• Blog
  • Calculators
  • Quiz
  • Sample Financial Plan
MoneyChai
  • Blog
  • Forum
  • Android App
  • Blog
  • Calculators
  • Quiz
  • Sample Financial Plan

ICICI Pru Guaranteed Income for Tomorrow Review – 4%-5%Returns

By:MoneyChai Insurance Last Updated: 5 Mar, 2021

ICICI Pru has recently launched a new plan known as Guaranteed Income for Tomorrow. This is basically a non-linked, non-participating and limited/single premium payment plan. Simply put, the plan gives you 2 options to choose from. You can either opt for receiving lump sum amount at maturity or fixed income every year after maturity. Before getting into details, returns and review of ICICI Pru Guaranteed Income for Tomorrow.

But first let us see what is non-participating, non-linked and limited/single premium payment.

ICICI Pru Guaranteed Income For Tomorrow – Details

Non-Linked – It is traditional life insurance plan i.e. your premium is not invested in the stock market.

Non-Participating – The maturity/income amount will not depend on the bonuses declared by ICICI Pru every year. You will know the maturity value/yearly income of the plan in the beginning itself.

Limited/Single Premium Payment Term – You will not have to pay the premium for the entire term of policy. You can either pay single premium or pay premium for limited number of years.

10/12(10) – You will pay the premium for 5 years and the policy will mature after 10/12 years.

12(6) – You will pay the premium for 6 years and the policy will mature after 12 years.

15/20(10) – You will pay the premium for 10 years and the policy will mature after 15/20 years.

5/10/15 (1) – You will pay the premium for 1 year and the policy will mature after 5/10/15 years.

Minimum/Maximum age of entry – 18 years – Policy Term/60 years

Minimum/Maximum age at maturity – 18 years/80 years

Please note that the policy term (5/10/12/20 year) has to be chosen by you.

ICICI Pru Guaranteed Income For Tomorrow – Plan Options

There are 4 options in the ICICI Pru Guaranteed Income for Tomorrow plan.

  1. Lump Sum Option – You will receive a guaranteed lumpsum maturity amount at the end of policy term.
  2. Income Option – You will receive a Guaranteed Income for a certain period after the end of the policy term
  3. Early Income Option – You will receive a Guaranteed Income starting from 2nd year onwards. This will be in addition to the Guaranteed Income for a certain period after the end of policy the term.
  4. Single Pay Income Option– You will pay premium only once and receive guaranteed regular income (known as the Guaranteed Early Income). You will get the income for a fixed period. The period will start from the end of the 2nd year till the end of policy term.

Death Benefits

For Single Pay:

Highest of:

  1. Sum Assured on Death
  2. Sum Assured on Maturity X Death Benefit factor for Lump sum plan, where

Sum Assured on Death is 10 X Single Premium or 1.25 X Single Premium as chosen by you.

For other than Single Pay:

Highest of:

  1. Sum Assured on Death
  2. 105% of Total Premiums Paid up to the date of death
  3. Sum Assured on Maturity X Death Benefit factor for Lump sum plan, where

Sum Assured on Death is 10 X Annualised Premium

ICICI Pru Guaranteed Income For Tomorrow Returns

ICICI Pru Guaranteed Income Returns will depend on the premium payment term, policy term and plan option chosen by you. (Lump sum/Income/Early Income)

Let us analyse the returns for different premium payment term and tenure of the policy. The images below (under different options) will show you the corresponding returns against each option.

The image has been Copied from ICICI Pru Guaranteed Income for Tomorrow Brochure. It shows the premium of different premium payment and policy terms.

Lump Sum Option Returns

The returns in Lump Sum option vary between 4.40% – 5.20% depending upon the premium payment and policy term. You can check the image below for returns in each option.

ICICI Pru Guaranteed Income for Tomorrow lump sum options retruns

Also Read –  LIC Bima Returns and Review

Income Option Returns

The returns in Income option vary between 4.40% – 5.40% depending upon the premium payment term and income term. 5.40% are the highest returns you can get in case of 10-year premium payment term and 20-year policy term. Also, you can check the returns in the 2 images below for the respective premium payment and policy term.

Please note that the income stream starts after 2 years of the premium payment term. For example if you have paid the premium for 10 years, the income will start in the 13th year. It will not start immediately after 10 years. There is a big gap of 2 years, which drastically reduces your returns.

ICICI Pru Guaranteed Income for Tomorrow income option returnsICICI Pru Guaranteed Income for Tomorrow income option review

Also Read – Tax Deductions under Section 80D

Early Income Option Returns

The returns in the early income option vary between 4.30% – 4.80%.

ICICI Pru Guaranteed Income for Tomorrow early income option returns

Single Pay Income Returns

The returns in Single Pay Income option are 3.60%. Yes, you heard it right, it is 3.60% only. However, the income will not start immediately. You will start receiving the income after 2 years of paying the premium. For example, if you pay the premium in 2021, your income will start from 2023 onwards.

ICICI Pru Guaranteed Income for Tomorrow single pay income retruns

Now, you know all about the returns. Let us check if the maturity amount would be taxable or not.

Guaranteed Income For Tomorrow – Is Maturity Taxable?

The maturity proceeds of life insurance policy are taxable if sum assured is less than 10 times of annual premium. Suppose the annual premium is 1 Lakh and sum assured is 9 Lakhs. In this case, the maturity proceeds would be taxable. Whereas if sum assured is 10 Lakhs for an annual premium of 1 Lakh, the maturity proceeds would be tax-free.

In the above scenarios, if you choose sum assured as 1.25 X Single Premium (for single premium option). The maturity would be taxable.

ICICI Pru Guaranteed Income for Tomorrow Review

So, here is the review of ICICI Pru Guaranteed Income for Tomorrow.

Should you purchase this policy – The answer is NO even if you are a very conservative investor.

Would you really be comfortable locking your hard-earned money for meagre returns of 4%-5%?

So, What is the best option?

There are plenty of good options in the market. There is PPF, debt mutual funds, RBI Bonds etc. Why do you want to purchase an insurance policy that is giving returns as low as 3.60%?

If you are a very conservative investor – Open a PPF account and start investing. You can also contribute some additional amount in PF account through VPF.

If you are a moderate investor – Invest in equity and debt instruments in the ratio of 50:50.

For Aggressive investors – You can invest in equity mutual funds.

Having gone through this review, feel free to comment and let me know if you need any further clarification.

0 Shares
Share
Tweet
Share
WhatsApp

Filed Under: Insurance

MoneyChai

Hi, I am Ajay Pruthi, an alumnus of NIT Jalandhar and K.J. Somaiya Institute of Management Studies. I have over 10 years of experience in the field of insurance and have worked with top two private insurance players in the country. I am a Certified Financial Planner and currently working as a Paraplanner with Mr. Melvin Joseph, founder of Finvin Financial Planners. If you liked my blog and want to discuss further on comprehensive fee only financial planning, feel free to get in touch by visiting Finvin Financial Planners.

You May Also Like

  • Is It Wise to Mix Insurance and Investment – Never

    Is It Wise to Mix Insurance and Investment – Never

  • LIC Bima Jyoti Review, Returns and Tax – New LIC Plan 860 Details

    LIC Bima Jyoti Review, Returns and Tax – New LIC Plan 860 Details

  • LIC Jeevan Labh Review – Why Every Blogger Ended Up Calculating Wrong Returns?

    LIC Jeevan Labh Review – Why Every Blogger Ended Up Calculating Wrong Returns?

  • Room Rent Sub-Limits/ Capping/ Proportionate Charges in Health Insurance Policy

    Room Rent Sub-Limits/ Capping/ Proportionate Charges in Health Insurance Policy

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

  • Retirement
  • Retirement
  • PF Accumulation at Retirement
  • NPER
  • Child`s Goals
  • Higher Education
  • Marriage
  • Investments
  • HRA
  • PPF Accumulation
  • PMVVY
  • SIP
  • Lumpsum Investment
  • Fixed Deposit
  • Recurring Deposit
  • Present Value of Money
  • Future Value of Money
  • Increasing SIP calculator
  • Compound Annual Growth Rate
  • Monthly SIP Required for Any Goal
  • SCSS
  • Term Insurance
  • Life Insurance Need

Newsletter

Popular posts

  • House Rent Allowance Rules and Regulations – HRA 2020-21

  • Gratuity Formula – Rules, Limit, Eligibility & Calculation 2020

  • Gift Tax Rate in India – Limits, Exemptions and Rules 2020-21

  • NRI PPF Rules – Account and Notification 2019

  • GST Rate on Real Estate – Under Construction & Completed Property

  • Should I Surrender My Jeevan Anand Policy from LIC?

  • Cost Inflation Index Calculation for FY 2020-21 & AY 2021-22

  • Early Retirement in India -How to Retire Early like Suresh ?

  • Bank Locker Rules and Regulations – Charges & RBI Guidelines

  • Financial Advisor Fees Structure, Cost & Charges in India

Recent Posts

  • Is It Wise to Mix Insurance and Investment – Never

  • Types of Risk in Debt Mutual Funds –Interest Rate, Credit and Liquidity

  • Tax on PF Interest – New PF Rules 2021 with Example

  • Calculating Returns And Lazy You

  • Deductions under Section 80C for FY 2020-21 – Tax Benefits

  • ICICI Pru Guaranteed Income for Tomorrow Review – 4%-5%Returns

  • Deduction under Section 80D – Tax Benefits for 2020-21

  • LIC Bima Jyoti Review, Returns and Tax – New LIC Plan 860 Details

  • Should You Purchase Capital Gain Bonds from NHAI & REC to Save Tax?

  • Chemist Vs Biased Doctor Vs Unbiased Doctor

Footer

About Us

Hi,
I am Ajay Pruthi, an alumnus of NIT Jalandhar and K.J. Somaiya Institute of Management Studies. I have over 10 years of experience in the field of insurance and have worked with top two private insurance players in the country.

I am a Certified Financial Planner and currently working as a Paraplanner with Mr. Melvin Joseph, founder of Finvin Financial Planners.

If you liked my blog and want to discuss further on comprehensive fee only financial planning, feel free to get in touch by visiting Finvin Financial Planners.

 

Newsletter

Help Links

  • Contact Us
  • Write for moneychai
  • Sitemap
  • Disclaimer
  • Advertise
  • Archive

Categories

  • Banking
  • Financial Planning
  • Insurance
  • Investment
  • Mutual Funds
  • Retirement
  • Tax
  • Chai Pe Charcha
  • Blog
  • Forum
  • Android App
Copyright ©2017 MoneyChai. Designed by Mount Moriah Infotechs