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ICICI Prudential Easy Retirement

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ICICI Pru Easy Retirement Plan Review

ICICI Prudential Easy Retirement plan is a unit-linked insurance plan, designed to take care of post retirement income. The product helps to build the corpus as per policy holder risk appetite, s/he pays the premium for maximum 10 years, and reap the benefits during the income phase, through any of the vesting age option. It also takes care of market volatility through an assured benefit.

 

How does the Plan work?

The plan passes through 2 phases, elaborated below:
Accumulation Phase – in this phase s/he pays premium for the chosen premium term and accumulate the funds for retirement. While, the anxiety of market volatility is taken care through an assured benefit.

Income Phase – s/he can choose vesting age from any of the below options – 
  • Regular Income – Purchase an annuity with the accumulated value and receive regular income.
  • Commutation Plus Regular Income – receive lump sum amount up to one third of accumulated amount and the balance can be used to buy the annuity.
  • Postponement of vesting age – Flexibility to change the pay-out date, provided s/he is below 55 years.
  • Invest in a single premium deferred pension product – use the accumulated amount to purchase Invest in a single premium deferred pension product.
 

Key Features of ICICI Pru Easy Retirement Plan 

  • Assured Benefit – anxiety of market volatility taken care off
  • Premium Flexibility - Option to pay premiums for five or ten years or throughout the policy term
  • Annuity options – Flexibility to select vesting age
  • Pension Boosters – to enhance corpus
  • Top up – additional savings to boost the fund value
 
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Benefits you get from ICICI Pru Easy Retirement Plan

Death Benefit – In case of death of the policy holder, higher of the below will be paid to the nominee:
  • Guaranteed Death Benefit
  • Fund value
Where,  
- Guaranteed Death Benefit is 105% of the premiums paid till date
- If the policy status is discontinued policy during the death, then only fund value will be paid.

Assured Benefit – In case of Maturity, the policy holder will get higher of Assured Benefit or Fund Value. Assured Benefit = 101% of the (sum of premiums paid and top ups, if any).

Pension Boosters – On completion of 5th & 10th policy year, guaranteed pension boosters, will be allocated between Easy Retirement Balanced Fund and Easy Retirement Secured Fund, at 5% of daily fund value.

Increase and decrease of policy Term – s/he can opt for this facility provided all the premiums are paid till date.

Income Tax Benefit - Life Insurance premiums paid up to Rs. 1,50,000 are allowed as a deduction from the taxable income each year under section 80C


Eligibility conditions in ICICI Pru Easy Retirement Plan

Particulars

Minimum

Maximum

Entry Age (in years)

35

70

Vesting Age (in years)

45

80

Premium (in Rs.)

48,000

Unlimited

Premium Payment Term (in years)

5,10 or equal to policy term

Policy Term (in years)

10,15,20,25,30

Premium Payment modes

Yearly / Half yearly / Monthly

 

Benefit Illustration of ICICI Pru Easy Retirement Plan

Criteria:-
Male, Age – 40 years, Policy Term – 20, Premium Paying Term – 5, Annual premium – 50, 000, Assured Benefit – 2,52,500, Investment fund optionEasy Retirement Balanced Fund (100%)

Returns @4% Pre-Vesting

Returns @8% Pre-Vesting

Accumulated Savings

Expected yearly annuity

Accumulated Savings

Expected yearly annuity

Rs. 3,70,959

Rs. 10,531

Rs. 7,33,371

Rs. 48,998

 

Benefit Illustration of ICICI Pru Easy Retirement Plan – Pension Boosters

Policy Year

Pension Boosters Returns @4%

Pension Boosters Returns @8%

10

Rs. 13,279

Rs. 17,733

15

Rs. 15,251

Rs. 24,580

20

Rs. 17,526

Rs. 34,085

 

Additional Features and Benefits of ICICI Pru Easy Retirement Plan

Switching
In a year, 4 switches are free, minimum amount of switch is Rs. 2000. s/he can switch units between Easy Retirement Balanced Fund and Easy Retirement Secured Fund.

Top-up
This is an additional saving over and above fund value, the minimum top up is 2000.  Sum Assured will increase when you avail this facility.

Free look – If the policy holder is not convinced with the Terms and Conditions, s/he can cancel the policy within 15 days from the date of receipt of policy document.

Riders – No riders are available in this policy

Partial withdrawal – The policy does not allow partial withdrawal

 

What happens if?

You stop paying the premium after 5 years – Policy holder can pay the unpaid premium, Surrender the policy, Convert the policy into paid up policy, continue the policy for a period of up to 2 years. If nothing from the above is selected, then the policy will be auto surrendered. 

You stop paying the premium before 5 years – Policy Holder can pay the unpaid premium, discontinue the policy, the funds will be moved to discontinue policy fund.  If nothing from the above is selected, then the policy will be converted to discontinued policy.

You want to surrender the policy – If 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 will be transferred to the Discontinued Policy Fund. The Discontinued Policy Fund will be credited with a minimum interest rate of 4% p.a. 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 the insurance cover will cease and your fund value including top up value shall be paid immediately and the policy would be terminated.

You want a loan against your policy – Loan facility is not available under this policy.

 

Exclusions

If the Life Assured, commits suicide within one year from the date of issuance of the policy or from the date of policy revival, only the Fund Value, including Top- up Fund Value, if any, as available on the date of death, would be payable. No charges will be deducted after the date of death.
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