ICICI Pru's new insurance plan covers diabetics, others with health conditions

Term insurance plans are insurance products that provide protection against the loss of income by the family due to the demise of the earning member. ICICI Pru Precious Life is an innovative term insurance plan that offers appropriate life cover to customers by factoring in the nuances of various health conditions.

Features: Based on the protection the customer wants, ICICI Pru Precious Life offer two kinds of term cover — Life Option and Life Plus Option. In 'Life' programme, nominee will receive the sum assured in case of unfortunate death of the policyholder. Along with the death benefit, the customer will be covered for accidental death benefit if one chooses 'Life Plus' term cover.

Eligibility: Any individual who is 18 can avail the benefits of ICICI Pru Precious Life. The maximum age to buy the term cover is 60.

Premium: Policyholders will have three various payment options — single pay, limited pay and regular pay. Premiums need to be paid only for the chosen premium payment term. It can vary from 5 years to 40 years.

Once premiums have been paid for the premium payment term, policy benefits will continue for the term of the policy.

Customers will have the option to pay monthly, half-yearly or yearly premiums. The minimum amount that a policyholder needs to pay to avail the benefits under ICICI Pru Precious Life is ₹2,400.

Sum Assured: The minimum 'sum assured' amount for this term cover is ₹200,000. The maximum guaranteed under as per the underwriting policy approved by the board. For accidental death benefit, the minimum 'sum assured' is set at ₹1,00,000. The maximum benefit will be equal to sum assured chosen by you. There is no maturity, paid-up value or survival benefit available under this product.

"We have large segments of the population who have been diagnosed with one or more lifestyle related conditions or other health ailments. Individuals in these segments will find it difficult to get life cover leaving their families financially vulnerable," Puneet Nanda, ICICI Prudential Life Insurance, Deputy Managing Director.

Death benefit options: ICICI Pru Precious Life offers flexible options to avail the death benefit cover under ICICI Pru Precious Life -- Lump Sum, Income, Lump Sum and income, Increasing Income.

For 'Lump Sum' option, the entire benefit will be payable as a lump sum amount. Under the 'Income' option, death amount will be payable at equal installments in advance for 5,10 or 15 years as chosen by the policyholder at the time of buying the term cover.

If one choose 'Lump sum and Income' option, the percentage of the sum assured to be paid as lump sum and balance will be provided in monthly installments. In 'Increasing Income' option, the benefit amount is payable in monthly installments for 10 years starting with 10% of the benefit amount per annum in the first year. The income amount will increase by 10% per annum simple interest every year thereafter. At the time of claim, the nominee will have the option to convert all or some of his monthly income into a lump sum. The premium for your policy will vary based on the death benefit payout option chosen.

Tax benefits: Premiums paid towards sum insurance are applicable for tax benefit under section 80C of the Income tax Act, 1961. A deduction of up to ₹1.5 lakh a financial year.