India's 1st IRDAI Approved Insurance Web Aggregator
ICICI Prudential Shubh Retirement Plan
views
views
This plan has been withdrawn by the insurance company and is no longer available for sale.
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 PensionPlan without Bonus facility.
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:
Investment Option
Details
Aggressive
Higher equity participation with lower Assured Benefit
Moderate
Moderate equity participation with moderate Assured Benefit
Conservative
Lower equity participation with higher Assured Benefit
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.
Key Features of ICICI Prudential Shubh Retirement Policy
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
COMPARE THIS PLAN WITH OTHER PENSION PLANS
Benefits you get from ICICI Prudential Shubh Retirement Insurance Plan
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.
Eligibility conditions & other restrictions in ICICI Pru Shubh Retirement Insurance Policy
Minimum
Maximum
Policy Term (in years)
For PPT=5, PT can be 10, 15, 20, 25 or 30
For PPT=10, PT can be 20, 25 or 30
Premium Payment Term (in years)
5
10
Entry Age of Life Insured (in years)
35
70
Age at Maturity (in years)
45
80
Annual Premium (in Rs.)
24,000
No Limit
Payment modes
Yearly, Half-Yearly, Monthly
Additional Features and Benefits of ICICI Pru Shubh Retirement Pension Plan
Riders – There are No Additional Riders in this plan
Investment Fund Options - In this plan, there are 3 Investment Options in this plan
Investment Option
Details
Aggressive
Higher equity participation with lower Assured Benefit
Moderate
Moderate equity participation with moderate Assured Benefit
Conservative
Lower equity participation with higher Assured Benefit
There are 2 Fund Options to choose from- Pension Growth Fund and Pension Debt Fund. The allocation between these two funds will be determined by us based on the investment option chosen, premium payment option and policy term. To protect the entire accumulated savings, it is expected that as the policy nears maturity, a greater proportion of the investment will be allocated to the Pension Secure Fund to decrease market volatility.
Top-up – Not allowed in this plan.
Switching – Not allowed in this plan.
Partial Withdrawal - Not allowed in this plan.
Charges in ICICI Pru Shubh Retirement Pension Plan
Premium Allocation Charge – This charge is deducted from the Premium Paid by you
Policy Year
Premium Allocation Charge
1st and 2nd
3%
3rd to 5th
2% for Monthly Mode and 3% for other modes
Policy Administration Charge— This is the charge for the administrative working of the policy and is deducted by cancellation of units on a monthly basis, subject to a maximum of Rs 500 per month.
Policy Year
Policy Administration Charge
Year 1 to end of PPT
0.3%
Thereafter
0.1%
Fund Management Charge– This charge is deducted by adjusting the NAV of the units on a daily basis.
Type
Charge
Pension Growth Fund
1.35% p.a.
Pension Debt Fund
1.35% p.a.
Discontinuation Charge— This charge is for discontinuing the plan before the end of the Policy Tenure.
Year of Discontinuation
Annual Premium <= Rs 25,000 p.a.
Annual Premium > Rs 25,000 p.a.
1st
Lower of 20% of (Annual Premium or Fund Value) subject to a maximum of Rs 3,000
Lower of 6% of (Annual Premium or Fund Value) subject to a maximum of Rs 6,000
2nd
Lower of 15% of (Annual Premium or Fund Value) subject to a maximum of Rs 2,000
Lower of 4% of (Annual Premium or Fund Value) subject to a maximum of Rs 5,000
3rd
Lower of 10% of (Annual Premium or Fund Value) subject to a maximum of Rs 1,500
Lower of 3% of (Annual Premium or Fund Value) subject to a maximum of Rs 4,000
4th
Lower of 5% of (Annual Premium or Fund Value) subject to a maximum of Rs 1,000
Lower of 2% of (Annual Premium or Fund Value) subject to a maximum of Rs 2,000
5th onwards
NIL
Mortality Charge — This charge is paid for the Life Coverage provided according to the Sum At Risk. This is based on the mortality rates which are specified for all ages and amount of cover being provided.
Service Tax would be applicable on the charges depending on the applicable rates.
What happens if?
You stop paying the premium before 5 years - If 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.
You stop paying the premium after 5 years - If 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.
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, 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.
You want a loan against your policy - There is no loan available under this plan.
