Life Insurance ICICI Prudential Life Insurance Guaranteed Pension Plan
ICICI Pru Guaranteed Pension Plan
After your retirement, the responsibilities do not decrease, rather, the regular flow of income gets hampered, and you may feel financial pressure on your shoulders. To live your golden days of life after retirement in a worry-free way, you need to start planning early. One such measure is to invest in a retirement plan so that even if you are a superannuated man, money should still not be a hindrance to fulfilling your dreams and maintaining your lifestyle. When it comes to pension plans, ICICI Prudential Life Insurance Company is worth mentioning as it has come up with a marvellous retirement plan, ICICI Pru Guaranteed Pension Plan (UIN-105N181V02), that gives you the financial freedom to decide when you want to retire. It guarantees a regular stream of income throughout your life to ensure that you retire from work and not from life. This plan is flexible enough to customize the policy as per your needs. to know more about this plan, have a look at the following mentions.
Eligibility Criteria
Annuity options | Minimum age at entry | Maximum age at entry |
Single Life with Return of Purchase Price at Age 80 | 30 years | 65 years |
Single Life with Return of Purchase Price from the Age of 76 Single Life with 50% Return of Purchase Price at Age 80 Single life with Return of Purchase Price on Critical illness (CI) Permanent Disability due to an accident (PD) or Death Deferred Single Life with Return of Purchase Price on Critical illness (CI) or Permanent Disability due to an accident (PD) or Death | 70 years | |
For all other Deferred Annuity options | 85 years | |
For all other options | 100 years | |
For policies sold through the POS channel | 40 years | 70 years |
Note: In case of annuity being purchased from the proceeds arising out of the surrender benefit, maturity benefit or death benefit payable under Pension accumulation plans minimum age at entry would be 0 years for Immediate Annuity options and 30 years for Deferred annuity options. If the Annuitant is minor, then the policy shall not automatically vest on the Annuitant attaining the age of majority.
What Will You Get With ICICI Pru Guaranteed Pension Plan?
This plan has come up with a sack full of benefits and facilities to offer you maximum financial relief during your retirement age so that you can live without any worry. The following are the mentions of those benefits. Have a look.
Annuity Options:
You can choose to get an annuity immediately with Immediate Annuity options or anytime later through Deferred Annuity options.
Immediate Life Annuity Options:
- Single life without Return of Purchase Price: This option pays you an Annuity for life. On the death of the Annuitant, the policy will terminate and no further benefits will be payable.
- Joint life without Return of Purchase Price: This option pays an Annuity for life as long as either of the two Annuitants is alive. On the death of both the Annuitants, the policy will terminate and no further benefits will be payable.
- Single life with Return of Purchase Price: This option pays you an Annuity for life. On the death of the Annuitant, the Purchase Price is paid out to the nominee; thereafter, the policy will terminate and no further benefits will be payable.
- Joint life with Return of Purchase Price: This option pays Annuity for life as long as either of the Annuitants is alive. On the death of both the Annuitants, the Purchase Price is paid out to the nominee; thereafter, the policy will terminate and no further benefits will be payable.
- Single Life with Return of Purchase Price at age 80: This option pays you an Annuity for life. The Purchase Price is paid to the Annuitant upon attaining 80 years of age or to the nominee on the death of the Annuitant, whichever is earlier. The annuity payable to the Annuitant after the return of the Purchase Price at 80 years of age would remain unchanged.
- Single Life with 50% Return of Purchase Price at Age 80: This option pays you an annuity for life. 50% of the Purchase Price is paid to the annuitant upon attaining 80 years of age and the remaining 50% to the nominee on the death of the annuitant. The annuity payable to the Annuitant after the return of 50% of the Purchase Price at 80 years of age would remain unchanged. In case of the death of the annuitant before attaining the age of 80, 100% of the Purchase Price would be paid to the nominee.
- Single Life with Return of Purchase Price from the Age of 76: This option pays you an Annuity for life. In addition, 5% of the Purchase Price will be paid to the Annuitant every year from Age 76 to 95 years as per the annuity payout frequency. On the death of the Annuitant, the balance Purchase Price is paid to the nominee. If the Annuitant dies before age 76, the Purchase Price is paid to the nominee. Balance Purchase Price is equal to Purchase Price less the sum total of the Purchase Price paid by the Company to the Annuitant from the age of 76 years till the date of death of the Annuitant.
- Single life with return of purchase price on Critical illness (CI) or Permanent Disability due to an accident (PD) or Death: This option pays you an annuity for life till the first occurrence of the 7 specified CI or PD before the age of 80 or death. Purchase Price would be payable on the earlier occurrence of any of the 7 Specified CI or PD before the annuitant attains the age of 80 years or the Death of the annuitant.
Deferred Life Annuity Options:
You can choose to defer your pension by 1 to 10 years. You can lock in the current interest rates for the annuity to be received after the deferment period is over.
- Deferred Single life with return of purchase price: This option pays you an annuity for life after the end of the deferment period (as chosen at inception). On the death of the Annuitant, Death Benefit will be payable to the nominee as below:
- Death Benefit during the deferment period, which is higher than Purchase Price + Accrued Guaranteed Additions, or 105% of Purchase Price.
- Death Benefit post the deferment period, which is higher of Purchase Price + Accrued Guaranteed Additions – Total annuity paid out till date of intimation of death, or Purchase Price.
- Deferred Joint life with return of purchase price: This option pays annuity for life after the end of the deferment period (as chosen at inception) as long as either of the two annuitants is alive. On the death of the last survivor, the Death Benefit will be payable to the nominee as per the previous way.
- Deferred single life with return of purchase price on Critical illness (CI) or Permanent Disability due to accident (PD) or Death: Annuity is paid to the annuitant post the deferment period chosen at inception. The annuity will continue till the annuitant survives or is diagnosed with any of the 7 specified CI or PD before the age of 80 years, whichever is earlier.
Loan Facility:
Facility of loan is allowed only for Deferred annuity options and only during the deferment period. A loan amount of up to 80% of the Surrender Value can be availed.
Free Look Period:
If you are not satisfied with the terms and conditions of this Policy, you have the option to return the Policy Document to the company with reasons for cancellation within 15 days from the date of inception and within 30 days in case of electronic policies or policies purchased through Distance Marketing.
Tax Exemption Benefit:
Tax benefits under the policy may be as per the prevailing Income Tax laws. Goods and Services tax and applicable cesses will be charged extra per applicable rates.
ICICI Pru Guaranteed Pension Plan Features
Apart from the above benefits and facilities, this plan has presented a number of special advantages and features that have made the policy special and popular among consumers. To know more about these features, have a look at the below mentioned.
High Purchase Price Benefit:
Benefits in the form of an additional annuity as a percentage of the annuity rates would be paid for Higher Purchase Prices as specified below:
Purchase price | <Rs. 300000 | <Rs. 500000 | <Rs. 1000000 | <Rs. 2500000 | >=Rs. 2500000 |
All immediate annuity options | 0.00% | 0.85% | 1.50% | 2.15% | 2.50% |
Deferred annuity options with a deferment of 1 to 5 years | 0.00% | 1.50% | 2.25% | 2.75% | 3.00% |
Deferred annuity options with a deferment of 6 to 10 years | 0.00% | 2.75% | 3.25% | 3.75% | 4.00% |
Online Booster:
Annuity will increase by 1% for policies purchased online.
Loyalty Booster:
Annuity will increase by 1% for policies purchased by an existing ICICI Prudential Customer.
NPS Benefit:
Annuity will increase by 1% for policies purchased using proceeds out of NPS. Customers can opt for only one of either Online Booster, Loyalty Booster, or NPS Benefit.
Option To Top up The Annuity Amount:
You can increase your annuity income at any time by paying an additional premium. The annuity would be as per the then prevailing annuity rate and age. The top-up Purchase Price will be added to the original Purchase Price for the purpose of giving the annuitant the benefit of a ‘High Purchase Price Benefit’. This option can be chosen anytime while the policy is in force. In the case of a deferred annuity option, the prevailing annuity rates would be derived so as to match the timing of the top-up annuity with a base annuity. Guaranteed additions will also apply on a top-up annuity for Deferred annuity options.
Cancellation:
On cancellation of the Policy during the free-look period the treatment will be as below:
- Policies purchased out of proceeds of a deferred pension plan of ICICI Prudential Life Insurance Company where Open Market Option is available: Premium paid less stamp duty will be transferred to the insurer from whom the policyholder wants to purchase an annuity, if applicable.
- For policies purchased as QROPS (Qualifying Recognized Overseas Pension Scheme), through the transfer of UK tax-relieved assets: Premium paid, subject to the deduction of stamp duty under the policy, will be transferred back to the fund house from where the money was received.
- For policies purchased out of NPS proceeds: Premium paid less stamp duty will be transferred to the Central Record keeping Agency (CRA) account from where the money was received.
- For other policies: The Company will return the premium paid after the deduction of stamp duty under the policy.
Surrender Benefit:
For Immediate annuity options, the Surrender value will be the Special Surrender value (SSV). For Deferred annuity options, the Surrender value will be higher than the Guaranteed Surrender Value (GSV) and Special Surrender Value (SSV). Surrender Value will be payable if the annuitant voluntarily terminates the policy and upon receipt of the said termination by the company. Policies sourced as QROPS through the transfer of UK tax-relieved assets cannot be surrendered.
What Are The General Exclusions of The ICICI Pru Guaranteed Pension Plan?
The policy has presented a list of specified exclusions that are also available in your Policy Wording. However, the general exclusions of this policy are as follows:
- Anything that does not satisfy the terms and conditions of the company as well as of the policy will fall under the category of exclusions.
- Any kind of breach of law with criminal intent will also be permanently excluded from the policy.
How Does ICICI Pru Guaranteed Pension Plan Work?
Mr. Bharat, a 36-year-old, Kolkata-based businessman, purchased ICICI Pru Guaranteed Pension Plan for himself. Let us find out what benefits he will receive from this plan for the given credentials.
Parameters | Data |
Age | 36 years |
NPS corpus | No |
One-time investment | Rs. 50 lakhs |
Marital status | Single |
Annuity option | Immediate annuity (Single Life without Return of Purchase Price) |
Annuity frequency | Yearly |
Benefit | Rs. 3,15,247 per year (Annuity rate 6.30%) |
Frequently Asked Questions
Only the Immediate Annuity Single life with return of purchase price option would be available for policies under QROPS, the minimum vesting age for the policy would be 55 years last birthday. In the case of a Joint life annuity, age restrictions apply to both lives.
Yes, this policy is up for online sale.
Minimum annuity payouts will be in accordance with IRDAI Regulations, 2015. The minimum annuity per annum is Rs. 12,000 (Rs. 1,000 per month), but no maximum limits exist. Maximum Purchase Price would be subject to board-approved underwriting policy. The minimum purchase price that will produce the minimum annuity will depend on the annuity rates, as applicable. The minimum annuity amount will not be applicable for a top up annuity.
No alteration can be made after the policy has been purchased & policy free look period is over.
The following conditions are covered:
- Cancer of specified severity
- First Heart Attack of specified severity (Myocardial Infarction)
- Open chest CABG
- Kidney Failure Requiring Regular Dialysis
- Stroke Resulting in Permanent Symptoms
- Major Organ/ Bone Marrow Transplant
- Permanent Paralysis of limbs
GSV is as given below:
- 75% of the single premium paid less any survival benefits already paid if the policy is surrendered at any time within the third policy year.
- 90% of the single premium paid less any survival benefits already paid if the policy is surrendered on or after the fourth policy year.
Permanent Disability will be established if the life assured cannot perform 3 out of the 6 activities of daily work:
- Mobility: The ability to walk a distance of 200 meters on flat ground.
- Bending: The ability to bend or kneel to touch the floor and straighten up again and the ability to get into a standard saloon car, and out again.
- Climbing: The ability to climb up a flight of 12 stairs and down again, using the handrail if needed.
- Lifting: The ability to pick up an object weighing 2kg at table height and hold it for 60 seconds before replacing the object on the table.
- Writing: The manual dexterity to write legibly using a pen or pencil or type using a desktop personal computer keyboard.
- Blindness: permanent and irreversible – Permanent and irreversible loss of sight to the extent that even when tested with the use of visual aids, vision is measured at 3/60 or worse in the better eye using a Snellen eye chart.
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