IDBI Federal launches a new pension plan

Posted By: Religare
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IDBI Federal launches a new pension plan
IDBI launched a new unit of pension plan called IDBI Federal Retiresurance Milestone Pension Plan. The pension plan is single premium production that is direct towards the gaining wealth. The pension plan revolves around the offer that would provide a choice of guaranteed investment options in order to ensure a protected life after the retirement.

IDBI Federal Life Insurance is a private insurer that came into existence in 2008. It is joint venture between state-run IDBI Bank , private lender Federal Bank and Europe-based global insurance company Ageas. There are over 292,000 policies issued to IDBI Federal and a sum assured of 16,384 crore.

The pension plan was designed after analyzing the increase in life expectancy in India. The increase in the life expectancy proportionally have increased the duration of the people would spend in their retirement period. Therefore, the pension plan introduced aims to offer a standard and wealthy living post retirement.

Further, keeping in mind the next generation job trends that would be more contractual basis, the new pension plan would be more preferred to the ones who are hesitant about the benefits of the traditional options like a Provident Fund.

The plans under the pension plan have been divided into major categories. The first category would deal with Guaranteed Return Funds - Pension. Under this category would target the delivering maximum Guaranteed Maturity Value per unit by investing in the fixed income instruments.

The second category, termed as Guaranteed Growth Funds - Pension would look assure minimum Guaranteed Maturity Value per unit through investments in debt instruments. However, it would pay attention towards enhancing the returns by investing a small portion of equity.

Besides, these advantages, in order to ensure a regular income throughout the life, the plan would enable the policyholder to have of the maturity benefit as a lumpsum and invest the remaining in an annuity.

Alternatively, buying an annuity with the entire maturity benefit and getting higher regular income, would also be an option that would be available to the policyholder.

Read more about: insurance, pension, irda, idbi federal
Story first published: Wednesday, May 18, 2011, 9:30 [IST]
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