ICICI Prudential Life Insurance has launched a new market-linked pension product to help customers create a “cost-effective and tax-efficient retirement plan.” ICICI Pru Signature Pension will meet the growing need for robust retirement planning solutions in India, the company said.
Key Features of ICICI Pru Signature Pension Plan
– Market-linked retirement savings plan with up to 100 percent equity exposure.
– Tax-free withdrawal of up to 60 percent of the accumulated corpus.
– Flexibility for partial withdrawals to cover liquidity needs.
– Waiver of additional premium benefit to ensure uninterrupted retirement planning.
“The product enables customers to participate in India’s economic growth story while building their retirement fund. It offers unlimited and free switching between equity, debt and balanced funds, allowing policyholders to maximise their returns,” the company said in a statement.
“We are delighted to offer ICICI Pru Signature Pension, a market-linked product that enables customers to participate in India’s growth story to build their retirement fund,” said Amit Palta, Head of Distribution, ICICI Prudential Life Insurance.
Flexible retirement planning
The plan accommodates a variety of retirement goals, including those of the financially independent generation who retire early. Clients can choose to advance or postpone their income start date, giving them the flexibility to achieve early retirement or delay receiving income at retirement.
Tax benefits and liquidity
An important advantage of the plan is the possibility of making tax-free withdrawals of up to 60 percent of the accumulated savings at the end of the policy period. The remaining 40 percent must be used to purchase an annuity that guarantees a lifetime income.
The product also features a partial withdrawal option to meet liquidity needs without disrupting the overall savings plan. Additionally, a top-up feature allows policyholders to make additional investments to boost their retirement savings.
Protection against unforeseen circumstances
To protect the retirement plan against possible interruptions, the product offers a waiver of the additional premium benefit.
“Opting for the additional premium benefit waiver will prevent the retirement plan from being disrupted due to serious illness or permanent disability due to an accident. The partial withdrawal feature can help overcome liquidity requirements without disrupting the savings plan. Additionally, the top-up feature allows customers to make additional investments to boost their retirement savings,” Palta said.
First published: August 29, 2024 | 15:25 IS
Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.