HNB Assurance launches unique guaranteed monthly pension plan

Thursday, 28 August 2014 00:00 - - {{hitsCtrl.values.hits}}

‘my pension’ offers solution for depleting interest rates, meets needs of senior citizens

HNB Assurance yesterday launched the ‘my pension’ plan to ensure financial independence for its customers after retirement. With this guaranteed monthly pension plan, HNB Assurance becomes the first insurance company in Sri Lanka to take such an initiative. The product primarily caters to the needs of elderly citizens. ‘my pension’ ensures financial security for retirees who are looking to secure a fixed monthly income for life in exchange for a lump sum investment, without being affected by the fluctuating interest rates.

HNB Chairperson Dr. Ranee Jayamaha presenting the first policy to Naveen Ceramics Chairman S. Dayalan as HNB Assurance Managing Director Manjula de Silva (left) and HNB CEO Jonathan Alles look on – Pic by Lasantha Kumara

Addressing the media at the launch event, HNB Assurance Managing Director Manjula De Silva highlighted the all-time low interest rate average of 6.5%, stating that this was the perfect solution for the trending low interest rates as the pension scheme would offer a fixed average interest of 10.5%. The pension scheme requires a single investment in the value range of Rs. 1 to 25 million. After this initial payment is made, policyholders needn’t worry about further payments and can enjoy the premium for the rest of their lives. Policyholders should be between the ages of 55 to 80 in order to be eligible for the pension scheme. The pension plan includes a further benefit of life cover effective for the first 10 years. The value of the cover will be 110% of the premium paid less the total monthly pension up to the date of demise. De Silva further elaborated the importance of the pension scheme by saying: “This is also a social contribution because by 2041 over 25% of the population in the country will be over the age group of 60.” HNB Managing Director Jonathan Alles stated: “This is the need of the hour as it makes sense from a macroeconomic point of view and also a social level.” Alles added that it adheres to all the segments in a positive manner and stressed that the Central Bank has contributed to and overseen the whole process. He also pointed out that the pension market has been drawing attention in recent times and HNB plans to support consumer requirements by extending its services to meet a variety of needs by entering the market as a key player. Alles noted that the ‘my pension’ scheme provides a more simple and flexible structure for customer convenience.