Blog of ApnaAdvisor.com: LifeStage Pension

Life Insurance Company - ICICI Prudential

Type of Product - ULIP Pension Plan

Minimum Premium - 15,000

Minimum Term - 10 Years

Maximum Term - 62 Years

Minimum/Maximum Age at entry - 18-70 Years

Minimum/Maximum Age at vesting - 50-80 Years

Unique Feature - No premium allocation charge for regular premiums which means 100% of your money is invested.

How this pension plan works?

Ans - Like any other pension plan, this plan has two phases

1 . Accumulation Phase - you pay regular premium towards the policy and accumulate savings for your retirement.

2. Annuity Phase/Pension Phase - you start receiving pension from the accumulated amount, as per your chosen pension option.

During Accumulation Phase, money can be invested in two ways -

1 Lifestyle based Portfolio Strategy - When the policy starts, your investment will be distributed between two funds, Pension Flexi Growth and Pension Protector, based on your age. As you move from one age band to another, your fund will be re-distributed as per your age.

2. Fixed portfolio Strategy - Invest as per your choice in equity and debt by selecting out of 8 different funds. Funds details are as below

Some features which are very beneficial are -

Automatic Transfer Strategy - You can invest your premium in the money market fund ( Pension Preserver) and transfer a chosen amount every month into any one of the following funds: pension Multiplier/ pension Flexi Growth/ Pension R.I.C.H. This is free of charge and available only if you select portfolio strategy.

Switches - You have the option to switch between the fund options as and when you choose depending on your financial properties and investment decision. Upto 4 switches are free every year. Minimum switch amount is Rs 2,000. During the first 3 policy years, switches will not be allowed if the due premiums have not been paid.

Flexible Retirement age - You can start receiving pension anytime you reach 50 years of age. However, in view of market conditions or due to any other reason you can defer this date any number of times till the age of 80 years.

Cover Continuance Option - This option ensures that your policy continues in case you are unable to pay premiums, any time after payment of the first three years premium.

5 Different Pension Options - (a) Life Annuity, (b) Life Annuity with return of purchase price, (c) Life Annuity Guaranteed for 5/10/15 years & life thereafter, (d) Joint Life, Last Survivor without return of purchase price, (e), Joint Life, Last Survivor with return of purchase price.

Choose your pension provider - At the time of vesting, this option enables you to buy a pension from any other insurance company. You have the option to take the best offer in the market.

Commutation of pension fund - You have the option the receive a lump-sum amount upto 1/3rd of the total fund value, tax free, on the vesting date.

Surrender Value -