Aditya Birla Sun Life Insurance (ABSLI) has launched a new pension plan that allows customers to build a retirement fund through equity-linked investments and convert the accumulated corpus into a regular income through an annuity after retirement.
The ABSLI Smart Wealth Pension Plan is a unit-linked, non-participating individual life insurance pension plan. The company said the product is aimed at customers looking to build a dedicated retirement corpus while choosing investments based on their risk appetite and financial goals.
The plan offers three options – Advantage, Prime and Elite – based on premium sizes and benefit preferences. Customers can also choose between single-life and joint-life coverage.
Under the joint-life option, the plan provides a waiver of premium on the death of either life assured, allowing the policy to continue towards the intended retirement goal, the company said.
Customers can select from five investment funds and four investment strategies. The plan also includes additional benefits intended to enhance the fund value over the policy term.
These include the return of up to 600% of premium allocation charges to the fund value, annual loyalty additions from the sixth policy year and an annuity booster of up to 1% of the average fund value at vesting.
The company has also introduced a higher benefit for female policyholders under what it calls the HER Benefit, reflecting what it described as the distinct financial planning needs of women.
“Retirement today is about having the freedom to pursue one’s aspirations and enjoy life with confidence,” Kamlesh Rao, MD and CEO of Aditya Birla Sun Life Insurance, said.
He added that the new plan was designed to provide customers with flexibility and choice while helping them build a retirement fund for their future needs.
ABSLI said the product is intended to address the gap between conventional financial planning for near-term goals and the need to build a long-term retirement corpus.
