ICICI Prudential’s iCare is an innovative product offering ‘instant’ insurance—but it may not deliver in all cases. Medical tests are not needed for instant online purchase. But there is no guarantee that you’ll pass the ‘threshold risk’ online test to buy the product at a click
ICICI Prudential Life Insurance’s iCare tries to address the major hiccup with the online term insurance buying process. The medical tests which online term insurance products require for all (or higher age groups) has been done away with this innovative product. There were issues like premium hike after medical tests which used to catch customers by surprise. This one-of-a-kind product will have no medical tests and no surprises of premium hike. But what is the catch?
If you don’t fit into the profile of the customer the insurer is looking for, you may not be able to buy the product online; which implies that it will not be available to that customer who does not ‘fit in’, for the quoted premium. After all, which insurance company will afford to take the risk of offering a low premium for a high-risk customer?
For this product, the buying process can be completed in many cases including customers who are smokers and drinkers. “The premium that you see on your quotation is the final annual premium that you will pay!” is what ICICI Prudential promises. But if you are suffering from some ailment like a heart problem or any other major illness, then the online buying cannot be completed.
There is a ‘threshold risk’ up to which the online buying process can be completed. The process is designed in such a way that it will ask many questions on different medical conditions, or smoking & drinking habits. If the online software decides the risk is beyond a threshold for a particular customer profile, online buying cannot be completed. If you are rejected, this message will greet you—“On the basis of details entered by you, we are unable to offer you the chosen product online.” One can argue that it is a good move by the insurer as underwriting without a medical test can be offered only to a certain extent.
According to the company, “The customer who is stopped from completing online buying will be offered offline products like ICICI Pure Protect.”
The online process may offer lower sum assured (SA) for higher age. For example, it offers Rs1 crore SA for a 40-year-old male, but only Rs60 lakh SA for a 60-year-old having the same income level. iCare Option II offers accidental death benefit with coverage equal to SA, subject to a maximum of Rs50 lakh. The existing online term plan iProtect is no longer on ICICI Pru’s website.
The plan has the following advantages:
But there are some disadvantages:
Here is a comparison of the premiums for some online plans for SA of Rs1 crore and policy term of 20 years:
ICICI Pru iCare Product Details:
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