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ICICI Pru Cash Advantage plan – Review

  • ELI.
  • BENEFITS


    Death benefit

    On death of the life assured during the policy term, for a premium paying or fully paid policy , irrespective of the Guaranteed Cash Benefits paid.


    Survival Benefit(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 instalments. GCB is a percentage of the Guaranteed Maturity Benefit (GMB).

    Cash benefit mode Guaranteed Cash Benefit
    Monthly1% of GMB
    Annual 11.5% of GMB

    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 = Guaranteed Maturity Benefit plus vested reversionary bonuses, if any plus terminal bonus, if any.

    1. Not linked with Share market.
    2. Safer investment
    3. ICICI is a promising brand in India
    4. Have a good Bonus declaration in the past
    5. 10 Times life cover
    6. Regular income Flow for 10 years which is guaranteed.
    7. Loans Available which provides more liquidity
    8. Limited Premium paying term
    9. Tax Benefits under section 80C and 10(10d)
    10. Higher IRR then competition Endowment plans

  • I had bought some of disadvantages of buying this plan.

    1. Guaranteed Maturity Sum Assured is Very less
    2. Bonus is not Guaranteed till declared.
    3. High returns not possible- Returns is Moderate
    4. Returns lesser than Normal Fixed Deposits
    5. other savings plans are providing better returns.(NSC, KVP and Sukanya Samruddhi Schemes)

  • Tab 5 content goes here.


ICICI Pru Cash Advantage plan – Review

ICICI Pru Cash Advantage plan is a 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. This is an Traditional with profits endowment plan and hence only Maturity sum assured and the Survival benefit is Guaranteed. The Bonus declaration depends on the company performance and hence not guaranteed.

What You Pay and What You get

Example  : Arun is 30 year old. He buys ICICI Pru Cash Advantage plan with a PPT of 10 years and annual premium of  100,000. His policy benefits are:

                            1. Guaranteed Cash Benefit of 5,307 per month for 10 years from 11th to 20th year of policy

                           2. Guaranteed Maturity Benefit of  5.31 lakh plus bonuses of 9.31 lakh*

                          3. Life cover of 10 lakh for himself for the next 20 years.

(* Illustrative vested reversionary bonuses plus terminal bonus for assumed returns at 8%. For assumed returns at 4%, the bonuses would be 1.60 lakh.)

Total Premium Paid         : 10 Lakh plus taxes

Total Benefits Received : Rs. 10.61 Lakh (Guranteed) + 9.31 lakh ( Non Guranteed)


 

Bonus History

For ICICI Pru Cash Advantage the Reversionary Bonus is declared on a compounding basis as a percentage of Guaranteed Maturity Benefit (GMB).

Reversionary Bonus
FYCash Advantage Plan

2015

5.25%

2014

5.25%

 


Liquidity 

Loans :  You can also avail of loans under this policy after the policy acquires a surrender value. Loans of up to 80% of the surrender value can be availed.


What happens if you discontinue your premiums?

Your policy will acquire a surrender value on payment of:

• At least 2 full years’ premium if the 5 pay option or the 7 pay option is chosen

• At least 3 full years’ premium if the 10 pay option is chosen

The policy can however be revived within 2 consecutive years from the date of first unpaid premium.


If You want to surrender the policy 

You can surrender the policy if :

At least 2 full years’ premium if the 5 pay option or the 7 pay option is chosen

• At least 3 full years’ premium if the 10 pay option is chosen

  ICICI Pru Cash Advantage Plan is a traditional plan, the surrender benefits of this plan will be mostly lesser than the premium paid. Waytoinsurance.com suggests not to surrender this plan in-between to avoid loss.


For more details on this plan please go through the Product brochure.


 

**Disclaimer:

This post on ICICI Pru Cash Advantage Plan is just a review of what the plan offers to the customers. We aim at educating ins and outs of this plan. We are trying to simplify the product and make it easy to understand. The Returns provided in this post are for Illustrative purpose only and are Not Guaranteed.  The waytoinsurance score is given by our own metrics of calculation and are no way related to the performance of this plan. All these details are derived from the below links.

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