ICICI Prudential Shubh Retirement Plan
ICICI Prudential Shubh Retirement Plan is a Unit Linked Deferred Annuity Plan with the comfort of capital guarantee. Thus, it is a Non-Traditional Pension Plan without Bonus facility.
Death Benefit
Maturity Benefit
Tax Benefit
Compare this plan with other Investment Plans
Key Features
This plan is a unit linked deferred annuity plan with capital protection
There is a Limited Payment Option in this plan for 5 or 10 years
There are 3 investment options in this plan- Aggressive, Moderate and Conservative and 2 fund options-Growth and Debt
Upon Vesting, there are 3 Vesting Options available to the life insured
- He may choose to withdraw 1/3rd of the corpus tax free and avail annuity from the remaining 2/3rd of the corpus or take annuity from the entire corpus
- He may postpone his vesting date
- He may choose to purchase a single premium Deferred Annuity Plan
If the Life Insured before the Annuity starts then his nominee would receive the higher of Guaranteed Death Benefit or the Fund Value
There are 5 Annuity Options to choose from:
- Life Annuity
- Life Annuity with Return of Purchase Price
- Life Annuity Guaranteed for 5/10/15 years & life thereafter
- Joint Life, Last Survivor without Return of Purchase Price
- Joint Life, Last Survivor with Return of Purchase Price
This plan offers Loyalty Addition of 2% of Loyalty Addition in Year 10 and 0.5% from the 11th Year onwards
Benefits
Death Benefit
In case of death of the Life Insured before the vesting date, the nominee receives the higher of Guaranteed Death Benefit or the Fund Value.
Guaranteed Death Benefit = Guaranteed Death Benefit Factor X Sum of all premiums paid
In case of death of the Life Insured after the vesting date, it entirely depends upon annuity option chosen.
Maturity Benefit
At the maturity of the policy, the insured will get some choices
- To choose whether to withdraw 1/3rd of the fund tax free and avail annuity from the remaining 2/3rd or take annuity from the entire corpus
- To postpone the vesting date
- To choose a single premium Deferred Annuity Plan
There are 5 Annuity Options to choose from:
- Life Annuity
- Life Annuity with Return of Purchase Price
- Life Annuity Guaranteed for 5/10/15 years & life thereafter
- Joint Life, Last Survivor without Return of Purchase Price
- Joint Life, Last Survivor with Return of Purchase Price
Income Tax Benefit
Premiums paid under life insurance policy are exempted from tax under Section 80 C and 1/3rd of the maturity proceeds are exempted from tax under Section 10 (10A). Annuity that is received is taxable.
Investment Fund Options
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Investment Option
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Details
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Aggressive
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Higher equity participation with lower Assured Benefit
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Moderate
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Moderate equity participation with moderate Assured Benefit
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Conservative
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Lower equity participation with higher Assured Benefit
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How it works
In this plan, premium needs to be paid for a limited period and get regular income post retirement.
There are 2 phases in this plan- the Accumulation Phase and the Income Phase. In this plan, premium needs to be paid for a period of 5 years or 10 years as chosen and gets to invest in the market according to his risk appetite along with Assured Benefit of Capital Protection. This plan offers Loyalty Addition of 2% of Loyalty Addition in Year 10 and 0.5% from the 11th Year onwards
Thus, in the Accumulation Phase, premium is paid to build the Retirement Corpus which can be used for Annuity. Thus, on policy maturity, the higher of the Assured Benefit or the Fund Value is paid as Maturity Benefit. There are 3 options for investment in this phase:
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Investment Option
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Details
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Aggressive
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Higher equity participation with lower Assured Benefit
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Moderate
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Moderate equity participation with moderate Assured Benefit
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Conservative
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Lower equity participation with higher Assured Benefit
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Now, there are 2 funds for Investment- Pension Growth Fund and Pension Debt Fund. The exposure to Growth Fund depends upon the Investment Option selected. The Assured Benefit depends upon the Investment Option and the Policy Tenure as chosen.
The amount of pension received at Vesting would depend on the Annuity Option chosen at that time. However, the Retirement Corpus that is created to provide annuity for old age is higher the Assured Benefit or the Fund Value. The age where annuity is payable is called Vesting Age and the date when annuity starts is called Vesting Date.
If the Life Insured survives the entire term, i.e. till the end of the Accumulation Phase, then he reaches the Vesting Phase where he would get the 3 Vesting Options:
- He can withdraw 1/3rd of the entire corpus that has been accumulated and start receiving Annuity from the remaining 2/3rd corpus or he may choose to receive annuity from the entire corpus
- He may choose to purchase a single premium deferred annuity plan
- He may choose to postpone vesting date
There are 5 Annuity Options to choose from- Life Annuity, Life Annuity with Return of Purchase Price, Life Annuity Guaranteed for 5/10/15 years & life thereafter, Joint Life, Last Survivor without Return of Purchase Price and Joint Life, Last Survivor with Return of Purchase Price.
However, if the Life Insured dies in the Accumulation Phase before Vesting, i.e. before the Annuity starts then his nominee would receive the higher of Guaranteed Death Benefit or the Fund Value.
Guaranteed Death Benefit = Guaranteed Death Benefit Factor X Sum of all premiums paid.
Eligibility
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Minimum
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Maximum
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Policy Term (in years)
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For PPT=5, PT can be 10, 15, 20, 25 or 30
For PPT=10, PT can be 20, 25 or 30
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Premium Payment Term (in years)
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5
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10
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Entry Age of Life Insured (in years)
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35
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70
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Age at Maturity (in years)
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45
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80
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Annual Premium (in Rs.)
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24,000
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No Limit
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Payment modes
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Yearly, Half-Yearly, Monthly
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FAQs
What happens if policyholder stop paying the premium before 5 yearsIf the policy holder stops paying the premium, the insurance cover will cease and the fund value net of any discontinuance charge will be transferred to the Pension Discontinued Fund. The Pension Discontinued Fund will earn a minimum guaranteed interest rate and the proceeds from this will be payable after the fifth policy anniversary. In case of death of the Life Assured during this period, only the accumulated Fund Value will be payable to the nominee.
The policy can be revived as well but within a period of 2 years from the Date of Discontinuance of the Policy or before completion of the Lock-in period of 5 policy years, whichever is earlier.
What happens if policyholder stop paying the premium after 5 yearsIf the policy holder stops paying the premium after 5 years, then there is no Surrender/Discontinuance Charges and the Fund Value is paid to the policy holder and the policy will terminate immediately.
What happens if policyholder want to surrender the policyIf the policy holder wants to surrender the policy before completing 5 years, then the insurance cover will cease and the Fund Value net of any discontinuance charge, if at least 5 years’ premiums have not been paid, will be transferred to the Pension Discontinued Fund. The Pension Discontinued Fund will earn a minimum guaranteed interest rate and the proceeds from this will be payable after the fifth policy anniversary. In case of death of the Life Assured during this period, only the accumulated fund value will be payable to the nominee.
If the policyholder surrenders the policy after completion of 5 policy years, then there is no Surrender/Discontinuance Charges and the Fund Value is paid to the policy holder and the policy will terminate immediately.
What happens if policyholder want a loan against your policyThere is no loan available under this plan.
