Annuity plans for retirement planning
Enjoy a worry-free retirement with
guaranteed1 lifelong income!
Get lifelong, regular income post-retirement with annuity plans.
100% safety of money invested
Guaranteed income1 for life
Customisable as per your needs
Once you retire, you may want to go on that long-awaited world tour, follow new hobbies, spend more time with family and friends, or pursue your dreams - all at your own pace.
With guaranteed1 lifelong income from annuity plans, you can fulfil all these and make the most of this new phase of your life.
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Let’s understand what annuity plans are and how they can help you.
What is annuity?
Get fixed, regular income every month, quarter, six months or year
An annuity plan is a financial product that provides you guaranteed regular payments for the rest of your life after making a lump sum investment. The life insurance company invests your money and pays back the returns generated from it. You could think of it as a pension payment that is made to you. Just choose how you wish to receive your pension - monthly, quarterly, half-yearly or yearly.
- Get a guaranteed1 regular income - Get regular income throughout life - Choose the frequency of income - monthly, quarterly, half-yearly, yearly
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How does annuity work?
Here’s how an annuity plan works to help you secure your retirement.
You invest the amount you have saved for your retirement with an annuity plan from a life insurance company
You decide when you want your income to start, immediately or at a later date
Until the annuity income starts, the money invested accumulates interest. This period, during which your money grows, is called the accrual or deferment period
Your money is paid back to you regularly during your retirement years at a frequency chosen by you
How annuity works?
Let's illustrate how an annuity works
Rajesh, a 50-year-old IT professional, wants to secure his post-retirement life with a regular annual income.
He decides to invest ₹15 lakh in the ICICI Pru Guaranteed Pension Plan. He customises the annuity plan in such a way that the money will earn returns for 10 years until he retires. He locks in the current annuity rates for the annuity income to be received. Post-retirement, he will get ₹1.62 lakh* every year as regular income for life.
* The purchase price in the above illustration is exclusive of taxes for Deferred Single Life with the return of purchase price annuity option.
What are the benefits of annuity plans?
Customised for your unique needs
Annuity plans are a must-have for retirement. Here’s why
Retiring from work does not mean you retire from life. You may want to maintain the same quality of life even after retirement, start new hobbies or fulfil your travel dreams. Annuity plans can help you by providing regular income for as long as you live
Guaranteed1 and secure
Annuity plans are a safe option for retirement planning. These plans are free from risks and market-linked volatility2. They also help your money grow by fixing higher rates when you buy the plan. These annuity rates are locked for life
Some annuity plans also give you additional benefits like loyalty boosters, extra returns, and more
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What are the types of annuity plans?
Annuity plansfor all your needs!
There are two key types of annuity plans—immediate and deferred.
You can choose which annuity plan best fits your needs based on how soon you wish to retire.
You can also choose when you want your regular income to start.
Immediate annuity plan
Deferred annuity plan
Immediate annuity plan
In an immediate annuity plan, your income starts immediately after you invest in an annuity plan. You can get the annuity as early as one month after investing in the plan. You can consider immediate annuity plans if you are close to retirement and want to get regular income immediately.
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Deferred annuity plan
In a deferred annuity plan, your income starts at a later date chosen by you. You can lock-in higher interest rates at the time of purchasing the annuity so that you get more money for your retirement years. This option is useful, if you have 5-10 years left to retire.
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If you are wondering which of these two annuity plans are best for
you, here is a quick comparison table to help you decide.
When to choose…
You are nearing retirement You want to invest just once You are comfortable investing a bigger amount in lumpsum
You have 5-10 years to retire You want to invest money over a period of time You want to invest smaller amounts over a period of time
Annuity Plans by ICICI Prudential Life Insurance
Stay future-ready with ICICI Pru Guaranteed Pension Plan
We understand that every person has different retirement goals and needs.
We have an annuity plan to cater to your unique retirement needs.
ICICI Pru Guaranteed Pension Plan
You can secure your retirement with guaranteed1, lifelong income. With the ICICI Pru Guaranteed Pension plan, you can choose when you wish to retire and get guaranteed1 lifelong income. It gives you access to regular income so you can maintain your preferred lifestyle, even after retirement. You have the option to choose whether to receive the income every month, quarter, six months or year. You can also decide when you want the annuity income to start by either choosing the Immediate Annuity or Deferred Annuity plan options.
- Get guaranteed1 lifelong income
- Your plan, your way
- 100% safe & secure
- Get your money back4
- Enjoy added benefits
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Why choose ICICI Prudential Life Insurance?
Trusted brand. The reason we exist
Trust is our foundation and our cornerstone. Over the last two decades, millions of people have trusted us for the financial security of their loved ones.
- One of the top life insurers5 in India, thanks to our customers - Voted as one of the most valuable brands in India 7 times in a row by over 32 lakh customers6 - ICICI Pru Guaranteed Pension Plan has been voted as the ‘Product of the Year’ under the Retirement and Pension Plans category7 in 2021 - Received FICCI Award for excellence in claims and service in 2020, a validation of our commitment towards serving our customers8
Assets Under Management as on March 31, 2021
Claim settlement ratio
Avg. time to settle claims
Know more about Anuity Plans by ICICI Prudentiall Life Insurance
Frequently Asked Questions
1. What is the difference between immediate and deferred annuity?
When you invest in an annuity plan, you can choose when you want your regular income to start.
You can choose to get your regular income as early as one month after you invest. Plans, where your regular income starts immediately after you invest, are called immediate annuity plans. It is better to choose an immediate annuity plan if you are closer to retirement.
You can also choose to invest today but start your regular income at a later date anytime within 10 years of purchasing the plan. You are essentially ‘deferring’ your regular income. This is why such plans are called deferred annuity plans. The annuity rates are locked in at the time of purchasing the plan. Then, on a date of your choice, you will start getting regular income every month, quarter, six months or year.
2. Who should opt for annuity plans?
Annuity plans can help you fulfil your retirement goals and maintain your standard of living with a guaranteed1, lifelong income. If you are looking for a steady source of guaranteed1 income after retirement, you can consider an annuity plan. With annuity plans, you can choose to receive regular income every month, quarter, six months or year.
You can also consider annuity plans if you want to safeguard your retirement savings. Annuity plans are free from any market-linked volatility2.
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3. What factors should I look for in annuity plans?
Before you invest in an annuity plan, you must consider the following factors:
• You must understand your post-retirement needs and aspirations. The right annuity plan provides you and your family with a guaranteed1 regular income to fulfil your post-retirement dreams
• You must select the right annuity plan based on when you would need your regular income to start. With an immediate annuity plan, your regular income can start immediately. On the other hand, deferred annuity plans would be apt if you have a few years to retire
• You can also opt for a plan that secures your loved ones by choosing a 'Joint Life' option offered by some annuity plans. With this option, they will continue to receive regular income even in case of an unfortunate event
• Some plans also provide an option to get your investment back in case of a medical emergency or when you reach a certain age or in case of an unfortunate event. Such options can help you secure your financial independence even during financial emergencies
• You must also check out additional benefits offered by the annuity plan. For example, ICICI Pru Guaranteed Pension Plan provides you with 1% additional annuity if you are an existing customer or purchase the plan online*
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*Customers can opt for only one of either Online Booster or Loyalty Booster or NPS Benefit
4. How does the annuity calculator work?
With an annuity plan, you invest once and get lifelong regular income. Decide how much you want to invest and when you want your income to start. Lastly, you can choose whether you want a monthly, quarterly, half-yearly or annual income.
Typically, this can be a complicated calculation. With our annuity calculator, you can input these details and find out how much income you can get in a matter of seconds.
You can use our annuity calculator to find out your regular income.
5. When can you withdraw money from an annuity?
You can withdraw your money with the ‘Return of Purchase Price’ option provided by some annuity plans. Under this option, the initial investment can be withdrawn in case of diagnosis of specified critical illnesses or disability or death. You can even choose a plan option where you get back your investment when you reach 80 years of age. The plan also comes with an option where you can receive your initial investment in parts from the age of 76.
6. Is there an age limit for annuities?
Different annuity plan options may have different eligibility criteria. In the case of the ICICI Pru Guaranteed Pension Plan, the minimum age at which you can purchase the plan is 30 years. The maximum age for buying some options of the plan is 100^ years.
^ The maximum age at entry depends on the annuity option selected
7. Are annuities good for senior citizens?
Yes, with an immediate annuity plan, senior citizens can be financially independent, post-retirement. Annuities allow senior citizens to live their life on their own terms. With a one-time investment, they are guaranteed1 a regular source of income for life. This can help fulfil all of their post-retirement goals.
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8. What happens to my annuity if I die?
In some plan options, the annuity income stops in case an unfortunate event occurs. However, you can choose to secure your spouse or child with the ‘Joint Life’ option, where they will continue to receive the regular income for their lifetime as well. Where 'Return of Purchase Price' option is chosen, the initial amount invested is returned as per the option selected.
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1. Annuity will be payable in arrears. The frequency of annuity payments can be monthly, half-yearly, quarterly or annually as chosen by the annuitant at the time of purchasing the annuity. The annuity amount chosen at policy inception is guaranteed for life.
2. The annuity is informed to you at the time of availing of the plan and is guaranteed for life.
3. Money-back is in the form of the return of the purchase price with which the annuity plan was purchased. This may be returned to you or your nominee depending on the annuity option opted for.
4. Source: https://www.turtlemint.com/life-insurance/articles/top-insurance-companies-in-india
5. As per BrandZ, the top 75 most valuable Indian brands 2020, 2019, 2018 and BrandZ top 50 most valuable Indian brands 2017, 2016, 2015, 2014. Study by KANTAR Milward Brown and published by WPP
6. ICICI Pru Guaranteed Pension Plan - 2021: Winner Life Insurance - Retirement & Pension Plans Category. Survey of 2250 people by NielsenIQ across categories
7. FICCI Insurance Industry awards 2020
^^ Claim Settlement ratio: Claim statistics are for FY2020-21 and are computed basis individual claims settled over total individual claims for the financial year. For details, refer to ICICI Prudential Life Annual Report FY2020-21
** Average time to settle claims: Counted from the day of receiving the last document. All due premiums in the policy must have been paid and the policy must have been active for a continuous period of 3 years. Mandatory document to be submitted at Branch Office before 3:00 pm on a working day- Original policy certificate, Copy of Death Certificate by local authority, Nominee’s current address proof, photo identity proof, Cancelled cheque, Copy of bank passbook, Copy of medicolegal cause of death, Medical records (Admission notes, Discharge/Death summary, Test reports, etc.). For accidental death – Copy of FIR, Panchanama, Inquest report, Driving license. Claim documents submitted prior to 3:00 pm will be considered for ULIP policies. Interest will be paid on claim amount for every day of delay beyond 1 working day. Applicable only for non-investigative death claims. Interest shall be at the bank rate that is prevalent at the beginning of the financial year in which death claim has been received. In case of a breach in regulatory turnaround time, interest will be paid as per IRDAI regulations
* Tax benefits under the policy are subject to conditions and other provisions of the Income Tax Act, 1961. Goods and Services 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 the above.
ICICI Pru Guaranteed Pension Plan: UIN: 105N181V02.
– the official handbook!