ICICI Pru Easy Retirement Plan

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ICICI Pru Easy Retirement Plan

If you have made your mind to plan your retirement then ICICI Pru Easy Retirement Policy is one of the best options you have in the insurance market. The plan provides you with the benefit of equity participation, along with the comfort of a capital guarantee.

Features Of ICICI Pru Easy Retirement Policy

Here are explained the features of ICICI Pru Easy Retirement Plan:

  • The retirement corpus is built according to the risk the insured can bear.
  • Investment of any available money into the policy in the form of top-ups.
  • There are multiple options to pay the premium, it can be in 5 years, 10 years or throughout the policy.
  • Assured benefits protect the savings of insured from the market decline/ economy decline.
  • Insured can choose from multiple annuity options as per the requirement and budget of the self.
  • The pension booster increases/ enhances the retirement corpus.
  • A free look period of 15 days is provided from the date you receive the policy It is generally in case the policy that has not been bought online. Whereas a free look period of 30 days is provided in case the policy has been bought online.
  • 15 days of a grace period is provided to the monthly mode of premium payment whereas the grace period is extended to 30 days in other premium payment mode frequencies.
  • There is nothing like a partial withdrawal facility under this plan.

Eligibility

CriteriaDetails
Minimum Entry Age35 years
Maximum Entry Age70 years
Minimum vesting Age45 years
Maximum vesting Age80 years
Policy Tenure10 years, 15 years, 20 years, 25 years, 30 years
Premium Payment Term5 years, 10 years or policy term

Benefits Under ICICI Pru Easy Retirement Plan

The benefits of the plan have been listed below for a better understanding of the policy:

Assured Benefits

The insured receives one of the higher amounts among assured benefit and fund value at the time of maturity. The add on benefit under this is that the insured can postpone the vesting date.

Top-Ups

Any amount of money available can be invested in the form of top-ups under ICICI Pru Easy Retirement policy subjected to the condition that all the due premiums under the plan have been paid. The minimum amount that can be invested as top-up is Rs. 2000. All changes related to the top-up is subjected to change as per the rules and regulations of IRDA.

Pension Booster

In case the insured pays a continuous premium for at least five years then on the completion of the 10th year and on completion of 5 years after that, the insured is supposed to get a pension booster. This is equal to 5% of the average daily total fund value over the preceding 12 months.

Premium Redirection

There is a facility provided to the insured under the ICICI Pru Easy Retirement policy under which the insured needs to finalize proportions that need to be contributed to Easy Retirement Balanced Fund and Easy Retirement Secure Fund. Under the facility the proportion of pre-finalized can be changed at the time of premium payment without any extra charges. Moreover, this is not counted as a switch.

Switch

The insured has an option to switch units between Easy Retirement Balanced Fund and Easy Retirement Secure Fund. The insured can opt for the switch based on his/her requirement. The policyholder can switch for a minimum amount of Rs.2000.

Increase Or Decrease Of Premium Payment Term

After the insured has been able to pay the premiums for the initial 5 years successfully, thereafter he is eligible to increase or decrease the premium payment term under the guidance of the insurance company. The term can be decreased with an increase in the premium amount and vice versa. The term can be incremented in the multiples of one.

Surrender

After the insured intimates the insurance company about surrendering the policy, all the discontinuance charges are deducted and the fund value is calculated. This fund value is transferred to the PDP Fund (Pension Discontinued Policy Fund). In case of revival of the policy, the insured needs to refer to the sections on Treatment Of Policy while Monies are in PDP Fund.

In case the policy is not revived then the policyholder (on survival)/ nominee can receive the benefit amount which will not be less than Fund Value transferred to PDP Fund. This is subjected to the condition that the lock-in period of 5 years has been served successfully. The insured/nominee needs to serve all the terms and conditions mentioned under the policy.

In Case the policy has been bought under QROPS (Qualifying Recognized Overseas Pension scheme), through the transfer of UK tax-relieved assets, then the fund calculations are done on different parameters subjected to terms and conditions under the insurance company.

Premium Discontinuance

  • Discontinuance In First 5 Policy Year: The insurance company sends a notice to either pay the overdue premium within 30 days of the grace period and keep the policy running or permanently discontinue the plan and the remaining money will be transferred to the PDP account.
  • Discontinuance After completion Of 5 Years: The insured receives a notice from the insurance company to either pay the overdue premium within the policy period to revive the policy or surrender the policy and utilizes the benefits accumulated under the Easy Retirement Plan.

Policy Revival

The ICICI Pru Easy Retirement Policy can be revived within 2 years on discontinuance of the policy in the first 5 years by paying the overdue premiums.

Death Benefit

Under the circumstances of the death of the insured, the nominee is supposed to receive all the guaranteed death benefits or fund value (Whichever is higher) until the money is in the PDP fund of the Easy Retirement Plan.

Guaranteed Death Benefit = 105% of the (sum of all premiums paid and Top-ups, if any).

Tax Benefit

There are tax benefits on the premiums paid under ICICI Pru Easy Retirement Policy. The insured can also receive up to 1/3rd of the accumulated value on requirements date as a tax-free lump-sum, as per the present Income tax laws.

Premium Limits

The premium choices offered under the plan have been presented in tabular form

CriteriaDetails
Minimum PremiumRs 48,000
Maximum PremiumNo Limit

Easy Retirement Plan Premium Illustration

Here is an example relating the plan to have a better understanding of the investment done under the ICICI Pru Easy Retirement Plan:

A male invests in the plan at the age of 40 years. The policy term chosen is for 20 years and an annual premium of Rs. 100,000. He has opted for 5 years as the premium payment term. The assured benefit would be Rs.5,05,000.

The policyholder chose for Easy Retirement Balanced Fund (100%)

how does icici pru easy retirement work
Returns at 4% ARR p.a. pre-vestingReturns at 4% ARR p.a. pre-vestingReturns at 8% ARR p.a. pre-vestingReturns at 8% ARR p.a. pre-vesting
Accumulated SavingsExpected Yearly AnnuityAccumulated SavingsExpected Yearly Annuity
Rs.7,30,014Rs.41,836Rs.14,43,240Rs.1,30,184

Impact Of The Pension Booster

Policy YearPension Booster Returns @ 4% ARR p.a.Pension Booster Returns @ 8% ARR p.a.
10Rs.26,334Rs.35,168
15Rs.30,132Rs.48,566
20Rs.34,500Rs.67,098

ICICI Pru Easy Retirement Policy Review

All the policyholders of ICICI Pru Easy Retirement Policy have given a positive response towards the services provided under the plan. The plan has been successful in fulfilling the needs of the insured in their later age after retirement. It has been highly liked both by local insured and insured under QROPS (Qualifying Recognized Overseas Pension scheme).

FAQs

The minimum entry age to buy the plan is 35 years.

There is 5 years lock-in period applied to the policy.

Yes, the policy can be bought from the policy term of 10 years, 15 years, 20 years, 25 years, and 30 years.

There are three modes of premium payment under the policy:

  • Yearly basis
  • Half-yearly basis
  • Monthly basis

The maximum entry age to buy the plan is 70 years

The minimum vesting age is 45 years and the maximum vesting age is 80 years under the plan.

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Last updated on 19-12-2019