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NEW DELHI: Tata AIA Life Insurance (Tata AIA Life) on Friday announced the launch of Tata AIA Life Fortune Guarantee Pension, a flexible annuity, guaranteed income for life, plan offering multiple tailor-made guaranteed income options.
Tata AIA Life quoted a recent report by the World Economic Forum that revealed that the size of retirement savings gap in India is expected to touch $85 trillion by 2050. Fortune Guarantee Pension aims to encourage savings from an early age for retirement years.
The insurance company claimed that the plan offers an annual income of 7.27% of the total premiums paid. In case of an annuitant's death, the nominee is entitled to receive death benefit.
Other key benefits offered by the annuity plan include:
Immediate Life Annuity: The 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 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 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 option, you can take a loan which the secondary annuitant can avail 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 annuity payouts in the event of death of the primary annuitant, as applicable.
"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% households in India with a protection gap of over 90% 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. Through Fortune Guarantee Pension, we endeavour to help our customers save adequately as early as possible before retirement, ensuring stable income and maintaining their lifestyle and aspirations in the present and the future," said Samit Upadhyay, chief financial officer, Tata AIA Life Insurance.
