ICICI Prudential Life Insurance has launched today ICICI Pru Guaranteed Pension Plan Flexi with Benefit Enhancer, the industry’s first annuity plan that provides policyholders with the option of a 100% refund of premiums paid at any time starting from the date of purchase.
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It offers an array of annuity options such as a single-life option, in which the income is paid for as long as a policyholder lives, or a joint life option, where after one passes away, the income is paid to the spouse, child, parent or sibling – known as the secondary annuitant. The joint life option comes with a waiver of premium feature. In this feature, in case of the unfortunate demise of the policyholder, all future premiums are waived and the secondary annuitant receives a life-long guaranteed regular income.
For a 55-year-old depositing Rs 5 lakh, the policy offers a monthly annuity rate of 7.63% to 8.72% considering the premium paying term (PPT) and the deferment period (DP) of 5 to 10 years.
Significantly, this product aligns with the proposed regulations, which aim to ensure customers receive a fair and appropriate surrender value, particularly in the event of an early exit from the policy. Amit Palta, Chief Distribution Officer, ICICI Prudential Life Insurance, said, “We are delighted to introduce ICICI Pru Guaranteed Pension Plan Flexi with Benefit Enhancer,
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a versatile annuity product designed to address the uncertainties that individuals may face when planning for their retirement.
What sets this annuity product apart is the flexibility to get a 100% refund of the premiums paid at any time if they are unable to continue paying premiums. This industry-first feature is in alignment with the regulator’s proposal and our belief that insurance products should not only nudge customers towards long-term savings but also provide an exit route for customers facing financial constraints.
This product offers guaranteed life-long income ensuring financial independence in the golden years. Particularly, the waiver of premium benefit ensures continuity of income for the spouse in case of the unfortunate demise of the policyholder.”
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It is a retirement planning policy to enable policyholders to tide over unexpected financial obligations, and also provides a loan facility, enabling one to remain invested in the product and achieve the retirement planning goal.
