Why is ICICI Pru Group Immediate Annuity Plan special?

Meet Annuity requirements

This plan helps you offer pension to your employees to take care of their post-retirement needs.

What is annuity?

Annuity is one of the most important retirement benefits for your employees. It is the regular income that your employees receive in return for a one-time payment made by you. This regular income starts at the time of your employee’s retirement.

How does this plan work?

As an employer, you can purchase an ICICI Pru Group Immediate Annuity plan by making a one-time payment. Through this payment, your employees will get regular payouts for the rest of their lives.

The annuity amount your employee will receive depends on the annuity rate applicable at the time of purchase and the payout option selected by you. These payouts will remain constant throughout the life of your employees.

At the time of purchase, you can choose the frequency of the payouts (monthly, quarterly, half-yearly or yearly). This is called the payout mode.

Multiple payout options

You can select the payout option according to which your employees will get the pension, post-retirement. You can also choose for the pension to continue for the employee’s nominee*.

Which are the payout options available?

There are five payout options available under this plan:

  • Life Annuity: This option pays annuity for life.
  • Life Annuity with Return of Purchase Price: This option pays annuity for life and on death the Purchase Price is returned to the nominee.
  • Life Annuity with Return of 50% Purchase Price: This option pays annuity for life and on death, 50% of the Purchase Price is returned to the nominee.
  • Life Annuity with Return of 75% Purchase Price: This option pays annuity for life and on death, 75% of the Purchase Price is returned to the nominee.
  • Life Annuity with Return of Balance Purchase Price: This option pays annuity for life and on death, the Balance Purchase Price is returned to the nominee. Balance Purchase price will be equal to Purchase Price (premium paid by you at the beginning excluding taxes) less sum total of the annuities already paid. If the balance is negative, then no benefit will be payable on death.
  • Life Annuity with an annual increase of 5%: This option pays annuity for life. Annuity payout increases at a simple rate of 5% for each complete policy year throughout the life of the annuitant.
  • Joint Life, Last Survivor without Return of Purchase Price: This option pays annuity for life and on death the annuity continues for the life of the named spouse. Where the named spouse is already deceased or where the named spouse is no longer a legal spouse at the time of the demise of annuitant, no further benefits are payable.
  • Joint Life, Last Survivor with Return of Purchase Price: This option pays annuity for life and on death the annuity continues for the life of the named spouse. On the demise of the last survivor the Purchase Price is returned to the nominee. Where the named spouse is no longer a legal spouse at the time of the demise of the annuitant, no benefits shall be payable except the Return of Purchase Price to the nominee.
  • Joint Life, Last Survivor with Return of Purchase Price in parts: In this option annuity is paid to for life and thereafter to the spouse for his/her life. On the earlier of either the annuitant’s or the spouse’s demise, 50% of the Purchase Price is returned to the survivor (annuitant/spouse). After the death of the last survivor balance 50% of the Purchase Price is returned to the nominee.
    Where the named spouse is no longer a legal spouse at the time of the demise of the annuitant, 100% of the Purchase Price shall be returned to the nominee and no further benefits are payable.
  • Annuity is guaranteed for a period of 5 years, 10 years or 15 years and thereafter for life: This option pays annuity for a guaranteed period of 5, 10 or 15 years (as chosen by you), and life thereafter. In case of demise during the guaranteed period, annuity for the remaining guaranteed period will be paid to the nominee.
  • Life Annuity with return of Purchase Price on Critical illness (CI) or Permanent Disability due to accident (PD) or Death: This option pays annuity till earlier of first occurrence of any of the 7 specified CI after policy inception or PD, before the age of 80 years, or death. Further, the Purchase Price is returned to the annuitant/nominee, in case of first occurrence of any of the 7 specified CI or PD before the age of 80 years, or death.

*Nominee is the person appointed at the time of purchase for receiving the benefits of the insurance policy in the absence of a member.
^Purchase Price is the one-time lump sum payment made to buy the annuity.

Protection from Longevity Risk

Paying pension to employees requires extensive planning to manage Longevity risk. This risk increases your liability over time if not protected with an adequate insurance cover.

ICICI Pru Group Immediate Annuity plan helps employers manage the Longevity risk. This ensures that your employees receive pension through their lifetime.

What is Longevity Risk?

Life expectancy or the number of years an individual lives, is on the rise due to development and better access to medical care. This increase in life expectancy has led to an increase in pension payment duration, thereby adding to the expenses of the company. As an employer, you can manage this liability through the ICICI Pru Group Immediate Annuity plan, as the annuity is paid for life.

Tax* benefits to the group administrator and members are available as per prevailing Income Tax benefits are subject to the provisions of the relvant sections of the Income Tax Act,1961. Good and Service tax and Cesses, if any will be charged extra as per prevailing rates. Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for details, before acting on above

Product Snapshot


As an employer, you wish to retain talented and hard-working employees. For this, you must be ready to provide them with attractive benefits to give them a sense of stability and achievement. This will help employees maintain a long-term relationship with the company, thereby ensuring employee retention.

Presenting ICICI Pru Group Immediate Annuity, a plan through which the returns from the Superannuation plan are used to purchase an annuity. It offers life-long regular payment to the employee after retirement, thus securing their future even after retirement.

product information

Product at a Glance - ICICI Pru Group Immediate Annuity

Details

How frequently will the employee get the pay-outs?
Your employee can receive yearly, half-yearly, monthly or quarterly pay-outs depending on the mode selected.
How many times do I have to pay the premium?
You have to pay the premium once at the time of purchase.

benefit illustrator

This is not applicable for this product.

fund performance

This is not applicable for this product.

People like you also read ...

ICICI Pru Immediate Annuity UIN: 105N009V13. W/II/0281/2016-17.