ICICI Prudential Precious Life Term Plan – Covers Existing Medical Conditions – Should you opt?
ICICI Prudential Precious Life Term Plan review
If you have existing health conditions like Hyper Tension, diabetes, asthma, it would be difficult to get a term insurance plan. ICICI Prudential Life Insurance has launched new unique term insurance plan that covers existing medical conditions. ICICI Pru calls this as industry one term plan that covers these medical conditions. What are the features of ICICI Prudential Precious Life Plan? Are there any negative points in this term insurance plan? Should you opt for ICICI Prudential Precious Life Plan?
What is Term Insurance Plan?
If you are already aware, skip this section.
The term plan is life insurance plan where in case of unfortunate death of the policy holder, the nominee would get sum assured. Term plans are only risk coverage plans and do not have any maturity or survival benefits. Hence such term insurance plans come with lower premiums compared to money back plans or endowment plans.
What is unique about ICICI Prudential Precious Life Plan?
Recently, the National Family Health Survey (NHFS-4) estimated that in the age group of 15 – 49 years, 10.5% of urban women and 13.2% of urban men are afflicted by high blood sugar levels. It further estimates that in the same age category, 9.6% of urban women and 15.1% of urban men are affected by high blood pressure. Considering such health conditions, insurance companies would deny providing a term insurance plan. ICICI Prudential Life insurance indicates that their new plan is a unique plan where they provide this term plan even to those who has existing health problems.
Features of ICICI Prudential Precious Life Plan
Here are the key features of this term insurance plan.
1) ICICI Prudential Precious Life Plan is non linked and non participating term life insurance plan.
2) This is the pure risk protection plan. It does not have maturity benefits nor survival benefits.
3) Minimum Sum Assured is Rs 2 Lakhs.
4) Maximum sum assured – No limit
5) You can opt for this term insurance plan for Single Premium, Regular Premiums or limited period premium payout options.
6) This term plan offers two options a) Life Option and b) Life plus options.
7) This plan offers Life insurance coverage up to 70 years of age.
8) Optional accidental death benefit rider available in this insurance plan. Minimum amount is Rs 1 Lakh and maximum is Rs 2 Crores.
9) One has to undergo medical tests and the costs would be borne by the insurer. Policy holder would have access to medical reports.
10) Lower premium rates for non smoking individuals.
11) This is offline plan and one need to approach insurance company to purchase this plan.
What is the eligibility to take ICICI Prudential Precious Life Plan?
Here are the eligibility criteria to take this plan.
1) Minimum age of entry is 18 years.
2) Maximum age of entry is 65 years.
3) Maximum age of maturity is 70 years
4) Minimum basic sum assured – Rs 2 Lakhs.
5) Maximum sum assured – No limit
6) This policy is available for 5 to 40 years tenure
7) In case of limited premium payment term, you can opt for 5 years or 10 years premium paying term.
8) Any individual who has existing medical conditions can apply for this term insurance plan.
What are various Premium Payment Options?
Below are the premium payment options available
1) Single Pay – You can pay single pay and policy is covered for 5 years to 20 years tenure.
2) Limited Pay – 5 Years – You can pay for 5 years and get risk coverage for 10 to 40 years tenure.
3) Limited Pay – 10 years – You can pay for 10 years and get risk coverage for 15 to 40 years tenure.
4) Regular Pay – You need to pay regular (Yearly, half yearly or monthly) premium and get risk coverage for 5 to 40 years tenure.
What is the approximate premiums payable under ICICI Prudential Precious Life Plan?
Currently the full list of premiums are not available. Here is the sample premium for 40 years individual.
If a 40 year individual opts for Rs 50 Lakhs sum assured for 20 years tenure, premium works out to be Rs 9,750 (without any discounts).
What are various benefits available in this ICICI Prudential Precious Life Plan?
#1 – Death Benefit
i) Life Option: In case of unfortunate death of the policy holder, the nominee would get sum assured as indicated in the policy. The term insurance plan would get terminated after that.
ii) Life Plus Option: In this case, the life insured would get covered by an Accidental Death Benefit rider. In case of unfortunate death of policy holder due to death, the nominee would get sum assured as indicated in the policy + Accidental Death Benefit Rider as per the policy document. The term insurance plan would get terminated after that.
#2 – Maturity Benefits – Since this is a term insurance plan, there are no maturity benefits.
#3 – Surrender Benefits – There are no surrender benefits available for this term insurance plan.
What are various death benefit payout options available in this term plan?
This plan comes with the feature of getting death benefit in 4 different options.
a) Lump sum – In case of death of the policy holder, the nominee would get a lump sum amount as death benefit.
b) Income – In case of death of the policy holder, the nominee would death benefit in installments every month for 5 years or 10 years or 15 years. If it is for 5 years, the benefit would be 1.66667% of the sum assured. For 10 years, it would be 0.83333% of the sum assured and for 15 years, it would be 0.55556% of the sum assured.
c) Lump sum + Income combination – In case of death of the policy holder, the nominee would death benefit in a lump sum for the percentage of the sum assured indicated in the policy document. Remaining in monthly installments for 5 years or 10 years or 15 years.
d) Increasing Income – In case of death of the policy holder, the nominee would get death benefit in monthly installments for 10 years. The value would increase 10% year on year.
Why you should opt for ICICI Prudential Precious Life Term Insurance Plan?
Here are some of the pros of considering this plan:
1) This is a unique term insurance plan that covers diabetes, hypertension, obesity, high cholesterol, Asthma and for those who got successfully cured of cancer or other surgeries. Currently there is no life insurance plan in India that covers such existing health problems. Sometimes based on the decision of insurance companies, some of these are issued (very rare cases). Hence if you have any of these health conditions, you can opt this term plan.
2) This plan comes with Life insurance coverage up to 70 years. You can opt it if you think you may need it.
3) Optional Accidental Death Benefit rider available in this plan which can help you to consider if required.
4) There are flexible payment options i.e. single premium, regular premiums and limited period premium payout options.
5) Lower / discounted premium rates for nonsmokers.
6) It offers flexible death benefit payout options.
7) If you are existing ICICI Prudential Life customers, you would get 2% to 5% discount on first year premium. From the 2nd year onwards, you need to pay full premiums.
8) ICICI Pru Life insurance company has 4th high claim settlement ratio of 97.88% for FY2017-18 published by IRDA in Jan-2019. One should always consider claim settlement ratio as one of the key parameter in selecting a good term insurance plan in India.
9) One can get income tax benefits u/s 80C for the premiums paid.
Why you should NOT invest in ICICI Prudential Precious Life Plan?
Here are some negative points.
1) ICICI Pru Precious Life term plan comes with unique features, but charges higher premiums compared to regular term plans.
2) This is an offline term insurance plan. You cannot purchase this online.
3) This term plan does not cover any critical illnesses which are being offered by several insurance companies now.
ICICI Pru iProtect Smart Vs Precious Life Plan – What are the differences?
Currently ICICI Prudential has a famous term insurance plan called iProtect Smart. Let us compare the features:
1) Flexibility to buy: iProtect Smart is an online term insurance plan and easy to buy. Precious Life term plan is offline plan, one need to approach insurance company and buy this term plan.
2) Risk Coverage: iProtect Smart is the simple term plan, however, cannot be purchased by individuals with any medical problems. On other hand Precious life insurance plan covers for individuals with health problems too.
3) Critical illness coverages: iProtect Smart protects from 30+ critical illness coverage and pays you if these are discovered in your life after taking the term plan. On the other hand, Precious life would not pay you if you encounter any critical illnesses during the policy period. Only in case of death, the sum assured is paid.
4) Premiums: iProtect Smart is an online term plan and comes with low premiums. However, Precious life is offline plan and premiums are higher.
How to apply for ICICI Pru Precious Life Term Plan?
Step-1 – Go to ICICI Pru website and select this insurance plan and click on “Meet advisor”. Alternatively, you can call customer care nos to register for this. Their agent would approach you further on this.
Step-2 : Choose life coverage, benefit option and premium payment option
Step-3: Fill the details of health conditions, including existing medical conditions.
Step-4 : Submit your documents and pay the premium
Step-5 : You need to undergo medical examination which would be done at your door step.
You may like: Best One Crore Term Policy from LIC
Should you opt for ICICI Prudential Precious Life Plan?
This new term insurance plan from ICICI Prudential is a unique plan which is so called one and only industry plan now as it covers risks for individuals who has existing health problems like Diabetes, Hypertension , etc. However it comes with higher premiums. I have asthma and I indicated this while applying term plan of ICICI Prudential iProtect Smart. They reviewed and sanctioned the term plan and indicated too in the policy document. My advice is you should try regular online term insurance plans that comes with low premiums. If for some reason, it is rejected, you can go for the Precious Life Term plan from ICICI Pru. Remember it comes with higher premiums.
If you enjoyed this article, share it with your friends and colleagues through Facebook and Twitter.
ICICI Prudential Precious Life Plan Review