ICICI Prudential Life Insurance launched the ICICI Pru Guaranteed Pension Plan Flexi with Benefit Enhancer on January 17, 2023, claiming it to be the first annuity plan that offers the option to receive a 100 per cent refund of premiums paid at any point after the purchase. Amit Palta, Chief Distribution Officer at ICICI Prudential Life Insurance, said the plan's unique feature is the flexibility to get a complete premium refund if individuals can't continue premium payments. The waiver of premium benefit ensures continuity of income for the spouse in case of the unfortunate demise of the policyholder, he said.
The minimum entry age is 40 years for the primary annuitant and 30 years for the secondary annuitant, with the maximum entry age capped at 70 years, except for the booster option.
The plan has seven options to choose from including those with the return of premium options, a joint option that extends coverage to the spouse, and also bolster options that pay you an extra sum if diagnosed with a critical illness.
Premium payment frequencies can be annual, half-yearly, and monthly options, while the premium payment term ranges from 5 to 15 years. The deferment period or the number of years from the start of policy, after which the annuity begins, can be chosen from a span of 5 to 15 years.
Customers can select from many annuity options, including a single-life option and a joint-life option. In the single-life option, income is provided for the individual's lifetime till death, while the joint-life option extends payments to the spouse, child, parent, or sibling after the primary annuitant's deat
In the joint option feature, in case of the unfortunate demise of the customer, all future premiums can be waived off by choosing that option before purchase and the secondary annuitant receives a life-long pension without continuing premiums.
The plan offers a loan facility and during the deferment period, a loan of up to 75 per cent of the surrender value can be availed.
Suppose, a 50-year-old annuitant pays Rs 10 lakhs per year as a premium for 5 years (Total Rs 50 lakh) and chooses a deferment period of 10 years, the annuity starts at age 60. There are seven options to choose from, and here's how annuity will accrue in the three important options
Single Life without Return of Premium: Opting for this option, one can receive an annuity of Rs 6,05,518 annually or Rs 48,990 monthly until death. If the annuitant passes away during the deferment period, the nominee or legal heirs will receive a Death Benefit and the policy will terminate. The death benefit is calculated as the higher of the total premiums paid plus accrued guaranteed additions or 105 per cent of the total premiums paid.
Joint Life without Return of Premium: If you choose this option, the policyholder will receive Rs 5,46,119 annually or Rs 44,184 monthly until death. After the deferment period, the annuity amount starts getting paid to the Primary Annuitant. On the death of the Primary Annuitant, the same annuity amount starts getting paid to the Secondary Annuitant.
Single Life with Return of Premium: Opting for this option with the same premiums will get you an annual annuity of Rs 5,35,694, and an additional benefit of Rs 50 Lakhs paid out to the nominee in case of the annuitant's death.