ICICI Prudential Life Insurance has introduced ICICI Pru Guaranteed Pension Plan. The new pension plan guarantees life-long income after the retirement to lead a financially independent retired life.
ICICI Pru Guaranteed Pension Plan is a non-participating non-linked individual annuity product which will provide policyholders with the flexibility to choose between immediate and deferred annuity. After paying a one-time premium the immediate annuity feature of the policy will enable policyholders to start receiving regular income immediately. At any point in time, the deferred annuity option gives policyholders the flexibility to start receiving the income.
ICICI Prudential Life Insurance expressed that the pension plan enables the policyholders to plan and lead a financially independent retired life. Policyholders also have the option to top-up their contribution to address the challenge of rising inflation policyholders and thereby increase the income they receive. The policyholders have an option to defer the start of the income for a period of 10 years. The income will be increased for a longer deferment.
The customers have the choice to select single or joint-life options among the other options available. The regular income is paid to the policyholder for the whole life in the single-life option. On the demise of the primary policyholder the income continues to be paid to the joint policyholder in the joint-life option. The product also permits a return of the premium amount on the diagnosis of specific critical illnesses and permanent disability. The policyholder can use the amount to access medical care to treat the illness.
Amit Palta, Chief Distribution Officer, ICICI Prudential Life stated that t is imperative for individuals to plan for a secure retired life with a higher life expectancy, absence of any social security, rising inflation, and healthcare costs era. The ICICI Pru Guaranteed Pension Plan is an option which will be relevant to people for whom retirement is still some time away and it is a versatile retirement planning product which allows customers to receive regular income immediately upon retiring or later.