For individuals who are looking to secure their retirement years, IDBI Federal Life Insurance has launched a new unit linked pension plan called ‘Retiresurance Milestone Pension Plan’.
Managing finances during retirement can be extremely difficult especially in today’s scenario when the value of money seems to be depreciating. Add to this high inflation costs which can put one under a financial burden. Thus securing oneself financially in old age or retirement years has become a necessity.
Keeping this in mind, insurance companies are launching new pension plans / retirement plans to help their customers safeguard their future income.
IDBI Retiresurance Milestone Pension Plan has a policy term of 10 years and 15 years. The minimum entry age is 25 years and maximum entry age is 75 years. It is a Single premium unit linked pension plan. The plan works in a 3 step process:
1. Decide the single premium amount to pay. The minimum premium starts at Rs.100,000 with no limit on the maximum amount
2. Choose one or more unit linked funds for investment
3. On retirement, one can use the accumulated funds to buy an annuity that provides regular income. Alternatively one can withdraw 1/3rd of the premium tax-free and use the remaining amount to buy an annuity plan
The key benefits of Retiresurance Milestone Pension Plan are as follows:
Convenient single premium option
It is a long term guaranteed plan
Choice of investment options with Guaranteed NAV or net asset value
2 tax benefits under section 80CCC and 10(10A)
Commenting on the launch, G V Nageswara Rao, MD & CEO of IDBI Federal Life Insurance, said, “India’s population is predominantly young. With the increase in life expectancy, many Indians could be spending a good 20 to 25 years of their life in retirement.” He added that the company tries to visualize this generation’s need for building wealth to support their standard of living after retirement as well.