This plan assists you in securing your post retirement life financially. Choose from multiple options.
For planning your retirement, there are heaps of pension plans available in the market. These plans are different from each other. Their benefits, features, exclusions etc. are different too. Pension plans are basically an investment or saving tool that cater future retirement needs.
Under the same, the insured will get a regular income via an annuity plat during your post retirement days. Annuity plan is a form of insurance plan that pays regular income from the started and rest depend upon the features of the plan chosen by you.
Types of Pension Plans in India
There is no doubt in saying that pension plans are there to provide peace and comfort during post retirement days and it will be there to fulfill all your financial desires when the regular income cease. But nowadays there a wide range of pension plan to choose from
Pension plans offer a sense of peace, comfort and security once your working life ceases. But there are multiple types of pension plans offered by different insurers. Let's have a look here:
With cover and without cover pension plans: Here, there is a "life cover" in the "with cover" pension plans. Under the same, the insure pays a lump sum to the family of the insured post in case of his/her death. The cover value is not really high under the "with cover" option. However, under the "without cover pension plans" do not offer life cover. Under the same, only the premium amount along with interest will be paid to the nominee on the death of the insured.
Deferred Annuity: Here, this form of pension plan allows you to pay premiums either with a single premium or through regular premiums. The pension commences once the policy term completes. You get good tax benefits. Rather, the funds are tax-free unless you plan to withdraw during an emergency.
Immediate Annuity: Here, the pension begins immediately once you deposit a lump sum amount. The pension however depends on the amount you invested as lump sum. Under Income Tax Act, 1961, the premiums that you pay are exempted for tax purpose. The beneficiary gets a compensation in case of the death of the insured depending on the annuity option chosen.