ICICI Prudential’s Smart Life Plan is a unit linked plan which has an automated investment strategy for policyholders who cannot manage their own investments. The plan also provides a comprehensive coverage by waiving the premiums in case of the insured’s death but continuing the plan till maturity. Thus, it creates a safe corpus which is not affected by the death of the life insured and returns are also market-linked.
Step 1 – the policyholder chooses the premium amount, plan term and the premium paying term. The minimum and maximum Sum Assured is then calculated using the age of the insured and the plan term. The policyholder can choose any Sum Assured from the minimum and maximum range.
Step 2 – the policyholder also chooses the investment strategy. There are 2 strategies which are as follows:
Step 3 – the policyholder can make partial withdrawals or switch his investments if Fixed Portfolio Strategy is chosen.
Step 4 – top-ups can be done to increase the investment in a chosen fund.
Step 5- in case of death during the plan term, the death benefit is paid. Premiums are waived off and the plan continues till maturity.
Step 6 – if the insured survives the plan tenure, the maturity benefit is paid.
Anushka, aged 30 years, buys Smart Life Plan with a premium of Rs.50, 000 and a Sum Assured of Rs.5 lakhs.
Option 1 – She opts for Fixed Portfolio Strategy and allocates 100% of the premiums in Opportunities Fund. In case of death during the tenure, the death benefit would be paid to the nominee which would be higher of the Sum Assured or Fund Value. Future premiums would be waived off and paid by the company. Loyalty Additions, additional loyalty additions and wealth boosters are paid as they accrue. On maturity, the Fund Value is paid.
Option 2 – She chooses Life cycle Based Portfolio Strategy. The allocated premium is invested in Multi-Cap Growth Fund and Income Fund in the ratio 75%: 25% depending on Anushka’s age. Every time Anushka’s age band changes the fund moves from equity-oriented funds to Income Fund. On death, higher of Sum Assured or Fund Value is paid and premiums are waived. On maturity, the Fund Value is paid.
Anushka can make partial withdrawals, switch between funds and also pay top-up premiums during the plan tenure.
|Age at entry (in completed years)||20 years||54 years|
|Age at maturity (in completed years)||30 years||64 years|
|Term of the plan||Regular premium – 10, 25 years
Single premium – 10 years
|Premium paying options||Regular pay or Single Pay|
|Premium Paying term||Equal to plan term or once|
|Annual premium amount||Regular premiums:
Age 20-49 years – Rs.45,000
Age 50-52 years – Rs.1.2 lakhs
Age 53-54 years – Rs.5 lakhs
Age 20-54 years – Rs.48,000
Age 39-35 years if Sum Assured required is 10 times the premium paid – Rs.1.25 lakhs
|Sum Assured||Regular Premium:
If age is below 45 years – higher of 10 times the annual premium or 0.5*term*annual premium
If age is 45 years and above – higher of 7 times the annual premium or 0.25*term*annual premium
Single Premium – 1.25 times the single premium
Ages 20 to 25 years – 30 times the annual premium
Ages 26 to 30 years – 25 times the annual premium
Ages 31 to 44 years – 15 times the annual premium
Ages 45 to 54 years – 10 times the annual premium
If age is less than 35 years – 10 times the single premium
If age is 35 years and above – 1.25 times the single premium
In case of suicide committed within 12 months of inception or revival of the plan, the available Fund Value and any top-up premium Fund Value is paid.
Yes, Unit Linked Accidental Death Rider is available with the plan. The rider pays an additional Sum Assured in case of accidental death.
A maximum of 99 top-ups are allowed during the entire plan tenure.
Yes, in case of partial withdrawals, the first withdrawal would be from the top-up Fund Value if any.
The policyholder can decrease the Sum Assured but the premium remains unchanged. The decrease is allowed in multiples of Rs.1000 and once decreased the Sum Assured cannot be increased.
No, if the premiums under the policy have been discontinued, premium waiver benefit is not applicable. On death, higher of the Sum Assured or Fund Value is paid and the plan is terminated.