ICICI Prudential Life Insurance on August 31, 2023 launched a savings-oriented life insurance income plan called ICICI Pru GIFT Pro.
The policy allows policyholders to receive income (either increasing or consistent) that can continue for as long as 30 years starting from the eighth year of premium payment.
The policyholder also gets the flexibility to customise the product through choice of income benefits and premium payment terms, among other options, the insurer said in a press release.
Besides the regular income aspect, the plan offers an option for customers to receive a lump sum benefit, too, which can be chosen for up to 100 per cent of the total premiums paid, with the flexibility to determine when the benefit should be received. With this feature, customers can plan for their cherished milestones, such as owning a house, leaving a lasting legacy for loved ones, or building a substantial retirement corpus, the release added.
Premium Vs Returns
The plan has two income benefit options.
Level Income: This option guarantees a consistent income throughout the income period.
Increasing Income: This option provides an income that grows 5 per cent each year during the income period.
For instance, if a customer pays an annual premium of Rs 1 lakh for 10 years, they can receive a guaranteed income of Rs 80,160 from the 13th year onwards, the insurer cited as an example.
If the proposer had chosen the increasing income plan option, then the subsequent guaranteed income will increase by 5 per cent every year. At the end of 42 years, he would get the premium paid back as lump sum. So, for a total premium of Rs. 10 lakh, the total benefits received amount to Rs. 51.78 lakh, along with the associated tax benefits.
If he had chosen the level income option in the same case, a fixed yearly income of Rs 1.17 lakh without any incremental growth, would have led to total benefits of Rs 45.37 lakh, the insurer said, citing the same example.
Features
ICICI Pru GIFT Pro also includes a life cover component, which extends to 12 years before the regular income starts getting paid. In the event of the policyholder’s demise during the income period, the nominee will continue to receive the income.
This plan also comes with a variety of premium payment terms, ranging from 5-12 years.
Amit Palta, chief distribution officer, ICICI Prudential Life said the plan was designed to address the challenge of inflation by offering the choice between increasing and constant income options over a span of up to 30 years.
