ICICI Pru Life Insurance starts market-linked pension plan: Key features

Product allows customers to have 100% exposure to equity, unlimited free switches between equity, debt and balanced funds

ICICI Prudential Life Insurance has launched a new market-linked pension product to help customers build a "cost-effective and tax-efficient retirement plan". ICICI Pru Signature Pension will cater to the growing need for robust retirement planning solutions in India, said the company.

Key Features of ICICI Pru Signature Pension

- Market-linked retirement savings plan with up to 100 per cent equity exposure.

- Tax-free withdrawal of up to 60 per cent of the accumulated corpus.

- Flexibility for partial withdrawals to meet liquidity needs.

- Waiver of premium add-on benefit to ensure uninterrupted retirement planning.

"The product allows customers to participate in India's economic growth story while building their retirement corpus. It offers unlimited free switches between equity, debt, and balanced funds, enabling policyholders to maximise their returns," said the company in a statement.

“We are delighted to offer ICICI Pru Signature Pension, a market-linked product which enables customers to participate in the India growth story to build their retirement corpus," said Amit Palta, chief distribution officer at ICICI Prudential Life Insurance.

Flexible retirement planning

The plan caters to diverse retirement goals, including those of the Financial Independence Retire Early generation. Customers can choose to advance or postpone their income start date, providing flexibility in achieving early retirement or delaying income receipt upon retirement.

Tax benefits and liquidity

A significant advantage of the plan is the ability to make tax-free withdrawals of up to 60 per cent of the accumulated savings at the end of the policy tenure. The remaining 40 per cent must be used to purchase an annuity for guaranteed lifelong income.

The product also features a partial withdrawal option to address liquidity requirements 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 safeguard the retirement plan against potential disruptions, the product offers a waiver of premium add-on benefit. 

“Opting for the waiver of premium add-on benefit will insulate the retirement plan from being disrupted due to a critical illness or permanent disability due to an accident. The partial withdrawal feature can aid in overcoming liquidity requirements without disturbing the savings plan. Also, the top-up feature allows customers to make additional investments to boost their retirement savings,” said Palta.