ICICI Prudential Life Insurance, on Thursday, launched the “ICICI Pru Gold Pension Savings”, a pension product tailored for retirement planning. It allows policyholders to make systematic contributions to build a corpus for regular cash flows in post-retirement life.

The plan offers the safety of the invested amount and liquidity by providing a partial withdrawal facility. After the policy’s three-year completion, the policyholders can withdraw 25 per cent of their contributions. The plan also includes complimentary health check-ups for policyholders.

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Plan Features

Explaining the features in a press release, Amit Palta, chief distribution officer of ICICI Prudential Life Insurance, said, “ICICI Pru Gold Pension Savings is a tax-efficient product to enable customers to make regular contributions to build the required retirement fund.” Retirement planning, he said, has assumed great importance with rapidly changing family structures.

Like the National Pension System (NPS), policyholders can withdraw 60 per cent of the funds in a lump sum at maturity and use the rest for annuity. Policyholders will receive a guaranteed pension for life based on 40 per cent of the corpus and complimentary health check-ups.

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The plan provides a guaranteed benefit and annual bonus, potentially augmenting the maturity amount. Palta said customers can also make a tax-free withdrawal of up to 60 per cent of the savings and convert the balance into an annuity to receive guaranteed life-long income.

Noting that retirement planning is a long-term process and customers’ financial circumstances can change, Palta explains the partial withdrawal feature of up to 25 per cent will empower them to meet liquidity without disrupting their retirement savings. The product, he said, aims to empower customers to achieve retirement goals and offer life insurance solutions as per the evolving financial landscape and individual needs.