16 personal finance principles every investor should know how to be your own financial planner in 10 steps 11 principles to achieve financial freedom

Hi Manish,

             Thank you for this great website. I recently came across the ICICI Pru non unit linked retirement income solution product at one of their branches. They claim guaranteed payment of double the annual payments for the first 10 years from the 20 year mark till end of life of policyholder which then passes to the life of spouse and eventually ends with a lumpsum payment to an offspring. They also claim a 10x life insurance on this product as well. Is this a good plan? Are there others that are similar? Is building and actively managing a good SIP platform a better alternative or is it good to have both?

Thank you so much,


11 Answers

{ }

1 Krishna Kishore Appala November 22, 2012 at 9:44 am

There is nothing much exciting in this plan, its very similar to all other ULIPs that are in the market. Lets consider your plan, If say you are paying 25k per year for 20 years, which gives you 50k starting from 21st year. Just imagine the inflation as least as 8% (right now CPI is around 11%) , so calculating the amount (used Jago investor calculator) , the present value of your future income (Future Income : 50k , Inflation : 8%, Duration : 20 years), You are getting Rs. 10,727.

So you are paying 25000 to get the same benefits of 10727 which you can get now.

In a way you are working hard for the bank to make it rich.

Please choose some good Equity MFs , which can give you inflation adjusted return of 6% in long run (with inflation can be around 15%).

ULIPs are the best products that banks have introduced by the banks to make THEM rich, not Investors.

Please never go into that trap.

Be simple as water in your personal finance

1. Pure term plan
2. Health insurance
3. PPF, Debt MF for debt part
4. Equity MFs for your capital appreciation in long run.

Happy Investing :)

Krishna Kishore Appala


2 LifeInsuranceHelp November 23, 2012 at 10:42 am

Dear Shyam,

Thank you for considering Retirement Income Solution (RIS). While you are aware of some of the benefits of this plan we wanted to highlight key features of this solution:
This solution works in 2 phases:

Phase I: Investment phase
In this phase your savings are invested in a low risk, debt-oriented traditional product which provides a guaranteed maturity benefit. Given that retirement is a long term non-negotiable goal, we believe that it is wise to invest a proportion of your savings in solutions such as RIS which provide stable returns with a level of guarantee.

Further, the maturity benefit from this plan is absolutely tax free.

RIS gives you life cover during your earning years which is important and provides security to your family in case something happens to you.

Phase II: Income phase
In this phase, you can invest the above maturity benefit to receive regular income for you and your spouse. This income is guaranteed for whole of life and will continue till either of you survive.

Further, you can leave a legacy in the form of a lump sum amount for your children.

RIS is a comprehensive solution that provides you with guarantee on your savings, life cover during earning years, regular income for whole of life and leaving a legacy for your children.

Let us know if you want to understand benefits under this plan in detail and want to meet our representative.

Warm Regards,
Life Insurance Help
ICICI Prudential Life Insurance


3 Raj December 7, 2012 at 12:36 am

If you invest in PPF with 25K every year for 15 years you can accumulate wealth of 7.7L. Investing this in a tax free bond for 7% will give you 54K per year, which is still higher than what offered by RIS. Of course now you have all the money available in the bond which would be greater than Lump sum offered by insurance company (I’m not recommending you should do this since for such a long term PPF alone is not the best wealth creation tool).

Insurance schemes like this are exploiting the mind of Indians who always think of doubling money – 25000 to 50000 wow! Money doubled. All they ever look for is doubling money!


4 Chirantan Saha December 28, 2012 at 8:07 pm

Dear All and Manish

I guess we are talking about Icici Pru Systematic Retirement Solution (SRS) here.

I have been approached by an agent for this. Apparently it looks interesting but is it really good and is it worth really?

What’s the conclusion ?

Pls help….

Thanks in advance.



5 Free Financial Calculators December 28, 2012 at 8:19 pm

I think Kishore and Raj above have made it amply clear that you should not take such policies.

mixing investment and insurance is the same as drinking and driving. You may reach somewhere but there is no guarantee that it will be home!

If are thinking about a haircut what do you think a barber will advice? If you catch my meaning! A quote by the great Warren Buffet


6 Chirantan Saha December 28, 2012 at 8:41 pm

Thank you so much …


7 rahulsinghania December 31, 2012 at 9:47 pm


I think this is the best plan for regular income for the people who start invest early for few reason i would like to highlight (kindly revert for any pro and cons)

if you invest Rs.1 lac for 7 years then at the end of 7 year you accumulate Rs.963662 (computing at 8% intrst)


then if you leave the money for another 7 years with icici bank according to the policy you accumulate Rs. 1783672 (Computing at 8% intrst)

the benefits

1. you get the tax benefit
2. you can opt for lump sum after 15 year TAX FREE
3. if you opt for pension you get Rs.1 lac for entire your life, then your wife gets Rs.1 lac and at the end your children get the LUMP sum amount

This is what i have taken out the conclusion

kindly revert for any more discussion on this


8 Free Financial Calculators December 31, 2012 at 10:13 pm

the pension is such products will not increase with inflation after retirement.
Assuming return is 8% (sure about this?) and inflation is close to 8% the purchasing power, the net rate of return is close to zero! So the pension will be very small if not zero even in first year of retirement.

If someone is going to live 15 years after retiring at 60 it is impossible for them to be financially independent quite shortly after retirement. No sar utake jiyo.


9 Free Financial Calculators December 31, 2012 at 10:20 pm

Dont get swayed by 1 lac pension each month. If you are going to retire in 15 years, 1 lac after 15 years is only worth 28629 !! at 8% inflation.

If your expenses now are 30000 after 15 years it will be 95165 when you retire
In the second year of retirement it will be 102778

So you will lose financial independence in the second year of your retired life!


10 bharani215 May 27, 2014 at 1:32 pm

This post is a little old, but wanted to get some info from experts, so continuing this thread -
Comments about present value, inflation are valid, but what I’ld like to have is a comparison on ICICI Pru SRS (systematic retirement solution) and PPF, since that’s the primary pitch bank official made to me.
1. Both are EEE (investment is exempt, interest accum is exempt, maturity is exempt from income tax) instruments.
2. More flexibility with payouts in ICICI.
3. Annuity Rates vary time to time in both.
Now, going by product feature, I think 1 and 3 are true, and 2 may be true.
But I want a realistic comparison between the two. Can someone do a comparison and respond please?


11 desikid123 July 8, 2014 at 1:16 am

I find this discussion one sided as there are life time benefits attached to it along with lum-sum pay out to offspring. Foe example if invest 3 lack annually for 10 years that is 30 lac in total. If we assume we calculate this as any other investment for 10% annual rate of return the amount value becomes 5,559,350.

On other hand ICICI Pru SRS gives out Rs 18.27 lac in next 10 years after investment period of 10 years. and there after Rs 3.32 lac as regular income for lifetime. In the event of death, spouse continues to get the benefit & lumsum amount payout not less than 1:10 ratio

For further discussion….


Hey Stranger Please Login or Register to answer.


  • 9075
    Forum Users
  • 8813
    Questions Asked
  • 38227
    Answers Provided