ICICI Prudential Easy Retirement SP Plan

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Introduction/Overview 

ICICI Prudential Easy Retirement SP Plan is a Single Pay ULIP product, designed to provide annuity payouts to ensure a tension-free retirement. 

ICICI Prudential Easy Retirement SP - Key Features 

  • It is a Unit-linked non-participating plan with an option of Single Premium payment.
  • There is a guaranteed 101% return of investment on maturity, which reduces the impact of market risks.
  • If the age of the insured person is below 55 years, then the vesting age may be extended.
  • The policy offers 2 fund options for investment.
    • Easy Retirement SP Balanced Fund.
    • Easy Retirement Secure Fund. 

ICICI Prudential Easy Retirement SP - Benefits 

  • On maturity, the total Fund Value will be paid out and the following options can be availed by the insured :
    1. The insured can buy an immediate annuity in order to receive regular income.
    2. The insured can buy a Single Premium Deferred Annuity Plan.
    3. The vesting age of the insured may defer if he/she is aged below 55 years.         
    4. Convert 1/3rd of the principal sum and the remaining 2/3rd part can be used to purchase an immediate annuity. 
  • The total collected value will be the higher of assured benefit or fund value equal to 101% of single premium paid, which includes top-up premium, if any.
  • In case of unfortunate demise of the insurance holder, higher of guaranteed death benefit or the fund value is payable to the beneficiary of the policy.
  • The guaranteed Death Benefit is equal to 105% of the Single Premium paid, which also includes top-up premiums (if any).
  • The maturity benefits, death benefits and the premium paid are exempt to tax deduction under section 80C and (10D) of Income Tax Act. 

ICICI Prudential Easy Retirement SP - Product Specification 

 

Minimum

Maximum

Entry Age (Last Birthday)

35 years

80 years

Vesting Age (Last Birthday)

45 years

90 years

Policy term (in years)

10

30

Premium Paying Term (in years)

Single Pay

Premium

48,000

No limit

 

Details about Premium

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

Age

40 years

Premium

500,000

Assured Benefit

505,000

Accumulated savings @ 4%

845,578

Expected Annual Annuity Payout @ 4%

24,101

Accumulated savings @ 8%

17,96,796

Expected Annual Annuity Payout @ 8%

120,168

 

ICICI Prudential Easy Retirement SP - Policy Details 

Grace Period:  As this is a single premium payment plan, it does not provide any grace period.                                        

Policy Termination or Surrender Benefit: The insured is allowed to surrender the policy only after the completion of first five years. If the insured surrenders the policy before the completion of 5 years, then a policy discontinuation charge will be deducted and the fund value will be credited to the Discontinued Policy Fund account. It will accrue interest @ 4% p.a. If the policy surrendered after the completion of 5 years, the insurer will pay out the total fund value without deducting any charges. In order to receive bonus under the same option as on investment, the surrender value should be used. 

Free Look Period: 

If the insured has not made any claim, then he/she can cancel the policy under free look period of 15 days. The free look period is provided by the insurer during which the life insured can cancel the policy if he/she is dissatisfied with the policy’s terms and conditions. 

Exclusions

In case the insured commits suicide within a year of policy renewal or inception, the fund value as on that date will be paid. 

Inclusions

  • To increase the fund value, a minimum of Rs.2000 top-up is allowed.
  • The insured is allowed to switch between funds. Every year, 4 free switches are allowed. 

Additional Features or Riders

  • Loyalty additions at 0.25% of the average total fund value of the day over the last year are added from the 7th policy year.
  • Pension Boosters are added after the completion of the 10 policy year and every 5 years therefore at 2% of the average daily total Fund Value over the last 12 months. 

Documents Required

An application form is needed to be filled accurately along with a correct medical history, address proof and KYC documents in order to avail the policy. Medical examination may be required in some cases, based on the sum assured and the age of the person. 

You may also like to read : ICICI Prudential Pension Plan

Frequently Asked Questions 

1. What additional benefits are offered by ICICI Prudential Easy Retirement SP Plan? 

The additional benefits offered by the ICICI Prudential Easy Retirement SP Plan are-

a) Loyalty additions at 0.25% of the average total fund value of the day over the last year are added from the 7th policy year.

b) Pension Boosters are added after the completion of 10 policy years and thereafter every 5 years at 2% of the average daily total Fund Value over the last 12 months.   

2. What surrender benefits are offered by the policy? 

Once the policy completes 5 years, the owner of the policy can surrender the policy. If the insured surrenders the policy before the completion of 5 year then the difference of fund value and policy discontinuation charge will be credited to the Discontinued Policy Fund account and will accrue interest @ 4% p.a. The policy surrendered after the completion of 5 years, the insurer pays off the total fund value without any charges. In order to receive bonus under the same option as on investment the surrender value should be used. 

3. Will the beneficiary receive any death benefit if the policyholder commits suicide?

Yes, the beneficiary will receive the guaranteed death benefit in case the policyholder commits suicide. However, if suicide is committed within the first policy year, only the fund value as on the day of the death will be paid to the beneficiary. 

4. What further options can I opt for after my policy matures?

After receiving the fund value on maturity, you can opt for the following options:

  • Buy an immediate annuity in order to receive regular income.
  • Buy a Single Premium Deferred Annuity Plan.
  • Convert 1/3rd of the principal sum and the remaining 2/3rd part can be used to purchase an immediate annuity.