ICICI Pru Guaranteed Pension Plan Deferred Annuity - Everything You Must Know
Updated On Feb 04, 2022
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The retirement phase is regarded as one of the most crucial stages in a person's life. It is important to perform adequate retirement planning in order to ensure the golden days of retirement. Annuity plans are a lucrative financial choice for people who wish to assure a steady stream of income once they retire.
ICICI Prudential Life Insurance provides the ICICI Pru Guaranteed Pension Plan to help you plan for your financial future once you retire. This is a non-participating, non-linked instant annuity plan that offers guaranteed lifetime income and a wide selection of annuity options for a solid financial future. To know more about ICICI Pru Guaranteed Pension Plan, read on.
What Are The Benefits Of ICICI Pru Guaranteed Pension Plan?
Following are the benefits of ICICI Pru Guaranteed Pension Plan -
1. Guaranteed Lifetime Annuity - By paying once, an individual can get a guaranteed regular income for the rest of his or her life.
2. Flexibility - The plan allows you to receive your annuity monthly, quarterly, half-yearly, or annually.
3. An extensive range of annuity alternatives - Range of alternatives are available to policyholders, who may select from 11 distinct annuity options based on their financial needs and appropriateness.
4. Return of Purchase Money - In the event of death, critical illness, or permanent disability as a result of an accident, the plan provides a refund of the purchase price.
5. Top-up Option - By selecting the top-up option and paying a high purchase price, the plan allows you to boost your annuity and benefits.
6. Opt your retirement date - After paying the lump-sum payment, the policyholder can choose to receive the annuity immediately or after 1-10 years.
7. Choice - Insurance purchasers have the option of purchasing a single life or combined life policy, depending on their needs and appropriateness.
8. Option for Early Return of Purchase Money - The plan allows you to obtain your purchase price back as early as the age of 76 or as late as the age of 80.
9. High Purchase Price Benefit - Based on the annuity selection and purchase price slab, this benefit provides additional annuity.
What Are The Features Of ICICI Pru Guaranteed Pension Plan?
Following are the features of ICICI Pru Guaranteed Pension Plan -
1. Increased Purchase Price Benefit - By increasing the purchase price of the annuity, the policyholder might enjoy a bigger income.
2. Online Booster - The annuity for plans acquired online will rise by 1%.
3. Loyalty Booster - Existing ICICI Prudential clients who purchase the ICICI Pru Guaranteed Pension plan will receive a 1% loyalty bonus.
4. NPS Benefit - the annuity for insurance purchased with NPS revenues will rise by 1%.
5. Opportunity to raise annuity amount - the annuitant has the option to enhance his or her annuity amount by selecting the top-up option.
6. Loan - only available under a deferred annuity and only during the deferral term. It is possible to get a loan for up to 80% of the surrender value.
What Are The Deferred Annuity Options?
The policyholder has the option of deferring the pension for 1 to 10 years. The policyholder can lock in current interest rates for the annuity that will be paid out once the deferral term has expired.
The deferred annuity choices available under the policy are as following -
1. Deferred Single Life with Return of Purchase Price - The annuity is paid to the annuitant when the deferred term is completed.
2. Deferred Joint Life with Return of Purchase Price - With this option, the annuity is paid to the annuitant once the deferred term is completed, as long as one of the annuitants is alive.
3. Deferred Single Life with Purchase Price Refund in the Event of Critical Illness, Permanent Disability, or Death - The annuity is paid to the annuitant at the end of the deferred term under this option. The annuity will be provided until the annuitant dies or is diagnosed with one of the seven catastrophic diseases or PF before reaching the age of 80 years, whichever comes first. In the event that the annuitant dies for any of these causes, the policy's beneficiary receives a lump-sum payment and the plan is cancelled.
Pension plans are an economical and effective way to provide a steady income after retirement. They assist you in putting aside your hard-earned money for a more prosperous future. You may stop working after you retire, but life carries on. As a result, the necessary costs are always present and may even rise.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.