Compare ICICI Prudential Savings Suraksha Plan

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ICICI Prudential Savings Suraksha Plan

ICICI Prudential Savings Suraksha is a traditional savings plan which has a flexible premium paying term and promises guaranteed benefits either on death or maturity. Bonuses are also added to the plan along with Guaranteed Additions which increase the benefit payable.

Key features of the plan

  • Premiums can be paid either for a limited tenure or throughout the entire plan term.
  • Bonus additions are applicable under both limited and regular premium plans.
  • Guaranteed Additions accrue during the first 5 years of the policy
  • Loans are available under the plan for meeting financial emergencies

How does the plan work?

Step 1 – the policyholder chooses the premium amount, the premium paying term and frequency. Based on the insured’s age and the above factors, the Guaranteed Maturity Benefit and Sum Assured is calculated.

Step 2- Guaranteed Additions are added to the benefits in the first 5 years of the plan. Bonuses will also be added if the insurance company earns a profit in any year.

Step 3 – if the insured survives the plan tenure, the guaranteed maturity benefit, accrued guaranteed additions and bonuses are paid.

Step 4 – in case of death during the term of the plan, the guaranteed death benefit is paid which is highest of the Sum Assured, guaranteed maturity benefit and minimum death benefit of 105% of premiums paid. Guaranteed Additions and bonuses are also paid.

Example

Mohan, aged 40 years, buys the plan paying a premium of Rs.50, 000. The term is 15 years and the Sum Assured is Rs.5 lakhs. The Guaranteed Maturity Benefit would depend on the premium and the term.

Option 1 – if Krishna dies during the plan term, higher of the guaranteed maturity benefit or 10 times the annual premium (Sum Assured) or 105% of premiums paid (Minimum death benefit) is paid as guaranteed death benefit. Any paid-up Additions are also paid along with accrued bonus. Accrued bonuses are declared every year when they accrue.

Option 2 – when the plan matures, the maturity benefit is paid which is the Guaranteed Maturity Benefit including guaranteed additions and accrued bonuses.

Plan benefits

  • Death benefit – if the life insured dies during the term of the plan, and all premiums have been paid, the death benefit, Guaranteed Additions (if any) accrued bonuses and any terminal bonus is paid. The death benefit is higher of the guaranteed maturity benefit, Sum Assured or minimum death benefit which is 105% of total premiums paid till death.
  • Maturity Benefit – when the chosen tenure of the plan comes to an end, and all premiums have been paid, the guaranteed maturity benefit, Guaranteed Additions, accrued bonuses and any Terminal Bonus is paid.
  • Guaranteed Additions – 5% of the Guaranteed Maturity Benefit is added to the policy benefits as Guaranteed Additions in the first 5 years of the plan.
  • Bonus – simple reversionary bonuses are declared every year if due premiums are paid. The bonus rate depends on the performance of the company. On maturity or death, a terminal bonus might also be paid.
  • Loans – up to 80% of the Surrender Value can be taken as loan under the plan.

Eligibility

  Minimum Maximum
Age at entry (in completed years) 0 years 60 years
Age at maturity (in completed years) 18 years 70 years
Term of the plan Premium paying term 5 years or regular pay– 10 to 30 years
Premium paying term 7 years – 12 to 30 years
Premium paying term 10 years – 15 to 30 years
Premium paying term 12 years -  17 to 30 years
Premium paying options Limited pay
Premium Paying term 5,7,10,12 years
Premium amount Premium paying term 5 years – Rs.30,000
Premium paying term 7 years – Rs.18,000
Premium paying term 10,12 years or regular pay – Rs.12,000
No limit
Sum Assured Age less than 45 years – 10 times the annual premium
Age 45-54 years – 10/7 times the annual premium
Age 55 years and above – 7 times the annual premium
Guaranteed Maturity Benefit Premium paying term 5 years– Rs.125,359
Premium paying term 7 years – Rs.109,897
Premium paying term 10 years – Rs.108,059
Premium paying term 12 years -  Rs.134,048
Regular pay – Rs.93,750

What is not covered in the policy?

  • In case of suicide committed within 12 months of inception, 80% of the premiums paid are refunded.
  • If suicide is committed within 12 months of revival, higher of 80% of the premiums paid or the surrender value under the plan is paid.

Premium Illustration

Below is the illustration of benefits payable under the plan if a male aged 35 years buys the policy paying different levels of annual premiums. The policy term chosen is 30 years and premiums are payable annually for 10 years.

ICICI-Prudential-Savings-Suraksha

FAQs

How is paid-up value calculated?

If there is a premium default, the policy becomes paid-up. paid-up value is applicable only if 2 years’ premiums have been paid in case of premium paying terms less than 10 years and 3 years if the premium paying term is 10 years and above. The formula for calculating paid-up value is as follows:

Guaranteed Maturity Benefit * (number of premiums paid/total number of premiums payable)
Moreover, the paid-up value of guaranteed additions and accrued bonuses are also added to arrive at the final paid-up value.

Does the policy acquire a Surrender Value?

Surrender Value is applicable if the plan acquires a Paid-up Value. Paid-up Value depends on the premium paying term. If the premium paying term is 10 years or more, the plan acquires a Surrender Value after 3 years’ premiums have been paid. If the premium paying term is less than 10 years, surrender value becomes applicable only if the first 2 years’ premiums have been paid. The Surrender Value is calculated after including the surrender value of guaranteed additions added to the policy and also the accrued bonuses, if any.

What are the premium paying modes?

Premiums can be paid annually, half-yearly or monthly.

Are there any additional riders?

No, the plan does not have any optional riders.

Can a lapsed policy be revived?

Yes, to revive a lapsed policy the outstanding premiums, interest thereon and any medical declaration would have to be submitted within 2 years of lapse.

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