Investment Plans May 3, 2021

ICICI Pru Group Unit Linked Superannuation Plan provides you retirement and death benefits through which you can provide financial protection to your loved ones. This is a group insurance plan, and you will be covered under the policy until you are employed. Let’s check out the key features of ICICI Pru Group Unit Linked Superannuation Plan –

  1. Retirement Payout
  2. Death Payout
  3. Fund Options
  4. Loyalty Additions

The benefits payable under this scheme are defined below, so read on!

ICICI Pru Group Unit Linked Superannuation Plan Options

This unit-linked superannuation plan has three plan options –

  1. Defined Contribution
  2. Defined Contribution with Comprehensive Capital Guarantee
  3. Defined Benefit

Defined Contribution

Under this option, the policyholder can make contributions based on the Rules of the Scheme. These contributions will be invested in the respective member accounts. The employer should indicate the allocation among the available unit-linked funds to the insurer. The following Funds will be offered under this scheme –

  1. Group Capital Guarantee Short Term Debt Fund III
  2. Group Capital Guarantee Debt Fund III
  3. Group Capital Guarantee Balanced Fund III
  4. Group Capital Guarantee Growth Fund III

The following guarantee applies at a Member level under this scheme –

101% of contributions to a member account i.e. 101% of contributions

Members can surrender this policy anytime by giving a written notice one month in advance. The insurer will pay a Surrender Value (Policy Value) to the insured member after crediting the applicable loyalty additions and deducting the surrender charge.

Defined Contributions with Comprehensive Capital Guarantee

The following Funds will be offered under this scheme –

  1. Group Capital Guarantee Short Term Debt Fund III
  2. Group Capital Guarantee Debt Fund III
  3. Group Capital Guarantee Balanced Fund III

The following guarantee applies at a Member level under this scheme –

101% of contributions to a member account i.e. 101% of contributions

The members may surrender this policy by giving a written notice 30 days before. The insurer pays a Surrender Value to the member after crediting the applicable loyalty additions and deducting the surrender charge.

Defined Benefit

The employer will make contributions based on the Rules of the Scheme as per the Actuary’s certificate. Contributions made by the employer will be invested in Group Short Term Debt Fund I. A policy level guarantee applies under this scheme, which is called the Assured Benefit. The Assured Benefit is equal to 100.1% multiplied by the sum of contributions, and this shall apply to the entire superannuation fund. You may surrender this policy by giving a one-month notice to the insurer, which will pay you a Surrender Value after crediting the applicable Loyalty Additions and deducting the Outstanding Extra Allocation and surrender charge.

ICICI Pru Group Unit Linked Superannuation Plan Benefits

You can get ICICI Pru Group Unit Linked Superannuation Plan Benefits in the following events –

On retirement, the higher of the following will be payable –

  1. Member’s Account Value
  2. Guaranteed Benefit

In the event of death, higher of –

  1. Member’s Account Value
  2. Guaranteed Benefit

will be payable to the nominee.

Note – All claims are settled in line with the Scheme Rules in consultation with the policyholder (employer). The liability of the company is limited to funds available in the policy. It is the policyholder’s discretion to pay a higher amount to the insured members as per the Scheme Rules and the difference in the amounts will be covered from the policyholder’s end.

ICICI Pru Group Unit Linked Superannuation Plan Loyalty Additions

The policy offers Loyalty Additions depending upon the policy value and it will be credited to your account at the end of every financial year. An Extra Allocation will be provided to you if Defined Contribution with Comprehensive Capital Guarantee is opted by the policyholder.

Annuity Purchase Option Under ICICI Pru Group Unit Linked Superannuation Plan

The policyholder is required to purchase an annuity from the insurer unless it is permitted by the regulation to purchase an annuity from any other insurer. Currently, the insurance company provides the following annuity options –

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

The annuity payments shall be made, provided the annuitant is alive at the time of vesting.

Free Look Period

The policyholder can review the terms and conditions of the policy and cancel the same stating the reason for objection within 15 days from the date of receipt of the policy document or 30 days, in case the policy is purchased through distance marketing. On policy cancellation during the free look period, the policyholder shall be entitled to an amount equal to –

Non-allocated premium + Charges Levied by Cancellation of Units + Fund Value (as on the date of cancellation) – Stamp Duty Charges

Note – On policy cancellation, all rights, benefits and interests under this policy shall stand extinguished.

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