Aditya Birla Sun Life Insurance Secures IRDAI Approval for Index-Linked Guaranteed Annuity Plan
The plan allows policyholders to customise the proportion between guaranteed and variable annuity components, enabling them to balance income stability with growth potential.
‘Index Guaranteed Annuity Plus’ to combine guaranteed income with Nifty 50-linked variable returns
Mumbai: Aditya Birla Sun Life Insurance Company Limited (ABSLI) has received approval from the Insurance Regulatory and Development Authority of India (IRDAI) for its new product, ABSLI Index Guaranteed Annuity Plus — a single or limited/regular premium index-linked annuity plan designed to provide lifetime retirement income.
The product, scheduled for launch in March 2026, offers a combination of guaranteed and variable annuity payouts linked to the performance of the Nifty 50 benchmark index.
The plan allows policyholders to customise the proportion between guaranteed and variable annuity components, enabling them to balance income stability with growth potential. Customers can opt to receive annuity payouts immediately or defer them, depending on their retirement planning needs.
The plan offers three annuity options: life annuity with guaranteed income for life; life annuity with return of purchase price to the nominee upon death; and deferred life annuity with return of premium, allowing customers to start income at a later date while ensuring return of all premiums paid to the nominee in case of death.
Kamlesh Rao, MD & CEO, ABSLI, said the approval marks an important step in expanding retirement solutions that combine stability and market-linked growth potential. He noted that the product enables customers to tailor lifetime retirement income through a mix of guaranteed and variable payouts.
The plan will be available to individuals aged 40 to 80 years, subject to the chosen option. Premiums can be paid as a single payment or through limited/regular premium terms ranging from two to 10 years.
According to ABSLI, if a 50-year-old customer opts for a 10-year premium payment term with a 60:40 allocation between guaranteed and variable components and begins receiving annuity from age 60, the first-year annuity rate could be 11.64%, compared with 8.91% under its existing fully guaranteed annuity plan, based on historical Nifty 50 returns. The company said this illustrates the potential 2.73% differential in annuity rate, though actual payouts will depend on market performance.
The insurer cited findings from its ABSLI अ-Nishchit Index 2.0, which highlighted rising retirement anxiety in India due to factors such as insufficient planning, healthcare costs, inflation and financial independence concerns. The new product aims to address these gaps by offering a flexible, future-ready income solution.
ABSLI clarified that the annuity rates illustrated are hypothetical and based on historical index performance, and that returns under the variable annuity option are subject to capital market risks. Guaranteed benefits remain subject to policy terms and conditions.
