ICICI Prudential Guaranteed Pension Plan Flexi plan is a comprehensive retirement solution designed to provide financial security and peace of mind.
ICICI Pru Guaranteed Pension Plan Flexi is a deferred annuity plan that allows creating guaranteed lifelong income with a stress-free regular investment of your choice. There are a total of 9 different annuity options that you can choose from. The option you select will decide what kind of lifelong regular income you will receive.
Table of Contents
ICICI Pru Guaranteed Pension Plan Flexi – Eligibility & Features
| Minimum Age at Entry | 40 years (Primary Annuitant), 30 years (Secondary Annuitant) |
| Maximum Age at Entry | Single Life with Accelerated Health Boosters option: Lower of (70, 80 – Deferment period – 1) yearsAll other options: 70 years |
| Premium Payment Term | 5 to 15 years |
| Deferment Period | 5 to 15 years (in multiples of 1 year) The deferment period refers to the number of years from the start ofpolicy after which the annuity will begin. The deferment period can be chosen by the customer at the inception of the policy. |
| Premium payment frequency | Annual, Half Yearly, Monthly |
| Annuity Payment Frequency | Annual, Half Yearly, Quarterly, Monthly |
| Minimum annuity | Rs 12000 per annum |
| Maximum Annuity | Subject to underwriting |
Annuity options – ICICI Prudential Guaranteed Pension Plan Flexi
| Annuity options | With Return of Premium (ROP) | 1. Single Life with Return of Premium 2. Joint Life with Return of Premium 3. Single Life with Return of Premium (ROP) on Critical Illness (CI) or Permanent Disability due to Accident (PD) or Death 4. Single Life with Booster Payouts 5. Single Life with Accelerated Health Boosters |
| Annuity options | Without Return of Premium (WROP) | 1. Single Life without Return of Premium 2.Joint Life without Return of Premium |
| Guaranteed Additions options (GA is added post deferment period) | GA – I | 1/12th of the Total Annuity Payable in a policy year |
| Guaranteed Additions options (GA is added post deferment period) | GA-2 | 1/12th of 6% of Total Premiums Paid by you till date |
Annuity will be payable in arrears/ at the end of every month, quarter, half-year or year, after completion of the deferment period, as chosen by you at the time of purchasing the annuity. The annuity amount chosen at policy inception is guaranteed for life.
Example: If your last annual premium is paid on Jan 15, 2031, and your deferment period ends on Jan 15, 2032, then Annuity is payable from –
For Annual mode: Jan 15, 2033; For Half-yearly mode: July 15, 2032; For Quarterly mode: April 15, 2032; For Monthly mode: Feb 15, 2032.
Annuity Option explanation
- Single Life without Return of Premium- Annuity starts from the end of deferment period for entire life
- Joint Life without Return of Premium
- Single Life with Return of Premium
- Joint Life with Return of Premium
- Single Life with Return of Premium (ROP) on Critical Illness (CI)
or Permanent Disability due to Accident (PD) or Death - Single Life with Booster Payouts
- Single Life with Accelerated Health Boosters
| Annuity Option | Sample Illustration: For a 50-year-old Annuitant48-year-old Secondary Annuitant ( In case joint Holding) | Pension Amount | Death Claim |
| Single Life without Return of Premium | Premium Payment Term: 5 years Annual Premium: 10 lakhs Deferment Period: 10 years Total Premiums Paid: 50 lakhs | Yearly-6,05,518 Half yearly-2,99,820 Quarterly- 1,48,440 Monthly -48,990 | The amount that will be paid in case of death will be Higher of Total Premiums Paid by you + Accrued Guaranteed Additions 105% of Total Premiums Paid by you |
| Joint Life without Return of PremiumFor a 50-year-old Primary Annuitant & 48-year-old Secondary Annuitant | Premium Payment Term: 5 years Annual Premium: 10 lakhs Deferment Period: 10 years Total Premiums Paid: 50 lakhs | Yearly-5,46,119 Half yearly-2,70,409 Quarterly- 1,33,879 Monthly -44,184 | On the death of the last survivor – in case of death of both primary & secondary annuitants during the deferment period will be Higher of Total Premiums Paid by you + Accrued Guaranteed Additions/105% of Total Premiums Paid by you |
| Single Life with return of PremiumFor a 50-year-old Primary Annuitant | Premium Payment Term: 5 years Annual Premium: 10 lakhs Deferment Period: 10 years Total Premiums Paid: 50 lakhs | Yearly-5,35,694 Half yearly-2,65,247 Quarterly- 1,31,323 Monthly -43,341 | The amount that will be paid in case of death will be Higher of Total Premiums Paid by you + Accrued Guaranteed Additions105% of Total Premiums Paid by you |
| Joint Life with Return of Premium:For a 50-year-old Primary Annuitant & 48-year-old Secondary Annuitant | Premium Payment Term: 5 years Annual Premium: 10 lakhs Deferment Period: 10 years Total Premiums Paid: 50 lakhs | Yearly-5,19,472 Half yearly-2,57,214 Quarterly- 1,27,346 Monthly -42,028 | The amount that will be paid in case of death will be Higher of Total Premiums Paid by you + Accrued Guaranteed Additions105% of Total Premiums Paid by you |
| Single Life with Return of Premium (ROP) on Critical Illness (CI) or Permanent Disability due to Accident (PD) or Death | Premium Payment Term: 5 years Annual Premium: 10 lakhs Deferment Period: 10 years Total Premiums Paid: 50 lakhs | Yearly-5,37,608 Half yearly-2,66,194 Quarterly- 1,31,792 Monthly -43,496 | |
| Single Life with Booster Payouts | Premium Payment Term: 5 years Annual Premium: 10 lakhs Deferment Period: 10 years Total Premiums Paid: 50 lakhs | Yearly-4,85,243 Half yearly-2,40,266 Quarterly- 1,18,955 Monthly -39,259 | |
| Single Life with Accelerated | Yearly-4,76,411 Half yearly-2,35,893 Quarterly- 1,16,790 Monthly -38,545 |
Key Features
1. Guaranteed Pension: The plan provides a predetermined pension amount, ensuring a fixed and stable income stream during your retirement years. This certainty can be crucial in planning and maintaining a comfortable lifestyle post-retirement.
2. Flexibility in Premium Payment: The plan allows policyholders the flexibility to choose their premium payment term. This feature is advantageous, enabling individuals to align their premium payments with their financial goals and capacity.
3. Policy Term Options: ICICI Prudential understands that every individual’s retirement needs are unique. The plan offers various policy term options, empowering policyholders to tailor their coverage period according to their specific requirements.
4. Life Insurance Cover: In addition to the guaranteed pension, the plan provides a life insurance cover. This ensures that in the unfortunate event of the policyholder’s demise, their family receives a lump sum amount, providing financial protection and support.
5. Tax Benefits: Like many other insurance products, the ICICI Prudential Guaranteed Pension Plan Flexi offers tax benefits under prevailing tax laws. Policyholders can enjoy deductions on both premium payments and the pension received.
Is it Right for You?
Before considering any pension plan, it’s crucial to assess your financial goals, risk tolerance, and retirement expectations. The ICICI Prudential Guaranteed Pension Plan Flexi caters to those seeking a balance between a guaranteed pension income and the flexibility to adapt to changing circumstances.
Conclusion
The ICICI Prudential Guaranteed Pension Plan Flexi stands out as a reliable option for individuals who value the security of a guaranteed pension alongside the flexibility to mold financial future.
In the ever-changing landscape of personal finance, this pension plan serves as a beacon, providing a sense of stability and assurance as individuals transition from their working years to a well-deserved retirement.
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