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ICICI Pru Guaranteed Pension Plan Flexi – Features and Review

ICICI Pru Guaranteed Pension Plan Flexi – Features and Review

ICICI Prudential Life Insurance has launched Guaranteed Pension Plan Flexi. This pension plan helps to gradually build retirement savings and to get lifelong, guaranteed pension income post retirement. We already have several guaranteed pension plans in the market. However, this pension plan is flexible in all aspects. What are the Key Features of ICICI Pru Guaranteed Pension Plan Flexi? What are the various annuity options available in ICICI Pru Guaranteed Pension Plan Flexi?  Should you invest in ICICI Pru Guaranteed Pension Plan Flexi?

Also Read: How to chose a good pension plan suitable to you?

Key Features of ICICI Pru Guaranteed Pension Plan Flexi

Here are the major features of this pension plan.

  • This plan helps to choose regular savings for a lifelong guaranteed income.
  • One can choose the plan based on how long they want to pay premiums.
  • Flexibility to choose when to start receiving annuity income.
  • This guaranteed pension plan provides options to receive annuity income by monthly, quarterly, half year or year.
  • Wide range of annuity options to choose from.
  • One can choose a pension plan either for individual basis or for joint life basis.
  • Annuity options where you can get regular income and also lump sum based on healthcare and lifestyle needs.
  • Waiver of premium option in case of demise of an individual with joint life annuity option.
  • “Save the date” option provides the date from which you can receive the annuity income.
  • This pension plan provides a top-up option where you can invest lumpsum in case you have surplus money anytime.

How to choose the plan in ICICI Pru Guaranteed Pension Plan Flexi?

You can follow the below steps to choose the plan.

#1 – Based on your need, choose one from the available annuity options.

#2 – Choose the annuity frequency (month, quarterly, half yearly or yearly) and start date of the annuity.

#3 – Choose the type of guaranteed additions that you want to accrue during the deferment period.

#4 – Choose the annuity amount which you wish to receive or premium which you would like to pay.

#5 – Pay premiums for the chosen duration.

#6 – Enjoy guaranteed lifelong income after the deferment period.

What are the eligibility criteria in ICICI Pru Guaranteed Pension Plan Flexi?

  • Minimum age of entry – 40 years (Primary annuitant) and 30 years (Secondary annuitant)
  • Max age of entry – 70 years
  • Premium payment term – 5 to 15 years
  • Deferment Period – 5 to 15 years (pension income would start once the deferment period is completed)
  • Premium payment frequency – Monthly, half yearly and yearly.
  • Minimum annuity – Rs 12,000 p.a. or Rs 1,000 p.m.
  • Max annuity – No limit
  • Annuity Payout frequency – Monthly, Quarterly, Half yearly and Yearly

Annuity Options in ICICI Pru Guaranteed Pension Plan Flexi

Here are the various annuity options available in this pension plan.

  • Single Life without Return of Premium
  • 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

When the Annuity income would be paid?

Once you chose the annuity option and deferment period is over, annuity income would be paid by the insurance company depending on the frequency chosen by the individual.

Who can be the joint life partner?

Joint life can be either spouse or child or parent or sibling of the primary annuitant.

Can we get annuity income immediately after buying?

This is not an immediate pension plan. Pension income would be paid after the completion of deferment period. In this plan, there is deferment of 5 to 15 years. Means annuity income would be paid only after 5 years if you chose 5 years as deferment period.

What happens in case of death of the annuitant?

Below death benefit would be paid.

1) In case of death of the annuitant during the deferment period, the higher of the following would be paid to the nominee:

  • Total premiums paid + Accrued Guaranteed Additions
  • 105% of total premiums paid

2) In case of death of the annuitant after deferment period and for the single life return of premium option or joint life return of premium option, the higher of the following would be paid to the nominee:

  • Total premiums paid + Accrued Guaranteed Additions – annuity paid out till the intimation of death
  • Total premiums paid

Positive Factors in ICICI Pru Guaranteed Pension Plan Flexi

Here are the major positive factors in this pension plan

  • This pension plan is flexible to choose.
  • One can choose how much premium they can pay and how long they can pay. This way they can plan for their regular savings.
  • This plan is the flexibility to choose how much they want to receive as annuity income and from what date they want to receive such pension.
  • There are 7 variety annuity options one can choose depending on one’s need.
  • Death benefits provide additional security to joint life partner.

Negative Factors of ICICI Pru Guaranteed Pension Plan Flexi

Here are major negative factors.

  • Minimum age of entry is 40 years. One cannot plan before that.
  • Pension plans provide 4% to 5.5% returns in general which are considered to be low. Such returns would not beat inflation.

Also Read: Tata AIA Fortune Guarantee Pension Plan – Should you buy or not?

Should you invest in ICICI Pru Guaranteed Pension Plan Flexi?

ICICI Pru Guaranteed Flexi Pension plan comes with unique features which are flexible to adopt based on individual needs. One can decide how much they want to invest or how much they want as pension, how long they can invest by way of premium payments or from which date they need annuity income etc. One should note that the majority of such pension plans come with low returns. If you are looking for safety of your investments, you can opt for this low risk guaranteed pension plan.

Source: ICICI Pru Guaranteed Pension Plan Flexi Brochure

Suresh KP

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