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ICICI Prudential Easy Retirement SP
ICICI Pru Easy Retirement SP Plan Review
ICICI Prudential Easy Retirement SP plan is a single premium 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 once for the entire tenure, and reap the benefits during the income phase, through any of the vesting age option.
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 SP 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
COMPARE THIS PLAN WITH OTHER PENSION PLANS
Benefits you get from ICICI Pru Easy Retirement SP Plan
1. Death Benefit – In case of death of the policy holder, higher of the below will be paid to the nominee:
Guaranteed Death Benefit
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.
2. 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).
3. 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 2% of daily fund value.
4. Loyalty Additions - Guaranteed loyalty additions units will be allocated every policy year, from 6th policy year onwards. It’s 0.25 % of average daily fund value and top-up, if any.
5. 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 SP Plan
Entry Age (in years)
Vesting Age (in years)
Premium (in Rs.)
Premium Payment Term (in years)
Policy Term (in years)
Benefit Illustration of ICICI Pru Easy Retirement SP Plan
Criteria:- Male, Age – 40 years, Policy Term – 20, Premium Paying Term – 5, Single premium – 5,00,000, Assured Benefit – 5,05,500, Investment fund option – Easy Retirement Balanced Fund (100%
Returns @4% Pre-Vesting
Returns @8% Pre-Vesting
Expected yearly annuity
Expected yearly annuity
Additional Features and Benefits of ICICI Pru Easy Retirement SP 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.
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.