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:
- 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
- Vesting age: The age when payment of pension starts is known as vesting age
- Accumulation period: The period during which corpus of funds is accumulated upon payment of premiums is the accumulation period
- Payment period: This is the period during the payment of pension is received after retirement
- 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:
- Lifetime pension: ICICI pension plan ensures pension throughout life after retirement ensuring that the policyholder is financially independent.
- 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.
- 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.
- Tax Benefits: Certain tax exemptions and benefits can be availed by the policyholder depending upon the policy taken.
- No-risk investment: ICICI pension plans provide protection from any kind of investment risk.
- 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
- ICICI Pru Easy Retirement Plan
- 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
- Login to https://www.iciciprulife.com/
- Then choose retirement plans from the ‘Plan’ option
- You will be directed to a page with all the information about the various plans.
- You will find an option to calculate the premium yourself and to call an advisor
- To calculate the premium either select calculate premium or click here https://www.iciciprulife.com/retirement-pension-plans/buy-easy-retirement-plan-online.html and fill in the details asked
- To call an advisor to click https://buy.iciciprulife.com/buy/SendMeanAdvisorNew.htm?execution=e1s1 and enter your details email address, mobile, name, and city, etc.
- The insurance company will take of everything from there
- Or give a missed call to 022-3381-1777 or send an SMS SMA to 56767
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.
