What Is ICICI Prudential Cash Advantage Plan
Updated On Jul 14, 2022
Table of Contents
We all know that to be able to meet these responsibilities, we need a comprehensive financial solution which provides regular cash flow to meet our recurring expenses while building a corpus for your long term financial goals. ICICI Prudential introduces “ICICI Pru Cash Advantage”, a participating life insurance plan with unique savings and protection oriented plan which offers you a guaranteed amount every month for 10 years, a guaranteed lump sum at maturity, along with bonuses and life cover that provides financial security to your family in case of your death.
Features of this Policy
- Liquidity – Payout term commences immediately after premium payment • term (PPT)
- Guarantees – Guaranteed Cash Benefit (GCB) equal to 1% of GMB every month throughout the payout term of 10 years guaranteed Maturity Benefit (GMB) at the end of the policy term
- Protection – Life cover for the entire policy term
- Limited premium payment term – Choice of paying premiums for – 5, 7, or 10 years
- Tax benefits – Tax benefits on premiums paid. Maximum tax benefit up to Rs 1.5 lakh under Section 80C, 10(10D), and other provisions of the Income Tax Act, 1961.
Benefits of this Policy
a) Death Benefit
On the death of the life assured during the policy term, for a premium paying or fully paid policy, irrespective of the Guaranteed Cash Benefits paid, the following benefits are payable to the nominee.
Death Benefit = Highest of (A,B,C)
Where,
A = Sum Assured on Death plus Bonuses*
B = GMB plus Bonuses*
C = Minimum Death Benefit*Bonuses consist of vested reversionary bonuses, interim bonuses, and terminal bonuses if any.
Bonuses consist of vested reversionary bonuses, interim bonus, and terminal bonus 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) Cash Benefit
Throughout the payout term, Guaranteed Cash Benefit (GCB) is payable in advance, provided the life assured is alive and the policy is fully paid. GCB can be received in monthly or annual installments.
c) Maturity Benefit –
On survival of the life assured till the end of the policy term for a fully paid policy, Maturity Benefit is payable. Maturity Benefit = Maximum of (A, B)
Where,
A = Guaranteed Maturity Benefit plus vested reversionary bonuses, if any plus terminal bonus, if any
B =100.1% of total premiums paid (excluding any extra mortality premium, Goods & Services Tax and Cess, if any) less GCBs received.
Please note, GMB (Guaranteed Maturity Benefit) is the Sum Assured on Maturity and will be calculated, at inception, based on your premium, premium payment option, premium payment mode, Sum Assured on Death, cash benefit mode, age, and gender.
Can I Take A Loan Against This Policy?
Yes, the policyholder can take loans against this policy after the policy acquires a surrender value. Loans of up to 80% of the surrender value can be availed.
Conclusion
Your policy will acquire a surrender value on payment of all premiums for at least two consecutive years. Please note, if you discontinue your premiums before your policy has acquired a surrender value, no benefits will be payable under the policy.
