Aegon Religare Life launches tax-free single premium policy

Hyderabad: Aegon Religare Life Insurance, a joint venture between Netherlands-based life insurance and pension fund company Aegon and the Ranbaxy-promoters' company Religare, has launched the Aegon Religare Guaranteed Return Plan, a tax-free single premium policy.

"The scheme is an attractive long-term investment product, that provides the benefit of life cover-five times of the single premium paid," Aegon Religare's CEO Rajiv Jamkhedkar said.

Under this policy, the company is assuring a fixed annual compounded return of 7.2 per cent while at the highest tax bracket the guaranteed returns are equivalent to a pre-tax return of 10.9 per cent, Jamkhedkar said.

With a minimum subscription of Rs 50,000, the policy accepts single premium with a maximum cap of Rs 4 lakh. The plan is available in two maturities - 7 and 10 years. The insurance cover would be five times the premium paid. The new plan is close-ended and the firm will keep it open for subscriptions till 31 January 2009.

''We will deploy the proceeds only in the debt market. We have already acquired the assets for deployment and based on that we have decided to make the plan close-ended. The company is targeting individuals having cash with a long-term deployment plan.

"The policy guarantees tax-free returns along with life cover," Jamkhedkar said adding that the policy was available from December 2008 to January 2009.