No matter how much you try, you cannot hold the golden time in your life. Requirements and financial stability change at the time and one needs to be well-prepared for the future need keeping in mind the present.
A pension plan is a way to secure the financial stability after retirement. Pension plans maintained by the employers will ensure an individual protection from any uncertainty that may arise in post-retirement life.
We need to realise pension plans are as important to make life easier as taking care of vehicle, property, assets, and health. One may find it a boring task at a young age to invest in such a long-term policy, but, after retirement, an individual will get the benefit of all the small funds that he/she invested in the pension policy at a grand level.
A pension plan allows an individual transfer a portion or a part of his/her income or salary in a fund that will benefit the individual after retirement. The small part of the current income work secures the post-retirement life of an individual against the financial need such as healthcare or security. No matter how much one tries to save for future need, with rising cost of the living and the need to experience a leisurely life, we may face a shortfall of money. So, it is very important to maintain a different fund for the future security. An individual can enjoy the post-retirement life easily only with a suitable and appropriate pension plan.
There are various pension plans available in the market to invest. These are the 10 best pension plans in the year 2018.
LIC Jeevan Akshay VI Plan
LIC Jeevan Akshay VI plan is an immediate annuity pension plan by the well-trusted brand LIC. It offers six annuity options from which one can choose as per the requirement. The policyholder needs to pay the premium amount in a lump sum. One can enjoy the rebate on the pension plan if the purchase price of the plan is Rs 2.50 lakh or more.
The minimum eligible age for the policy is 30 year, whereas the maximum age is 85 years. There is no need of a medical examination to avail the benefit of the plan. The policy holder can receive the pension monthly, quarterly, half-yearly or annually, as per requirement. For documentation purposes, an age proof is mandatory for the plan.
HDFC Life Click 2 Retire Plan
HDFC Life Click 2 Retire Plan is an online Unit Linked Plan (ULIP) that offers the individual a return that is linked to the market performance. Premium amount can be settled in a single payment or in term of 8, 10 or 15 years with a benefit of policy term of 10 to 35 years. An individual of minimum age of 18 years and maximum 65 years can buy the plan, while the maturity age of the pension plan is minimum 45 years and maximum 75 years. In case of death, the nominee will get a higher fund value of the policy or 105% of the premium amount paid till the death of the policyholder.
HDFC Life – Assured Pension Plan
HDFC Life – Assured Pension plan is also a Unit Linked Plan that offers the market linked returns with loyalty additions to the policyholder that ensure to meet the retirement goals of an individual. The policyholder gains the loyalty benefit on every alternate year from the first year onwards the completion of policy. Minimum eligibility age limit to avail the plan 18 years while the maximum is 45 years. Along with applicable tax benefit, this plan also offers single and limited payment options for the policyholder.
Reliance - Smart Pension Plan
Reliance Smart Pension Plan is a non- participating unit linked pension plan. This plan helped allow the policyholder to save in a systematic manner in order to sustain a lumpsum to generate a regular income in a regular flow even after retirement. Age eligibility to invest in the plan is 18 years minimum to maximum 70 years while the vesting age is minimum 45 years and maximum 80 years. This plan allows the tax exemption benefit for the policyholder under section 80 C of the Income Tax Act 1961. The policy tenure of the plan ranges from 10-30 years and so is the premium payment tenure. This plan regulates the monthly flow of income, hence it is recommended for the senior citizens.
Max Life Guaranteed Lifetime Income Plan
Max Life Guaranteed Lifetime Income Plan is a non-linked annual traditional pension plan that offers a guaranteed flow of income after the retirement of an individual. The minimum eligibility to enter this plan is 50 years, while the maximum age to enter the plan is 80 years. This plan offers four annuity options from which a policyholder can select. This pension plan allows the policyholder to pay a lump sum amount for policy and select a payment amount to receive on monthly basis. The annuity payment modes can also be selected from the annual, semi-annual, quarterly and monthly mode. Nominee of the pension plan gets an assured benefit in case of death of the policyholder.
Bajaj Allianz Retire Rich Pension Plan
Bajaj Allianz Retire Rich Pension Plan assures the individual for a regular income post retirement, guaranteed. One will get the benefit of pension plan through his or her lifetime with a range of six annuities to choose from. The minimum entry age of the plan is 37 years and maximum age is 80 years. One can choose from various annuity options with a minimum annuity installment amount of Rs 1,000. This plan offers a flexibility of paying a top-up premium and an option to modify the premium payment term to the policyholder in case of regular or limited premium payment which makes it an ideal plan for the customer.
ICICI PRU Immediate Annuity Plan
ICICI PRU Immediate Annuity Plan offers a policy with a single premium, and it has five different payment options and has four payment modes as yearly, half-yearly, quarterly and monthly. The minimum age eligibility for the plan is 45 years and maximum age is 80 years. This plan also offers pension for the policyholder as well as his/her spouse for life, minimum age of the spouse to enter the pension plan is 20 years. Annuity amount is payable till the annuitant is alive and after his/her death, the spouse will have the claim on the annuity.
Birla Sun life Empower Pension
The Birla Sun life Empower Pension plan is a non-participant plan and it enhances the saving and security of the policyholder post-retirement. The minimum entry age in the plan is 25 years while the maximum entry age is 70 years. Customers can choose the amount of premium that is to be paid and the vesting date of the pension plan to have an accumulation period of 5-30 years, list of plans and the premium amount that is to be paid. The premium amount that is paid for the pension plan enjoys tax benefits under section 80 CC of the Income Tax Act.
LIC Jeevan Nidhi Plan
LIC is a good known name in the field of insurance plans and LIC Jeevan Nidhi is a very beneficial pension plan that can be used to accumulate the flow of income during the post-retirement period. This plan offers an accidental death and disability benefit to the customer and for the first five years, it gives an assured addition of Rs. 50 per thousand of the sum assures for the every completed year. This pension policy can last for a period of 5-35 years and you can choose either a deferred annuity or immediate annuity on maturity.
Max Life Forever Young Pension Plan
Max Life Forever Young Pension Plan help the policyholder to construct a strong master plan post-retirement and it also offers a guaranteed maturity benefit of 101% on each premium amount. The minimum age eligibility for the plan is 30 years while the maximum age is 65 years. This plan offers number of additional benefits to provide a protective cover to your family against any mishap. One can choose from the two investment options for the plan – Pension Maximiser and Pension Preserver. The age of vesting is 50 – 75 years.
A perfect pension plan that is chosen after comparison of quotes and, as per your requirement of the policyholder will secure the perfect post retirement life that you have always saw in dreams.The write is founder and CEO of policyx.com