Mumbai: Leading private life insurer, IDBI Federal Life Insurance today announced the launch of IDBI Federal Life Insurance Guaranteed Lifetime Income Plan, a single premium, non-participating, non-linked general annuity plan that would offer guaranteed regular income for life to help manage expenses during the retirement phase of life. This guaranteed income, akin to drawing a salary, could be drawn with pre-determined periodicity – monthly, quarterly, half-yearly, or on an annual basis.
IDBI Federal Life Insurance Guaranteed Lifetime Income Plan offers three options, Immediate Life Annuity, Immediate Life Annuity with Return of Purchase price and Deferred Life Annuity with Return of Purchase price to help retiring individuals, providing financial independence during the retirement stage of life.
For the two immediate annuity options, the pay-out would start from the first year itself. For the deferred annuity with return of purchase price option, the annuity pay-out would commence from the sixth policy year. Opting to defer the payout for five years allows the policyholder to lock-in a higher rate at inception itself which remains constant till the end of his or her lifetime.
Commenting on the launch, Mr Karthik Raman, CMO and Head – Products, IDBI Federal Life Insurance, “We have observed that as life expectancy is increasing, individuals now require a substantial amount of money in order to lead comfortable retired lives. Investing in an annuity plan helps individuals to ensure a regular flow of income during this phase of life.”
“Our Guaranteed Lifetime Income Plan is a general annuity plan which would help individuals plan for a comfortable retirement with guaranteed monthly income, safeguarding it from market fluctuations. The Guaranteed Lifetime Income Plan would cater to the need of both the segments, immediate retirees and those who intend to retire in the next five years. By investing in this plan, the customer would be locking in his or her money at guaranteed rates over a period of time. Such long-term guarantees are only available under annuity plans,” Mr. Raman added.
Survival Benefit for the first two options – 1) Immediate Life Annuity 2) Immediate Life Annuity with Return of Purchase Price, is the Guaranteed Annuity Payout commencing from the first policy year, determined as per the frequency chosen at inception, and payable in arrears throughout the lifetime of the annuitant. Further, under option 2, the purchase price too is returned to the nominee on the annuitant’s death.
Under the Deferred Life Annuity with Return of Purchase price option, on survival of annuitant till the end of deferment period, i.e. 5 years, Annuity Payout, determined at inception, will commence from the sixth policy year, and would be paid in arrears as per frequency chosen at inception throughout the lifetime of the annuitant. On death of the annuitant, death benefit as defined under the plan is paid to the nominee which would be a minimum of 110% of the purchase price.