Reliance Life launches retirement plan with guaranteed income

by Simranjeet Singh

Reliance Life Insurance Company (RLIC) on Monday announces the launch of Reliance Life Traditional Golden Years Plan, a non-linked pension plan joined 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 offer advance guaranteed returns on investments, time-on-time, as a key differentiator in the pension market. It helps policyholders keep systematically and make 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 require for guaranteed returns at retirement. With Reliance Life Traditional Golden Years Plan, we are providing an easy yet successful gateway for customers to make their retirement fund for a financially-secured retired life.?

Reliance Life Traditional Golden Years Plan is a regular premium Retirement plan that provides guaranteed return, which is confirmed at the commencement of every financial year during the product term. The buildup rate for financial year 2010-11 is 7.75(%) per cent per annum. ?The minimum guaranteed growth rate will not be less than the savings bank deposit interest rate, as confirmed by the Reserve Bank of India,? he said.

The Reliance Life Traditional Golden Years Plan is one of the little pension products, which offers a separate account - Accumulation Account - for each policyholder to keep their guaranteed investment returns for every year and release all charges made by the insurer. ?The rationale behind maintaining the separate account is to show intelligibility,?? 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 contributor.