Which Insurance Plan is Best for Retirement Planning?
Updated On Jul 12, 2021
Table of Contents
- Benefits of a Retirement Plan
- Top 5 Retirement Plans available in the Market
Retirement Plans are Savings or Investment Plans that have a longer Tenure. The Savings from these plans allow you to be Financially Independent after you stop working at a certain age. The lives that we are living are fast paced and we barely get time to think about ourselves.
But it is necessary to take out time to understand and analyze your current lifestyle, predict and plan the future expenses, and choose an Insurance Plan or a Retirement Plan to get yourself relieved from the thought of how life would be after Retirement and its woes and worries.These plans are affordable and are a secure way of retirement planning.
You can secure your and your family's future with these plans. You can choose between Market-Linked Retirement Plans or stick to Conventional Retirement Plans.
In this Article, We will discuss Benefits of Retirement Plans along with Top 5 Retirement Plans which you can avail.
Benefits of a Retirement Plan
Certain Benefits of Retirement Plans are as follows:
Guaranteed BenefitsThese Plans promise you a Sum Assured at the end of the Policy Term to give you Financial Support after Retirement. Apart from this, you can also choose options to provide income to your spouse in case of your sudden demise.
Death BenefitsDeath can put a heavy toll on the family on an emotional and financial level. The Death Benefits attached with these plans will provide financial support to your family even in your absence.
Flexible Premium Payment TermsYou get an option to choose the Premium Payment Terms as per your comfort and financial goals.
CustomizableThe Customization of these Plans can be done by adding Riders to the existing Policy to create a comprehensive cover for your family.
Tax BenefitsPension or Retirement Plans provide Tax Exemption specified under Section 80C. If you wish to invest in a Pension plan, then the Income Tax Act, 1961, offers significant tax respite under Chapter VI-A. Section 80C, 80CCC and 80CCD specify them in detail. For instance, Atal Pension Yojana (APY) and National Pension Scheme (NPS) are subject to Tax Deductions under Section 80CCD
Top 5 Retirement Plans available in the Market
There are certain Retirement Plans available in the market are as follows:
LIC Jeevan Akshay 6 Plan
This plan by LIC is an Immediate Annuity Plan where you can pay the whole premium as a Lump Sum Amount. The pension under this Plan starts instantly after the purchase. Minimum Entry Age of 30 Years and Maximum Entry Age of 85 Years. No Maximum Limit of the Annuity. The Pension can be received on a Monthly, Quarterly, Half-Yearly, or Annual basis. No Medical Examination is required. Age proof is a mandate. Premium paid in a Lump Sum.
LIC Jeevan Nidhi Plan
This Plan by LIC is a Profit Pension Plan. The Amount that is accumulated during the Policy Term is used to provide a Pension which is based on his or her Survival past the Policy Term. The Minimum Entry Age is 55 Years and the Maximum Entry Age is 65 Years. Policy Term from 5 to 35 Years. No Maximum Limit for Sum Assured. The Policy offers Rs. 50 Per Thousand of the Sum assured for the first 5 Policy Years as a Guaranteed Benefit.
SBI Life Saral Pension Plan
This Plan is an Individual, Non-Linked, Participating, and Traditional Retirement/ Pension Plan. This Plan offers Protection from Market Fluctuations. The Minimum Entry Age is 18 Years and the Maximum Entry Age is 65 Years. Minimum Maturity Age is 40 Years whereas the Maximum Maturity Age is 70 Years. You can choose between Single, Monthly, Half-Yearly, or Annual Premium Payment Modes. Minimum Policy Term is 10 Years whereas the Maximum Policy Term is 40 Years. A Guaranteed Payout is 2.50% of the Sum Assured for the first 3 Years and 2.75% of the Sum Assured for the next two Policy Years. A Life Cover can be added by adding a term Rider.
HDFC life Click 2 Retire
This Policy is a Unit-Linked Plan that offers Market-Linked returns with Minimum Charges. These returns can be used to meet Post-Retirement Financial needs. Minimum Entry Age is 18 Years whereas the Maximum Entry Age is 65 Years. Offers a Low Maturity Age of 45 Years and a Maximum Maturity Age of 75 Years. You also get Guaranteed Vested Benefits and returns from the Market. The Death Benefit will offer 105% of the Premium paid till the death of the Insured.
ICICI Pru Easy Retirement
This plan by ICICI generates income after the salary stops Post-Retirement. This plan also offers returns and protection from the volatility of the market. ICICI Pru Easy Retirement Minimum Entry Age of 35 Years and Maximum Entry Age of 70 Years. Minimum Vesting Age of 45 Years and Maximum Vesting Age of 80 Years. Minimum Premium of 48,000 per annum with no Maximum Limit. It includes Policy Terms of 10, 15, 20, 25, and 30 Years. Payments are made on a Monthly, Half-Yearly, and Annual Basis.
You can see how Retirement Plans can help you build a financially strong future after your Retirement. Our Basic and Daily Lifestyle needs will never end and such Expenses will remain in your presence and even in your absence, hence take out your time and contact your Insurance Advisor to purchase a Retirement Plan that suits your needs and Financial Goals.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.