BEST PENSION PLAN 2015

NEW JEEVAN AKSHAY PLAN 189

PRADEEP PATIL

COMPARISON OF IMMEDIATE
ANNUITY PLAN IN INDIA

DISHA
FINANCIAL COSULTANT
9448133179
0836 2333179

The Annuity Market in India

Do Consumers get their Moneys Worth?
What are the Key Policy Issues?
Taking the present situation as a starting point, we ask: do annuities in India provide good value for money? Are
annuitants likely to get back the premium they pay in, plus interest, over time? Consumers want to be sure that they can
expect to get back their premium plus a reasonable rate of return, companies want to be sure they are not paying
more than is affordable, and regulators want to be sure that consumers are treated fairly and that companies will
keep their promise let us analyses first.
After nationalization in 1956 there was continuous demand for attractive Annuity plan by non government employees,
(Specially from non organized sector) Business community, industry & politicians etc, accordingly after 3 decades in
1988 on

8th Feb Jeevan Akshay Plan was introduced (table 99) and with drawn on 16/02/2000.

Letter on in 2000 on 16th June New Jeevan Akshay Plan (Table 144) introduced and was withdrawn on
24/12/01.

On 1st Feb 02 New Jeevan Akshay-II was introduced & Letter on with drawn on 20/12/04.

On 20/12/04 Jeevan Akshay-III was introduced & letter on with drawn on 17/03/06.

On 17/03/06 Jeevan Akshay-IV was introduced which was letter on withdrawn on 20/09/06.

On 20/09/06 Jeevan Akshay-V was introduced which was letter on withdrawn on 20/09/06.

On 20/09/06 Jeevan Akshay-V was introduced which was letter on with drawn on 10/0907.

On 10/09/07 Jeevan Akshay-VI was introduced which was modified on 16/05/12.

LIC Jeevan Akshay VI

This is a highly customizable annuity plan. It offers 6 annuity options. The benefits differ under these options. This
plan offers a high annuity rate thus; it is a very attractive pension plan. Please carefully choose your option as, you
cant change your option once the policy commences.
Features

This is a single premium plan so it would be ideal for working professional who have just received their
retirement benefits.
Please choose the option wisely as the final benefits vary greatly.
This plan offers annuity on, yearly, half-yearly, quarterly and monthly basis.
Rebate is available if the purchase price is Rs. 2.50 lakh or more. For policies sold online, a rebate of 1% by
way of increase in the annuity rate shall also be available.
Minimum purchase price :
Rs.100, 000/- for all distribution channels except online.
Rs.150, 000/- for on line sale.
No medical examination is required under the plan.
No maximum limits for purchase price, annuity etc.
Minimum allowed age at entry is 30 years (completed) and Maximum allowed age at entry is 85 years
(completed).
Age proof necessary.

o
o

Options and Benefits

The following options are available to the policy holder.
S. no. Option
1
Annuity payable for life at a uniform rate.

Death Benefit

Policy terminates
No further amount is paid.

Annuity payable for 5/10/15/20 years certain and Even after the death, the annuity is paid to the nominee
thereafter as long as the annuitant is alive.
till the pre specified period.

Annuity for life with return of purchase price on

death of the annuitant.

Annuity payable for life increasing at a simple rate Policy terminates.

of 3% p.a.
Annuity for life with a provision of 50% of the
50% of the annuity is payable to the surviving
annuity payable to spouse during his/her lifetime
named spouse during his/her life time. If the
on death of the annuitant.
spouse predeceases the annuitant, the annuity
ceases.

Policy terminates
Purchase price is returned to the nominee.

Annuity for life with a provision of 100% of the

annuity payable to spouse during his/her lifetime
on death of the annuitant.

Full annuity is payable to the spouse for life.

If the spouse predeceases the annuitant, the
annuity ceases.

Annuity for life with a provision of 100% of the

annuity payable to spouse during his/ her life time
on death of annuitant. The purchase price will be
returned on the death of last survivor.

Full annuity is payable to the spouse for life.

Purchase price is paid to the nominee after the
death of the spouse.
If the spouse predeceases the annuitant, the
annuity ceases and purchase price will be paid to
the nominee.

Annuity Rate:
Amount of annuity payable at yearly intervals which can be purchased for Rs. 1 lakh under different options is as
under:
Age last
birthday

30
40
50
60
70
80

(i)

( ii )

7190
7510
8140
9350
12080
17880

(15 years
certain)
7160
7440
7950
8790
9830
10440

Yearly annuity amount under option

( iii )
( iv )
(v)

6890
6930
7000
7110
7260
7480

5250
5610
6280
7530
10220
15890

7080
7310
7760
8640
10560
14600

( vi )

(vii)

6970
7120
7420
8030
9370
12340

6860
6890
6930
7010
7130
7290

The very purpose of introducing New Jeevan Akshay Plan No.189 is nothing but fall in interest rate, even then investor
has kept the faith in this Guaranteed return product of LIC. Following chart speak more than my statement.

ANNUITY IS NOTHING BUT A PEACE OF MIND

ANNUITY NEW BUSINESS STATISTICS

S.NO

INSURER

ANNUITY BUSINESS INFORCE (NOP)

31.03.2013

LIC OF INDIA

2413450

SBI LIFE

148570

HDFC

STANDARD

79120

ICICI PRUDENTIAL

62130

RELIANCE

8480

OTHERS

175090

TOTAL

2886480

DATA SOURCE : IRDA

ACTUARIAL

REPORT AS ON 31.03.2013

Why only LIC garner so much Annuity Business from the Indian Market, there are number of yardstick for analysis but
we discus only few here

PLAN FEATURE
ENTRY AGE
ANNUITY MODE
ANNUITY OPTIONS
MINIMUM PURCHASE PRICE
INCENTIVE FOR HIGHER PURCHASE
PRICE
EXISTENCE CERTIFICATE REQ.
RIDERS AVAILABLE
ANNUITY FOR LIFE WITH ROC AT AGE
60
EXC. SERVICE TAX ETC.
SURRENDER OPTION

ON ALL PARAMETER LIC JEEVAN AKSHAY

STANDS ON TOP OF INDIAN ANNUITY SCHEME

LIC V/S ICICI

S.NO

PLAN FEATURE

LIC OF INDIA
MIN
30

ENTRY AGE

ICICI

MAX
85

MIN
45

ADVANTAGE
MAX
100

NONE

ANNUITY MODE

MLY,QLY,HLY, YLY

MLY,QLY,HLY, YLY

NONE

ANNUITY
OPTIONS

LIC

MINIMUM
PURCHASE
PRICE

1,00,000/-

1,78,634

LIC

INCENTIVE FOR
HIGHER
PURCHASE
PRICE

MIN
2.90

MAX
4.35

MIN
0.4%

MAX
3.0%

LIC

EXISTENCE
CERTIFICATE
REQ.

ONCE IN 5 YRS

NOT SPECIFIED

LIC

RIDERS
AVAILABLE

NO RIDERS
AVAILABLE

NO RIDER
AVAILABLE

NONE

ANNUITY FOR
LIFE WITH ROC
AT AGE 60
EXC. SERVICE
TAX ETC.

7110/PUR. PRICE
REQUIRED.
1,00,000/-

6702/PUR.PRICE
REQUIRED
1,00,000/-

LIC

LIC V/S RELIANCE

S.NO

PLAN FEATURE

LIC OF INDIA

ENTRY AGE

ANNUITY MODE

MLY,QLY,HLY
, YLY

MLY,QLY,HLY, YLY

NONE

ANNUITY OPTIONS

LIC

MINIMUM
PURCHASE PRICE

1,00,000/-

1,00,000/-

NONE

INCENTIVE FOR
HIGHER PURCHASE
PRICE

NO INCENTIVE
AVAILABLE.

LIC

EXISTENCE
CERTIFICATE REQ.

ONCE IN 5
YRS

ONCE A YEAR

LIC

RIDERS AVAILABLE

NO RIDERS
AVAILABLE

NO RIDERS
AVAILABLE

NONE

ANNUITY FOR LIFE

WITH ROC AT AGE
60
EXC. SERVICE TAX
ETC.

7110/PUR. PRICE
REQUIRED.
1,00,000/-

5611/PUR. PRICE
REQUIRED
1,00,000/-

LIC

MIN
30

MIN
2.90

MAX
85

MAX
4.35

RELIANCE
MIN
20

MAX
80

ADVANTAGE
LIC

COMPARISON OF ANNUITIES OF INSURERS

ON PURCHASE PRICE RS.1, 00,000/- FOR ROC OPTION
AGE
INSURER

40

50

60

70

LIC

6930
6.93%

7000
7.00%

7110
7.11%

7260
7.26%

SBI

6831
6.83%

6945
6.94%

7046
7.05%

7097
7.09%

12000
1,78,634
6.71%

12000
1,78,574
6.71%

12000
1,79,031
6.70%

12000
1,82,259
6.58%

5650
5.65%

5636
5.63%

5611
5.61%

5557
5.55%

ICICI
AMT REQ.FOR
PURCHASE OF
RS.12000/- P.A
ANNUITY
RELIANCE

LOOK WHAT OTHERS ARE GIVING

EXCLUSIVE FEATURES THAN THE PVT. INSURERS ANNUITY PLANS

LIFETIME INCOME WITH CAPITAL REFUND IN PARTS.(SBI & HDFC) AT THE END OF 7 th YEAR 30 % OF
PURCHASE PRICE IS RETURNED AND ON DEATH THEREAFTER 70% OF PURCHASE PRICE IS RETURNED TO
NOMINEE.

OPTION OF INCREASING ANNUITY AT @3% OR @5%.(SBI&HDFC)

AB RIDER AT ADDITIONAL PREMIUM. MAX. UPTO PUR. PRICE OF ANNUITY. (SBI)
ADVANCING ANNUITY PAYMENTS AFTER PAYING SOME CHARGES.(SBI)
RETURN OF 100% PURCHASE PRICE ON CRITICAL ILLNESS.(HDFC).
SURRENDER OF POLICY-10% OF PURCHASE PRICE.(HDFC)

IT
IT
IT
IT
IT
IT

IS A PLAN WHICH GIVES HIGHEST ANNUITY IN ALL THE OPTIONS AND AT ALL AGES. (7260/-)
HAS FOT THE HIGHEST INCENTIVES FOR HIGHER PURCHASES. (4.35)
HAS VERY BIG RANGE OF ANNUITY OPTIONS AVAILABLE. (9)
HAS THE BIGGEST SPAN OF ENTRY AGE. (55 yrs)
HAS THE MINIMUM ENTRY LEVEL PRICE RANGE.(100000/-)
IS MOST CONVENIENT FOR CUSTOMERS ON EXISTENCE CERTIFICATE.( once in 5 yrs)

Under 7 options, options 3 & 7 provides pension for life with return of purchase price on death of policy holder to his
nominee here rate of pension is 6.89 to 8% P.A. it is fix for whole life.
Under Remaining 5 options pension is converted in E.M.I. (Equated monthly) and so that purchase price is not
returned to nominee on death of policy holder. But E.Y.I. rates are most attractive (6.86% to 22.83%) it may be
again higher which depends upon life of policy holder.
(Option 4 pension for life increasing 3% P.A.)
One of the above options provides pension up to 43% & more. it means if at age 85 Rs. 2.5 Lacks premium, starting
pension is 21% i.e. Rs. 52500 P.A. & if he alive up to 35 Yrs. Pension will be 43% i.e. 107500 P.A. and if he further
alive for 10 years, Pension will be 49% i.e. Rs.121936 P.A. & so on

1. But how to acquire financial stability in time of uncertainties, recession, Job losses, VRS. etc. Now get
fixed liquid income directly to your bank account. Freedom from interest fluctuations. Boost your
confidence in life with a onetime recharge coupon of Jeevan Akshay VI. In the era of nuclear family, life
without annuity is that of a beggar. Want to live longer?
2. 2. Whats in Akshay Long term guarantee concept QROPS- now attractive 7% in Akshay vs. 9% in Bank
F.D. Agent should be able to clarify why interest is less? ( next slide) We are still paying 12% interest in old
Akshay. Propagating the idea of Reverse Mortgage (Returns without capital)
3. 3. Counter for lower interest This is a long term product There is no TDS (Banks have) Interest rates
with bank vary with RBI intervention For NRIs, the actual investment is only 60% in comparison to last
year. Getting the interest in dollars (Not possible in Bank FD) Leveraging the brand to overcome
objections.
4. 4. Prospective Customers Just going or retired. Real Estate/ Lottery winner Arrears/Bonus N.R.Is who
have spare money. Completed Insurance premium/Matured. Car/Home loans over. Getting 9% pension
from LIC and want to increase the pension portfolio.
5. 5. Positioning of Akshay Buy a list of persons aged above 50 & rich. Can be positioned as a Gift by son to
parents, husband to wife etc. Positioning by agent for the customer to take Akshay (not as 2nd or 3rd
product priority when no other product clicks) Identify the best customers in your list who do not have
pension. Youve got to kiss a lot of frogs to meet the prince.

SURRENDER OF POLICY
However, Actuarial Dept, Central office has allowed the surrender value under immediate annuity plans and
deferred annuity plans after vesting on merit of the case like money is required by annuitant for the
Expenses incurred or to be incurred on his/her medical treatment or for the medical treatment of his/ her
spouse, provided the annuity option is under annuity for life with return of purchase price on death
The matter has been reviewed by the competent authority and it has been decided as follows:surrender of immediate annuity plans and Deferred annuity plans after vesting with
Annuity option of Annuity for life with return of purchase price on death shall be
Allowed only in case of medical emergency like treatment of self, spouse, and /or
Close family members. Under any other circumstances, surrender of vested annuity
Policies should not be allowed. (Ref: CO/CRM/838/23)
Life after retirement brings many new challenges. Are you prepared for it? To know how you can plan a happy retired
life please contact
2. Why depend on your children/relatives/others after retirement? Invest in LIC plan for a Happy retirement. To know
more please contact
3. Depending on your children/relatives/others after retirement can be dangerous. Plan for a happy retirement with
LIC and guarantee your self-respect. For more details please call
4. Retirement also brings increase in high medical bills, irregular income & increasing living costs. Do you a plan which
will take care of these or will you depend on your children/relatives/others? To plan for a happy retired life call
5. High medical bills, irregular income & increasing living costs are all a part of life after retirement. Are you prepared
for it? To know how you can plan a happy retired life with LIC please contact
6. Dont make the same mistake which many unhappy retired people did by depending on their children after
retirement. Invest in yourself respect with LIC pension plans for a happy retired life

Above Cheque issued by Birla SUNLIFE INSURANCE COMPANY to avail pension (jeevan akshay)
to its retired Employees....Even PRIVATE COMPANIES BELIEVE IN LIC's STRENGTH....

Let us be Proud to be with LIC Family.

EVEN TODAY LIC JEEVAN AKSHAY GIVING 12%

BELIEVE IN INDIAN GROWTH STORY

FOR YOUR INVESTMENT IN LIC

INCOME TAX SLAB IN DUE COURSE WILL BE

FLACTUATING ADVANTAGE FOR INVESTOR

FALLING GLOBLE INTEREST RATE IS

CONCERN AREA OF INVESTOR
Bank FD Rate Averages for the last 11 Years

Year

1-3 Years

3 5 Years

Above 5 Years

2001

8.50

8.50

8.50

2002

6.00

6.25

6.25

2003

5.25

5.50

5.50

2004

5.50

6.25

6.25

2005

6.50

7.00

7.00

2006

9.00

9.00

9.00

2007

8.75

9.00

9.00

2008

8.75

8.50

8.50

2009

7.00

7.50

7.50

2010

9.00

9.50

9.50

2011

9.25

9.25

9.25

Average

7.59

7.84

7.84

FALLING GLOBLE INTEREST RATE IS

CONCERN AREA OF INVESTOR

HDFC Life Personal Pension Plus

HDFC Life Personal Pension Plus is a traditional participating pension plan ideal for individuals who seek to plan for
their retirement. Get secure and stable returns on your invested corpus for post retirement income.
Main Features:

Flexibility to choose your investment horizon from 10 40 years.

Assured benefit equal to 101% of all regular premiums paid on death or at vesting.
The plan can be taken only on a single life basis.
The flexibility to choose the premium payment frequency i.e. quarterly/half-yearly/annual.

Eligibility:
The main eligibility and vesting age for this plan as mentioned below;
Policy Term

Premium
Paying Term

10 to 40 Years

As policy term

Entry Age
Minimum
Maximum
18 Years
65 Years

Vesting Age
Minimum
Maximum
55 Years
75 Years

Premium Options:
The premium limits, policy fees and conversion factors are specified as below;
Frequency

Annual
Half-Yearly
Quarterly
Monthly

Minimum
Installment
Premium
Rs. 24,000
Rs. 12,000
Rs. 6,000
Rs. 2,000

Maximum
Installment
Premium
No Limit

Policy Fees Per

Installment

Conversion
Factor

Rs. 200
Rs. 110
Rs. 60
Rs. 25

1.00
0.51
0.26
0.0875

Advantages:

At vesting (on maturity), choose from a range of annuity options from us and get guaranteed income for life.
Option to commute up to 1/3rd of the vesting benefit tax free.
The minimum level of death benefit at all times is 105% of the premiums paid.
Enjoy tax benefits on the premiums paid under Section 80CCC of the Income Tax Act 1961, subject to
conditions.

HDFC Life Guaranteed Pension Plan

Dont let market downturns take your retirement savings and your retirement dreams down with them! Presenting,
HDFC Life Guaranteed Pension Plan, a plan designed to help you build and secure your retirement fund to enjoy the
post retirement income.
Main Features:

Guaranteed Additions of 3% of sum assured get accrued for each completed policy year.
A lump sum Vesting Addition payable at vesting.
Premium payment term of 5, 7 and 10 years.
Policy term ranging from 10 to 20 years.
This plan can be taken only on a single life basis.

Eligibility:
The main eligibility and vesting age for this plan as mentioned below;
Policy Term

Premium
Paying Term

10 to 40 Years

5,7 & 10

Entry Age
Minimum
Maximum
35 Years
65 Years

Vesting Age
Minimum
Maximum
55 Years
75 Years

Premium Options:
The premium limits, policy fees and conversion factors are specified as below;
Frequency

Annual
Half-Yearly
Quarterly
Monthly

Minimum
Installment
Premium
Rs. 24,000
Rs. 12,000
Rs. 6,000
Rs. 2,000

Maximum
Installment
Premium
No Limit

Policy Fees Per

Installment

Conversion
Factor

Rs. 200
Rs. 110
Rs. 60
Rs. 25

1.00
0.51
0.26
0.0875

Advantages:

Limited premium paying term with assured benefit on death or at vesting.

On vesting, purchase an annuity from us and enjoy lifetime income- post retirement.
Get a lump sum vesting benefit which is a sum of sum assured on vesting, Guaranteed Additions as well as
Vesting Addition.
Assured Death Benefit of total premiums paid to date accumulated at a guaranteed rate of 6% per annum
compounded annually.
Tax benefit on premiums paid under section 80 CCC of the Income Tax Act, 1961.

HDFC life Pension super Plus

HDFC life pension super plus is a ulip plan designed to safeguard your investments giving you opportunity to build
corpus for post retirement income.
This plan will suit you if, you want high return from stock market but dont want to lose money. This plan provides
you assured benefit of 101% of all premiums.

How to apply
Step 1: Choose your maturity (vesting) age.
Policy Term
(in years)
10/15/20

Entry Age
Minimum
35

Maximum
65

Maturity Age
Minimum
Maximum
55
75

Step 2: Decide the regular premium you wish to invest.

Regular

Minimum
Rs. 24,000
Rs. 12,000
Rs. 6,000
Rs. 2,000
Rs. 10,000

Annual
Half Yearly
Quarterly
Monthly

Top-up

Maximum
No limit

Total top-up premiums paid can be up

to a maximum of total regular
premiums paid till date.

*Each top-up premium will have a lock in period of 5 years

**You cannot pay any top-up premium in last 5 policy years.
Fund Details
Asset Class
Fund Name
Cash, Money Market
Instruments, Deposits
Pension
Super Plus
2012

0%-40%

Liquid Mutual
Fund

Government
Securities, Fixed
Income
Instruments

Equity

40%-100%

0%-60%

Risk and return

rating

Medium

Important Benefits

Death Benefit Nominee will receive higher of the following

Maturity
Benefit

Policy holder will receive higher of the following

Continuation
Benefits

Fund Value
Total premium paid till date accumulated at a guaranteed rate of 6%

Fund Value
Assured benefit of 101% of all premium paid

At vesting, you have to purchase an annuity. You can choose from a range of annuity
options. You will get guaranteed income for life for yourself and your spouse. You also
have the option to commute up to 1/3rd of the benefit at vesting tax free.
Additional allocation of premium (102.5%) from 11th year onwards.

In this plan the investment risk in your chosen investment portfolio is borne by you. This means that the
premiums you pay in this plan are subject to investment risks associated with the capital markets.
The past performance of the fund is not necessarily an indication of future performance. Unit price can go up
or down.

Policy Discontinuance, Revival and Surrender

Grace period: 15 days for monthly and 30 days for annual, half yearly and quarterly
If policy is discontinued before completion of 5 years: Fund value less any applicable discontinuance charges will be
moved to the Discontinued Policy Fund which will earn a minimum guaranteed return as specified by IRDA. You will
receive the amount at the end of 5th policy year.
If policy is discontinued after completion of 5 years: Fund value will be paid to you.

Revival
If policy is discontinued before completion of 5 years: The policy could be revived within 2 years from the date of
discontinuance or until completion of 5 years from policy inception, whichever is earlier.
If policy is discontinued after completion of 5 years: You cannot revive your policy.

Surrender
If policy is surrendered before completion of 5 years: Fund value less any applicable discontinuance charges will be
moved to the Discontinued Policy Fund which will earn a minimum guaranteed return as specified by IRDA. You will
receive the amount at the end of 5th policy year.
If policy is discontinued after completion of 5 years: Fund value will be paid to you.

HDFC Life Single Premium Pension Super

| Benefits | Features
It is a unit linked single premium deferred pension plan which is structured to safeguard your investments. In this
plan, your premium (after deducting allocation charges) will be invested in an exclusive fund. At the end of policy
tern, you will be entitled to the higher of the following

Fund value
Assured benefit of 101% of total premiums paid (including top-ups)

Suitability
This plan is suitable for those who have stored some money but are going to retire after 10 years. They can invest in
this plan and can put in extra money through top-ups.
How to apply
Step 1: Choose your maturity (vesting) age.
Policy Term
(in years)
10

Entry Age
Minimum
40

Maximum
75

Maturity Age
Minimum
50

Maximum
85

Step 2: Choose the single premium you wish to invest.

Minimum
Rs. 25,000
Rs. 10,000

Single
Top-up

Maximum
No limit
No limit

*Each top-up premium will have a lock in period of 5 years

**You cannot pay any top-up premium in last 5 policy years.
Fund Details

Fund Name

Pension Super
Plus 2012

Cash, Money
Market
Instruments,
Deposits

Asset Class
Government
Securities, Fixed
Liquid Mutual
Income
Fund
Instruments

0%-40%

40%-100%

Risk and return

rating
Equity
0%-60%

Medium

Important:

In this plan the investment risk in your chosen investment portfolio is borne by you. This means that the
premiums you pay in this plan are subject to investment risks associated with the capital markets.
The past performance of the fund is not necessarily an indication of future performance. Unit price can go up
or down.

Benefits
Death Benefit

Nominee will receive higher of the following

Maturity Benefit

The nominee has an option to take this amount as annuity

Policy holder will receive higher of the following

Surrender Benefits

Fund Value
101% of all premium paid

Fund Value
Assured benefit of 101% of all premium paid

Please refer to Policy Proceeds

If policy is surrendered before completion of 5 years: Fund value will be moved to the
Discontinued Policy Fund which will earn a minimum guaranteed return as specified by IRDA.
You will receive the amount at the end of 5thpolicy year.
If policy is discontinued after completion of 5 years: Fund value will be paid to you.

Policy Proceeds
As per current regulations, you have following options in case of maturity and surrender of policy:1. Take up to one-third of the benefits as tax free cash lump sum. The rest of the amount must be converted
into annuity.
2. You can use the entire proceeds to purchase annuity.
3. Alternatively, you can utilize the entire proceeds to purchase another single premium deferred plan.
4. Alternatively, you can extend the period by 5 more years provided, maturity age is less than 55 years

ICICI PRU Immediate Annuity

This plan not only ensures guaranteed income but also provides you options to match your needs. The amount of
annuity depends upon the prevailing annuity rates applicable at the time of purchasing the annuity. These rates
remain constant throughout the life of annuitant.
Highlights

Single premium
No medical tests required
5 different payout options
4 pay out modes: yearly, half-yearly, quarterly and monthly

Payout options
1. Annuity is payable till the annuitant is alive
2. Annuity for life time and the purchase price is returned to the nominee on death
3. Annuity is paid to you for life and after your death, your spouse will receive annuity till he/she is alive.
4. Annuity is paid to you for life and after your death, your spouse will receive annuity till he/she is alive. After his/her
death, the nominee would receive the purchase price.
5. Guaranteed annuity for 5/10/15 years as chosen by you and after that, the annuity continues as long as you live.
Eligibility Conditions

Minimum annuity payable is Rs. 12,000 p.a.

Minimum entry age is 45 years.
Maximum age is 80 years.
Minimum entry age for spouse is 20 years.

ICICI Pru Easy Retirement

All individuals strive hard to earn their bread and butter through various means for living. They work to secure the
contentment and security of the family. However, the life after retirement is also important for these working people.
They must secure their savings for the period in which they will not able to earn on their own. Thus, ICICI has brought
Easy Retirement plans for such individuals, who want to secure their old age with ample amount of money. The main
specifications of this plan can be explained as follows:
inimum-maximum premium

Min: 48000 Max: No Limit

Premium payment options

Monthly, half yearly or yearly

Minimum-Maximum age at entry

35-70 Years

Minimum-Maximum age at granting money

45-80 Years

Premium Payment Term

10, 15, 20, 25 or 30 years

Policy term

5 Pay, 10 Pay or regular policy term

Benefits for tax

The tax benefits for the policy will be granted as per

income tax laws

The working method of the policy:

The procedure for the easy retirement plan will go as follows:
1. At the starting of the policy, you have to choose the amount, term for the policy and payment option according to
your convenience.
2. The next step would be to select one fund in which your savings can be invested by the bank. The two options for
the funds are:
Easy Retirement Balanced Fund: This fund allows up to 50% amount as equity and related securities.
Easy Retirement Secure Fund: The amount invested in this fund will go for the debt, monitory instruments and cash
market.
3. The final stage would be paying your premiums regularly as per the deal and enjoy the assured advantage. If you
want to invest top up amount, then you can add the sum to the net fund amount.
The income for the easy retirement plan can be chosen from the three options given as below:
1. Regular Income: Fixed amount of money will be granted on pre-fixed date.
2. Commutation Income: Lump sum amount will be granted containing the one-third of the collected value.
3. Postponed date Income: The money will be granted on the date selected by you, depending on your needs

SBI Life Annuity Plus:

A traditional, non-participating immediate annuity plan, which offers a range of annuity options along with inbuilt
flexibilities. It provides an opportunity to you to maintain your standard of living.

Parameters of SBI Life Annuity Plus:

Age Limits*

Minimum age at entry : 40 years

Maximum age at entry: 80 years

Annuity Payout
(per installment)

Minimum : Monthly: Rs.200, Quarterly: Rs.600,

Half-yearly: Rs.1,200, Yearly: Rs.2,400
Maximum: No limit

Annuity payout mode

Monthly, Quarterly, Half-yearly or Yearly

Premium Amounts

Minimum. : Such that the minimum annuity installment can be paid

Maximum.: No Limit

Features of SBI Life Annuity Plus:

Option to choose from range of Annuity options

Enjoy a regular income from an early age of 40 years
You have an option to have Lifetime Annuity payout for you as well as a family member
Flexibility to choose frequency of annuity payouts Monthly, Quarterly, Half-yearly or Yearly
Incentives of higher annuity rates for large premiums
Option of availing SBI Life- Accidental Death Benefit Rider
Flexibility to advance your Annuity payouts
Return of premium options

Benefits of SBI Life Annuity Plus:

Annuity payable as option chosen

regular income
tax benefit
Accidental Death Benefit Rider

SBI Life Insurance Retire Smart Pension Plan:

Get details on Eligibility, Key benefits, who should buy, Income tax benefits, Check how this plan works.
The Linked Insurance products do not offer any liquidity during the first five years of the contract. The policyholders
will not be able to surrender/withdraw the monies invested in Linked Insurance Products completely or partially till the
end of fifth year
This is a Pension Product. Benefits by way of surrender, complete withdrawal or maturity/vesting will be available in
the form of annuities except to the extent of commutation of such benefits as allowed under the Income Tax Rules.
IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLIYCHOLDER
SBI Life Retire Smart, a non-participating unit linked pure pension plan, which guarantees you minimum of 101% of
all premiums paid, when policy is in force, on Maturity/Vesting; thus the downside risk in the market is protected to a
great extent.

Key Features of Retire Smart Pension Plan:

Your Fund Value is boosted, through guaranteed additions of up-to 210%* of Annual Premium (Conditions
Apply)
Guaranteed Additions of 10% of Annual Premium are paid regularly, starting from the end of 15th policy year
and at the end of every year thereafter till the end of policy term.
Get Terminal Additions of 1.5% of Fund Value, at maturity/vesting or on earlier death.
No need to worry about your investments, as the same is managed on your behalf by SBI Life through
Advantage Plan. This plan guarantees a minimum of 101% of all premiums paid at maturity/vesting.
Get a Guarantee of minimum 105% of all premiums paid on earlier death.
Option to pay premiums regularly or for a limited period.

Benefits:
Maturity/Vesting Benefit: On completion of policy term, you will receive the Higher of (Fund Value Plus Terminal
Addition or 101% total premiums paid).

You have the following options on Maturity / Vesting:

To purchase immediate annuity, from the entire policy proceeds
To purchase a single premium deferred pension product, from the entire policy proceeds
To purchase immediate annuity with an option to commute up-to one-third of the policy proceeds, as per
current Income Tax rules
To extend the accumulation period or defer the vesting date provided you are below age of 55 years at
vesting. The maximum extended period will be up to age 80 years.
Note In case the eligibility criteria of the approved immediate annuity product are not met (e.g. minimum
annuity amount) the vesting benefit will be paid in lump sum.

Death Benefit:
In the unfortunate event of death of the Life Assured, Higher of (Fund Value plus Terminal Addition or 105% of total
premiums
paid
till
the
time
of
death),
is
payable.
The beneficiary can use the death benefit amount, as per the below mentioned options:
Receive the entire proceeds as lump sum
Utilize the entire proceeds of the policy or part thereof for purchasing an annuity, at the then prevailing rate, provided
eligibility criteria of the approved immediate annuity product is met (e.g. minimum annuity amount or age criterion).

Income Tax Benefits:

Premiums paid under the Policy are eligible for tax deduction u/s 80CCC of the Income Tax Act, 1961. On vesting or
on surrender/discontinuance, the policyholder can currently commute up to one third of the policy proceeds as per the
Income Act Tax, 1961. This commuted value is exempted from tax under section 10(10A) (iii) of the Income Tax Act
1961. The non-commuted pension taken in the form of an immediate annuity is currently taxable.Death benefit under
this policy is tax exempt u/s 10 (10D) of the Income Tax Act, 1961.
Tax benefits, are as per the Income Tax laws & are subject to change from time to time. Please consult your tax
advisor for details.
Product Snapshot:

Age^ at Entry

Minimum: 30 years

Maximum: 70 years

Age^ at Maturity/Vesting

Minimum: 40 years

Maximum: 80 years

Policy Term

10, 15 to 35 years (both inclusive)

Premium Paying Term

Regular Premium Same as policy term

Limited Premium
5/8 years Policy Term of 10 years
5/8/10/15 years Policy Term of 15 35 years (both inclusive)

Premium Frequency

Yearly / Half-yearly / Quarterly / Monthly

Minimum Premium Amounts

(x 100)

Premium Frequency

Regular premium

Limited Premium

Yearly

Rs. 24,000

Rs. 40,000

Half yearly

Rs. 15,000

Rs. 20,000

Quarterly

Rs. 7,500

Rs. 10,000

Monthly

Rs. 2,500

Rs. 5,000

Maximum Premium Amount

(X 100)

No limit

* This is applicable for policy term of 35 years and provided the policy is in-force. Guaranteed addition would not
apply to policies where vesting date has been deferred without payment of further premium.
^All the references to age are age as on last birthday.

Aviva Annuity Plus | Features | Benefits

Aviva Annuity Plus is a non-participating, non-linked immediate annuity plan specially designed to provide
you with lifetime income during your post-retirement years.
Immediate annuities are designed to provide you with income immediately, by exchanging your Pension Plan
proceeds. In exchange for this lump sum premium, the insurance company pays you a stream of income as long as
you live.
Key points of the plan are:

Option to select from 5 annuity options to suit your specific financial needs
Annuity amount payable is guaranteed for the life of the policy
Flexibility to enhance the Purchase Price at inception for higher annuity installment

Eligibility:
The main eligibility for this plan is listed as below;
Entry Age

Purchase Price
Annuity Installment
Annuity Frequency

Category of Annuitant
Minimum
Maximum
Aviva pension policyholders
40 Years
80 years
Nominees
of
deceased
Aviva 0 Years
80 Years
pension policyholders
Others
50 years
80 years
Minimum: Rs. 25,000, Maximum: No Limit
Minimum Rs.500 for any of the annuity frequency chosen
Yearly, Half-Yearly, quarterly, Monthly

Benefits: The main benefits of this plan are as follows;

Annuity: The following options are available for annuity payment. Annuity can be paid monthly, quarterly, half yearly
and yearly.
Option I Life Annuity: Annuity is payable till you survive and terminates upon death.
Option II Annuity Guaranteed for 5 years and for life thereafter: Annuity is payable for the first 5 years irrespective
of survival of the annuitant. In case of the unfortunate death of the annuitant, the annuity till the end of 5th year is
paid to the nominee, and then the policy terminates. However, if the Annuitant survives the guaranteed period,
annuity continues till the survival of the annuitant.
Option lll Annuity guaranteed for 10 years and for life thereafter: Annuity is payable for the first 10 years
irrespective of survival of the annuitant. In case of the unfortunate death of the annuitant, the annuity till the end of
10th year is paid to the nominee, and then the policy terminates. However, if the Annuitant survives the guaranteed
period, annuity continues till the survival of the annuitant.
Option iv: Annuity guaranteed for 10 years and for life thereafter: Annuity is payable for the first 15 years
irrespective of survival of the annuitant. In case of the unfortunate death of the annuitant, the annuity till the end of
15th year is paid to the nominee, and then the policy terminates. However, if the Annuitant survives the guaranteed
period, annuity continues till the survival of the annuitant.
Option V Annuity for Life increasing @ 3% per annum simple: The amount of Annuity payable increases @ 3% p.a.
simple rate and is payable as long as the annuitant survives. On the termination of the policy, as per the option
selected, nothing will be payable to the nominees.
Enhance Purchase Price: You have an option to enhance your pension plan proceeds (maturity value) by a lump
sum from your savings. This will increase the Purchase Price for the policy and hence the annuity amount payable.
Tax Benefits: You can avail tax benefits as per tax law in India.

Aviva Next Innings Pension Plan 2014 | Features | Benefits

Aviva Next Innings Pension Plan- a pension plan that helps in building a lump sum through a regular or onetime
investment. This lump sum allows you to get an uninterrupted income throughout your retirement years.
This plan is a unique combination of a built in guarantee to build a lump sum amount to secure regular income for
your retirement years. So go ahead and plan for a great next innings!
Key features:

Guaranteed corpus for retirement which will be 210% of the premiums you have paid, if you continue this
policy till maturity date by paying all due premiums.
Protection for your family in case of death to ensure that your family receives a corpus basis the amount of
premiums you have paid along with an interest.
Limited Premium Payment term to ensure that you enjoy your income without worries when you are nearing
retirement.

Eligibility:
The eligibility criteria for this plan are as follow;
Parameters
Entry Age
Maturity Age
Policy Term & Premium Paying Term

Minimum Premium

Maximum Premium
Premium Payment Frequency

Criterion
42-60 Years
55-78 Years
Policy Term
Premium Paying Term
13
Single
16
5
18
10
Premium Paying Term
Minimum Premium
Single
Rs. 1,50,000
Limited
Rs. 50,000 p.a.
Rs. 5,00,00,000 per life
Single, Annual, Half-Yearly and Monthly

Benefits:
Maturity Benefit: In case you survive till maturity (vesting date), the maturity benefit will be 210% of the premiums
paid, excluding extra premiums and taxes, if any.
Death Benefit: In case of death of the life insured during the policy term, the death benefit paid to the nominee shall
be the higher of:

Premiums paid, excluding extra premiums and taxes, if any, till the date of death, along with interest of 6%
per annum compounded annually.
105% of all premiums paid, excluding extra premiums and taxes, till the date of death.

Tax Benefit: Enjoy Tax benefits subject to conditions contained under sections 80C and 10(10D) of Income Tax Act,
1961.
ING Mera Aashirvad 2014 New Plan: Get details on Eligibility, Key benefits, who should buy & Check how this
plan works.
ING Mera Aashirvad is a child insurance plan that guarantees you the money you need to fulfill your childs dreams.
Your child is assured of the required financial support to fulfill his/her dreams, even if you are not there.

Eligibility:
The main eligibility for this plan mentioned below;
Min/Max Entry Age
Premium Paying Term

Policy Term
Minimum Sum Assured
Maximum Sum Assured

For Parent: 21 50 Years

For Child: 0 -15 Years
Age of the Child (Yrs)
0
1
2
3-15
For PPT (10-14) years
For PPT (15-20) years

PPT Allowed (yrs)

13-20
12-20
11-20
10-20

PPT + 5 Years
Rs 3,50,000
Rs. 4,50,000
No Limit (subject to Underwriting)

Benefits of ING Mera Aashirvad 2014:

The following benefits are given for this plan;
1. Guaranteed Life Cover: In case of an unfortunate event, your family gets a guaranteed pay out immediately which
will be highest of following:

10 times the annual premium

105% of the premiums paid.
Sum Assured

2. Waiver of Premium in case of an unfortunate event: In this plan all the future premiums are waived off in case of
an unfortunate event and policy continues till maturity. This takes away the burden of the premium payment from
your family.
3. Flexibility to receive Periodic Payouts: You have two flexible options to receive the sum assured on maturity:
Option A In 5 Periodic Payouts In this option, sum assured is paid in 5 installments spread over last 5 years till the
policy maturity, as shown in the illustration below. This ensures a spread out payouts over years towards fulfillment of
your childs dreams.

4
3
2
1

Time Period
years before maturity
years before maturity
years before maturity
years before maturity
On Maturity

Payouts
1st Payout = 7.5% of Sum Assured
2nd Payout = 7.5% of Sum Assured
3rd Payout = 10% of Sum Assured
4th Payout = 10% of Sum Assured
5th Payout = 65% of Sum Assured

Option B Lump sum Payment: You can opt to receive the maturity benefit as a lump sum at the end of the policy
term. With this option, you get 5% extra payout i.e. 105% of the Sum Assured is paid on maturity.
4. Guaranteed Tax Free Maturity Benefit: Whatever amount you plan for fulfilling your childs dreams, you are
guaranteed of that amount as sum assured on policy maturity. The sum assured is paid tax free without any
deductions.
You save tax on premiums paid under section 80C and on benefit amounts under section 10(10D) of the Income Tax
Act.

How this plan works?

30 year old Arun has a 1 year old daughter and wants to save Rs. 10 Lacs for her higher education. He saves Rs
53,938 p.a. in ING Mera Aashirvad for 12 years. He opts for lump sum payout. However he unfortunately meets with
an accident in 5th policy year and does not survive. ING Mera Aashirvad offers following financial benefits to the
family:
Premium mentioned is exclusive of service tax

Who should buy?

This plan is suitable for you if you want to guarantee financial help to your child for fulfilling his / her dreams.
You can invest in this if you are in age band of 21 50 yrs and you have a child of up to 15 years of age.

Top 10 Annuity Rates in India Life Annuity option

Top 10 Annuity Rates in India Life Annuity option

In India we have 24 insurance companies who are selling life insurance policies out of which only 16 companies are
selling the pension plans. And only 15 companies are providing the Immediate Annuity option. But not all these
companies are very transparent enough to provide the annuity rates publicly in their websites. We were able to get
the details only from 9 companies. We had ranked the available annuity rates for your reference. We will try to
update the other 6 companys annuity rates shortly.

Life Annuity option

Annuity payable for life at a uniform rate.

In this option, Annuity is payable till the death of the policyholder.
Example: Mr Arun aged 58 has taken an life annuity option and has died at age 70. He will receive the pension till
his death after which the annuity is stopped and the policy gets terminated without any benefits thereafter.

Top 10 Annuity Rates in India

RANK

COMPANY

PLAN NAME

ANNUITY RATE

Life Insurance
Corporation of India

Jeevan Akshay VI

9350

SBI Life Insurance Co.

Ltd.

SBI Life Annuity

Plus

9201

Edelweiss Tokio Life

Insurance Co. Ltd

Edelweiss Tokio Life

Immediate
Annuity Plan

8170

Future Generali India

Life Insurance Co. Ltd.

FG Immediate
Annuity plan

8092

Reliance Life
Insurance Co. Ltd.

Reliance Immediate
Annuity Plan

7840

Aviva Life Insurance

Co. India Ltd.

Aviva Annuity Plus

7816

Star Union Dai-Ichi

Life Insurance Co. Ltd.

SUD Life Immediate

Annuity Plus

7090

IndiaFirst Life
Insurance Co. Ltd

IndiaFirst Annuity
Plan

5166

Birla Sun Life

Insurance Co. Ltd.

BSLI Immediate
Annuity Plan

Rate Not available

10

Bajaj Allianz Life

Insurance Co. Ltd.

Bajaj Allianz Pension

Guarantee

Rate Not available

11

HDFC Standard Life

Insurance Co. Ltd.

HDFC Life New

Immediate Annuity
Plan

Rate Not
available

12

ICICI Prudential Life

Insurance Co. Ltd.

ICICI Pru Immediate

Annuity

Rate Not
available

13

Kotak Mahindra Old

Mutual Life Insurance
Ltd.

Kotak Lifetime
Income Plan

Rate Not
available

14

Shriram Life Insurance

Co. Ltd.

Shriram Immediate
Annuity Plan

Rate Not
available

15

Exide Life Insurance

Co. Ltd.

Exide Life
Immediate Annuity

Life Annuity not

available

*Note : These rates are calculated for age 60 and a purchase price of Rs 100000. The annuity mode chosen
is Annual We can clearly find that the state run insurance company LIC is the top among all the annuity options
available in India. The rate provided by LIC Jeevan Akshay VI for the annuity for life is almost equal to the fixed
deposit rate currently. The most important part is that this rate is fixed for rest of your life.
You have to remember that this is the top 10 annuity rates in India for Life Annuity option only. Other options may
have a different annuity rate varying with companies. Life Annuity is the option which provided highest Annuity rate
among other options available

List of Immediate Annuity plans in India

Immediate Annuity plans

In the Previous post on the pension plans list in India, we had given you the detailed list on the deferred Annuity
plans available in the market. Now we are going to see the Immediate Annuity plans list in India. To know the
various types of Annuities you may read our post on Annuity meaning and its types. Here the name Immediate
Annuity itself suggests that the benefit is received immediately. Here you need to pay a lumpsum amount to the
insurance company and they pay you Annuity(pension) every month starting immediately.
Lets See the Immediate Annuity Plans Available with the Insurance companies in India.

COMPANY NAME

IMMEDIATE ANNUITY

Aegon Religare Life Insurance Co. Ltd.

NOT AVAILABLE

Aviva Life Insurance Co. India Ltd.

Aviva Annuity Plus

Bajaj Allianz Life Insurance Co. Ltd.

Bajaj Allianz Pension Guarantee

Bharti AXA Life Insurance Co. Ltd.

NOT AVAILABLE

Birla Sun Life Insurance Co. Ltd.

BSLI Immediate Annuity Plan

Canara HSBC Oriental Bank of Commerce

Life Insurance Co. Ltd.

NOT AVAILABLE

DHFL Pramerica Life Insurance Co. Ltd.

NOT AVAILABLE

Edelweiss Tokio Life Insurance Co. Ltd

Edelweiss Tokio Life Immediate Annuity

Plan

Exide Life Insurance Co. Ltd.

Exide Life Immediate Annuity

Future Generali India Life Insurance Co.

Ltd.

FG Immediate Annuity plan

HDFC Standard Life Insurance Co. Ltd.

HDFC Life New Immediate Annuity Plan

ICICI Prudential Life Insurance Co. Ltd.

ICICI Pru Immediate Annuity

IDBI Federal Life Insurance Co. Ltd.

NOT AVAILABLE

IndiaFirst Life Insurance Co. Ltd

IndiaFirst Annuity Plan

Kotak Mahindra Old Mutual Life

Insurance Ltd.

Kotak Lifetime Income Plan

Life Insurance Corporation of India

Jeevan Akshay VI

Max Life Insurance Co. Ltd.

NOT AVAILABLE

PNB MetLife India Insurance Co. Ltd.

NOT AVAILABLE

Reliance Life Insurance Co. Ltd.

Reliance Immediate Annuity Plan

Sahara India Life Insurance Co. Ltd.

NOT AVAILABLE

SBI Life Insurance Co. Ltd.

SBI Life Annuity Plus

Shriram Life Insurance Co. Ltd.

Shriram Immediate Annuity Plan

Star Union Dai-Ichi Life Insurance Co. Ltd.

SUD Life Immediate Annuity Plus

Tata AIA Life Insurance Co. Ltd.

NOT AVAILABLE

Out of 24 Life insurance companies in India, Only 15 are having Immediate Annuity plans. This shows how difficult it
is to maintain Annuity plans. This is because of the long term commitment of these type of plans. Once the client
buys a Immediate annuity plan, the company is liable to pay pension to the client till his whole life term.
We are working on the Top 10 Immediate Annuity Plans in India which will be released Soon. And You may request
for individual reviews of any of these plans in the comment area.

SOLVENCY RATIO OF LIFE INSURANCE

COMPANIES IN INDIA

SOLVENCY RATIO OF LIFE INSURANCE COMPANIES IN INDIA

SOLVENCY RATIO
In India we have many life insurance and general insurance companies. All these companies are bind by rules and
regulations as and when described by IRDA. To Maintain solvency ratio is also a main regulation to be followed by
all the insurance companies in India. Solvency ratio is a main factor which enable us to find out the capacity of life
insurance companies to survive for long term.
This is also a main point to be discussed before choosing a life insurance company in India.
Insurance being a risky business and unforeseen events might occur sometimes, it may result in higher claims
which was not expected earlier. For example, calamities like the Jharkhand floods, Gujarat earthquake, Tsunami,
fire, etc may bring huge number of claims to the insurance company. The solvency of an insurance company refers
to its ability to pay claims. The Solvency ratio is a way you can measure the companys ability to meet its long term
obligations. An insurer is insolvent if its assets are not enough or cannot be used of in time to pay the claims arising.
It is the extra capital that an insurance company is required to hold at any point of time. As per the IRDA (Assets,
Liabilities, and Solvency Margin of Insurers) Rules 2000, both life and general insurance companies need to
maintain solvency margins. Life insurance companies are expected to maintain a 150% solvency margin. The higher
the ratio, better equipped a company is to pay off its claims and survive in the long term.
I had bought you the solvency ration of life insurance companies in India for your reference. You can also
refer solvency ratio of general insurance companies in India here.

SOLVENCY RATIO OF LIFE INSURANCE COMPANIES IN INDIA

COMPANY NAME

2014

2013

2012

2011

2010

AEGON RELIGARE LIFE

INSURANCE

2.28

1.91

2.62

3.22

2.66

AVIVA LIFE INSURANCE

4.15

4.23

5.15

5.4

5.12

BAJAJ ALLIANZ LIFE INSURANCE

7.34

6.34

5.15

2.86

2.68

BHARATHI AXA LIFE INSURANCE

2.09

1.82

2.34

2.14

1.68

BIRLS SUN LIFE INSURANCE

1.86

2.67

2.99

2.89

2.11

CANARA HSBC LIFE INSURANCE

3.59

3.84

2.6

3.07

2.58

DHFL PRAMERICA LIFE

INSURANCE

5.37

2.67

2.31

2.53

1.67

EDELWEISS TOKIO LIFE

INSURANCE

2.2

1.96

2.41

NA

NA

EXIDE LIFE INSURANCE

2.39

1.8

2.16

1.79

10

FUTURE GENERARLI LIFE

INSURANCE

3.18

4.17

3.86

2.21

2.34

11

HDFC STANDARD LIFE

INSURANCE

1.94

2.17

1.88

1.72

1.8

12

ICICI PRUDENTIAL LIFE

INSURANCE

3.72

3.96

3.71

3.27

2.9

13

IDBI FEDERAL LIFE INSURANCE

4.72

4.9

6.61

6.6

4.05

14

INDIAFIRST LIFE INSURANCE

2.47

4.2

7.71

6.36

5.27

15

KOTAK MAHINDRA OLD MUTUAL

LIFE INSURANCE

3.02

5.21

3.06

2.67

2.79

16

MAX LIFE INSURANCE

4.85

2.07

5.34

3.65

3.22

17

PNB METLIFE INSURANCE

2.28

2.93

1.65

1.69

1.65

18

RELIANCE LIFE INSURANCE

4.42

4.29

3.53

1.66

1.86

19

SAHARA LIFE INSURANCE

6.84

5.78

5.28

4.82

4.5

20

SBI LIFE INSURANCE

2.28

2.15

5.34

2.04

2.17

21

SHRIRAM LIFE INSURANCE

6.41

5.59

4.99

3.96

2.69

22

STAR UNION DAICHI LIFE

INSURANCE

2.38

3.46

5.67

6.7

7.46

23

TATA AIG LIFE INSURANCE

4.09

3.41

2.84

2.16

2.11

24

LIC

1.54

1.54

1.54

1.54

1.54

All the 24 life insurance companies in India are supposed to maintain 1.50 as solvency ratio.
Solvency Ratio =

From the above table we can understand that

Bajaj Allianz life insurance is having the highest solvency ratio(7.34) in 2014. The only Public sector life insurance
company LIC is having a solvency ratio of 1.54 which is slightly more than the required ratio. This is because of the
fact that LIC is operating in India from 1956. So a company with lesser solvency ratio may not indicate weaker
company profile.But in the other side, A higher solvency ratio indicates strong company profile.

Retirement Guide How to retire with Pension

Retirement Guide-How to retire with Pension:

Age wise guide
In todays scenario, with improved life expectancy rate many of us can expect 45 years in employment followed by
30 years of retirement, possibly living on until youre in your nineties.
Now think. How sure are you that your pocket is full for the whole three decades when you dont have income? Very
simple answer is to Plan Effectively and immediately.
Decided to plan? Now ask yourself how?and how much? when? and till when?. It all varies and depends on how far
you have run through your life(i.e. Your age)
So to Make it easier, we had got this very easy guide to ensure that you Retire Rich.

Retirement Guide-Age in Twenties (20-29)

To do things:

Clear All your debts and EMIs

Start saving immediately. Open a individual Savings account

Save your surplus whenever available

In your Twenties you might be still studying probably till 23 to 25. You will be having your first job with regular salary.
Your retirement will not be there in the near future. So you can give little lesser importance to retirement now. It is
quite acceptable to have other financial commitments on first priority at this age.
You have to look at closing your education loans, personal loans, car loans and credit card dues. It is advisable to
be debt free before your thirties. But still you have to consider saving something. Even a single rupee savings is
better than to have zero savings. To start building for pension at this early age will give you a very big retirement
fund for sure in your later years.
One of the best way to save is to open up an Recurring deposit or SIP Mutual Funds. You might even start an
personal savings account and start saving regularly in it.

Retirement Guide-Age in Thirties(30-39)

To do things:

Evaluate your current Debts and Monthly commitments on it.

Open up an PPF( Public Provident Fund)account

Think only long-term with your investments.

Now youre in your 30s. This is the most busy time in your life. Some of you may be getting married or may be
starting new family or may be starting child education and may be building your new house or even all the above
said three together.
You should be very balanced in both paying of your debts and at the same time saving for your future. You should
be clearing off all your unsecured debts( Credit cards and personal loans) at the earliest.
Once you are done with this, you should not waste any time for starting. You have to start saving immediately.First
try to find out is there any pension schemes available with your organisation. If no, then start an PPF account
immediately and start contributing in to it.

You are in thirties and therefore have a decent amount of years left in future to increase your savings. You can
prefer risky investments life shares and mutual funds now because these two investments give more returns than
any other investments.

 Retirement Guide-Age in Fourties( 40-49)

To do things:

Start saving for your pension immediately if not started already!

Keep building your savings account balance

You are at the peak earning years Contribute more to your pension savings.
Now you should have already started your retirement savings. If not you should act immediately and start for your
pension immediately without making any delays. Its already late but not too late. It will require just a little extra effort
to increase your retirement savings.
Make the most of increments, incentives and bonuses to boost your retirement savings, rather than simply
increasing your expenses every time.you have to take your retirement planning seriously, and that means planning
your target retirement age and understanding what is your retirement. You might not be able to paint an accurate
picture of your retirement just yet, but you should be thinking about it lifestyle.
The least you should have is an PPF account. Keep contributing to this over the years and try to build up your taxfree savings.

Retirement Guide-Age in Fifties( 50-59)

To do things:

Decide Retirement Age

Contribute Contribute Contribute

Remove market risk from your pension investment Funds

We had reached the most serious part of your life. Here in this age category, we are about to reach our retirement
age. All the savings done in the past for our retirement age will give you a lump-sum amount available to plan your
pension. You have to decide on what date you want to retire. This might not be more decisive but may give you a
good clarity on your retirement. Then evaluate what type of income you need.
And then Evaluate your pension savings and where its invested. You have to reduce the equity exposure for your
pension funds. And make sure that the market volatility doesnt affect your savings.
Withdraw all the money from shares and invest in safer debt instruments. Maximize your savings to create a good
healthy pension amount.

 Retirement Guide-Age above Sixties( 60+)

Key points:

Decide on whether youll buy an annuity immediately or can wait for few more years

Do Not take any Risky investment path

You are almost at the retired point or to be retired soon point. Here in this decade you are about to take the most
important decision of your life. All that you saved in the last three decades are to be used for you rest of your life.
You had done the right things at right time to create a good corpus for your retirement. Now you are going to decide
on how you are going to use this amount to give you the income required for your rest of your life.
This is the last decision you are going to take for your future life. So think wiser before deciding. Decide on to buying
annuities. Annuity is the best guaranteed option to give your regular income for the rest of your life time.
You can find the list of Immediate Annuity plans in the below Link.
List of Immediate Annuity plans in India
By the way, you may come across many lucrative, attractive more fancy investments schemes that may provide you
with more than 15% returns. You have to ask to yourself the following questions to be sure that your retirement life
is secured.

1. Is the income Guaranteed?

2. How long is the Income Guaranteed?
3. Will it be there in writing about this Income Guarantees?
4. Is the returns projected or committed practically possible?
These Questions will keep you out of the scammers and unscrupulous people who aim at pushing you into their net.
Dont ever give your ears to the illogical and unrealistic returns promised by many scammers.
It is your hard earned money from the past 3 or 4 decades. You have to be so careful in planning the income from
the pension fund you have. The safe and best option is to go for an Immediate Annuity plan

PRESENTED BY MR.PRADEEP PATIL

The Author is Retired Development Officer from Life Insurance Corporation of India. He is engaged in this profession
since 1978, He has published many articles on the Life Insurance concept on many social media. The very purpose of
brining this article is to educate the Marketing Force of LIC.