LIC launches unit-linked pension plan

The south central zone of insurance behemoth, Life Insurance Corporation of India, has launched a unit-linked pension plan -- Future Plus -- in Hyderabad on Friday.

Future Plus, a deferred pension plan, is available with or without life cover and can be taken as a single premium policy or under regular premium payment mode.

The plan comes with riders like accident benefit and critical illness. This apart, an investor can also choose his/her fund composition based on the risk appetite.

Four free switches between the funds (bond, income, growth or balanced) will be permitted during a year. The maturity proceeds will be paid as pension at prevailing annuity rates. The policyholder has the option to get the pension from any pension provider.

Addressing a press conference, A K Sahoo, regional manager (marketing), LIC (south central zone), said, "By March 31, 2005, we are targetting an overall composite premium of Rs 1,550 crore (Rs 15.50 billion) from the zone."

The south central zone has so far collected a premium of around Rs 1,000 crore (Rs 10 billion) this fiscal.

"We are looking at collecting a sum assured of Rs 36,400 crore (Rs 364 billion) by this month-end and have crossed the Rs 19,000-crore (Rs 190 billion) mark as on this date," Sahoo said.

"Around 40 per cent of our total yearly business is earned during March. We are, therefore, positive of crossing the 46-lakh mark in terms of number of policyholders by March end, from the current 2.6 million," he added.