Sep 04, 2025
Dechen Dolkar
The Royal Insurance Corporation of Bhutan Limited (RICB) launched two new products yesterday, the Deferred Annuity Scheme and Kuenphen Tshesog Ngenchoel yesterday, to provide social and financial security to the Bhutanese people.
RICB’s Chief Executive Officer, Karma, said that the schemes are designed to ensure long-term financial security and a stable passive income. He added that both schemes are also 100 percent tax-deductible.
Deferred Annuity Scheme
The Deferred Annuity Scheme aims to provide Bhutanese citizens with a reliable source of retirement income. Individuals can make regular contributions and receive guaranteed payouts upon reaching their chosen vesting age.
The annuity options available are a life annuity, a life annuity guaranteed for 10 years, a joint life annuity, and a joint life annuity guaranteed for 10 years.
Customers can also opt for additional life insurance coverage ranging from Nu 100,000 to Nu 500,000, with protection up to the age of 70.
General Manager of RICB’s Life Insurance Department, Lungten said that annuity rates are determined at the time of payout, based on prevailing interest rates.
Once guaranteed, payouts continue for life or for the chosen guaranteed period. At vesting, the accumulated fund is converted into annuity payments according to the selected option.
The eligibility age is 18 to 60 years, with vesting ages of 50, 55, 60, or 65 years. The minimum contribution is Nu 1,000 per month for at least five years, up to the vesting age, and the minimum fund required for annuitization is Nu 100,000.
Lungten added that if the policyholder dies before vesting, the accumulated fund will be refunded to the nominee or spouse. If the policyholder dies during the payout period, annuity payments cease.
However, under the 10-year guaranteed option, remaining payments will go to the nominee, In the joint life annuity, the surviving spouse continues to receive payments.
Kuenphen Tshesog Ngenchoel
Kuenphen Tshesog Ngenchoel is a pure term insurance product designed to provide financial security to families in the event of the policyholder’s death.
The plan offers flexible coverage from Nu 100,000 to Nu 10 million, with policy terms ranging from 5 to 40 years. It is available to individuals aged 18 to 60 years, with coverage lasting up to 70 years.
An optional critical illness cover rider is also available, providing a lump-sum payout if the insured is diagnosed with specified serious illnesses.
Kuensel