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ULIP Review: IDBI Retireinsurance Milestone Pension Plan

 
Product Details

IDBI Retireinsurance Milestone Pension Plan is single premium unit linked pension plan. The plan does not insure the policyholder's life. It is more of an investment plan that allows one to accumulate funds till vesting age. This product comes with the Pension Return Guarantee Fund that offers guaranteed returns linked to RBI's reverse repo rate. On maturity, only one-third of the amount can be taken as a lump sum. It is mandatory to buy an annuity with the balance money.
   
Our View

It is a cost-efficient scheme, but pension plans have lost their sheen as it is now compulsory to buy an annuity on surrender as well as maturity. Also, the guarantee attached to pension schemes means fund managers are more conservative.

Unique Feature

The cost structure of the scheme is lowest among peers. This means more funds are allocated for investment. Also, the minimum vesting age (maturity age) in Milestone Pension Plan is only 40 years compared to 45 years for peers.

For Existing Customers

Stay invested as the plan is more cost efficient than peers. Also, one can't surrender it in the first 5 years. Even after that, two-thirds of the amount has to be used to buy annuity. Those with a high risk return appetite may switch to the Guaranteed Growth Fund as it has some equity exposure.

For Those Looking to Invest

Those interested in accumulating money for retirement should invest in a provident fund or any other investment avenue that gives more than 6% returns. Also, rather than a single-premium mode, it is better to opt for regular premium as one-time premium may not be sufficient.
 

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Also, know how to buy mutual funds online:

 

1) DSP BlackRock Mutual Funds:

http://prajnacapital.blogspot.com/2011/05/buying-dsp-blackrock-mutual-funds.html

 

2) Reliance Mutual Funds:

http://prajnacapital.blogspot.com/2011/06/buying-reliance-mutual-funds-online.html

 

3) Reliance Mutual Funds:

http://prajnacapital.blogspot.com/2011/07/buying-hdfc-mutual-funds-online.html

 

4) Sundaram Mutual Funds:

http://prajnacapital.blogspot.com/2011/07/buying-sundaram-mutual-funds-online.html

 

5) Birla Sunlife Mutual Funds:

http://prajnacapital.blogspot.com/2011/06/buying-birla-sunlife-mutual-funds.html

 

6) UTI Mutual Funds:

http://prajnacapital.blogspot.com/2011/06/buying-uti-mutual-funds-online.html

  

7) SBI Mutual Funds:

http://prajnacapital.blogspot.com/2011/06/buying-sbi-mutual-funds-online.html

 

8) Edelweiss Mutual Funds:

http://prajnacapital.blogspot.com/2011/06/buying-edelweiss-mutual-funds-online.html

 

9) IDFC Mutual Funds:

http://prajnacapital.blogspot.com/2011/06/buying-idfc-mutual-funds-online.html

 

 

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