Life insurance player IDBI Federal on Tuesday said it plans to launch a single premium pension product from the Unit Linked Investment Plan (Ulip) platform.

“We are looking to bring in a single premium pension product on the Ulip platform soon,” IDBI Federal Life Insurance’s MD and CEO Mr G V Nageswara Rao told reporters here. The company has applied to the regulator, seeking its nod for the product, Mr Rao said. “The new product is expected to be launched in the next two months,” Mr Rao said.

IDBI Federal is a tripartite joint venture between state-run IDBI Bank, private lender Federal Bank and Europe-based global insurance company Ageas.

The company today also launched its first pension product offering, Retiresurance Guaranteed Pension Plan, which seeks to fulfil the definitive need of a person post-retirement.

“We at IDBI Federal have designed Retiresurance to suit the definitive needs of people post-retirement. The product offers a guaranteed corpus for every premium paid. Moreover, if the customer continues the policy till maturity, the plan offers guaranteed royalty additions,” Mr Rao said.

Under the plan, the policy holder can receive a part of the maturity benefit as a lumpsum and invest the remaining in an annuity which will ensure a regular income for life.

Alternatively, the policy subscriber can also purchase an annuity with the entire maturity benefit and get a higher and regular income for life.

The new product also comes with a death benefit to ensure that the policy-holder’s nominee gets the money, which could be higher than either the premium paid along with a 5 per cent compounded interest or the special surrender value.

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