ICICI Prudential Signature Pension Plan Launched :ICICI Prudential Life Insurance has launched a new pension plan. Called ‘ICICI Pru Signature Pension’, this plan is a market-linked pension scheme that helps customers create a cost and tax efficient retirement plan. Through this plan, customers can take advantage of the country’s growth story as well as create a good retirement corpus for themselves.
Option to invest up to 100% in equity
‘ICICI Prudential Signature Pension’ Plan The special feature of this plan is that through this, investors have been given the option to invest up to 100% in equity. Along with this, customers can switch between equity, debt and balanced funds for free without any limit to get maximum return on their investment. Two new funds have also been introduced under this product – ‘ICICI Prudential Pension India Growth Fund’ and ‘ICICI Prudential Pension Balanced Fund’.
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60% tax-free withdrawal on retirement
In this plan, customers are given the facility to withdraw up to 60% of the accumulated corpus till the time of retirement, on which no tax has to be paid. The remaining amount can be used to buy annuity to get guaranteed income for life. Apart from this, customers also get the option of ‘advancing’ or ‘postponing’ the date of commencement of income under the scheme, which helps them in achieving their retirement target.
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Partial withdrawal facility
This plan also has the facility of partial withdrawal, so that liquidity requirements can be met without interrupting the plan. Apart from this, the option of waiver of premium add-on benefit is also given, which prevents the plan from being interrupted in case of critical illness or accident.
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Aims to create a one-stop shop for customers
Amit Palta, Chief Distribution Officer, ICICI Prudential Life Insurance, said at the launch of the scheme that “The company aims to provide customers a one-stop shop for retirement planning. The scheme also offers 100% money back to customers through annuity offerings. We are committed to fulfilling the promises made to our customers, and this is also clearly reflected in our claim settlement ratio.” ICICI Prudential Life Insurance’s claim settlement ratio was 99.17% in FY24, with an average time to settle claims of 1.27 days. The company has a total assets under management (AUM) of Rs 3.14 lakh crore and a total in-force sum assured of Rs 35.12 lakh crore.
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Highlights of ICICI Pru Signature Pension Scheme
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Option of 100% Equity Exposure: Customers can invest up to 100% of their retirement corpus in equities through this plan.
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Tax-free withdrawal: At the time of retirement, up to 60% of the accumulated corpus can be withdrawn without any tax liability.
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Partial withdrawal facility: If money is needed, partial withdrawal can be made without stopping the scheme.
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Premium Add-on: Premium Add-on benefit protects the plan in case of permanent disability due to critical illness or accident.
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Provision of two new funds: More investment options through ‘ICICI Prudential Pension India Growth Fund’ and ‘ICICI Prudential Pension Balanced Fund’.
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Facility to change income start date: Customers can change their income start date to earlier or later.
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Unlimited Free Switching: Unlimited free switching between equity, debt and balanced funds.
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Top-up facility: Facility to make additional investments to enhance retirement savings.
(Disclaimer: The purpose of this article is only to provide information, not to advise investing in any scheme. Any market linked scheme is affected by market fluctuations. Therefore, take investment related decisions only after understanding the scheme thoroughly and taking the advice of your investment advisor.)
