Kolkata: With an ever-growing life expectancy rate in India and the growing tendency to opt for retirement at a functional age, insurance companies are thinking out of the box to woo the millennials.
Private life insurance company, Bajaj Allianz, today launched in Kolkata a unit-linked life insurance plan that provides coverage till the age of 99 years while a customer pays premiums for a maximum of 25 years.
Named ‘LongLife Goal’, an insurer can start reaping the benefit of the policy on turning 55 years or on the 10th year of the policy, whichever is later.
The minimum monthly premium under the plan is Rs 5,000.
Speaking at the launch, Dheeraj Sehgal, chief institutional business officer at Bajaj Allianz, said that it will be entirely at the discretion of a policyholder as to what percentage of premium s/he wants to invest in equity funds.
“There is absolutely no minimum threshold as regards investment in equity funds. The customer will be free to make his own decision keeping in mind the corpus of money that he seeks to get as retired life income,” Sehgal said.
He added that there are eight fund options the company is offering to the customers to choose from.
The minimum premium payment term is 10 years and the maximum is 25 years, while the coverage duration is 99 years. The lock-in period is 5 years, after which, one can make partial withdrawal up to 12 per cent of the premium paid.