ICICI Prudential Easy Retirement Plan

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Introduction/Overview

ICICI Prudential Easy Retirement Plan is a Unit Linked Pension Plan which provides regular annuity payouts post vesting so that there is income provision after retirement

Key Features

  • It is a non-participating Unit Linked plan with Limited and Regular premium payment option
  • 101% of premiums paid is guaranteed on Vesting thereby reducing the impact of market risk
  • The Vesting Age can be extended if the policyholder is aged 55 years or less
  • 2 funds are available for investment
  1. Easy Retirement Balanced Fund
  2. Easy Retirement Secure Fund
  • The following annuity options are available:
  1. Life annuity
  2. Life annuity with Return of Purchase Price
  3. Life annuity guaranteed for 5/10/15 years and for life thereafter
  4. Joint life or Last Survivor without Return of Purchase Price
  5. Joint life or Last Survivor with Return of Purchase Price

Benefits

  • On Vesting, the accumulated Value will be payable. The benefit can be used to:
  1. Purchase an Immediate Annuity to receive regular incomes
  2. Purchase a Single Premium Deferred Annuity Plan
  3. Defer the Vesting Age (if aged less than 55 years)
  4. Commute 1/3rd of the corpus and purchase an Immediate Annuity with the remaining 2/3rd part
  • The accumulated value will be the higher of Fund Value or Assured Benefit equal to 101% of all Premiums paid including Top-up Premium, if any.
  • On death, higher of the Fund Value or Guaranteed Death Benefit will be payable
  • The guaranteed Death Benefit is equal to 105% of all Premiums paid including Top-up Premium, if any
  • 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. Death Benefit is exempted under Section 10(10D) of the Income Tax Act

Product Specification:

 

Minimum

Maximum

Entry Age (Last Birthday)

35 years

70 years

Vesting Age (Last Birthday)

45 years

80 years

Policy term (in years)

10

30

Premium Paying Term (in years)

5, 10 or equal to policy term

Premium Paying Frequency

Yearly, half-yearly, monthly

Premium

48,000

No limit

 

Details about Premium

Annual Premium in Rupees and benefit illustration for a term of 20 years and PPT 5 years

Age

40 years

Premium

50,000

Assured Benefit

252,500

Accumulated savings @ 4%

373,425

Pension Booster Returns @ 4%

17,640

Expected Annual Annuity Payout @ 4%

10,601

Accumulated savings @ 8%

738,242

Pension Booster Returns @ 8%

34,307

Expected Annual Annuity Payout @ 8%

49,323

 

Policy Details

Grace Period: 15 days grace period is allowed in monthly mode and 30 days in other modes.

Policy Termination or Surrender Benefit: Policyholder is allowed to surrender the policy after 5 completed years. If surrendered before 5 years, the fund value net of discontinuation charge will be credited to the Discontinued Policy Fund where it will earn a minimum of 4% p.a. growth. After completion of 5 years, the fund value in the Discontinued Policy fund as on that date will be paid to the policyholder. If surrendered after 5 completed policy years, the entire Fund value on the date of surrender is paid without any charges. The Surrender Value should be used to receive annuity under the same options as on vesting.

Free Look Period: If you would not be pleased with the coverage, and terms and conditions of the policy, you have the option of canceling the policy within 15 days of receipt of the policy documents, provided there has been no claim.

Exclusions

  • If suicide is committed with 12 months of policy inception or revival, the Fund Value as on that date is payable

Inclusions

  • Top-ups can be done subject to a minimum of Rs.2000 to increase the Fund Value
  • Switching between funds is also allowed. 4 free switches are allowed every year
  • Premium Redirection facility can be utilized to direct future premiums to another fund

Additional Features or Riders

  • Pension Boosters are added after the completion of 10 policy years and every 5 years thereof @ 5% of the average daily total Fund Value over the last 12 months provided at least 5 years’ full premium has been paid
  • PPT can be increased or decreased as per terms and conditions

Documents Required

Policyholder has to fill up an ‘Application form/ proposal form’ with accurate medical history along with the address proof and other KYC documents. Medical examination may be required in some cases, based on the sum assured and the age of the person.