Tuesday, September 17, 2013

Details of ICICI Prudential Life Easy Retirement Plan

ICICI Prudential Life Insurance Company Ltd announced the launch of ICICI Pru Easy Retirement. The plan seems to be good choice if one wants to build retirement kitty for older age.

The plan adds 5% of the fund value every five years after the tenth policy year onwards. It will increase the fund value of the investor – that’s the unique feature of this plan.

Let us understand the plan in more detail below:

Key Benefits of ICICI Pru Easy Retirement:

  • Build your retirement corpus as per your risk appetite
  • Protect your savings from market downturns through an Assured Benefit
  • Enhance your retirement corpus through Pension Boosters
  • Option to pay premiums for five years, ten years or throughout the policy term
  • Invest any available money into the policy in the form of Top ups
  • At retirement, choose from the available annuity options as per your needs and get regular income
  • Avail tax benefits on premiums paid and receive up to one-third of the accumulated value on retirement date as a tax-free lump sum, as per the prevailing Income Tax laws

Benefits in detail

Vesting Benefit

  • On vesting, i.e. maturity, you will be entitled to the Assured Benefit or Fund Value whichever is higher. This benefit amount can be utilised only as per the available options. Alternatively, you can choose to postpone your vesting date. Assured Benefit = 101% of the (sum of all premiums paid and Top ups, if any)

Death Benefit

  • In the unfortunate event of death of the Life Assured, the nominee will receive the Guaranteed Death Benefit or the Fund Value, whichever is higher. This death benefit amount can be utilised as per the available options.Guaranteed Death Benefit = 105% of the (sum of all premiums paid and Top ups, if any)

Pension Boosters

  • On completion of the tenth policy year and on completion of every fifth policy year thereafter, there will be a guaranteed Pension Booster, provided at least five years’ premiums have been paid. This will be equal to 5% of the average daily total Fund Value over the preceding 12 months. Pension Boosters will be made by allocation of extra units.


  • You have the option to switch units between the two available funds, depending on your financial priorities and investment outlook.

Top Up

  • You can invest any available money in the form of Top ups in this policy provided all due premiums have been paid.

How Plan Works?

  • Accumulation Phase:
    1. At policy inception, you choose your premium, premium payment term, policy term and premium payment mode.
    2. You choose the ratio in which your premiums will be invested in the following two funds:
      • Easy Retirement Balanced Fund: Up to 50% of the investments in this fund will be in equity and equity related securities.
      • Easy Retirement Secure Fund: This fund will invest exclusively in debt, money market and cash instruments.
    3. You pay premiums towards the policy to accumulate funds for your retirement while enjoying the safety net of an Assured Benefit. You can also invest any available money in the form of Top ups.
  • Income Phase:
    At the time of vesting, i.e. the maturity of the policy, you can exercise one of the following options:
  1. Regular income: Purchase an annuity with the accumulated value and receive regular income.
  2. Commutation plus regular income: Receive a lump sum of up to one-third of the accumulated value, tax-free. The remaining amount must be used to purchase an annuity, providing you with regular income.
  3. Postponement of vesting date: Change the date on which you want to start receiving regular income, i.e. your vesting date, provided you are below an age of 55 years. You can choose to postpone your vesting date any number of times.
  4. Invest in a single premium deferred pension product: Use the accumulated amount to purchase a single premium deferred pension product.

You may check official brochure of this plan from here and its specimen policy documents here.

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