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ICICI Prudential Pension Plans
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank Ltd. and Prudential Private Limited Company.Prudential Private Limited Company is a leading international financial service group having its headquarters in the United Kingdom. ICICI Prudential Life is one of the first private sector life insurance companies who after receiving approval from the Insurance Regulatory Development Authority of India (IRDAI) have begun its operation in December 2000.
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- ICICI Prudential Pension Plans
Amongst the entire private life insurers in the country, ICICI has enjoyed a dominant position for more than twenty years by offering world-class products and quality consistent services.The range of products offered by ICICI Prudential Life Insurance Company include Protection plans in the form of term plans, Child Plans, Savings and Investment Plans which are available in both conventional or ULIPs form and pension plans. With a wide range of products, the company strives to meet every individual’s insurance related requirement at a single source.
What are ICICI Prudential Pension Plans?
Pension Plans or annuity plans are plans which are designed to take care of the income flow for the individual after retirement. Post retirement when the income of the individual dries up, the lifestyle expenses continue and there must be a provision to meet such expenses. Retirement plans help in providing a regular cash flow to individuals so that they can enjoy their retirement peacefully.
Pension Plans have some unique features which are listed below:
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There is a concept of vesting which is the date at which the plan terminates or matures
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Pension plans can be taken as Immediate Annuity Plans or Deferred Annuity Plans. Under Immediate Annuity Plans, a lump sum is paid by the policyholder and the annuity payments start immediately from the next period chosen. Under deferred annuity, premiums are first paid by the policyholder which accumulate into a corpus and thereafter annuity payments start from the vesting date
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There is no life cover. Annuity payments stop when the annuitant (or his spouse in case of joint life annuity) dies. However, under deferred annuity, death benefit is applicable if the annuitant dies in the deferment period
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On vesting, either the entire corpus can be used to avail annuity or 1/3rd of it can be withdrawn in cash and the rest 2/3rd can be used to avail annuity. The withdrawn part is called commuted pension. .
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Why ICICI Prudential Pension Plans
Being dependent on others, especially financially is a curse. It is always better to provide for one’s finances even when there is no income. Retirement is a period where the expenses remain the same or maybe increase but income either decreases or diminishes completely. Having an insurance plan is prudent in such a scenario as the plan will provide an individual with the necessary finance required in the old age. Pension plans offered by life insurance companies provide a regular stream of income and come in many variants. They can be taken to cover the life of the policyholder’s spouse as well under the joint annuity plans. So, buying a pension plan is a prudent step towards an individual’s retirement planning.
ICICI Pru Immediate Annuity Plan – as the name suggest, it is an immediate annuity plan with the following features:
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Under the plan, the annuity payments will start immediately from the next chosen frequency (monthly, quarterly, half-yearly or annually) after the payment of the single premium
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The plan can be bought by groups to fund their superannuation needs and individuals for their retirement needs
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The plan provides 5 annuity payout options to choose from which are:
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Life Annuity
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Life Annuity with Return of Premium
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Life Annuity guaranteed for 5/10 or 15 years and thereafter payable for life
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Joint Life Last Survivor
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Joint Life Last Survivor with Return of Purchase Price
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The policyholder can increase the annuity amount any time he or she wants by paying additional premium to purchase an additional annuity
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The company provides a premium discount based on the annuity amount and the mode of annuity payout chosen.
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Income tax benefit on the premium paid as per Section 80CCC and on the commuted part as per Section 10(10A) of the Income Tax Act.
Eligibility Details
| Minimum | Maximum | |
| Entry Age | 45 years | 100 years |
| Purchase Price | Rs.1 lakh | No limit |
| Amount of Annual Payout | Rs.100 | No limit |
| Annuity payout Frequency | Monthly, quarterly, half-yearly or yearly | |
Sample Purchase Price Rates
The following table shows the applicable Purchase Price payable under two different options if the policyholder wishes to avail an annuity payout of Rs.12, 000 every year.
| Age | Life annuity with Return of Premium | Life annuity without Return of Premium |
| 45 years | 175,706 | 154,215 |
| 55 years | 175,788 | 144,669 |
| 65 years | 177,634 | 122,365 |
ICICI Prudential Pension Plans FAQS
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Q. Why should I buy ICICI Prudential’s pension plans?
Ans: Given the high cost of living, retirement planning becomes an inevitable part of the financial life. ICICI Prudential’s pension plans offer you financial security so that when your income stops after retirement, you can still live without compromising on your lifestyle. -
Q. What is the accumulation phase of ICICI Prudential’s pension plans?
Ans: It is the time during which you regularly pay premium to ICICI Prudential to get income post retirement in the form of pension. -
Q. How do I compute my retirement corpus for ICICI Prudential?
Ans: Use our retirement calculator to compute the retirement corpus. You need to put in the following details in the calculator to get the ideal corpus.- Monthly expenses
- Inflation rate
- Retirement age
- Number of years you expect to live post retirement
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Q. What is the vesting age of ICICI Prudential’s pension plans?
Ans: The age at which you decide to start receiving your pension is known as vesting age. -
Q. What are the tax benefits of ICICI Prudential’s pension plans?
Ans: As per prevailing tax laws, ICICI Prudential offers tax benefits up to a maximum of Rs 10,000 on taxable income under Section 80CCC and Section 10(10A) of the Income Tax Act, 1961. Up to 1/3rd of the maturity amount is tax-free, while the remaining amount is paid out as an annuity and is taxable. -
Q. How is ICICI Prudential’s pension plan different from term plan?
Ans: Though both type of insurance plans offer financial security, there is a basic difference between ICICI Prudential’s pension plan and term plans. A pension plan offers financial security after retirement. In case of your early death, ICICI Prudential pays death benefits to your nominee. However, term insurance plans pay amount only after the death of the policyholder. In case the insured survives the term, no maturity amount is paid. -
Q. What is an annuity?
Ans: An annuity is the regular income, pension or allowance that ICICI Prudential pays after the retirement. -
Q. What if I fail to pay premium of ICICI Prudential pension plan on time?
Ans: Usually you get a grace period of up to 30 days to pay your premiums once it is overdue. However, if you still don’t pay premium after the grace period, your policy will lapse and you can’t claim any benefits from your policy. -
Q. What are the different options to pay premium of my ICICI Prudential pension plan?
Ans: There are various options available to pay your premium. You can pay premium monthly, quarterly, half yearly or yearly. You can also pay premiums in one lump sum. However, most of the people opt for monthly premium mode as it is relatively small and easy to monitor. -
Q. Why should I buy ICICI Prudential’s pension plan when I already have a provident fund (PF) account?
Ans: Yes you should buy ICICI Prudential’s pension plan even though you have a provident fund account (PF). The ever growing inflation will make your PF amount insufficient in the future. It will not be enough for your future expenses. This becomes more important because as you grow old, you become more susceptible to different health problems and it increases your medical bills also. A lone provident fund will not support your lifestyle needs.
†Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is based on past 10 years’ fund performance (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
*Please note that the quotes shown will be from our partners
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
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