ICICI Pru Future Perfect is an endowment plan that grows our wealth with the promise of protecting our money. This is done through two guaranteed features in the plan called –
At the end of the policy term, the policyholder receives a sum that includes Guaranteed Maturity Benefit (GMB), Guaranteed additions (GA), and additional bonuses declared by the company if any. Guaranteed benefits are payable subject to all due premiums being paid and the policy is in force on the date of maturity.
a) The policyholder can choose premium payment term, premium payment frequency, Sum Assured on death and policy term as per your need.
b) The policyholder gets life cover for the entire policy term.
c) Tax benefits on Premiums Paid.
d) Premium payment term and policy term was chosen at inception of policy cannot be changed.
e) After completion of the policy term, the policy will not participate in profits.
f) Savings with the comfort of guarantees – At maturity of the policy, you receive the following :
a) Death Benefit –
On the death of the life assured during the policy term, for a premium paying or fully paid policy, the following will be payable to the nominee of the policy –
Death Benefit = Higher of (A, B),
Sum Assured on Death is defined as, highest of the following –
*Bonuses consist of accrued reversionary bonuses, interim bonus, and terminal bonus if any.
The minimum guaranteed sum assured on maturity is the Guaranteed Maturity Benefit (GMB)Absolute amount assured to be paid on death is 10 times the Annualized Premium. All policy benefits cease on payment of the death benefit.
b) Maturity Benefit –
On survival of the life assured till the end of the policy term for a policy on which all due premiums are paid, the following will be payable –
Maturity Benefit = Higher of (D, E)
Your GMB will be set at policy inception and will depend on age, policy term, premium, premium payment term, and gender. Your GMB may be lower than your Sum Assured on death.
For example – For a male life aged 35 years, with a PPT of 10 years, policy term of 20 years, a premium of Rs 30,000 paid annually the GMB is Rs 2,29,050. Guaranteed Additions (GAs) as a percentage of annualized premium is set out in the following table –
c) Surrender Benefit –
The policy will acquire a Guaranteed Surrender Value after payment of two full years’ premium. On policy surrender, the policyholder will get higher of the following –
Note – if you discontinue your premiums before your policy has acquired a surrender value, no benefits will be payable under the policy.
What happens if you discontinue your premiums?
If you discontinue premium payment before your policy acquires a surrender value, your policy will lapse and no benefits will be paid. However, you can revive the policy within five years from the due date of the first unpaid premium.
If premium payment is discontinued after the policy has acquired a surrender value, the policy would continue as a ‘paid-up’ policy with reduced benefits as explained below –
On the death of the life assured during the policy term when the policy is paid-up, the paid-up Sum Assured on death, paid-up GAs, accrued reversionary bonuses, and contingent reversionary bonus, if any, will be payable.
On survival of the life assured till the end of the policy term, the paid-up GMB, Paid-up GAs, accrued reversionary bonuses, and contingent reversionary bonus, if any, will be payable. A paid-up policy will not be entitled to reversionary bonuses or terminal bonuses.
Can I revive my lapsed policy?
A policy which has discontinued payment of premiums may be revived subject to underwriting and the following conditions –
The revival of the policy may be on terms different from those applicable to the policy before premiums were discontinued; for example, extra mortality premiums or charges may be applicable. The revival will take effect only if it is specifically communicated by the Company to the policyholder.
On the revival of a paid-up policy, the paid-up Sum Assured on death, paid-up GAs and paid-up GMB will be restored to the Sum Assured on death, GAs, and GMB applicable at the time of premium discontinuance.
Can I take a loan against this policy?
The policyholder can take loans under this policy after the policy acquires surrender value. The loan amount of up to 80% of the Surrender Value can be availed.
The Company shall be entitled to call for repayment of the loan with all due interest by giving three months’ notice if the amount outstanding is greater than the surrender value. In the event of failure to repay by the required date, the policy will be foreclosed, the policy will terminate, and all rights, benefits, and interests under the policy will stand extinguished.
Can I cancel the policy if I didn’t like its terms and conditions?
If the policyholder is not satisfied with the terms and conditions of the policy, then he/she can return the policy document to the Company with reasons for cancellation within 15 days and 30 days (in case the policy is purchased through distance marketing) from the date the policyholder has received it. This period is known as the Free Look Period.
On receiving the policy, the company will return the premium subject to the deduction of the following –
The policy shall terminate on payment of this amount and all rights, benefits, and interests under this policy will stand extinguished.
How much money will my family receive in my absence?
Your family will receive the higher of the following –
*Consists of vested reversionary bonuses, interim bonus, and terminal bonus, if any.
**Including extra Mortality Premiums and excluding taxes. The cost of providing a Life Cover under the policy is called Mortality Premium.
Suicide Clause –
If the life assured whether sane or insane, commits suicide within 12 months from the date of Commencement of Risk of this policy, the policyholder or nominee as applicable will be entitled to higher of 80% of total premiums including extra premiums if any paid till the date of death or surrender value as available on the date of death.
If the life assured whether sane or insane, commits suicide within 12 months from the date of revival of the policy, the higher of (A or B) will be payable.
All rights, benefits, and interests under the policy will stand extinguished.
So, by now you know each and every important detail about this policy. Do let me know if I have missed any important points in the comment section. Please feel free to ask any doubts regarding this policy.
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