Life insurance plans including Term Life insurance cover death caused due to health issues. This stands true for death caused due to Coronavirus as well. If a person, who has purchased ICICI Pru iProtect smart policy, passes away due to COVID-19, his/her nominee will be paid the sum assured.
As a thumb rule, you should opt for a policy term depending on your retirement age. By then you would have paid off all your liabilities. However, in case you have some loans or liabilities, which will continue even after your retirement, you may choose your policy term accordingly.
E.g.: If your current age is 30 and you expect to retire at the age of 60, you should opt for a term life cover for 30 years policy term.
Ideal Policy Term = Your Expected Retirement Age – Your Current Age1
OR
Your Expected Age to attain Zero Liability – Your Current Age2
The age limit varies based on the particular plan you choose. The minimum age is 18 years and the maximum age is 65 years to buy ICICI PruiProtect Smart, our best-selling Term Plan.
Yes, Term Insurance premiums are deductible under Section 80C* of the Income Tax Act 1961. You can claim upto ₹ 1.5 lakh deduction for term insurance premiums paid over the year.
You will need to upload your PAN card, an age and address proof (passport, driving license, Aadhar card or voter’s ID), and income proof documents (ITR, salary slips, bank statements or Form 16) while purchasing a Term Insurance online.
We suggest, your term insurance cover should be about 10-12 times your annual income. For eg: if you are earning ₹ 7.5 Lakhs per annum, you must secure yourself with a cover of about ₹ 75 Lakhs.
Additionally, you may also consider the following liabilities if applicable:
I. Loans & Liabilities
II. Children’s’ Education Cost
A simple rule of thumb for calculating Sum Assured in a Term Insurance policy is -
Minimum Sum Assured = Annual Income x 10 times + Loans/Liabilities$$
Limited Pay lets the customer pay off their entire premium in a limited period while enjoying the benefits of the plan for the entire policy term. This lets you free from the burden of paying premiums early on while keeping your family secured for a long period of time. While the premiums to be paid now are higher with Limited Pay, you can end up saving up to 65%`` on total premiums paid over the course of the policy. This is a good option for people who don’t have many financial obligations currently and can manage to pay high premiums. However, if budget is a constraint, then you can go with the Regular Pay option where you pay throughout the policy term. You can choose to pay the premiums monthly, half-yearly or annually.
Once your policy matures or reaches the end of its term, it ceases to exist which means the Term Life Insurance Policy expires and your coverage stops.
All kinds of deaths are covered under a Term Insurance Plan, including natural, accidental, murder, illnesses and natural calamities. Only death due to suicide in the first year of policy is not covered.
When the policyholder and nominee both dies, then a legal heir can receive the claim.
No, you don’t get your money back on survival till the end of the policy term in a Term Insurance plan.
A grace period for payment of premium of 15 days applies for monthly premium payment mode and 30 days for other modes of premium payment. If the premium is not paid even within the grace period, the policy shall lapse and cover will cease.
If you become an NRI after purchasing a Term Plan, your policy remains intact and continues to provides life cover anywhere in the world.
Terminal Illness, as defined for ICICI Pru iProtect Smart, is 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 six 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 an independent assessment.
