Tuesday, December 25, 2007

ICICI Prudential launches LifeStage Pension Plan

ICICI Prudential Life Insurance Company, one of India`s leading private life insurers, launched LifeStage Pension, a unique unit linked retirement plan on Wednesday, Dec. 26.

The key highlight of the new plan is that it has no premium allocation charge for regular premiums, which means 100% of the investors` money is invested in the market. The plan also combines the benefits of automatic asset allocation and quarterly rebalancing along with capital preservation at maturity. This is to ensure investors that their savings towards creating a retirement kitty are managed appropriately, taking into account their risk appetite.

Other unique features of LifeStage Pension include, flexibility of choosing retirement age along with 5 annuity options, tax-free commutation to up to one-third of the accumulated value on retirement date and tax benefits on the premium paid u/s 80 CCC.

Bhargav Dasgupta, Executive Director, ICICI Prudential Life Insurance, said, ``It is critical that individuals have a long-term vision, while they create their retirement kitty. They must ensure that their investments have a proper mix of equity and debt elements based on their risk appetite, which will help create a healthy retirement kitty for them. LifeStage Pension with its unique features of automatic asset allocation, quarterly rebalancing and capital preservation at maturity ensures that investors can save towards their retirement, while taking advantage of India`s successful market scenario.``


RAM said...

Had anyone done analysis on this plan?

Pls post positives and negatives about plan and any comparision details if any.

Service for Rich & Needy ladies said...

The new Life Stage Pension Plan. This works just like any other ULIP. There is no mortality

This is supposed to have no allocation charges. Lets see..

1. Premium Allocation charges NONE
However there is 1% charge for the top-up

2. Policy Admin charges. This is where they are robbing YOUR money.
.25% ( yearly option ) or .35% ( monthly premium pay option ) PER MONTH
That is 3% per annum on the premium amount. This is generally 20/30Rs per month

3. Fund Management charges ( note the percentage here )
2.25 % of the Fund value.

To understand this better. If you invest your hard earned money thinking that there is no

allocation charges here is what you are going to pay them

1,00000 for 3 years
Term of the policy 10 years

1) Premium allocation charges NONE
2) Policy admin charges
3 * 100000 for 10 years 30,000
[ This for other ULIP plans of ICICI would be 2400 Rs for 10 yrs, Here it is only 30000 !)

3) Fund management charges 2.25 % of the fund value for maximizer.
That is for 3 lacs you will be paying at atleast 66000 for 10 years.

If you sum all these charges its nearly 96600. Where as for their other plans like Premier

Pension plan the cost for similar plan would be 74000.

REMEMBER, These charges are fixed. You will be paying these charges regardless of the

performance of the your investments.

The agent will tell you that this is the best plan on earth. They are telling you the truth

for once. Its best for them.

Do a lot of study for before investing in ULIP or any other ULIP like plans. My sincere

advise is do not invest in ULIP, Its a trap.