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ICICI Prudential Life Insurance 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.
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.
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.
|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
|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
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.
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.