Tata AIA Life Insurance has announced it has launched Tata AIA Life Fortune Guarantee Pension, a flexible annuity (guaranteed income for life) solution offering multiple tailor-made guaranteed income options.
Fortune Guarantee Pension aims to help consumers bridge the gap in terms of adequate retirement planning and income, gain financial freedom, and lead a carefree life by encouraging savings from an early age for yourself and your spouse, it said in a press statement.
In a recent report by the World Economic Forum, the size of the retirement savings gap in India is expected to touch $85 trillion by 2050. Fortune Guarantee Pension is positioned on the premise of “Raho Befikr, Aaj ho Ya Kal” thereby allowing the customer to live without worries all through life, it said.
The company claims the product is suitable for a diverse set of customers, including the married, women and individuals wanting to seriously consider saving to maintain their current lifestyles for the future. It is also apt for SME customers who need to ensure a security net for themselves in their life.
Samit Upadhyay, Chief Financial Officer, Tata AIA Life Insurance, said, "In the absence of a formal social security system in India, there is an urgent need to expand the influence of protection- income and health - to ensure against a fall in living standards through exigencies that may arise. There are 44 percent households in India with a protection gap of over 90 percent in terms of their long-term protection needs. Annuity products that offer guaranteed income for life can help navigate this existent gap with the required security.”
Key benefits
Immediate Life Annuity: The Annuity plan offers immediate annuity payouts as per the chosen frequency during the annuitant’s lifespan. It also offers Immediate Life Annuity with Return of Purchase Price, wherein the amount paid at the time of purchase is paid back as a death benefit.
Option of Guaranteed Additions: Guaranteed Additions are accumulated at the end of every policy month during the Deferment Period.
Option of choosing annuity in advance: This option allows you to avail of the annual annuity payout in advance.
Avail loan against policy: You can get a loan on the policy, six months after the policy’s commencement. Under the Joint Life option, you can take a loan which the secondary annuitant can avail of in case of your death.
Joint Life Options: Wherein the Primary Annuitant is the person entitled to receive the Annuity Payouts. Secondary Annuitants (spouse/ child/ parent/ parent-in-law or sibling) are entitled to receive the Annuity Payouts in the event of death of the Primary Annuitant, as applicable.
