ICICI Pru Life Time Pension II

POSTED BY Sachin Patil ON January 7, 2013 11:41 pm COMMENTS (4)

Dear friends,

I had purchased ICICI Pru LifeTime Pension II about 7 years back. I had regularly invested till last year. Last year I stopped investing in this plan and started investing mutual funds SIP.

Actually this plan gave me good returns (at least it is not in negative returns like some other ULIPS), however I was advised that since it is a pension plan, the final amount will be taxable, so I stopped investing in it.

Now what course of action should I undertake?

1. Surrender the plan, take whatever money I get and invest it in mutual funds as lumpsum or STP.

2. Stop investing but collect the proceedings at the end of the tenure.

3. Continue investing in the plan for the full term since the monthly premium is not large – just Rs. 2000.

Looking back I realise that I had started this policy without any serious thought. Now the amount I will get at the end of the term will help but definitely will not take care of my pension requirements. So should I exit now or carry it to the end?

 

4 replies on this article “ICICI Pru Life Time Pension II”

  1. Satish says:

    For this icicipru lifetime pension II, do i also need to set off/surrender the income tax benefit which i had claimed in last 10 years ( yes i also have same plan since 10 yrs)??

    If yes, what r calculations to surrender that income tax benefit and how to re-pay back to IT dept?

    If i continue this plan, i want to know how pension amount is calculated on 2/3 of fund value at maturity (presuming i withdraw 1/3 at maturity)?

    1. Not for all the 10 yrs, but only for the last 3 yrs !

  2. Sorry I meant
    Since 7 years has passed this can be thought of as balanced mf

  3. In pension plans the surrender amt is usually taxable fully.
    If you allow the policy to mature then 1/3 of value can be withdrawn tax free and rest will be annuitized for a pension which will be taxable

    As long as you realize how much you need to save for retirement and are saving that in MFs other instruments I think it should be okay to continue.

    The plan has done well, you can afford the premium anyway you need to save more which you realize.
    So this can be one way of diversifying your retirement investment. Since years has passed this can be thought of as balanced mf

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