IDBI Federal Life launches unit-linked pension plan

NEW DELHI: IDBI Federal Life Insurance today launched a single premium pension product on the unit-linked platform, dubbed IDBI Federal Retiresurance Milestone Pension Plan.

The unit-linked pension plan will facilitate wealth building by offering a choice of guaranteed investment options for a secure life after retirement, IDBI Federal Life said in a statement.

IDBI Federal is a tripartite joint venture between state-run IDBI Bank, private lender Federal Bank and Europe-based global insurance company Ageas.

The product offers a choice of two investment options -- Guaranteed Return Funds, which will invest in fixed income instruments, and Guaranteed Growth Funds, which will invest in debt instruments and also a small portion in equity.

"With the increase in life expectancy, many Indians could be spending a good 20 to 25 years of their life in retirement... IDBI Federal visualises the dire need for building wealth to support their standard of living post-retirement as well," G V IDBI Federal Life MD & CEO Nageswara Rao said.

Under the plan, policyholders can receive a part of the maturity benefit as a lumpsum and invest the remaining in an annuity, which will ensure regular income for life.

Alternatively, customers can purchase an annuity with the entire maturity benefit and get a higher and regular income for life.