The money will be locked in for a minimum of 5 years.
"Or you can tailor this policy for a variety of needs other than retirement, such as education needs of children," Schaffter said.
He said the firm was also working on a plan to eventually incorporation health insurance into the plan.
Update II Janashakthi Insurance deputy chairman Chandra Schaffter said only 5 percent of the population had retirement cover at a time when the island's over 65 population was expanding rapidly.
"More and more people are living longer than we expected and they are becoming a burden on the state or working population," Schaffter told reporters in Colombo.
"One problem is dying too young; the other is living too long.
So retirement planning is very important today."
The 'Janashakthi LifeSaver' branded retirement plan could be purchased by anyone at any age. Even at 75 a policy could be started with a lump sum premium, he said.
The policyholder can decide on a pension plan