Employers want to ensure financial security of employees post their retirement. An employee through his working career has accumulated funds in the superannuation plan and needs an appropriate post retirement plan to ensure that he receives regular income for the rest of his life.
ICICI Prudential Group Immediate Annuity plan is a complete solution to superannuation customers, where the funds accumulated through a superannuation plan is used to purchase annuities.
ICICI Prudential Group Immediate Annuity plan offers a guaranteed periodic payment to the employee through his / her lifetime against an initial lump sum payment. The plan is only offered to employer or superannuation fund trusts.
Maximum age at entry 80 years for superannuation tied and standalone
Minimum/ age at entry (spouse)20 years
Premium paymentSingle premium
How can I benefit from this plan?
As an employer you are burdened with the liability of paying pensions to employees as long as employee is alive. However this requires expertise and appetite to manage the two big risks namely "Longevity risk" and "Reinvestment risk". Both these risks drastically increase employer's liability over time unless hedged with an appropriate insurance cover.
Longevity risk: Life expectancy in India is on the rise on account of development and access to medical care. Increase in life expectancy leads to longer annuity payments to employee, thereby increasing the financial burden of the employer. As an employer you can manage your liability through an ICICI Prudential Immediate Annuity plan.
Reinvestment risk: The initial investments made toward annuity payments require re-investment on maturity. There is a definite risk of lower interest rates in future and re-investing at a lower yield than promised to the employee. This creates a direct impact to the employer's account. ICICI Prudential Immediate Annuity plans help guarantee regular income for the life of your employee.
ICICI Prudential helps employers manage the Longevity risk and Reinvestment risk though the purchase of our Immediate Annuity plans. This ensures that your employees post retirement payments are guaranteed through their life time.
* Tax benefits to the group administrator and members are available as per prevailing Income Tax Laws and are subject to amendment from time to time. Service Tax, education cess or any other form of taxes or charges or levies will be charged as per as per prevailing laws and regulations, whichever is applicable as per Company's policy. It is always advisable to take an independent view from your tax consultant. ICICI Prudential Life Insurance Company Limited will not be responsible in cases where any tax benefits as stated above are denied by Income Tax department.
What options are available under the ICICI Pru Group Annuity Plans available
Life Annuity: Where the periodic payment is made through out life of your employee (annuitant) post retirement.
Life Annuity with Return of Purchase Price: Offers a similar benefit alike the life annuity option, however on the demise of the employee (annuitant) the initial purchase price is returned to the beneficiary.
Joint Life, Last Survivor without Return of Purchase Price: The annuity is first paid to the employee (annuitant). Post the death of the annuitant the spouse receives the pension payments. The amount is equal to the annuity paid to the annuitant.
Joint Life, Last Survivor with Return of Purchase Price: The annuity is first paid to the annuitant. After the death of the annuitant the spouse receives a pension which is an amount that is equal to the annuity paid to the annuitant. After the death of both annuitant and spouse, the initial purchase price is returned to the nominee.
Life Annuity guaranteed for 5/10/15 years and thereafter: The annuity payments are guaranteed for the chosen term (5/10/15 years). The annuity is paid up to life time of the employee (annuitant) however if the annuitant dies prior to completion of the chosen term, the same annuity is paid to the nominee up to completion of the term.
We offer several options for you to contact us as per your convenience. Choose from one of the following:
