On Monday 7 June, the Reliance life insurance Company had announced the launch of a non linked pension plan coupled with the guaranteed returns. The executive director and president of Reliance life, Mr. Malay Ghosh had announced this plan in Mumbai on Monday. It is the first traditional retirement golden year plan of the insurance company which offers the advance guaranteed returns on investments, year on year, as a key differentiator in the pension market.

The golden plan has been launched for the people to make their life free of any worry after retirement and to also help the policy holders save systematically. Mr. Ghosh also told that, “it is the only traditional plan in the market which caters to the need for the guaranteed returns at retirement”. Along with this traditional golden years plan, the Reliance life insurance company in India is also providing the simple yet effective gateway for customers to build their retirement life financially secured with the retirement kitty.

The plan is the regular premium retirement plan which will provide the guaranteed return and the return will declared at the beginning of every financial year during the term of product. The accumulation rate for financial year 2010-2011 is 7.75 percent per annum and this rate will be not less than the saving bank deposit interest rate. The golden plan announced by the reliance life insurance Company in India is one of the few pension products that offer the separate account and accumulation account for each policyholder to maintain the investment returns for every year and disclose all charges made by the insurer.

The plan is not limited for a certain age, it is for different age groups starting from 18 years to till 75 years with the various payment options such as monthly, quarterly, half yearly and yearly but the vesting age varies between the 45 years and 85 years. Apart from the maturity and tax benefits, the Reliance Life insurance Golden Years Plan also offers tax-free commutation up to one third of fund value at the vesting age and the people can purchase an annuity with the balance amount from RLIC or for any other service provider.