ICICI Prudential Life Insurance has launched ‘ICICI Pru Guaranteed Pension Plan’, a retirement plan. This pension plan will offer guaranteed life-long income to lead a financially independent retired life.
This offering is a non-linked non-participating individual annuity product, which will provide policyholders with the flexibility to choose between immediate and deferred annuity.
The immediate annuity feature of the policy will enable policyholders to start receiving regular income immediately by paying a one-time premium. On the other hand, the deferred annuity option gives policyholders the flexibility to start receiving the income at any point later, for instance, closer to their retirement. Policyholders also have the option to defer the start of the income for a period of 10 years. Note that, the longer the deferment, the higher would be the income.
The insurance company says this pension plan enables one to plan and lead a financially independent retired life. To address the challenge of rising inflation policyholders also have the option to top-up their contribution and thereby increase the income they receive.
Among other options available to customers, they have the choice to select single or joint-life options. In the single-life option, regular income is paid to the policyholder for the whole life. In the joint-life option, the income continues to be paid to the joint policyholder on the demise of the primary policyholder. The product also allows a return of the premium amount on the diagnosis of specific critical illnesses and permanent disability. The company says this will ensure that the policyholder can use the funds to access medical care to treat the illness.
ICICI Prudential Life Insurance Chief Distribution Officer, Amit Palta, says “With a higher life expectancy, absence of any social security, rising inflation, and healthcare costs, it is imperative for individuals to plan for a secure retired life. The ‘ICICI Pru Guaranteed Pension Plan’ is a versatile retirement planning product enabling customers to receive regular income immediately upon retiring or later – an option which will be relevant to people for whom retirement is still some time away.”