ICICI Pru Guaranteed Pension Plan

What is ICICI Pru Guaranteed Pension Plan?

ICICI Pru Guaranteed Pension Plan offered by the ICICI Prudential Life Insurance is a non-participating, non-linked single premium annuity plan that provides you guaranteed income for your entire life after retirement. This annuity plan assures a regular flow of income throughout life and provides financial freedom to decide when you want to retire. This plan offers both deferred and immediate annuity options, which are as follows:

• Immediate Annuity: You make an upfront lump sum investment and start getting regular income payments almost immediately, providing quick financial returns.

• Deferred Annuity: You invest your money now, and the payouts begin at a future date, allowing your funds to grow before you start receiving regular income.

Key Features of ICICI Pru Guaranteed Pension Plan:

The following are the key features offered by ICICI Pru Guaranteed Pension Plan.

• Guaranteed Lifelong Annuity: You can receive a guaranteed regular income for entire life as annuity by paying once.

• Flexibility: The plan offers the flexibility to receive the annuity on monthly, quarterly, half-yearly or yearly basis.

• Extensive Range of Annuity Options: You can choose from 11 different annuity options as per their financial requirement and suitability.

• Return of Purchase Price: This investment plan offers the benefit of return of purchase price in case of death, critical illnesses or permanent disability due to accident.

• Top-up Option: The plan offers the option to increase the annuity and benefits by choosing the top-up option and paying high purchase price.

• Choose your Retirement Date: You can choose to receive the annuity immediately after paying the lump-sum premium or defer for 1-10 years.

• Option: You can choose the single life or joint life option as per your requirement and suitability.

• Early Return of Purchase Price Options:  The plan offers the option to receive the purchase price back from the age of 76 or at the age of 80 years.

• High Purchase Price Benefit: Provides additional annuity based on the annuity option and purchase price slab.

ICICI Guaranteed Pension Plan at a Glance

The following table mentions the minimum age of entry for the annuitants:

Annuity Options Available Under the ICICI Pru Guaranteed Pension Plan

Benefits of ICICI Pru Guaranteed Pension Plan

Let us take a look at the some benefits of this investment option.

• Higher Purchase Price Benefit- The policyholder can enjoy higher income by increasing the purchase price of the annuity.

• Online Booster- for the policies purchased online, the annuity will increase by 1%

• Loyalty Booster- the existing customers of ICICI Prudential purchasing the ICICI Pru Guaranteed Pension plan can avail the loyalty booster of 1%.

• NPS Benefit- for the policies bought using the proceeds out of NPS, the annuity will increase by 1%.

• Option to top-up the annuity amount- the annuitant can increase the annuity amount by opting the top-up option.

• Loan- the facility of loan can be availed only under the deferred annuity and only during the deferment period. The loan amount up to 80% of the surrender value can be availed.

Policy Details of ICICI Guaranteed Pension Plan

• Free-Look Period: You can review your policy and decide whether to keep it in a free look period within 15 days of receiving the policy document or 30 days if it was purchased online or through a distance-selling method.

• Nomination: The process of naming a beneficiary for this policy is regulated by Section 39 of the Insurance Laws (Amendments) Act, 1938, ensuring that your designated nominee receives the policy benefits.

• Surrender Benefit: Specific annuity options, such as Single Life with Return of Purchase Price or Joint Life with Return of Purchase Price, offer a surrender benefit, but no changes can be made to the policy after the free-look period ends.

• NPS and QROPS: For policies linked to the National Pension System (NPS), death benefits are managed according to the rules of the Pension Fund Regulatory and Development Authority (PFRDA), while policies under the QROPS scheme cannot be surrendered.

• Medical Examination: Policies obtained through the Point of Sale (POS) channel do not require a medical examination, making the process easier for the buyer.

• Annuitant and Policyholder: If the policyholder and annuitant are different at the start of the policy, ownership will transfer to the annuitant, or their guardian, upon the policyholder’s death or when the annuitant turns 18.

Working of ICICI Pru Guaranteed Pension Plan

• Step 1- Premium Payment: Pay premiums as a single lump sum or periodically based on your chosen option.

• Step 2- Accumulation Phase: Your premiums grow with guaranteed returns over the policy term.

• Step 3- Pension Payout: At maturity, the accumulated amount is converted into a regular pension based on your selected annuity option.

Critical Illness Covered Under ICICI Guaranteed Pension Plan

These are the critical illnesses covered under the plan:

• Severe cancer diagnosis.

• First major heart attack.

• Open chest Coronary Artery Bypass Graft (CABG) surgery.

• Chronic kidney failure, needing regular dialysis.

• Stroke causing lasting symptoms.

• Transplant of a major organ or bone marrow.

• Long-term paralysis of limbs.

• Long-term disability from an accident like unable to walk, bend, lift, write, and climb, organ failure, Transient Ischemic Attacks (TIA), or blindness.