To provide some relief to customers amid coronavirus pandemic, several insurance companies have launched various guaranteed income plans. These plans usually offer financial security by providing a regular income to policyholders. There is an option of receiving income yearly, half-yearly, quarterly or monthly basis. Along with the guaranteed payouts, the policy holders usually get some additional benefits when the insurance matures.
ICICI Prudential Life insurance has recently introduced a guaranteed income plan — ICICI Pru Lakshya. This plan offers assured returns along with the protection of life cover throughout the policy term.
The insurance company offers two plans under ICICI Pru Lakshya — Wealth plan and lifelong income plan.
Under this programme, the policyholder will get a regular annual income based on their premium payment terms. The annual premium starts at ₹30,000.
There two payout options under wealth plan: a) The entire maturity benefit will be benefit will be payable as a single payout at the end of the policy term. b) Policyholders can receive the entire maturity benefit or a part of it as regular instalments over a period of 5, 10 or 15 years. The interest rates applicable for arriving at the instalment payments for the chosen period shall be as fixed by the insurer on a monthly basis.
There will be also be guaranteed value benefits that will be payable at maturity. Additionally the company will offer bonuses in the form of regular additions declared annually from the first year and the amount will be payable on death or maturity.
Lifelong income plan are for those who wish to receive the regular income till 99 years of age. In addition to the lifelong protection and guaranteed income, there will maturity benefits, cash bonus if the company declares. On survival of the life assured till the income start date which is fifth policy anniversary after the Premium Payment Term, the accrued regular additions net of encashment if any, till that date shall be payable as a lump sum, the insurer said.
If premium payment is discontinued, before the end of the term but after the policy has acquired a surrender value, the policy can continue as a paid-up policy with reduced benefits as described below.
“ICICI Pru Lakshya is an innovative savings product designed to meet the diverse needs be it long term wealth creation, income for a defined period or regular life-long income. The life cover feature in the product ensures financial security for the family or dependents. This product has been designed keeping the needs of young India in mind. Lakshya motivates customers to start their savings journey early, commit a higher amount towards savings and remain invested for the long term," Amit Palta, chief distribution officer, ICICI Prudential Life Insurance Company Limited said.
"The annual cashback feature provides customers with liquidity to meet financial obligations that may crop up due to transition in their life-stage," he added.