IDBI Federal launches unit linked Pension Plan

Company Brief

Mumbai, May 17, 2011

Targeting the huge potential of post-retirement needs of the consumption-heavy generation, private insurer IDBI Federal Life Insurance has launched a unit linked pension plan called IDBI Federal Retiresurance® Milestone Pension Plan.

Coming as it does, 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.

For every premium paid, this single premium plan guarantees a return that helps build a corpus. It 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.

Announcing the launch of Retiresurance Milestone Pension Plan, Mr 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. 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."

"Retiresurance Milestone Pension Plan not only guarantees a corpus on retirement, but also offers options that could enhance returns through limited exposure to equity. The policy holder can receive part of the maturity benefit as a lump sum and invest the remaining in an annuity which will ensure a regular income for life. Alternatively, the customer could purchase an annuity with the entire maturity benefit and get a higher and regular income for life," Mr Rao said.

Having started in March 2008, IDBI Federal is one of the fastest growing new insurance companies with over 2,92,000 policies issued and a Sum Assured of Rs 16,384 Crores. Prior to Retiresurance, it has launched several innovative plans like Wealthsurance®, Homesurance®, Bondsurance™, Microsurance®, Termsurance®, Incomesurance, Retiresurance® and Healthsurance®.

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Concept Public Relations

Ashwini A. Churi

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Email: ashwini@conceptpr.com