Choosing the right annuity plan which gives you a regular income and secures your loved ones too, is perhaps one of the most critical decisions that you will take in your life. With a suitable annuity plan, you can lead a comfortable life in your old age and live your younger years without any stress. There are various types of annuity plans available, hence choosing one can be a bit tricky. However, no matter which plan you pick, make sure you keep the following features in mind:
- Guaranteed income: Annuity plans offer a guaranteed1 income after you retire. This is a fixed amount that ensures a steady flow of funds as per your initial investments. Hence, you never run out of funds during your retirement years
- Joint lives: Annuity plans offer joint life options where after you your spouse/child/parent5 and sibling can continue to get the annuity and keep getting regular flow of income
- Death benefit: Apart from a regular income in your retired years, you also need to secure the financial future of your family for a time when you may not be around anymore. Annuity plans provide this added feature, wherein you can get dual benefits through one plan
- Deferment period: The deferment period can be chosen from 1 to 10 years. It’s like you can defer your regular income for some time as per your need and lock in the annuity rate as on today for your future lifelong income
- Surrender value: Some plans offer you a surrender benefit if you surrender your plan before the due date specified in the policy. This is a great feature that can provide additional liquidity in case of an emergency
- Tax benefits: Annuity plans are eligible for tax2 benefits under Section 80C, Section 80CCC, and Section 80CCD. For instance, the National Pension Scheme (NPS) offers tax benefits under Section 80CCD. You can ensure both short term and long term savings
ICICI Prudential Life Insurance offers different types of annuity plans for different types of investment profiles.
ICICI Prudential Life Insurance offers various kinds of pension plans that you can use to save for your future. The ICICI Prudential Guaranteed Pension Plan3 is a one such pension plan that can suit anyone’s needs and requirements. The minimum annuity per annum is ₹12,000 and there is no limit for the maximum annuity. There is a wide list of options to choose your annuity options4, and the lifelong income guarantee ensures that you and your loved ones are safe, secure, and financially stable.
1 Safety of Guarantee is in the form of the fixed guaranteed regular payouts.
2 Tax benefits under the policy are subject to conditions under Section 80C, 80CCC, 80CCD, 115BAC and other provisions 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.
3 ICICI Pru Guaranteed Pension is an annuity plan. The plan offers various annuity options in order to meet customers' requirements. Annuity will be payable, in arrears, in monthly, half-yearly, quarterly or annual installments as chosen by the annuitant at the time of purchasing the annuity. The annuity amount chosen at the policy inception is guaranteed for life.
4 You get a choice of four frequencies of annuity/pension payouts: namely monthly, quarterly, half-yearly and yearly.
You can choose to receive the annuity/pension payouts by cheque or online transfer.
5 Annuity plans cover 3 Generations: A 70-year-old person buys a Joint life with Return of Purchase price option to makes his 35-year-old son as Secondary annuitant and his grandchild of 4 years old as nominee. In this way we are covering 3 generations of a family in a single policy.