ICICI Prudential Life Insurance launches 'Increasing Income' feature for annuity product

ICICI Prudential Life Insurance has introduced the industry’s first ‘Increasing Income’ feature in its regular pay annuity product, ICICI Pru Guaranteed Pension Plan Flexi. This feature offers a 5% annual increase in the annuity pay-out, helping retirees manage inflation and maintain their standard of living.

The Increasing Income feature enables policyholders to receive a guaranteed income stream that rises annually, ensuring that retirees’ purchasing power is preserved over time.

With inflation eroding the value of fixed incomes, this feature allows retirees to maintain their standard of living despite rising costs.

Amit Palta, Chief Product and Distribution Officer at ICICI Prudential Life, explained that annuity products traditionally provide permanent, guaranteed income.

However, inflation often undermines the value of these fixed pay-outs.

To address this issue, the company introduced the Increasing Income feature.

The ICICI Pru Guaranteed Pension Plan Flexi with this new feature offers retirees a combination of financial security and flexibility. The plan allows customers to make affordable long-term contributions and build a sufficient retirement corpus while ensuring a steady income that grows annually.

With India transitioning towards a developed economy and interest rates expected to fall, ICICI Prudential Life sees the current high-interest rate regime as an excellent opportunity for customers to lock in annuity rates and secure a permanent, guaranteed income for life.