions of the Income Tax Act, 1961. Goods and Services Tax and Cesses, if any, will be charged extra as per prevailing rates. Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for more details.

¹ Critical Illness Benefit (CI Benefit) is optional and available under Life & Health and All in One option. This benefit is payable, on the first occurrence of any of the 34 illnesses covered. Medical documents confirming the diagnosis of critical illness need to be submitted. The benefit is payable only on the fulfilment of the definition of the diagnosed critical illness. The CI Benefit is accelerated and not an additional benefit, which means the policy will continue with the Death Benefit reduced by the extent of the CI Benefit paid. The future premiums payable under the policy will reduce proportionately. If CI Benefit paid is equal to the Death Benefit, the policy will terminate on payment of the CI Benefit. To know more in detail about the CI Benefit and terms & conditions governing it, kindly refer to the sales brochure. CI Benefit term would be equal to the policy term or 30 years or (75-Age at entry), whichever is lower.

² A Life Assured shall be regarded as Terminally Ill only if that Life Assured is diagnosed as suffering from a condition which, in the opinion of two independent medical practitioners specialising in the treatment of such illness, is highly likely to lead to death within 6 months. The terminal illness must be diagnosed and confirmed by medical practitioners registered with the Indian Medical Association and approved by the Company. The Company reserves the right for independent assessment.

³ Accidental Death Benefit (ADB) is up to ₹ 2 Crore. ADB is available in Life Plus and All in One option. In case of death due to an accident, Accidental Death Benefit will be paid out in addition to Death Benefit. Accidental Death Benefit will be equal to the policy term or (80-Age at entry), whichever is lower.

⁴ Nothing herein contained shall operate to destroy or impede the right of any creditor to be paid out of the proceeds of any policy of assurance, which may have been effected with intent to defraud creditors. In case of any third-party claim in the Courts of India with regards to the insurance proceeds, the amount shall be subject to the judiciary directions. Please seek professional legal advice for the applicability of this provision.

ICICI Pru iProtect Smart UIN .

Advt No.: W/II/2009/2020-21

^2a The premium of ₹ 460 p.m. has been approximately calculated for a 18-year-old healthy male life with monthly mode of payment and premiums paid regularly for the policy term of 31 years with income payout option (income for 20 years) with Life Cover of ₹1 crore. Goods and Services tax and/or applicable cesses (if any) as per applicable rates will be charged extra.

^~”The premium for a term plan is dependent on factors like age, gender, Sum Assured, Policy Term, etc. Keeping all other factors constant, the premium for younger ages is lower than that of higher ages

^!aLife Cover is the benefit payable on the death of the life assured during the policy term.

^!jClaim settlement ratio is for Financial Year FY2023-24 and is computed on individual basis claims settled over total individual claims for the financial year. For details, refer to ICICI Prudential Annual Report 2023-24 in Public Disclosure section on ICICI Prudential website.

ADVT: W/II/0194/2024-25

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