My insurance agent was recently trying to sell ICICI’s Life-time Policy. I am planning to buy one policy and use it as a self-sustaining term plan. However I have a few questions regarding the policy and I would appreciate any and all clarifications regarding the same.
1> Is it true that the sum-assured on this policy can be 5 to 150 times the premium amount? If so, what is the catch, why is no other insurance company providing such a plan.
2> Is it possible to increase my sum-assured by 25% every 3 years with this plan. What are the extra charges that I have to pay? There is a clause of underwriting that needs to be taken to increase the sum-assured. How much of a hassle is that? and what does it take to get an underwriting to increase the sum-assured amount.
3> From what I understand, the charges in this plan can be divided into two categories, fixed charges and variable charges.
a. Fixed charges: Initial charges, Mortality Charges
b. Variable charges: Fund Management Charges depending on the fund amount.
c. Is there any other regular charge that I am missing out.
4> As I mentioned above, I need to use this policy as a self-sustaining term plan inclusive with the critical illness and accidental disability riders. Also, my sum-assured (death benefit) needs to increase by atleast 25% every 3 years. In this case for a premium of Rs 10, 000/- What would be the optimum insurance cover that I should take such that this policy lasts for 40 more years, by deduction of units. After the 3 mandatory premiums, I do not wish to pay any more premiums. But the policy should last for 40 more years.
Is there any other policy by any other provider, that provides me the above level of protection.
I request you all to help me choose the right policy.
Looking forward to your feedback.