I bought ICICI Pru Lifetime Pension II policy with an annual premium of ₹10,000 for 10 years. I couldn't surrender the policy before the maturity date. Can I surrender the policy now on medical grounds? How much pension will I get?
- Farhad Patel
ICICI Pru Lifetime Pension II is a United Linked Pension Plan. On maturity of such pension policy, a maximum of 1/3rd of the maturity amount can be withdrawn as lump-sum. The balance has to be necessarily converted into annuity. You don't have much of an option now even on medical grounds. Take out 1/3rd of the accumulated corpus and opt for an annuity option of your choice. You may contact your insurer to get the detailed information about your annuity income and the various options available to you.
The annuity will be based on the fund value at the time of maturity and will be at the prevailing annuity rates.
In future, do not buy insurance products for investment. Keep your investment and insurance needs separate. Buy a term plan for a life insurance cover and invest in diversified equity mutual funds to meet your long-term financial goals.
This article was originally published on January 27, 2017.
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