Retirement Planning – Do Pensions Still Exist?

As you progress towards the end of your retirement from your job, you may already have achieved a good house, a good car a healthy lifestyle and a great family. But there is one thing which is still much needed to maintain all these things and that is a fixed income. Pension plans gives you that ability to achieve that goal. It is as important as a Mediclaim policy. The financial freedom provided by the pension plans to enables you to choose, decide and make your own decisions. These plans are provided by both govt. and private insurance companies.


What are Pension Plans?

The main objective of the pension plan is to generate a regular income for a person after his retirement from the job. In order to avail a pension plan, a person needs to invest annually or monthly into the plan for over a period of time in order to get the final lump sum or monthly income back form the insurance company.  An individual can invest the money received on retirement form various government agencies into various plans.

The different types of plans available in the market are:

Immediate Annuity Plan:  As per this plan, the lump sum is to be deposited for the fixed payments throughout the life.

Deferred Annuity Plan: As per the policy holder needs, the pension is not immediately paid. If the policyholder is still living at the end of policy the whole amount invested previously is reinvested along with the interest and bonuses to generate a regular income for the policy holder. For eg: LIC Jeevan Nidhi Plan. This type of plan is suitable for the individual who is still working and still have few years to retire.

Annuity Certain: As per this plan the insurance company pays fixed amount of money as per the fixed term.

Guaranteed Period Annuity: As per this plan if the policyholder dies before the term hands the nominee continues to get the benefit of monthly pension. For eg: If Policy holder dies after 4 years in the term plan of 10 years, then the nominee gets the remaining 6 years of monthly pensions.

Life Annuity: In this plan, the policyholder is paid a fixed amount of income every month. If the policyholder dies the nominee gets the maturity amount along with the interest and the bonuses associated with the policy.

The major key players which provide the Pension Plans in the market are: – LIC. ICICI Prudential, Max New York, Aviva, Kotak, TATA AIG etc.

The various plans can be found at policybazaar.com website. Their terms, sum assured and bonuses can be compared and can get instant quotes. This will help you to choose the best plan with maximum benefits which will help you to plan your retirement. The plans at policybazaar.com can be paid online and from time to time the premiums and sum assured can be checked. The excellent customer service helps you to choose the best policy for your kind of income and lifestyle.

Pension Plans for Individual allows you to look into the future and plan for some unplanned expenditure during your retirement age.



Source by Elex Martin

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