Targeting the huge potential of post-retirement needs of the consumption-heavy generation, private insurer IDBI Federal Life Insurance, today launched a unit linked pension plan called IDBI Federal Retiresurance Milestone Pension Plan.
This comes close on the heels of a traditional pension plan called Retiresurance Guaranteed Pension Plan launched recently, the unit linked pension plan facilitates wealth building by offering a choice of guaranteed investment options for a secured life after retirement.
The plan offers a choice of two investment options: Guaranteed Return Funds - Pension, which invests in fixed income instruments and aims to deliver a minimum Guaranteed Maturity Value per unit; and Guaranteed Growth Funds - Pension, which seeks to not only deliver the minimum Guaranteed Maturity Value per unit through investments in debt instruments but further enhance returns by investing a small portion in equity.
“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. While the talented younger generation works hard to meet the increasing cost of living, we at IDBI Federal visualise this generation’s dire need for building wealth to support their standard of living post-retirement as well. This also assumes significance in view of the fact that many of the Gen-Next jobs are contractual by nature and the youth does not enjoy the benefits of traditional options like a Provident Fund,” said G V Nageswara Rao, MD & CEO of IDBI Federal Life Insurance.
Having started in March 2008, IDBI Federal has over 292,000 policies issued and a sum assured of Rs 16,384 crore.
