ICICI Prudential Guaranteed Pension Plans

ICICI Prudential Life Insurance Company works on joint venture that runs between ICICI Bank Ltd. and Prudential Private Limited Company. Prudential Private Limited Company is one of the leading international financial service group with its headquarters in the United Kingdom. I

What are ICICI Prudential Guaranteed Pension Plans?

Pension Plans or annuity plans are the policies that are designed in such a manner that they can be used as the continuous flow of income for the individual after retirement. After the retirement when there is no fixed cyclic form of income with the individual, and the living expenses continue to raise up then comes up a thought of continuing income in the form of pension. Then comes in the light these retirement plans which help in providing a regular cash flow to individuals just to make sure that they can live and enjoy their retirement life peacefully.

Pension Plans have some unique features, few of which are listed below:

1. There is a concept of powering the amount which is nothing but the date at which the plan expires or matures.

2. Pension plans can run as the Immediate Annuity Plans or the Deferred Annuity Plans. Under the Immediate Annuity Plans, an approximate amount is given to the policyholder and the annuity payments kicks off just after receiving this amount. Under the deferred annuity, all of the premium amounts are paid by the policyholder before hand to be eligible to receive the sum total which actually accumulates from the premiums that is paid by the policy owner from the beginning of the policy term.

3. There is absolutely no life coverage available. If the couple owns a joint account and due to any reason the annuitant or his spouse dies the annuity payments freezes on the spot. However, the deferred annuity plan offers death benefit as well.

4. On powering, either the entire savings can be used to avail annuity or 1/3rd of the savings can be withdrawn in cash and the remaining 2/3rd can be used to avail annuity. The amount which is withdrawn earlier is known as the commuted pension.

Why ICICI Prudential Pension Plans

The biggest curse that one can go through is the feeling of being dependent on others for their living and when this dependency strikes up after retirement, trust me, it is the worst of the worst experience. So, it is  always the best to plan for one’s finances even after the age of no income or retirement. Retirement is basically the time period where the expenses remain the same or may raise a bit but the income is either decreased or exhausted completely.

Having a pension insurance plan can be a boon in such a scenario as that particular plan will help an individual to fulfill all the necessary requirements related to expenses in the old age. Pension plans that is offered by life insurance companies help to maintain a regular flow of income even after retirement. The policy can be taken just to provide coverage for the life of the policy owner’s spouse which comes under the joint annuity plans. So, owning a pension plan is always a wise choice and a step towards a better planning of an  individual’s retirement.

ICICI Pru Immediate Annuity Plan-as the name suggest

it is an immediate annuity plan with the following features:

1. Under the plan, the annuity payments will start immediately from the next chosen moment which comes in monthly, quarterly, half-yearly or even annually format after the payment of the single premium.

2. The plan can be owned by groups to fund their post retirement needs and requirements.

3. The plan provides 5 annuity payout options to choose from which are:

a. Life Annuity

b. Life Annuity with Return of Premium

c. Life Annuity guaranteed for 5/10 or 15 years and thereafter payable for life  

d. Joint Life Last Survivor

e. Joint Life Last Survivor with Return of Purchase Price

4. The policy owner can increase the annuity sum total at any time he or she wants, just by paying an additional premium to purchase an additional annuity.

5. The company provides a premium discount based on the annuity amount and the mode of annuity payout chosen.

6. Income tax benefit on the premium paid as per Section 80CCC and on the commuted part as per Section 10(10A) of the Income Tax Act.

Why ICICI Prudential Guaranteed Pension Plans?

In the era of ever increasing high cost of living, focusing on retirement life and planning for it is worth doing and it holds a crucial part in an individual’s financial life as well. The ICICI Prudential’s pension plans serves you financial security for the future run, when your cyclic income stops, you can still enjoy your living without compromising on your lifestyle

Eligibility for Immediate Annuity

To stand a chance of eligibility to participate in this plan, your age has to be minimum of 45 years in case you are a new customer. For previously existing customers who may have deferred pension, there is no minimum age limit as such. The upper age limit for buying the policy is between age of 70 years and 75 years.

Sample Purchase Price Rates

The amount that have to be pays at the time of purchase comes under two different options. Now,  if by any chance the policy owner wants to access or receive an annuity payout of Rs. 12, 000 every year is also possible.


1. Why should I buy ICICI Prudential’s pension plans?

Ans: In the era of ever increasing high cost of living, focusing on retirement life and planning for it is worth doing and it holds a crucial part in an individual’s financial life as well. The ICICI Prudential’s pension plans serves you financial security for the future run, when your cyclic income stops, you can still enjoy your living without compromising on your lifestyle.

2. What is the accumulation phase of ICICI Prudential’s pension plans?

Ans: The accumulation phase is the time during which you have to regularly pay the premium amount to the ICICI Prudential to receive a cyclic income after your retirement in the form of pension.

3. How do I compute my retirement corpus for ICICI Prudential?

Ans: To compute your savings, you can use the retirement calculator. All how need to do is to put in the below mentioned details in the calculator to get the ideal savings:

a. Your monthly expenses
b. Inflation rate
c. Retirement age
d. After retirement expected life span

4. What is the vesting age of ICICI Prudential’s pension plans?

Ans: The age or time by which you decide to receive your pension after retirement is known as the vesting or powering age.

5. What are the tax benefits of ICICI Prudential’s pension plans?

Ans: As per the on going tax laws, ICICI Prudential provides tax benefits up to a maximum of Rs 10,000 on taxable income under Section 80CCC and Section 10(10A) of the Income Tax Act, 1961. About 1/3rd of the maturity amount is extremely tax-free, while the rest of the amount is given out as an annuity and is taxable.

6. How is ICICI Prudential’s pension plan different from term plan?

Ans: Both type of the insurance plans provides equal financial security, but there is a basic difference between ICICI Prudential’s pension plan and term plans. A pension plan provides financial security post retirement. In case of annuitant’s early death, ICICI Prudential offers death benefits to the mentioned nominee. However, the term insurance policy plans pay approximate amount only after the death of the policy owner. In case the insured lives well up to the complete policy period, then there no maturity eligible in that case.

7. What is an Annuity?

Ans: An annuity is a treaty which is signed between the policy owner and the insurance company, in which the policy owner have to mention either lump-sum payment or pay in parts to be eligible to receive regular income as an annuity after retirement. The annuities can either be paid immediately after payment of the approximate amount or after completion of the specific tenure.

8. What if I fail to pay premium of ICICI Prudential pension plan on time?

Ans: Usually the policy owner gets a grace period of up to 30 days to pay the premiums once it is overdue. However, if the payment is still not paid after the grace period, the policy will experience lapse and there won’t be any claimable  benefits from the policy.

9. What are the different options to pay premium of my ICICI Prudential pension plan?

Ans: There are several options available to pay the premiums each time. You can either pay the premiums monthly, quarterly, half yearly or even yearly. You can also choose to pay your premiums in one approximate amount. However, most of the people choose to pay premium on a monthly mode as it is relatively small and easy to monitor.

10. Why should I buy ICICI Prudential’s pension plan when I already have a provident fund (PF) account?

Ans: Yes one should buy ICICI Prudential’s pension plan even if you already own a provident fund account (PF). The ever growing world and expenses will make your PF amount stand lesser in the future run. It will not be sufficient for your future financial needs and requirements. Having a secured life is extremely very  important at this particular time zone because you grow old, and you and your body become more and more prone to different health problems which increases your financial expenses. And to fulfill all your future needs provident fund will not be enough.