ICICI Pru Savings Suraksha – Review, Features and Benefits

All of us need a sound financial plan to achieve our goals in life: buying a house, securing our children’s education, going on a dream vacation, and living comfortably after retirement.

ICICI Pru Savings Suraksha gives you the flexibility to choose a premium payment option based on your needs. You can pay premiums for a limited period or for the entire policy term. In this policy, there are 2 plans – Limited Pay and Regular Pay.

icici pru savings suraksha policy

Features of this Policy –

a) ICICI Pru Savings Suraksha – Limited Pay

  • Protection – Get life cover for the entire policy term
  • Flexibility – Choose premium payment term, premium payment mode, Sum Assured on death, and policy term as per your need.
  • Tax benefits on Premiums Paid.
  • Savings with the comfort of guarantees – At maturity of the policy, you receive –
  1. Guaranteed Maturity Benefit (GMB)
  2. Accrued Guaranteed Additions (GAs)- During each of the first
  3. five policy years, GA equal to 5% of GMB will accrue to the policy
  4. Vested reversionary bonuses, if any
  5. Terminal bonus, if any

b) ICICI Pru Savings Suraksha – Regular Pay

  • Protection – Get life cover for the entire policy term
  • Flexibility – Choose premium payment mode, Sum Assured on death and policy term as per your need
  • Tax benefits on Premiums Paid
  • Savings with the comfort of guarantees – At maturity of the policy, you receive –
  1. Guaranteed Maturity Benefit (GMB)
  2. Accrued Guaranteed Additions (GAs) – During each of the first five policy years, GA equal to 5% of GMB will accrue to the policy
  3. Vested reversionary bonuses, if any
  4. Terminal bonus, if any

Benefits of this Policy –

a) Death Benefit –

On the death of the life assured during the policy term, for a premium paying or paid policy, the following will be payable –

Death Benefit = Highest of the following –

  • Sum Assured on death plus accrued Guaranteed Additions and Bonuses
  • GMB plus accrued Guaranteed Additions and Bonuses
  • Minimum Death Benefit

Bonuses consist of vested reversionary bonuses, interim bonuses, and terminal bonuses if any. Minimum Death Benefit is equal to 105% of the total premiums received up to the date of death. 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 = Guaranteed Maturity Benefit (GMB)

  • + accrued Guaranteed Additions
  • + vested reversionary bonuses, if any
  • + terminal bonus, if any

Your GMB will be set at policy inception and will depend on policy term, premium, premium payment term, Sum Assured on death, 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 50,000 paid annually the GMB is Rs 5,05,561. An illustration of the total benefits that you can receive is shown in the benefit illustration.

GMB is the Sum Assured on maturity. Maturity Benefit for a policy on which all due premiums are paid shall be at least equal to the total premiums (excluding any extra mortality premium, Goods & Services Tax and Cess, if any) paid by the policyholder. Guaranteed Additions (GAs) totaling 5% of GMB each year will accrue during the first five policy years if all due premiums are paid.

GAs accrue on payment of due premium. Reversionary bonus, if any, will be declared each year during the term of the policy starting from the first policy year. The bonuses declared for ICICI Pru Savings Suraksha may differ between Limited Pay and Regular Pay options.

Eligibility Conditions of this Policy –

eligibility conditions of the policy

Can I surrender my policy?

If all premiums have been paid for at least two consecutive years, the policy will acquire a Guaranteed Surrender Value. On policy surrender, the policyholder will get higher of the following –

  • Guaranteed Surrender Value (GSV) plus the cash value of accrued GAs and cash value of vested bonuses, if any
  • Non-Guaranteed Surrender Value (NGSV)

Where,

  1. Cash value of vested bonuses = Guaranteed Cash Value Factors For Vested Bonuses X Vested bonuses
  2. Cash value of accrued GAs = Guaranteed Cash Value Factors For GAs X Accrued Gaso These Guaranteed Cash Value Factors convert the face value of accrued GAs and vested bonuses, payable on maturity or earlier death, to their expected present value. These factors are guaranteed.
  3. The NGSV is not guaranteed.

Please 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 consecutive 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 –

discontinue of policy

On 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, vested 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, vested reversionary bonuses, and contingent reversionary bonus, if any, will be payable.

A paid-up policy will not be entitled to future GAs, reversionary bonuses, or terminal bonus. However, the contingent reversionary bonuses may be given instead at the point the policy is made paid-up.

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 application for revival is made within five consecutive years from the due date of the first unpaid premium and before the termination date of the policy. Revival will be based on the prevailing Board approved underwriting policy.

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. All applicable GAs and reversionary bonuses declared since premium discontinuance up to the date of revival, shall accrue to the policy and the contingent reversionary bonus attached to the policy will be reversed.

Can I take 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 and if the policy is in paid-up state.

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?

Yes, the policyholder can cancel the policy If he/she is not satisfied with the terms and conditions of the policy. The policy can be returned to the Company with the original policy document stating the reasons for cancellation within 15 days and 30 days (in case the policy is purchased through distance marketing).

The company will return the premium subject to the deduction of the following –

  • Stamp duty under the policy,
  • Expenses made by the Company on medical examination, if any
  • The proportionate risk premium for the period of cover

The policy shall terminate on payment of this amount and all rights, benefits, and interests under this policy will stand extinguished.

Exclusion under the Policy –

i) Suicide Clause –

If the life assured whether sane or insane, commits suicide within 12 months from the date of commencement of risk under this policy, the policyholder or nominee as applicable will be entitled to higher of 80% of total premiums paid including extra premiums, if any, till the date of death or Surrender Value, as available on the date of death.

In case of revived policy, 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, B) will be payable.

Where,

  • A = 80% of total premiums paid including extra premiums, if any, till the date of death.
  • B = surrender value as available on the date of death.

All rights, benefits, and interests under the policy will stand extinguished.

Conclusion –

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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