Investment Plans 425 views April 19, 2021

ICICI Pru Easy Retirement Plan is a unit-linked pension plan that provides regular annuity payouts after retirement. So if you are looking for a pension plan to secure your retirement period, consider buying this pension plan. Key benefits of ICICI Pru Easy Retirement Plan are –

  1. Assured Benefit 
  2. Death Benefit
  3. Top up options
  4. Pension Boosters
  5. Fund Options
  6. Switch Option
  7. Flexible Premium Payment Term & Policy Term

Investment

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Benefits of ICICI Pru Easy Retirement Plan

ICICI Pru Easy Retirement Plan comes with assured benefits, death benefits, pension boosters, and much more. Let’s talk about these below.

Assured Benefit of ICICI Pru Easy Retirement Plan

On vesting (maturity), the insured will be entitled to the assured benefit or fund value, whichever is higher.

Assured Benefit = 101% of the sum of all paid premiums and Top ups, if any

Death Benefit Payout from ICICI Pru Easy Retirement Plan

In case of an unfortunate event of death of the life assured, his/her nominee will get a Guaranteed Death Benefit or the policy fund value, whichever is higher, unless the money is in the Pension Discontinued Policy Fund (PDP Fund) Fund. The Guaranteed Death Benefit is equal to 105% of the sum of all paid premiums and Top-ups, if any. If the money of the life assured is in the PDP Fund at the time of death, the PDP Fund Value shall be payable to the nominee.

The nominee can choose from the following death benefit options –

  1. Complete withdrawal of the death payout
  2. Utilize the death benefit amount to purchase an immediate annuity plan from ICICI Prudential
  3. Withdraw a part of the death benefit amount and utilize the balance amount to purchase an immediate annuity plan from ICICI Prudential

Note – Once the death benefit is paid to the nominee, this policy shall terminate and all rights, benefits and interests under this policy shall be extinguished.

ICICI Pru Easy Retirement Plan Top-up Option

With ICICI Pru Easy Retirement Plan Top-ups, you can invest any available money in this policy, provided all due premiums are paid. The provision to pay Top-ups are available for up to 5 years before the original or postponed vesting date. You can invest a minimum amount of INR 2,000 in Top-ups in any of the available funds in any proportion of your choice.

Pension Boosters are Available in ICICI Pru Easy Retirement Plan

On completion of the 10th policy year and completion of every 5th policy year thereafter, you will be rewarded with a guaranteed Pension Booster, provided the premium is paid in full for a minimum of 5 years. This guaranteed addition will be equal to 5% of the average daily total fund value over the preceding 12 months. And these guaranteed Pension Boosters shall be allocated between Easy Retirement Balanced Fund and Easy Retirement Secure Fund in the proportion of the values of total units held in each fund at the time of allocation.

Available Funds Under ICICI Pru Easy Retirement Plan

At the inception of the policy, you need to specify the proportions in which your paid premiums will be invested in –

  1. Easy Retirement Balanced Fund – This fund provides long-term capital appreciation as it invests in equity while providing capital protection by investing in debt and money-market instruments. The risk level is moderate in this fund.
  2. Easy Retirement Secure Fund – If you aim to achieve a balance between capital protection and returns, this plan is suitable for you as it invests in a mix of debt, money-market and cash instruments. The risk level is low in this fund.

After the first premium payment, the proportions allocated in any of the above funds may be changed without any charge in the subsequent premiums, and this will not count as a switch.

Option to Switch 

You have an option to switch units between Easy Retirement Balanced Fund and Easy Retirement Secure Fund. The minimum switch amount should be INR 2,000. Up to 4 free switches are allowed every policy year to you under ICICI Pru Easy Retirement Plan. After that, for subsequent switches, you need to pay INR 100 per switch.

Note – Any unutilized free switch cannot be carried forward, the switching charge may be increased to a maximum of INR 200 per switch.

ICICI Pru Easy Retirement Plan Policy Term and Premium Payment Term

Under ICICI Pru Easy Retirement Plan, you get the option of following policy terms –

  1. 10 years
  2. 15 years
  3. 20 years
  4. 25 years
  5. 30 years

The available option for premium payment term is –

  1. Limited Pay – You can choose to pay a premium for a fixed period of 5 or 10 years.
  2. Regular Pay – The premium payment term will be the same as your policy term.

You can choose your premium payment frequency from the following –

  1. Yearly
  2. Half-yearly
  3. Monthly

The minimum premium amount for ICICI Pru Easy Retirement Plan is INR 48,000, while the maximum premium has no limit.

You can also increase/decrease the premium payment term by notifying the insurance company. This benefit shall be allowed to you if at least five-year premiums are paid in full.

Note – Increase or decrease in the premium payment term must always be in multiples of one year.

Exclusion

If you are sane or insane and commits suicide within one year from the date of issuance or revival of this policy, only the fund value as on the date of death will be payable to the nominee.

Important Notes

You can receive assured benefit and death benefit as annuity payout, and can choose your annuity from the following –

  1. Life Annuity
  2. Life Annuity with Return of Purchase Price
  3. Life Annuity guaranteed for 5, 10 or 15 years & life thereafter
  4. Joint Life, Last Survivor without Return of Purchase Price
  5. Joint Life, Last Survivor with Return of Purchase Price
  6. Life Annuity with Return of 50% Purchase Price
  7. Life Annuity with Return of 75% Purchase Price
  8. Life Annuity with Return of Balance Purchase Price
  9. Life Annuity with an annual increase of 5%
  10. Joint Life, Last Survivor with Return of Purchase Price in Parts
  11. Life Annuity with Return of Purchase Price on Critical Illness, Permanent Disability due to Accident or Death

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