Generali launches pension plan to close India savings gap

Bonuses begin accruing from the first policy year under the new participating product.

Generali Central Life Insurance unveiled a participating pension plan in India aimed at helping customers build retirement savings, as the country's ageing population grows and pension penetration remains relatively low.

The Sunehra Pension Plan is a participating, non-linked pension and savings life insurance product that allows policyholders to build a retirement corpus whilst providing life insurance cover. 

The insurer said bonuses begin accruing from the first policy year.

The launch comes as India's elderly population is projected to increase from 10.5% of the population in 2022 to about 20.8% by 2050. 

At the same time, pension assets account for around 17% of the country's gross domestic product, compared with about 80% in developed markets, highlighting the need for greater retirement planning.

The plan offers policy terms ranging from five to 40 years and includes death and vesting benefits. 

Customers can choose between single, limited or regular premium payment options and make partial withdrawals during the policy term in the event of financial emergencies. Optional riders are also available.

On maturity, policyholders receive the higher of the sum assured on vesting plus accrued bonuses or 105% of total premiums paid. 

If the policyholder dies during the policy term, nominees receive the higher of the assured death benefit plus accrued bonuses or 105% of total premiums paid.