Pension products to come with assured benefits: Irda

Thursday 10, November, 2011 New pension guidelines will be applicable to both linked and non-linked plans. Though guarantees on pension products would remain, insurers would now have more flexibility. According to the final guidelines on pension products released by the Insurance Regulatory and Development Authority (Irda), insurers have the option of choosing between offering either positive returns on premiums paid during the period of the contract, and guaranteed maturity benefits. "The second option - guaranteed maturity benefits - would be more attractive to customers. But insurers would take a cautious approach towards investments if they have to give guarantees, and returns are likely to suffer," said Aneesh Khanna, senior vice-president, IDBI Federal Life Insurance.

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