ICICI Pru iProtect Smart Return of Premium Review

Q: Is ICICI Pru iProtect Smart Return of Premium better than a pure term plan?

Not necessarily. While the Return of Premium option refunds premiums on maturity, it is significantly more expensive than a pure term plan, which can reduce overall financial efficiency.

Q: Is the Accidental Death Benefit rider worth adding?

In most cases, accident-only riders offer limited coverage. Increasing the base term insurance cover usually provides broader protection against all causes of death.

Q: Who should consider an ROP term plan like this?

Return of Premium term plans may suit buyers who prefer receiving premiums back at maturity. However, from a long-term returns and wealth-creation perspective, such plans are often less optimal compared to pure term insurance.

Quick Overview

ICICI Pru iProtect Smart Return of Premium (ROP) is a term insurance plan by ICICI Prudential Life Insurance Company Ltd. that combines pure protection with savings. It offers a death benefit during the policy term and returns 100% of the total base premiums paid if the life assured survives till maturity.

The plan comes with flexible policy and premium payment terms, multiple payout options (lump sum or income), an optional accidental death and disability rider, and a 15% lower premium for women.

Many people hesitate to buy term insurance because they don’t see the value of paying premiums if they survive the policy term. To address this concern, insurers offer Return of Premium (ROP) variants that refund all base premiums paid at maturity, though at a significantly higher cost than pure term plans.

This ICICI Pru iProtect Smart Return of Premium review breaks down how the plan works, what you get in return for the higher premium, who it is suitable for, and whether the “maturity benefit” truly justifies the extra cost.

Eligibility Criteria for ICICI Pru iProtect Smart Return of Premium

Eligibility Parameters	Values
Entry Age	18-55
Maturity Age	38-85
Policy Term	20-40 years
Premium Paying Term (PPT)	5,7,10, 12, 15, and Pay till age 60 - Limited Pay and Regular Pay
Premium Payment Modes	Annual, Half-Yearly, Monthly
Sum Assured	₹10,00,000 - no upper limit (subject to underwriting)
Plan Variants	None
Death Benefit Payout Options	Lump sum, Installments for 5 years, or a combination of both
Riders	Accidental Death Benefit and Accidental Total Permanent Disability

Key Features of the ICICI Pru iProtect Smart Return of Premium Plan

100% Return of Premium on Maturity

If the life assured survives till the end of the policy term, the plan pays back 100% of the total base premiums paid (excluding taxes, rider premiums, and extra premiums). This addresses the common concern of “getting nothing back” from term insurance.

Guaranteed Death Benefit

In case of death during the policy term, the nominee receives the Sum Assured, as in a pure term plan, ensuring meaningful financial protection for the family throughout the policy term.

Flexible Policy Term & Premium Payment

The plan offers Limited Pay options (5, 7, 10, 12, or 15 years) and Regular Pay, with policy terms ranging from 20 to 40 years, allowing customers to align coverage with long-term financial goals.

Death Benefit Payout

Nominees can choose to receive the death benefit as a lump sum, income over 5 years, or a combination of both, offering flexibility to manage long-term household expenses and financial stability.

Riders Available with the ICICI Pru iProtect Smart Return of Premium Plan

Accidental Death Benefit (ADB) Rider
This rider pays an additional lump sum if the life assured dies due to an accident during the coverage term, provided death occurs within 180 days of the accident. The ADB sum assured can be up to 3× the base sum assured, capped at ₹3 crore, and is payable only if the rider is in force at the time of the accident. Ditto generally does not recommend the ADB rider.

Accidental Total & Permanent Disability (ATPD) Rider
If the life assured becomes totally, continuously, and permanently disabled due to an accident (as defined under the policy clauses), a lump sum payout is made to the nominee. The maximum cover is up to the base sum assured, capped at ₹3 crore, after which the rider terminates.

CTA

ICICI Pru iProtect Smart Return of Premium Premium Comparison

Profile considered: Premiums are based on a ₹2 crore sum assured, with coverage up to age 70, for a non-smoking male with no added riders or 1st-year discounts.

Age	ICICI Pru iProtect Smart ROP	ICICI Pru iProtect Smart Plus (Pure Term Plan)	Difference
25	₹28,569	₹17,014	₹11,555+67.9%
30	₹39,865	₹21,237	₹18,628+87.7%
35	₹54,020	₹28,238	₹25,782+91.3%
40	₹76,268	₹39,594	₹36,674+92.6%

Insight: The premium comparison clearly shows that ROP plans are significantly more expensive than pure term insurance. With ICICI Pru iProtect Smart Return of Premium, premiums are 68% higher at age 25 and 93% higher by age 40. This makes ROP almost 2x the cost of a pure term plan once you’re 30+. Therefore, the “premium return” isn’t free; you’re effectively prepaying for it through much higher premiums.

How Return of Premium Works in Real-Life Scenarios

Profile considered: Premiums are based on a ₹2 crore sum assured, with coverage up to age 70, for a non-smoking male with no added riders or 1st-year discounts.

Option 1: Buy ROP

Premium: ₹39,865 per year for 40 years
Total paid: ~₹15.95 lakh
Amount received at maturity (age 70): ~₹15.95 lakh

Option 2: Buy pure term + invest the difference

Pure term premium: ₹21,237 per year
Amount invested every year: ₹18,628
Value at age 70:
- ~₹37 lakh if invested in an FD at ~7%
- ~₹80+ lakh if invested in equity at ~10%

Key Insight: With the same yearly outflow, investing the difference alongside a pure term plan can create far more wealth than an ROP plan over the long term.

Metrics of ICICI Prudential

Metric	ICICI Prudential’s Metrics	Industry Numbers
Claim Settlement Ratio (FY 22–25)	98.03%	98.66% (Avg)
Amount Settlement Ratio (FY 21–24)	95.1	94.07% (Avg)
Annual Business Volumes (FY 22–25)	19,774 crores	₹3,411.73 crores (Median)
30-day Claim Settlement (FY 22–25)	94.68%	97.48% (Avg)
Amount Paid in Death Claims (₹ crore) (FY 22–25)	1,876.8 crores	₹195.05 (Median)
Volume of Complaints per 10,000 Claims (FY 22–25)	11	17.67
Solvency Ratio (FY 22–25)	2.05x	2.04x

Insights: Overall, ICICI Prudential shows strong claims credibility and financial stability, with claim and amount settlement ratios better than industry averages and a solid solvency margin. Its large claim payouts and business volumes reflect scale and experience, while a lower complaint ratio indicates relatively better customer experience compared to peers.

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Conclusion

The ICICI Pru iProtect Smart Return of Premium is a fairly decent ROP term plan. It delivers exactly what it promises, but doesn’t stand out in any meaningful way. While it may work for buyers who are firmly set on a Return of Premium structure, there are more cost-efficient ROP options available, which you can compare in our detailed guide.

That said, at Ditto, we’re fundamentally opposed to ROP plans, even though recommending them would earn us higher commissions given their high premiums. From a financial planning standpoint, a pure term insurance + mutual funds approach almost always offers better returns, flexibility, and clarity. Term insurance should ideally be treated as pure protection for your family, not as a savings or investment product.

Disclaimer: ICICI Prudential is a partner insurer with Ditto. If you’ve purchased your policy through us, you can reach out to our advisors for help with any aspect of your policy, including servicing, claims, or follow-ups with the insurer.

Frequently Asked Questions

Is ICICI Pru iProtect Smart Return of Premium better than a pure term plan?

Not necessarily. While it returns premiums on maturity, it costs significantly more than a pure term plan, which can reduce overall financial efficiency.

Do I get tax-free maturity benefits under this plan?

Maturity and death benefits are generally eligible for tax benefits under prevailing tax laws, but this depends on compliance with Income Tax Act conditions at the time of payout.

Can I stop paying premiums midway?

Yes. After paying at least one full year’s premium, the policy may become paid-up or be surrendered, subject to the surrender value rules mentioned in the policy document.

Is the Accidental Death Benefit rider worth adding?

Usually no. Accident-only riders are limited in scope; increasing your base term cover offers broader protection against all causes of death.

Who should consider an ROP term plan like this?

It may suit buyers who are emotionally uncomfortable with “no return” plans, but from a returns and wealth-creation standpoint, it’s rarely the most optimal choice.

Last updated on: 10 Jan, 2026