Why is ICICI Pru Group Immediate Annuity Plan special?

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 Immediate Annuity plan by making a one-time payment. Through this payment, your employees will get regular pay-outs 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 pay-out option selected by you. These pay-outs will remain constant throughout the life of your employees.

At the time of purchase, you choose the frequency of the pay-outs (monthly, quarterly, half-yearly or yearly). This is called the pay-out mode.

You can select the pay-out 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 pay-out options available?

There are five pay-out options available under this plan:

  1. Life Annuity: This option pays you annuity for life.
  2. Life Annuity with Return of Purchase Price: This option pays you annuity for life and on death the Purchase Price is returned to your nominee.
  3. Life Annuity with Return of 50% Purchase Price: This option pays you annuity for life and on death, 50% of the Purchase Price is returned to your nominee.
  4. Life Annuity with Return of 75% Purchase Price: This option pays you annuity for life and on death, 75% of the Purchase Price is returned to your nominee.
  5. Life Annuity with Return of Balance Purchase Price: This option pays you annuity for life and on death, the Balance Purchase Price is returned to your nominee. Balance Purchase price will be equal to Purchase Price (premium paid by you in 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.
  6. Life Annuity with an annual increase of 5%: This option pays you annuity for life. Annuity payout increases at a simple rate of 5% for each complete policy year throughout the life of the annuitant.
  7. Joint Life, Last Survivor without Return of Purchase Price: This option pays you annuity for life and on death the annuity continues for the life of the named spouse. Where the named spouse has pre-deceased or where the named spouse is no longer a legal spouse at the time of your demise, no further benefits are payable.
  8. Joint Life, Last Survivor with Return of Purchase Price: This option pays you 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 your nominee. Where the named spouse is no longer a legal spouse at the time of your demise, no benefits shall be payable except the Return of Purchase Price to the nominee.
  9. Joint Life, Last Survivor with Return of Purchase Price in parts: In this option annuity is paid to you for life and thereafter your spouse for his/her life. On the earlier of either your or your spouse’s demise, 50% of the Purchase Price is returned to the survivor (you / your spouse). After the death of the last survivor balance 50% of the Purchase Price is returned to the nominee.

    Where named spouse is no longer a legal spouse at the time of your demise, 100% of the Purchase Price shall be returned to the nominee and not further benefits are payable.
  10. Annuity guaranteed for a period of 5 years, 10 years or 15 years and thereafter for life: This option pays you 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 your nominee.
  11. Life Annuity with return of Purchase Price on Critical illness (CI) or Permanent Disability due to accident (PD) or Death: This option pays you 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 you/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.

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 Laws and are subject to amendment from time to time. Applicable taxes will be charged as per prevailing laws and regulations. It is always advisable to take an independent view from your tax consultant. ICICI Prudential Life Insurance Company Limited will not be responsible in cases where any tax benefits, as stated above, are denied by the Income Tax department.

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.

This plan is only offered to the employers or superannuation fund trusts.

Product at a Glance 

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.

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.

ICICI Pru Immediate Annuity UIN: 105N009V11. W/II/0281/2016-17.

 

This is not applicable for this product.

 

This is not applicable for this product.

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