Bajaj Allianz Life Insurance on Wednesday launched an insurance plan offering a guaranteed regular deferred annuity for life after retirement.
There is a funding gap in life after retirement and a lot of people will not earn but need funds, so this is a serious issue that needs to be addressed, said Bajaj Allianz Life MD and CEO Tarun Chugh while announcing the launch of the “Bajaj Allianz Life Garanted Pension Goal” Plan.
The life insurer said the plan is designed to fill the gap in the retirement needs of various categories of people, which has nine different variations in perspective.
Bajaj Allianz Life claimed that it is the only life insurance plan that offers a regular premium deferred annuity option so that policyholders have a guarantee of their pension, after paying regularly over a period of time, when they are not active in professional life.
Chugh said India is undergoing a demographic shift in terms of the share of aging and improving life expectancy rate. At the same time, the cost of living is increasing and nuclear family structures are multiplying.
Add to that a not-so-comprehensive social security system. This developing environment makes it essential for individuals to save for their retirement, which will typically last 25 to 30 years after working age ( generally 60 years old in India)., “he said.
He added that while there are several savings vehicles that will help build a retirement corpus, annuity plans are one of the most effective tools to ensure that individuals receive income in a sustainable manner throughout. throughout their retirement life.
Chugh said the company’s new product is the last in its basket and the first of its kind that will strike the right note with customers and help policyholders sustain their life after retirement.
Under this plan, policyholders can opt for immediate regular income through an immediate annuity plan or start the income later through deferred annuity plans.
“The plan is designed to help people secure their retirement income for life,” the insurer said.
Policyholders can have a 5-10 year premium payment option, while a single premium option is also available. They can also change the frequency of their annuity (pension amount) on any contract anniversary, Bajaj Allianz Life said.
Other key features of the policy include: the option to take a joint life annuity with a 50 percent or 100 percent annuity payable to the spouse after the policyholder’s death so that the family can support themselves. needs.
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