Tax-Efficient Pension Product by ICICI Prudential

ICICI Prudential Life Insurance, one of the leading private life insurers in India, has launched a new retirement savings product, ICICI Pru Gold Pension Savings. This product is designed to help customers build a tax-efficient retirement corpus and enjoy a regular income for life after retirement.

What is ICICI Pru Gold Pension Savings?

ICICI Pru Gold Pension Savings is a non-linked, participating, individual, deferred pension plan that offers customers the following benefits:

  • Tax-efficient savings: Customers can avail tax benefits on the premiums paid under Section 80CCC of the Income Tax Act, 1961. The maturity proceeds are also tax-free up to 60% of the accumulated savings as per Section 10(10A) of the Income Tax Act, 1961.
  • Safety of capital: Customers are assured of getting back at least the total premiums paid (excluding taxes and rider premiums) on maturity, irrespective of the market conditions. This ensures that their retirement savings are protected from market volatility.
  • Partial withdrawals: Customers can withdraw up to 25% of the contributions made after a period of three years, enabling them to meet their liquidity needs without disrupting their retirement planning. The partial withdrawals are also tax-free as per Section 10(10A) of the Income Tax Act, 1961.
  • Complimentary health check-ups: Customers can avail free annual health check-ups from the second policy year onwards. This helps them monitor their health and plan their retirement accordingly.
  • Annual bonus: Customers are eligible to receive an annual bonus, as and when declared by the company, which has the potential to enhance their retirement corpus and consequently their annuity income.
  • Life-long pension: Customers can choose to receive a guaranteed life-long pension from the balance amount after withdrawing up to 60% of the accumulated savings on maturity. They can also opt for different annuity options such as joint life annuity, increasing annuity or return of purchase price annuity as per their needs.

Why choose ICICI Prudential Pension Savings?

ICICI Pru Gold Pension Savings is a unique product that offers customers a combination of tax efficiency, capital safety, liquidity and life-long income. It is suitable for customers who want to plan for their retirement in a systematic and disciplined manner and lead a financially independent retired life.

According to Amit Palta, Chief Distribution Officer, ICICI Prudential Life Insurance, “Retirement planning has assumed great importance with the rapidly changing family structures in the country. ICICI Pru Gold Pension Savings, a tax-efficient product, has been designed to enable customers to make regular contributions to build the required retirement fund to be financially independent. We are cognizant of retirement planning being a long-term process and that customers’ financial circumstances can change. The partial withdrawal feature of up to 25% empowers customers to meet liquidity requirements without disrupting the retirement savings plan. This is India’s first retirement planning product, which offers both partial withdrawals and the safety of capital invested. To ensure customers achieve their retirement planning goal, the complimentary health check-up feature which we believe will benefit customers in their planning process.”

ICICI Pru Gold Pension Savings is available for customers between the age group of 18 years and 70 years with a minimum policy term of 10 years and a maximum policy term of 30 years. The minimum premium amount is Rs. 24,000 per annum for annual mode and Rs. 2,000 per month for monthly mode. The minimum vesting age is 45 years and the maximum vesting age is 80 years.

Customers can buy this product online through the company’s website or offline through its branches or agents.

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