Several market experts are of the view that interest rates in India will decline over the next few months from the current levels of approx. 7% giving customers an opportunity to now lock-in their investment in an annuity product at the current interest rate.
Pension or annuity products offered by life insurance companies provide guaranteed, regular lifelong income. These products are locked-in at purchase, making them ideal for retirees who prefer steady income without interest rate fluctuations. As interest rates are expected to fall, customers can lock in their investment at the current interest rate.
The ICICI Pru Guaranteed Pension Plan Flexi is a unique annuity product that helps customers build a retirement fund through systematic investments, providing a stable income after retirement. This is particularly beneficial in India, where interest rates are expected to decline. A variant offers a 100% refund of all premiums paid, making it the life insurance industry’s first such product.
