ICICI Pru Guaranteed Pension Plan

In order to secure the financial future after retirement, the ICICI Prudential Life Insurance offers ICICI Pru Guaranteed Pension Plan.  This is a non-participating, non-linked immediate annuity plan that provides guaranteed income for the entire life with an extensive range annuity option for a secured financial future. Let’s read further to know in details about ICICI Pru Guaranteed Pension Plan.

The ICICI Pru Guaranteed Pension Plan provides financial freedom to decide when an individual wants to retire. The plan guarantees a regular flow of income throughout the life.

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

Benefits of ICICI Pru Guaranteed Pension Plan

The following are the benefits offered by ICICI Pru Guaranteed Pension Plan.

• Guaranteed Lifelong Annuity: An individual can receive a guaranteed regular income for entire life as annuity by paying once.
• Flexibility: The plan offers the flexibility to receive the annuity on monthly, quarterly, half-yearly or yearly basis.
• Extensive Range of Annuity Options: The policyholder can choose from 11 different annuity options as per their financial requirement and suitability.
• Return of Purchase Price: The plan offers the benefit of return of purchase price in case of death, critical illnesses or permanent disability due to accident.
• Top-up Option: The plan offers  the option to increase the annuity and benefits by choosing the top-up option and paying high purchase price.
• Choose your Retirement Date: The policyholder can choose to receive the annuity immediately after paying the lump-sum premium or after 1-10 years.
• Option: The insurance buyers can choose the single life or joint life option as per  their requirement and suitability.
• Early Return of Purchase Price Options:  The plan offers the option to receive the purchase price back from the age of 76 or at the age of 80 years.
• High Purchase Price Benefit: Provides additional annuity based on the annuity option and purchase price slab.

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

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Features of ICICI Pru Guaranteed Pension Plan:

Let’s take a look at the some features under the policy.

• Higher Purchase Price Benefit- The policyholder can enjoy higher income by increasing the purchase price of the annuity.
• Online Booster- for the policies purchased online the annuity will increase by 1%
• Loyalty Booster- the existing customers of ICICI Prudential purchasing the ICICI Pru Guaranteed Pension plan can avail the loyalty booster of 1%.
• NPS Benefit- for the policies bought using the proceeds out of NPS, the annuity will increase by 1% .
• Option to top-up the annuity amount- the annuitant can increase the annuity amount by opting the top-up option.
• Loan- the facility of loan can be availed only under the deferred annuity and only during the deferment period. The loan amount up to 80% of the surrender value can be availed.

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Steps to Purchase ICICI Pru Guaranteed Pension Plan Online

• The plan can be purchased by paying one lump-sum payment.
• Once the lump-sum payment is made, the insured person will need to choose the annuity option as per their requirement.
• They will also have to choose the frequency of annuity payouts.
• After completion of the above mentioned steps, the annuitant will start receiving the annuity as regular income for the entire lifetime.

Plan At Glance

The following table mention the minimum age of entry for the annuitants:

If the annuity is bought from the proceeds arising from the maturity benefit, surrender benefit or death benefit payable under the Pension Accumulation Plans then the entry age of plan would be 0 years for immediate annuity option and 30 years for deferred annuity option. In case the annuitant is a minor then the plan will not vest automatically on the annuitant attaining the majority age.

In case of Joint life annuity option, the age restriction is applied to both the lives.

Based on the IRDAI regulation, 2015  the insurer  will have to make minimum annuity payouts. The minimum annuity p.a is Rs. 12,000 (Rs. 1,000 per month) However, there is no maximum limits. The minimum purchase price that will result in the minimum annuity as mentioned above will depend on the applicable annuity rates. For top-up annuity the minimum annuity amount is not applicable.

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

Annuity Options Available Under the Plan

Immediate Annuity Options

1. Single Life with Return of Purchase Price

Under this option, the annuity is paid for life. In case of demise of the annuitant, the purchase price is paid to the beneficiary  and thereafter the policy is terminated and no further benefits will be payable.

2. Joint Life with return of Purchase Price

This option provides the annuity for life as long as both the annuitants are alive. in case of demise of both the annuitant the purchase price is paid to the beneficiary of the policy and the plan is terminated thereafter.

3. Single Life with Return of Purchase Price on Critical Illness or Permanent Disability Due to Accident or Death:

Under this option the annuity is paid for life till the occurrence of any of the 7 specified critical illness or permanent disability before attaining the age of 80 years or demise of the insured. The purchase price will be payable to the beneficiary of the policy in case of occurrence of any of these options on the earlier.

In case  any of the 7 specified critical illness is not diagnosed or there is no PD till the annuitant attain the age of 80 years, the insurer will continue to pay the annuity to the annuitant till he/she survives.

4. Single Life With Return of Purchase Price at the Age of 80:

Under this option the annuity is paid for life. The return of purchase price is paid to the annuitant if he/she reaches the age of 80 years or to the beneficiary in case of demise of the annuitant, whichever is earlier. The annuity payment paid to the life assured after the return of purchase price at the age of 80 years will remain unchanged.

5. Single Life With Return of Purchase Price in Parts:

Under this option, 50%  of the purchase price is paid to the annuitant when he/she reaches the age of 80 years and the remaining 50% is  paid to the beneficiary of the policy in case of demise of the annuitant and the policy will be terminated. The annuity amount paid to the annuitant after the payment of 50% of the purchase price will remain the same.  In case of demise of the annuity before attaining the age of 80%, 100% purchase price will be payable to the beneficiary and the policy will be terminated.

6. Single Life With Return of Purchase Price from the Age of 76:

Under this option, 5% additional purchase price is paid to the annuitant every year from the age of 76-95 years as per the chosen frequency of annuity payout at the policy initiation. In case of death of the annuitant the balance purchase price is paid to the beneficiary and the policy is terminated thereafter.

 If the annuitant dies before attaining the age of 76, the purchase price is paid to the beneficiary and the policy is terminated. The annuity amount payable ti the annuitant will remain the same during the after the purchase price return period.

Deferred Annuity Options

The policyholder can choose to deffer the pension by 1-10 years. The policyholder can lock-in the current interest rates for the annuity to be received after the deferment period of over. Here are the deferred annuity options available under the policy.

1. Deferred Single Life With Return of Purchase Price: Under this option, the annuity is paid to the annuitant after completion of the deferred period. In the event of demise of the annuitant, the death benefit is payable to the nominee as:

Death benefit during the deferment period will be higher of:

• Purchase price + Accrued Guaranteed Additions
• 105% of the Purchase Price

Death benefit payable post the period of deferment will be higher of:

• Purchase price + Accrued Guaranteed Additions- Total annuity paid out till the date of announcement of death
• Purchase price

Where, per month guaranteed addition= total annuity payable in a policy year/ 12 guaranteed additions accrue at the end of every policy month during the deferment period only.

2. Deferred Joint Life with Return of Purchase Price: Under this option, the annuity is paid to the annuitant after completion of the deferred period as long as either  of the annuitant are alive. In the event of demise of the last annuitant, the death benefit is payable to the nominee as:

Death benefit during the deferment period will be higher of:

• Purchase price + Accrued Guaranteed Additions
• 105% of the Purchase Price

Death benefit payable post the period of deferment will be higher of:

• Purchase price + Accrued Guaranteed Additions- Total annuity paid out till the date of announcement of death
• Purchase price

Where, per month guaranteed addition= total annuity payable in a policy year/ 12 guaranteed additions accrue at the end of every policy month during the deferment period only.

3. Deferred Single Life With Return of Purchase Price on Critical Illness or Permanent Disability due to Accident or Death:

Under this option, the annuity is paid to the annuitant after completion of the deferred period.  The annuity will continued to be paid till the survival of the annuitant or the annuitant is diagnosed with any of 7 critical illnesses or PF before attaining the age of 80 years, whichever is earlier. In case of demise of the annuitant due to any of these reasons, a lump-sum benefit is paid to the beneficiary of the policy and the plan is terminated.

Without Return of purchase Price Variants

Immediate Annuity Options

• Single Life without Return of Purchase Price
• Joint Life Without Return of Purchase Price

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Critical Illness Covered Under ICICI Pru Guaranteed Pension Plan

These are the critical illnesses covered under the plan:

• Heart Attack
• Cancer of Specified Severity
• Kidney Failure
• Coronary Artery Bypass Graft Surgery
• Major Organ Transplant
• Stroke
• Permanent Paralysis of Limbs