Increasing Pension solution from ICICI Prudential Life
To enable customers to secure their regular income needs after retirement and to keep pace with the rising cost of living, ICICI Prudential Life Insurance has developed an innovative retirement solution by combining the Immediate and Deferred annuity options of Guaranteed Pension Plan. This solution can offer customers guaranteed regular income which addresses the challenge of rising cost of living.
With rising inflation, growing trend of nuclear families and children migrating overseas in search of career opportunities there is a threat to savings being depleted or evenloss of financial support for retired individuals.
‘Guaranteed Pension Plan’ is an annuity product which offers the Immediate and Deferred Annuity options. In Immediate Annuity customers start receiving guaranteed regular income immediately on purchase.On the other hand, in Deferred Annuity, customers have the flexibility to begin receiving income in the future –closer to retirement.Customers have the option to defer the start of the income for a period of 10 years;longer the deferment,higher is the income. In both options the interest rate at which the regular income will be paid is locked in at the time of purchase.
Mr. B. Srinivas, Head of Products, ICICI Prudential Life Insurance Company Limitedsaid, “Covid-19 has caused disruption to lives and livelihoods and made consumers realise the importance of financial planning, with a special focus on retirement planning.The Guaranteed Pension Plan offers customers a guaranteed life-long regular income.The Guaranteed Pension Plan has been voted as the ‘Product of the Year 2021’, which in a way highlights the popularity of the product.”
Mr. Srinivas further added, “To address customers’ concerns of rising cost of living, we have also developed an innovative retirement solution by combining the Immediate and Deferred Annuity variants. This gives the customer the flexibility to choose the option in such a way that the retirement income doubles after the 5th year and triples after the 11th year, givingthe customer the potential to counter the effects of inflation.”
This product offers some industry-first features, which includes ‘return of purchase price’ if the policyholder is diagnosed with specific critical illnesses or suffers from a permanent disability due to an accident.
A retired individual wants to receive steady regular income and importantly increasing income to overcome rising inflation. Annuity products are an excellent tool to secure retirement income and can be purchased by simply making a one-time premium payment, enabling customers to be financially independent.Choosing the Joint Life Annuity option ensures that the guaranteed regular income is paid to the spouse in case of demise of the primary policyholder, providing them with financial security. Upon demise of the both policyholders the purchase price is paid out to the nominee.
The quest for professional excellence forces many individuals to leave their ageing parents behind and head to foreign lands. To ensure the financial security of parents, children can purchase this product and have their parents receive the guaranteed regular income. It is an excellent way to have peace of mind knowing that their financial needs are taken care of.