Currently only LIC offers pension products.
Private players have started finalizing their pension products and approaching IRDA for approval. HDFC Life is among the first private player to launch a pension product. It will be followed by Reliance Life who is also looking at launching a pension product soon.
“There is a dearth of pension products in the market and we want to explore it. But IRDA is scrutinizing every pension product minutely. So, insurers have to be careful while planning the products,” said CEO of a top private life insurance company.
According to the new
guidelines issued in January, pension products will have to guarantee an
assured benefit in the form of a non-zero rate of return that would be
disclosed upfront. Earlier, insurers were required to give a 4.5% guarantee on
pension products.