Overview of ICICI Prudential Pension Plans:

ICICI Prudential Life Insurance is a joint venture started in the year 2000 by ICICI Bank Ltd and Prudential private Ltd Company. Enjoying a dominant position for over 20 years in the insurance sector, ICICI Prudential life insurance offers variants of products from child plans, term plans, investment, and savings plans. ICICI also offers a pension plan for enjoying an enriching after retirement life. A retirement plan is important because most of us suffer a lack of funds even after working for most of our lives due to the rising cost of living. This is why planning ahead of time becomes vital for everyone so that they can secure their life after retirement. ICICI pension plans are designed to help after retirement when the flow of income is reduced and lifestyle expenses increase. It ensures that you have a flow of income over time from the corpus of funds which is accumulated upon having a pension plan.

Key features of the ICICI Prudential Pension Plan:

Some of the features of the pension plans offered by ICICI are:

  1. Annuity: This is the regular payment received from the lump-sum investment made and is one of the most important features of the pension plan
  2. Vesting age: The age when payment of pension starts is known as vesting age
  3. Accumulation period: The period during which corpus of funds is accumulated upon payment of premiums is the accumulation period
  4. Payment period: This is the period during the payment of pension is received after retirement
  5. Surrender value: If the policyholder surrenders the plan before the due date of the plan, this surrender value is paid to the policyholder

Benefits of ICICI Prudential Pension Plan:

ICICI pension plans come with certain benefits which help the elderly after retirement life:

  1. Lifetime pension: ICICI pension plan ensures pension throughout life after retirement ensuring that the policyholder is financially independent.
  2. Insurance cover: The pension plans offered by ICICI include insurance cover for protecting the policyholder and family members from the financial burden in the future.
  3. Add-ons: The policyholder may choose to enhance the pension plan by choosing add-on options like critical illness or disability caused by accident, etc.
  4. Tax Benefits: Certain tax exemptions and benefits can be availed by the policyholder depending upon the policy taken.
  5. No-risk investment: ICICI pension plans provide protection from any kind of investment risk.
  6. Multiple annuities: ICICI pension plans offer multiple annuity options for the policyholders to choose from

Types of ICICI Prudential Pension Plans:

There are two types of pension plans offered by ICICI for meeting after retirement requirements

  1. ICICI Pru Easy Retirement Plan
  2. ICICI Pru Immediate Annuity Plan

1. ICICI Pru Easy Retirement Plan

This is a unit-linked retirement plan which offers:

  • A higher value of the fund or Assure Vesting Benefit equal to 101%, on vesting, of the premiums paid
  • Option to extend the vesting age given the age of the policyholder is below 55 years
  • On vesting, different annuity options are available for the policyholder
    • Life annuity
    • Return of purchase price along with Life annuity
    • Guaranteed life annuity for 5, 10, 15 and for whole life
    • Last-survivor or joint-life without the option of Return of Purchase price
    • Last-survivor or joint-life with the option of Return of Purchase price
  • Options to deal with vesting corpus
  • Avail annuity payouts immediately from the total corpus
  • Choose cash commute for 1/3rd of the corpus along with tax benefits and annuity payouts from the 2/3rd corpus. Alternatively, the policyholder can purchase Single Premium Deferred Annuity with maturity proceeds as well from the company
  • A higher value of the fund of the guaranteed death benefit, whichever higher as on the date of the death of the policyholder, is paid to the nominee in case of death. The guaranteed death benefit is decided at 105% of the total premiums paid along with any top-up premiums paid. The nominee has the option to choose cash payment or annuity payment of the death benefit.
  • Options to pay top-up premiums of at least Rs 2000 and above to enhance the value of the fund
  • The plan allows 4 free switches, to switch between the funds, in a year
  • The plan allows redirection of the premium to another fund than the fund chosen at the beginning
  • The plan offers two types of investment funds
    • Easy retirement balanced fund
    • Easy retirement secure fund
  • The plan offers pension boosters in addition after completing 10 years and thereafter every 5 years at the rate of 5%of the daily fund value of last 12 months given that full premium has been paid for 5 years
  • The term premium payment can be increased or decreased depending on the terms and conditions of the policy
  • Tax benefits under section 80CCC
  •  Eligibility Conditions of ICICI Pru Easy Retirement Plan

    Eligibility

    Minimum

    Maximum

    Age at Entry

    35 years

    75 years

    Vesting Age

    45 years

    80 years

    Policy Tenure

    10 years

    30 years

    Premium

    INR 48,000

    No Limit

    Premium Paying Term

    5/10 years

    Same as Policy Tenure

    Example: how this policy works

    To understand this ICICI pension plan better, here is an example of how your numbers will look like for an individual who invests Rs 50,000 as premium for 20 years of policy term with a premium payment term of 5 years.

    Premium Amount

    INR 50,000

    Benefit Assured

    INR 2,52,000

    4% accumulated savings

    INR 3,73,425

    4% pension booster return

    INR 17,640

    4% expected annual annuity payout

    INR 10,601

    8% accumulated savings

    INR 7,38,242

    8% pension booster return

    INR 34, 307

    8% expected annual annuity payout

    INR 49,343

2. ICICI Pru Immediate Annuity Plan

As suggested in the name, this plan has the following features to offer:

  • This plan offers immediate annuity payments that are offered from the frequency chosen i.e. annual, half-yearly, quarterly and monthly, after single premium payment.
  • This plan allows a group to buy the plan for superannuation needs along with an individual’s retirement needs
  • This plan offers the option for 5 annuity payouts
    • Life annuity
    • Return of premium along with Life annuity
    • Guaranteed life annuity for 5, 10, 15 and for whole life
    • Joint life last survivor
    • Joint life last survivor with the option of Return of Purchase price
  • The term premium payment can be increased or decreased depending on the terms and conditions of the policy
  • Discount on the basis of annuity amount and chosen mode of the annuity payout
  • Tax benefits under section 80CCC
  •  Eligibility Conditions of ICICI Pru Immediate Annuity Plan

    Eligibility

    Minimum

    Maximum

    Age at Entry

    45 years

    100 years

    Purchase Price

    INR 1 lakh

    No Limit

    The annual amount of payout

    INR 100

    No Limit

    Frequency of annuity payout

    Yearly, half-yearly, quarterly and monthly

    Example: How this policy works?

    Here is an example to understand this plan better. This example explains purchase price under two options if the policyholder wants annuity payout of INR 12,000 every year.

    Age

    Life Annuity with Return of Premium

    Life Annuity without Return of premium

    45 years

    INR 1,75,706

    INR 1,54,215

    55 years

    INR 1,75,788

    INR 1,44,669

    65 years

    INR 1,77,634

    INR 1,22,365

Documents required for ICICI Prudential Pension Plans:

The following documents are required for buying ICICI pension plans

  • Documents for proof of age
    • Birth certificate
    • Voter ID
    • Driving license
    • Passport
    • High School certificate
  • Documents for proof of identity
    • PAN card
    • Voter ID
    • Aadhar card
    • Passport
    • Driving license
  • Document for address proof
    • Aadhar card
    • Driving license
    • Passport
    • Electricity bill
    • Ration card
    • Telephone bill
  • Document for proof of income 
    • Salary slip
    • Income tax return
    • Bank statement
  • Medical reports 

How to buy/renew ICICI pension plans?

If you want to buy ICICI pension plan then all you have to do is

To buy the ICICI pension plan from Turtlemint:

  • You want to avail extra benefits, then you can choose to buy your pension plan from Turtlemint as well. Turtlemint provides you with claim assistance and suggests you the best policy based on your requirements.
  • Login at https://www.turtlemint.com/life-insurance/profile/retirement/gender
  • Enter details like gender, age, annual income, etc
  • You will be directed to a page with all the available best options based on the details entered by you
  • You can now compare the various policies and choose the best one suiting your need and buy it directly from Turtlemint page

FAQ’s

Pension is the fund stored during employment for support after retirement. After retirement, the source of income diminishes and pension works as a flow of income during that period.


Depending upon the plan chosen, the pension is entitled either to the nominee or to the spouse after the death of the policyholder.


Any contribution toward the pension plan is deducted from the gross income while calculating tax. At maturity, the policyholder can, without paying tax, withdraw 1/3rd of the accumulated pension.


30 days grace period is given to the policyholder after which the policy lapses and the policyholder cannot claim any benefits.

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