Thanks to this guaranteed pension, individuals save adequately as soon as possible before retirement, ensuring a stable income and maintaining their lifestyle and aspirations in the present and the future.
Tata AIA Life Insurance has launched its Fortune Guarantee Pension, a flexible annuity plan (guaranteed income for life) which will offer several guaranteed income options.
The company says the pension plan will aim to help consumers bridge the gap in terms of adequate retirement planning and income, gain financial freedom and lead carefree lives by encouraging savings from an early age. for the policyholder and the spouse. Achieving a comfortable lifestyle throughout life, especially in retirement, is an often overlooked priority in financial planning.
In a recent report by the World Economic Forum, the size of the pension savings gap in India is expected to reach $85 trillion by 2050. The guaranteed pension scheme, according to the life insurance company, is positioned to enable the customer to live carefree all through life.
The product will suit a diverse set of people, including married people, women and people who want to consider saving to maintain their current lifestyle for the future. It is also suitable for SMB customers who need to secure a safety net in their lives.
Samit Upadhyay, Chief Financial Officer of Tata AIA Life Insurance, says: “In the absence of a formal social security system in India, there is an urgent need to extend the influence of protection – income and health – to guard against a decline in the standard of living. standards through the requirements that may arise. There are 44% of households in India with a protection gap of over 90% in terms of long-term protection needs.
He further adds, “Annuity products that provide guaranteed income for life can help bridge this existing gap with the security required. Thanks to this guaranteed pension, individuals save adequately as soon as possible before retirement, ensuring a stable income and maintaining their lifestyle and aspirations in the present and the future.
The company says the scheme will be an ideal solution for those looking for a decent and secure retirement income, and for retirees who wish to increase their retirement pool by investing excess funds in a guaranteed life insurance solution.
Under the Deferred Life Annuity (GA-I) and with return of purchase price, when a 45-year-old male annuitant pays an annual premium of Rs 5 lakhs for seven years, he would start receiving an income annuity of Rs 2,54,450 per annum from the 8th year until he is alive. Thus, it provides an annual income of 7.27% of the total premiums paid. In the event of the death of the annuitant, the nominee is also entitled to receive the death benefit.
The product also offers a deferred life annuity (GA-II) and refund of purchase price proposal. When a 50-year-old individual invests an annual bonus of Rs 5 lakhs for ten years while still employed, he would start receiving an annuity income of Rs 35,000 per month / Rs 4 lakhs per year when he reaches retirement age. Upon the Annuitant’s death, all premiums paid would be returned to his nominee. In the Joint Life option, when a 48-year-old husband and a 45-year-old wife invest Rs 2 lakhs for 12 years, they will get a guaranteed annual annuity of Rs 2,07,240 for life. Upon their death, their candidate would receive Rs 24 lakhs.
The main advantages of the product include;
- Immediate life annuity: The annuity plan provides immediate annuity payments according to the frequency chosen during the lifetime of the annuitant. It also offers an immediate life annuity with reimbursement of the purchase price, in which the amount paid at the time of purchase is reimbursed in the form of a death benefit.
- Guaranteed supplements option: Guaranteed supplements are accumulated at the end of each month of insurance during the deferral period.
- Possibility of choosing the annuity in advance: This option allows you to benefit from the payment of the annual annuity in advance.
- Loan on the policy: You can obtain a loan on the policy, six months after the start of the policy. Under the Copreneur option, you can take out a loan from which the secondary annuitant can benefit in the event of death.
- Joint life insurance options: where the primary annuitant is the person entitled to receive annuity payments. Secondary annuitants (spouse/child/parent/step-parent or sibling) are entitled to receive annuity payments upon the death of the primary annuitant, as applicable.
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