NEW DELHI: Reliance Life Insurance Company (RLIC) on Monday announced the launch of Reliance Life Traditional Golden Years Plan, a non-linked pension plan coupled with guaranteed returns.
The launch was announced by Malay Ghosh, executive director and president, Reliance Life Insurance, in Mumbai on Monday.
“The Reliance Life Traditional Golden Years Plan is the first traditional retirement plan that offers advance guaranteed returns on investments, year-on-year, as a key differentiator in the pension market. It helps policyholders save systematically and build the much-needed corpus to make a worry-free retirement life,” said Mr Ghosh, adding, “This is the only traditional pension plan in the market which caters to the need for guaranteed returns at retirement. With Reliance Life Traditional Golden Years Plan, we are providing a simple yet effective gateway for customers to build their retirement kitty for a financially-secured retired life.”
Reliance Life Traditional Golden Years Plan is a regular premium retirement plan that provides guaranteed return, which is declared at the beginning of every financial year during the product term. The accumulation rate for financial year 2010-11 is 7.75 per cent per annum. “The minimum guaranteed accumulation rate will not be less than the savings bank deposit interest rate, as declared by the Reserve Bank of India,” he said.
The Reliance Life Traditional Golden Years Plan is one of the few pension products, which offers a separate account – Accumulation Account – for each policyholder to maintain their guaranteed investment returns for every year and disclose all charges made by the insurer. “The rationale behind maintaining the separate account is to show transparency,’’ said Mr Ghosh.
The new retirement plan is available for people across different age groups starting from 18 years till 75 years with all payment options available — monthly, quarterly, half-yearly and yearly. However, the vesting age varies between 45 and 85 years.
Apart from the maturity and tax benefits, Reliance Life Traditional Golden Years Plan also offers tax-free commutation up to one third of fund value at the vesting age and the customer can purchase an annuity with the balance amount from RLIC or any service provider.