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 Pension Plan without Bonus facility. In ICICI Prudential Shubh Retirement Plan, premium needs to be paid for a limited period and get regular income post retirement.
There are 2 phases in ICICI Prudential Shubh Retirement 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% 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.
Key Features of ICICI Prudential Shubh Retirement Policy
- ICICI Prudential Shubh Retirement 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 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
- This plan offers 2% of Loyalty Addition in Year 10 and 0.5% from the 11th Year onwards
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.
- 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.
- 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.