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.
Here are explained the features of ICICI Pru Easy Retirement Plan:
| Criteria | Details |
| Minimum Entry Age | 35 years |
| Maximum Entry Age | 70 years |
| Minimum vesting Age | 45 years |
| Maximum vesting Age | 80 years |
| Policy Tenure | 10 years, 15 years, 20 years, 25 years, 30 years |
| Premium Payment Term | 5 years, 10 years or policy term |
The benefits of the plan have been listed below for a better understanding of the policy:
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.
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.
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.
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.
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.
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.
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.
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.
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).
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.
The premium choices offered under the plan have been presented in tabular form
| Criteria | Details |
| Minimum Premium | Rs 48,000 |
| Maximum Premium | No Limit |
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%)
| Returns at 4% ARR p.a. pre-vesting | Returns at 4% ARR p.a. pre-vesting | Returns at 8% ARR p.a. pre-vesting | Returns at 8% ARR p.a. pre-vesting |
| Accumulated Savings | Expected Yearly Annuity | Accumulated Savings | Expected Yearly Annuity |
| Rs.7,30,014 | Rs.41,836 | Rs.14,43,240 | Rs.1,30,184 |
| Policy Year | Pension Booster Returns @ 4% ARR p.a. | Pension Booster Returns @ 8% ARR p.a. |
| 10 | Rs.26,334 | Rs.35,168 |
| 15 | Rs.30,132 | Rs.48,566 |
| 20 | Rs.34,500 | Rs.67,098 |
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).
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:
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.
Last updated on 06-11-2020
