ICICI Prudential’s iProtect term insurance is yet another cheapest term insurance which you can buy online. This product is very much similar to Aegon Religare’s iTerm in terms of cost. If cost is the only factor for deciding your insurance policy which provides considerably high coverage for the premium you pay, ICICI Pru’s iProtect is certainly affordable and can be bought online.
Similar to iTerm by Aegon Religare, an individual needs to apply online for iProtect. The premium for the policy can be paid either through internet banking account or credit card. In contrast to iTerm, iProtect comes with accidental rider cover and the policy term can be up to 30 years. Also, this policy can be bought through agents and brokers. However all the non-online policies will have additional premium costs added as a part of insurance agent commission. Up to a certain limit on the insured amount, life cover can be bought immediately without the need for any medical tests, policy commences as soon as the premium is paid. However, if you want to avail the insurance beyond the limit which requires medical tests, the process of buying the policy can be finished online but the cover will start only upon medical tests evaluation.
Here is the feature list of ICICI iProtect:
|Minimum / Maximum age at entry||20 / 65 years|
|Policy term||10 / 15 / 20 / 25 / 30 years|
|Maximum age at policy expiry||75 years|
|Minimum premium||Rs. 2,000 (excluding service tax and education cess)|
|Accidental Death Benefit|
(Only with iProtect Option II)
|Equal to Sum Assured,|
subject to a maximum of Rs. 50 lacs
|Premium payment term||Regular pay|
|Mode of premium payment||Yearly|
The premium that you pay is very affordable compared to similar products in the market. You can do that comparison among various insurance provides by following this link [+]. I found this link to be very useful in comparing the premium for a given age and the cover amount from various companies. Aegon Religare’s iTerm and ICICI’s iProtect will stand out from the rest for cost effective premiums. This is due to the cost savings through online purchase is passed on to the customer by removing the middle man. The medical test conducted while availing this kind of policy would be very stringent and the illustrative premium is only for healthy non smoking person. This is unlike other insurance products where there was not much difference in the premium by considering health conditions, meaning healthy people used to subsidize the premium for non healthy people. To summarize you are getting discount for Sound Health and being a non smoker.
There is a free look up period of 15 days for the policy holder to review the policy. The premium is exempted from income tax under section 80c as per the prevailing income tax law. More detailed information on this iProtect product can be found here [+]. However, the one question that is yet to be answered by all these term insurance policy providers is the claim settlement ratio and the process. Since these products are relatively nascent in Indian market, not much data available on IRDA site on term policies. Except that I am in favor of these term policies as pure instruments of insurance. You may want to read why investment shouldn’t be mixed with insurance and also never think of buying insurance for the sake of income tax exemptions… if you do so, you are actually solving the problems wrong!