ICICI Prudential Pension Plans

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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. 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:

  • There is a concept of vesting which is the date at which the plan terminates or matures
  • 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
  • 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
  • On vesting, either the entire corpus can be used to avail annuity or 1/3rd of it can be withdrawn in cash and the rest 2/3rd can be used to avail annuity. The withdrawn part is called commuted pension. .

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 Prudential Pension Plans

ICICI Prudential Life offers two types of Pension Plans to its customers to meet their retirement needs effectively. Let us take a look at the different types of pension plans offered by ICICI Prudential Life Insurance Company.

ICICI Pru Easy Retirement PlanA Unit Linked Pension Plan which offers the following features:

  • On Vesting, the policyholder will get higher of the fund value as on that day or the Assure Vesting Benefit which is equal to 101% of the total premiums paid till date.
  • The Vesting Age can be extended provided the policyholder is below 55 years of age
  • There are different types of annuity options available to the policyholder on vesting which are:
      • Life annuity
      • Life annuity with Return of Purchase Price
      • Life annuity guaranteed for 5/10/15 years and for life thereafter
      • Joint life or Last Survivor without Return of Purchase Price
      • Joint life or Last Survivor with Return of Purchase Price
  • The policyholder has different choices of dealing with the vesting corpus. He can avail immediate annuity payouts from the entire corpus or commute 1/3rd of the corpus in cash which will be tax-free and avail annuity payouts from the remaining 2/3rd of the corpus. He can alternatively also purchase a Single Premium Deferred Annuity from the company with the maturity proceeds.
  • On death of the policyholder, an amount which will be higher of the fund value as on the date of death or the Guaranteed Death Benefit is payable to the nominee. The Guaranteed Death Benefit is expressed as 105% of all premiums paid, including any top-up premiums till the date of death. The nominee can withdraw the entire amount from the company or may choose to receive annuity payouts from the death benefit.
  • Top-up premiums can be paid under the plan to increase the fund value provided it is at least Rs.2000 and above
  • 4 free switches are allowed every year to switch between funds
  • Premium redirection is also allowed to redirect future premiums to a different fund than that chosen at the plan inception
  • Two types of funds are available for investment which are Easy Retirement Balance d Fund and Easy Retirement Secure Fund
  • The plan provides the addition of Pension Boosters which are added after the completion of 10 policy years and thereafter every 5 years @ 5% of the average daily total Fund Value over the last 12 months provided at least 5 years’ full premium has been paid
  • The Premium payment term can be increased or decreased relevant with the terms and conditions under the plan.
  • Income tax benefit on the premium paid as per Section 80CCC and on the commuted part as per 

 

Eligibility Details

 

Minimum

Maximum

Entry Age

35 years

75 years

Vesting Age

45 years

80 years

Policy Term

10 years

30 years

Annual Premium amount

Rs.48, 000

No limit

Premium Payment Term

Equal to the policy term or limited pay for 5 or 10 years

 

Illustrative Specimen

The following table shows the benefit illustration of the plan where a premium of Rs.50, 000 is paid for a term of 20 years and a premium payment term of 5 years for an individual aged 40 years. The table shows the returns on the premium paid.

Premium Amount

Rs.50, 000

Assured Benefit

Rs.252, 000

Accumulated Savings @4%

Rs.373, 425

Pension Booster Returns @4%

Rs.17, 640

Expected Annual Annuity Payout @4%

Rs.10, 601

Accumulated Savings @8%

Rs.738, 242

Pension Booster Returns @8%

Rs.34, 307

Expected Annual Annuity Payout @8%

Rs.49, 323

 

ICICI Pru Immediate Annuity Planas the name suggest, it is an immediate annuity plan with the following features:

 

  • 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
  • The plan can be bought by groups to fund their superannuation needs and individuals for their retirement needs
  • The plan provides 5 annuity payout options to choose from which are:
      • Life Annuity
      • Life Annuity with Return of Premium
      • Life Annuity guaranteed for 5/10 or 15 years and thereafter payable for life
      • Joint Life Last Survivor
      • Joint Life Last Survivor with Return of Purchase Price
  • The policyholder can increase the annuity amount any time he or she wants by paying additional premium to purchase an additional annuity
  • The company provides a premium discount based on the annuity amount and the mode of annuity payout chosen.
  • 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

Q. Why should I buy ICICI Prudential’s pension plans?

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?

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?

:- 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

Q. What is the vesting age of ICICI Prudential’s pension plans?

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?

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?

Though both the 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?

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?

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?

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?

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.

ICICI Prudential Pension Plans Reviews

TOTAL REVIEWS (25)
Harminder
West_tripura
October 10, 2016

ICICI Policy

My icici prudential life insurance pension plan is awesome which has some extra benefits of the policy. Services are on time and very quick facilitated by the staff of the company. Less paperwork and every update is mailed to me regularly.

Uttam
Hathgaon
August 24, 2016

Retirement policy

I have secure my secure my retirement time by purchasing the pension plan from icici prudential life insurance. The insurance is good and large amount is given in the end of the insurance policy. Updates are mailed to me regularly about the insurance plan.

Pintu
Bikaner
July 20, 2016

Coverage Is High

I have icici life insurance pension plan which has low premium and returns are maximum. Service is the best and on time. Updates and renewals are done on online service. The future of mine and my family is secure with this great policy.

Karma
Badayun
July 11, 2016

Pension Plan

Pension plan is very durable according to me and it helps a lot in future time. Premium of the policy is very low but the returns are heavy. Accidental death benefits, health care, and many reimbursable funds. Policy coverage is good and claims are easy to sanctioned due to fast service.

Harindra
Ajmer
June 29, 2016

Good

The pension plan I have purchase is good. Policy come in very low investment and premium is also low. Policy coverage is high and claims are good. The service is fast and claiming become easy due to this. The online portal service is nice it reduces paperwork and hassle free documentations.

Lovish
Bengaluru
April 15, 2016

Best

My pension policy plan is with icici prudential life insurance. The policy has good coverage that is 91% with low premium. Claims are also high and the returns is Rs.44 K per month after policy end. Service is fantastic and the executives do best work. Good investment for future and taxes are also reduced.

Ishant
Pilani
April 15, 2016

Average Policy

I invest my money for my future security with icici prudential life insurance. I have pension policy plan. Policy coverage is 94% and claims are around 41 K. Service is good and executives behave well. Nice policy plan.

Waqar
Jalpaiguri
April 15, 2016

Quality Investment

I buy pension policy for my parents from icici prudential life insurance. My parents are happy with the policy due to low premiums. The returns are high ~Rs.37 K per month for each. The policy coverage is high ~84% and service is rapid and on time. The online facilities are simple and easily accessible.

Vabhav
Dwarka
April 15, 2016

Policy Coverage Is Good

I purchase icici prudential life insurance pension plan. Plan is good with nice services and always on time. Policy coverage is 89% and the claim is of Rs.41 K per month after policy ends. Investment is low and returns are high. The behaviour from executives is nice. Good future investment with tax saving.

Bhupesh
Coonoor
April 15, 2016

Above Average

I purchase pension plan with icici prudential life insurance. I'm relaxed now for my future, the returning amount is 39 K per month after the policy end. The policy coverage is 91% and claims are also high with low premiums. The behaviour of the executives and staff members are really very good. Nice policy, I like it.

Jasmine
Haldwani
April 15, 2016

Great

My friend suggested me to invest money for future so i invest my money with icici prudential life insurance pension plan. The policy coverage is high ~89.5% and the claim is around Rs.41 K per month after policy get mature. Good future investment which reduces taxes too. Great services.

Dhruba
Jhumri_tillaiya
April 15, 2016

Totally Safe

I purchase icici prudential life pension plan for my parent. My father happy with the policy and its benefits. Policy coverage is high ~91% and the premium amount is low. The amount of Rs.44 K is given per month after the policy mature. The behaviour of executives and staff members are nice. Nice services, good work.

Yajan
Kaushambi
April 15, 2016

Nice

ICICI prudential life pension plan by a friend advice. Plan is an average one with okay services, 69% policy coverage, Rs.36 K per month returns. Good future investment which reduces my taxes too. The behaviour of the executives and staff members. Manageable.

Akash
Muzaffarnagar
April 15, 2016

Fantastic

I own the icici prudential life insurance pension plans. The investment is low and the returns is huge. Policy coverage is high 89% and claims are even better. The service is awesome with very calm behaviour of executives and team. Good future investment and it saves taxes also.

Sandeep
Haidergrah
April 15, 2016

Nice Policy

I have a pension policy plan like every one does. The policy is great with high returns and low premiums. Policy coverage is also nice ~ 94% and service is fast. Really good job guys, you provide best icici prudential pension plans. Nice future investment which save taxes also.

Irfan
Mehmdabad
April 15, 2016

Fair Policy

I found the best pension plan for old age with icici prudential life insurance . The plan is for my mom and she like the policy very much. The policy coverage is 89% and return is ~Rs.41 K per month. The service is good and the amount is directly transfer to mom bank account. I so stress free now. Great work.

Gautam
Ambedkar_nagar
April 15, 2016

Satisfactory Plan

I got a very fine policy from icici prudential life insurance. Now, I'm tension for future because of great pension policy plan. The coverage is good around 91%, service is great and fast too, even the claims are fantastic. Great policy, i like it.

Tapish
Mussorie
April 15, 2016

Excellent Policy

Recently took life insurance with icici prudential life insurance. Great retirement plans with low premiums and nice policy coverage ~86%. The service providers are cooperative and doing there jobs very nicely. Claims easy to get and time period is less. Nice deal, satisfied.

Rahul
Gautam_buddha_nagar
April 15, 2016

Wonderful

I got pension plan from icici prudential life insurance from last few year. The policy coverage is ~95%. No doubt the service is good. The claiming experience i don't have yet. Good future investment with low premiums. The behaviour of executives and staff members are really very nice. Good work.

Parul
Manesar
April 15, 2016

Good

My pension policy plan is suggestion of the friend, So i took it from icici prudential life insurance. Staff members and executives provide good and quick services. Policy coverage is good approx. 93% but the premiums are normal. Good terms in compare with other companies. I like my policy plan.

KISHOR
Dhule
March 08, 2016

Fantastic plan.

I have pension policy plan which i purchase from icici prudential life insurance. Policy coverage is 80% and the premiums is 6K. Nice investment for future and around 30K is pay back amount per month after policy get mature.
Plan Name: Easy Retirement
Agent Code: BPW00313

Chandra
Srikakulam
March 06, 2016

good investment

My pension plan is with icici prudential life insurance. The claims are easily cleared due to fast services provided by the executives. Payback amount is ~rs.19 K. The premiums are low and pay twice a year.
Plan Name: Wealth Builder II
Agent Code: BPW00313

Satish
Sitamarhi
March 03, 2016

Awesome.

ICICI prudential life insurance provide me pensions plan. Policy premium is low i.e., 5K and the returns are high ~rs.27 K. Claims are easily sanctioned because the executives provides great services. I like the policy.
Plan Name: Wealth Builder II
Agent Code: BPW00313

Bindu
Bengaluru
February 28, 2016

Not Satisfactory.

I have icici prudential life insurance pension policy plan. My policy is not that good as i expected. Policy coverage is 70%, claims are 15K and the service is slow. Please improve your services and policy plans.
Plan Name: Easy Retirement
Agent Code: BPW00313

ROHIT
Chennai
February 19, 2016

"Nice"

I have pension policy plan with icici prudential life insurance. The plan is having low investment and the policy coverage is 80%. In fact the claim is high and the amount in return is 20000 per month. Overall nice policy with good services.
Plan Name: Wealth Builder II
Agent Code: BPW00313