The immediate annuity option enables customers to start receiving regular income immediately by paying a one-time premium
ICICI Prudential Life Insurance has launched ‘ICICI Pru Guaranteed Pension Plan’, an innovative retirement plan that offers guaranteed life-long income. It is a non-participating individual annuity product. Customers will have the flexibility to choose between immediate and deferred annuity.
The immediate annuity option enables customers to start receiving regular income immediately by paying a one-time premium. On the other hand, the deferred annuity option gives customers the flexibility to start receiving the income at any point later, for instance closer to their retirement. Customers have the option to defer the start of the income for a period of 10 years. Longer the deferment, higher would be the income.
Considering the rising inflation, the insurer is offering customers to top-up their contribution and thereby increase the income they receive. They have the choice to select single or joint life options. In the joint life option, the income continues to be paid to the joint policyholder on demise of the primary policyholder. The product also allows return of the premium amount on diagnosis of specific critical illnesses and permanent disability. This is to ensure that the policyholder can use the funds to access medical care to treat the illness.
Commenting on the launch, Amit Palta, Chief Distribution Officer, ICICI Prudential Life Insurance, said, "We are delighted to bring to customers a guaranteed life-long income solution that can provide certainty in today's unpredictable times.With a higher life expectancy, absence of any social security, rising inflation and healthcare costs,it is imperative for customers to plan for a secure retired life."
"The ‘ICICI Pru Guaranteed Pension Plan’ is a versatile retirement planning product enabling customers to receive regular income immediately upon retiring or later – an option which will be relevant to people for whom retirement is still sometime away," he further added.