ICICI Prudential Life
ICICI Prudential Retirement Plans

ICICI Prudential Pension Plans

When it comes down to living comfortably in retirement, it’s incredibly important to plan our financial goals wisely during our working lives. That is the secret to a happy retirement. This is where the value of a pension/retirement plan becomes apparent!

After retirement, pension plans offer a source of financial stability and security. It is a company-sponsored insurance plan that provides financial coverage for your old age. To put it another way, a portion of your present income gets transferred and saved for the future. On retirement, this money is given to the employee as a pension fund. Among all the insurance providers, ICICI Prudential pensions plans are considered a wise option for investment. Let’s find out more about them.

Types of ICICI Pru Pension/Retirement Plans

Listed below are the common types of ICICI pension plans that you must know about:

1. ICICI Pru Guaranteed Pension Plan (Deferred Annuity)

When it comes down to securing your financial future while receiving a regular flow of income post-retirement, you cannot overlook ICICI Pru Guaranteed Pension Plan! This ICICI pension plan allows you the financial flexibility to choose when you wish to retire. The major highlight of the plan is that it ensures a steady stream of income for the rest of your life, ensuring that you retire from work rather than from living.

Key Features:

Here are the salient features of ICICI Pru Guaranteed Pension Plan (Deferred Annuity):

  1. Guaranteed Lifelong Annuity: All you need to pay once (Purchase Price) and get guaranteed regular income for your entire life (Annuity).
  2. Flexibility: Once you reach your retirement page, you will have the flexibility to receive the amount either monthly, quarterly, half-yearly or yearly.
  3. Choose your retirement date: The biggest feature of the plan is that it allows you to choose to receive your annuity now or after 1 to 10 years.
  4. Top-up option: The strategy allows you to enhance your annuity while also taking advantage of the Premium Purchase Cost.
  5. Wide range of annuity options: The pension plan allows you to choose from 11 annuity options that perfectly cater to your financial requirements.
  6. High Purchase Price Benefit: The plan gives you an additional annuity as per the purchase price slab and annuity option.

Eligibility:

Eligibility CriteriaMinimumMaximum
Age30 Years65 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 accident (PD) or Death

Deferred Single Life with Return of Purchase Price on Critical illness (CI) or Permanent Disability due to accident (PD) or Death

30 Years70 Years
For all other Deferred Annuity Options30 Years85 Years
For all Options30 Years100 Years

2. ICICI Pru Guaranteed Pension Plan (Immediate Annuity):

With growing prices, rising healthcare expenditures, and increased life expectancy, you’ll need a solid plan to maintain your current lifestyle beyond retirement. The ICICI Pru Guaranteed Pension Plan allows you to choose when you want to retire based on your financial situation. It ensures a steady cash flow for the rest of your life, ensuring that you retire from work rather than from living.

Key Features:

Here are the salient features of the ICICI Pru Guaranteed Pension Plan:

  • Guaranteed lifelong annuity: All you need to make payments at once and get guaranteed regular income for your entire life (Annuity).
  • Early Return of Purchase Price options: You will get a multitude of options to receive purchase price back from age 76 or at age 80.
  • Return of Purchase Price: With the pension plan, you will have the option to receive the amount either on death, Critical Illness or Permanent Disability due to the accident.
  • Choose your retirement date: Choose whether you want your annuity immediately or in 1 to 10 years.
  • High Purchase Price Benefit: The plan gives you a bonus annuity based on your purchase price slab and annuity choice.

Eligibility Criteria:

EligibilityMinimumMaximum
Age30 years65 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 accident (PD) or Death

Deferred Single Life with Return of Purchase Price on Critical illness (CI) or Permanent Disability due to accident (PD) or Death

30 Years70 Years
For all other Deferred Annuity Options30 Years85 Years
For all other options30 Years100 Years

3. ICICI Pru Saral Pension

If you are looking to get a regular source of income without any obstacles, then you cannot go wrong with ICICI Pru Saral pension. The salary should be assured regardless of market or corporate earnings. ICICI Pru Saral Pension gives you the financial freedom to live your life with the security of a guaranteed income for the rest of your life. Everything is liable to change, but not your income.

Key Features:

Here are the key features of ICICI Pru Saral Pension:

  • Guaranteed lifelong annuity: The pension plan allows you to only pay once (Purchase Price). Then, you will likely receive guaranteed monthly income for the rest of your life (Annuity).
  • The plan allows you the option to receive the amount in different periods, including annuity monthly, quarterly, half-yearly or yearly as per your convenience.
  • With the plan, you will get the option to take the plan for single life or joint lives.
  • The plan provides you with an additional annuity based on your purchase price slab.

Eligibility:

Eligibility CriteriaMinimumMaximum
Age40 Years80 Years
Joint Life Last Survivor Annuity with Return of 100% of Purchase Price (ROP) on the death of the last survivor40 Years80 Years

4. ICICI Pru Signature Plan

ICICI Pru Signature is the newest ULIP that’s just been added to the list, which combines life insurance and flexible investment possibilities in a single plan. It is a particular savings plan that might give you better returns while it shields your loved ones with life cover.

At maturity, your whole premium, plus Return of Mortality and Policy Administration Charges, is distributed among the funds of your choice, with no deductions (exclusively for customers buying online). This plan allows you plenty of flexibility to invest according to your needs, with a choice of four portfolio methods and a wide range of funds.

Key Features:

Here are the key features of ICICI Pru Signature:

  1. Financial Protection: The plan offers comprehensive life Coverage for the duration of the policy, ensuring that your family is financially secure even if you are not present.
  2. Abundant Flexibility: To meet your investment needs, this plan allows you to have a choice of four portfolio styles and a large range of funds across equities, balanced, and debt.
  3. Loyalty Rewards: With the pension plan, you will earn Wealth Boosters at regular intervals.
  4. Systematic Withdrawals: With the Systematic Withdrawal Plan, you can withdraw money regularly from your fund’s value.
  5. Unlimited Free Switches: For Fixed Portfolio Strategy, you can switch between funds as many times as you like for free.

Eligibility:

Eligibility CriteriaMinimumMaximum
Age (Entry)0 Years60 Years
Age (Maturity)18 Years75 Years
Policy TermThe policy term will be equal to 99 minus Age at entry10- 30 years

Why Is ICICI a Suitable Option For a Pension Scheme?

  • Add-ons: The policyholder can expand the pension plan by selecting add-on options such as critical illness or accidental disability, for example.
  • No-Risk Investment: Pension plans offer you complete protection against all types of financial hazards.
  • Option to Add Riders: Certain riders, such as ‘disability due to accident’ or ‘severe illness,’ might be added to your pension plan to improve it.
  • Insurance Cover: The majority of pension plans offer insurance coverage that protects you and your family against financial hardship.
  • Tax Benefits: You may be eligible for certain tax benefits and exemptions depending on the coverage you choose.

How Does ICICI Prudential Pension Plan Function?

Let’s take an example to understand!

A 45-year-old, Rakesh, a Senior Marketing Manager at IBM Delhi, just purchased ICICI Pru Signature to grow wealth, secure family’s future and achieve cherished goals. Coming to the values, the marketing lad selected a premium payment term of 7 years with the Whole Life option and paid a monthly premium of ₹ 25,000, giving him a sum assured of ₹ 30 lakh.

It should come as no surprise that his earnings will be determined by the performance of the funds he has chosen.

  • Amount of premium paid: 21 lakhs
  • Sum Assured: `30 lakh
  • Age at entry: 45 years
  • Policy term: 54 years (till the age of 99 years)
Age (in Years)Completed Policy YearFund Value @ 8% ARRFund value @ 4% ARR^
6520Rs. 47.32 lakhRs. 23.65 lakh
8540Rs. 1.80 Cr.Rs. 40.76 lakh
9954Rs. 4.50 Cr.Rs. 59.89 lakh

Note: As per IRDAI guidelines, returns are shown at 4% p.a. and 8% p.a.

Rakesh’s nominee will receive the death benefit as a lump sum payment if he dies during the policy period.

Death YearDeath Benefit paid out to nominee (@8% ARR)Death Benefit paid out to nominee(@4% ARR)
5Rs. 30 lakhsRs. 30 lakhs
15Rs. 33.89 lakhsRs. 30 lakhs
35Rs. 1.29 Cr.Rs. 35.23 lakhs

Buying Process of ICICI Pru Pension Plans

To buy any of the ICICI pension plans, you need to perform a series of the following steps:

  1. Firstly, you need to visit the official website of ICICI.
  2. After that, you need to click on the “Plan tab” in the status bar. Hover over on the “Retirement Plans” and then you will see 4 plans along with their details, displayed on the right-hand side.
  3. After that, whatever plan you need to buy (let’s say, Guaranteed Pension Plan), simply hover over it, and click on “Buy Online”.
  4. You will then be directed to the respective policy page.
  5. After that, you will see “Online Pension Calculator” on the right side of the page to calculate the amount that you will get at the time of pension.
  6. Simply fill in details like your date of birth, Marital Status, Mobile Number, Your Email ID, and then click on “Calculate Pension”. (Make sure you click on all the checkboxes).
  7. After that, you will see a page wherein “Deferred Single Life with Return of Purchase Price” is listed. On the left-hand side, you will see a table wherein you will need to enter the amount (Investment Amount), Annuity Frequency, and click on the “I want Pension for” option.
  8. After that, you will need to click on Agree & Continue”. Your application number will be generated.
  9. You will be directed to the page wherein you need to enter your name, education, organization name, address, city, nominee, and other important details. Once you are done filling in all your details, you need to click “next”.
  10. After that, you will then be directed to the page wherein you will see “Pay-out Details” that would allow you to make the payment.
  11. And then, you will need to upload your documents to complete the whole process.

Frequently Asked Questions

Yes. In India, you can invest in numerous pension schemes, but if you wish to gain tax relief on your contributions, you may be limited to the total amount you can contribute each year to all schemes.

While MAX Life pension plans only cover one person or life, you can buy a joint annuity plan that protects both you and your spouse.

Max Life pension plans protect the policyholder financially once they retire. The nominee will be eligible for compensation in the case of the insured’s untimely death.

If the policyholder feels the necessity, they can replace the policy’s nominee at any moment.

If you choose to surrender your pension plan before it reaches maturity age, the full surrender value will be added to your taxable income and taxed at your marginal rate. Notably, you will still be responsible for paying back any tax exemptions you got as well as any premiums you owe up to this point.

In most cases, pension plans include an age limit after which you can begin withdrawing funds.

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