ICICI Prudential Life Insurance has introduced the Swasthya Pension Scheme, a first-of-its-kind health-cum-pension product approved under the PFRDA regulatory sandbox. The scheme combines long-term retirement savings with comprehensive health coverage, offering guaranteed pension income alongside hospitalization benefits, critical illness protection, and wellness incentives addressing the dual need for financial security and healthcare in retirement.
Glimpse:
Swasthya Pension allows policyholders to build a pension corpus while receiving annual health sum insured (starting at ₹5 lakh, upgradable), coverage for hospitalization, day-care procedures, AYUSH treatments, and critical illnesses. Premiums paid qualify for tax benefits under Section 80C and 10(10D), with pension payouts starting at age 60 (or deferred). The product is initially available in select cities under PFRDA’s sandbox framework, with plans for wider rollout based on performance and regulatory feedback.
ICICI Prudential Life Insurance has launched Swasthya Pension Scheme, a pioneering retirement-cum-health insurance product approved under the Pension Fund Regulatory and Development Authority (PFRDA) regulatory sandbox. The scheme is designed to provide a holistic solution for India’s aging population by merging guaranteed lifelong pension income with robust health protection bridging the gap between traditional pension plans and standalone health insurance.
Key features of Swasthya Pension include:
Dual benefit structure accumulation phase builds pension corpus; payout phase delivers guaranteed monthly/annual pension + active health coverage Health sum insured starts at ₹5 lakh per year (higher options available), covering hospitalization, pre/post-hospitalization expenses, day-care procedures, AYUSH treatments, and domiciliary care Critical illness rider lump-sum payout on diagnosis of 34 major illnesses Wellness benefits premium discounts and rewards for healthy lifestyle tracking via app integration Tax advantages premiums eligible under Section 80C; maturity/death benefits tax-free under Section 10(10D) Flexible payout options pension can be taken as annuity for life, with or without return of purchase price
The product is initially being offered in a controlled sandbox environment in select cities, allowing PFRDA to monitor performance, customer experience, and risk parameters before potential nationwide rollout. It targets middle- and upper-middle-class individuals aged 35–55 planning for retirement while securing health needs in later years especially relevant given rising longevity and healthcare inflation.
ICICI Prudential emphasized that Swasthya Pension addresses a critical gap in the Indian market: most retirement products focus only on income, while health costs often erode savings. The scheme provides lifelong health coverage even after pension payouts begin, offering peace of mind in retirement.
This launch aligns with PFRDA’s sandbox initiative to test innovative pension products that combine retirement security with health protection potentially setting a new benchmark for retirement planning in India.
“Retirement planning must protect both financial security and health security. Swasthya Pension is our answer to ensuring policyholders retire with dignity and access to quality care.”
By
HB Team
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