The personal pension policy, once a popular insurance scheme offered by the state-owned Jiban Bima Corporation, has been scrapped for not being sufficiently profitable. The corporation issued a circular on Dec 1 last year halting further sales of the policy as recommended by its actuarial consultant.
"The recommendation of the actuarial consultant has been approved by the directorial board in its 624th meeting," the circular said.
Although new policies will not be sold, the existing policyholders will receive all benefits, said Jiban Bima Manager Mizanur Rahman.
"The corporation accepted the actuarial consultant's recommendation. They said that the personal pension policy wasn't profitable for the corporation. The sale was then stopped and now people are demanding to resume the sale," he said. The policy was introduced to cater to people from any profession.
The most attractive part of the policy was that it ensured financial security in case of the untimely death of the policyholder during his work life and provided a pension until death if they lived after retirement.
The nominee used to receive an amount 30 times more than the annual premium if the policyholder died in an accident or within 30 days of the accident.
The policyholders could pay half-yearly or yearly premiums for the personal pension policy. In case the policyholder died within 10 years of buying the policy, the nominee would receive the pension for the rest of the time.
Since the policy had a feature for income tax exemption, the policyholder could also take out a loan against it.