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6 Best Pension Plans That Indian Citizens Can Leverage

15 December 2016 No Comment

Pension is the only source of income for a majority of retired Indian citizens, wherein now, even government officials do not get to receive their pensions. So, how will elderly people survive after retirement?

In order to ensure a bright and comfortable future after retirement, you need to have a good retirement planning and pick out the best pension plan for you.

Therefore, let’s look at the top pension plans that Indian citizens can leverage for their retirement planning:

CICI Pru – Easy Retirement Plan

CICI Pru – Easy Retirement also falls under the category of the best pension plans as it empowers the insured monetarily after he or she stops earning his remuneration after his or her retirement. This plan generates quite decent returns for a long term and these returns do not change with the ups and downs taking place in the market.

Features to reckon with:

  • Minimum premium that can be paid is Rs 48,000 per year, wherein there is no limit on maximum
  • There are three modes of paying the premium, such as monthly, half yearly and yearly
  • Minimum age to take this policy is 18 years. The maximum age for a person to take up this policy is 70 years
  • 45 years is the minimum vesting age and maximum age is 80 years
  • The policy term is 10 – 30 years
  • Insured get to leverage Tax benefits on premium paid and benefits received

 

LIC Jeevan Akshay 6 Plan

The LIC Jeevan Akshay 6 plan is one of the best among the annuity plans in the market. You can purchase this plan by paying lump sum money as a single premium. The pension begins as soon as you buy the plan.

Features to reckon with:

  • You can pay a lump sum amount as premium
  • It offers options to receive payments such as quarterly, monthly, half yearly or yearly
  • You do not have to go for a medical examination to take this plan
  • The Minimum purchase price will be Rs 1 lakh if you have opted for a distribution channel which is online and in the case of online it will be Rs 1.50 lakhs.
  • There is no maximum limit for the annuity, purchase price, etc.
  • The minimum age to take this policy is 30 years and 85 years is the maximum.
  • You need to submit a proof of your age and his is mandatory
  • You get to leverage tax exemptions on the Premiums paid for this policy.

 

LIC Jeevan Nidhi Plan

Another pension plan that offers profits is The LIC Jeevan Nidhi. The amount that is gathered under this plan is utilized to generate pension for the life insured based on their survival after the completion of the policy term.

Features to reckon with:

  • As per Section 80CCC under the Income Tax Act, the premiums paid for this policy are eligible for tax exemptions
  • Your policy becomes a participating policy and incorporates in benefits of the organization after the sixth year.
  • Rs 1 lakh is the minimum amount you need to submit as the basic sum assured which is under the regular premium and Rs 1.50 lakhs for policies that require only a single premium.
  • The basic Sum Assured requires no maximum limit
  • You can take the policy from a range of 5 – 35 years
  • Minimum age of entry is 55 years and 65 years is the maximum age

 

SBI Life – Saral Pension

Another most looked after pension plan among those who are going through retirement planning is the SBI Life Saral Pension plan. This plan is an individual, non-linked, participating, conventional pension plan, which offers the insured immunity from the volatility and fluctuation taking place in the market.

Features to reckon with:

  • This plan offers assured bonuses during the 5 years after taking the policy
  • The life insured is assured is eligible to get bonuses if he or she survives the complete policy term. In short, the policy offers maturity benefits.
  • Offers a long tenure for loans which ranges from 10 – 40 years
  • Rs 7,500 is the minimum sum one can pay yearly as a premium, wherein there is no maximum limit
  • The minimum age to take this policy is 18 year, wherein the maximum age is 65 years
  • 40 years is the minimum age of maturity and 70 years is the maximum
  • Rs 1 lakh is the minimum sum that can be assured, wherein there is no limit on the maximum sum that one can assure.

 

HDFC Life – Click2Retire (Online)

The HDFC Life – Click 2 Retire plan falls under the category of ULIP (Unit Linked Plan) that comes with minimal charges and provides them insured market linked returns. This is a great plan as it helps the policyholder to fulfil their needs after their retirement.

Features to reckon with:

  • You get to leverage guaranteed benefits plus additional gains
  • The minimum age to take this policy is 18 years, wherein 65 years is the maximum age.
  • If you wish to keep the policy term low then you can choose 45 years as the maturity age and maximum age for maturity is 75 years.
  • This policy offers death benefits to the nominated person. This can be higher of the fund value accumulated in the policy or 105% of all the premiums paid until the death of the policyholder.
  • Insured get to leverage Tax benefits as per Section 80C and Section 10(10A) under the Income Tax Act 1961

 

DFC Life – Assured Pension Plan

The HDFC Life – Assured Pension Plan falls under the category of ULIP (Unit Linked Plan) that provides the users market linked returns including the loyalty additions to the life insured so as to fulfil their needs after retirement.

Features to reckon with:

  • The plan offers guaranteed benefits including extra gains that are gained by the market
  • After completing 11 years of the policy loyalty additions are paid each alternate year.
  • The minimum age to enter this policy is 18 years and 45 years is the lowest age of maturity
  • You only have limited and single pay methods.
  • Your nominee gets to receive death benefits which are higher of the fund value accumulated by the policy or 105% of premiums paid until the death of the policyholder.
  • Insured get to leverage Tax benefits as per Section 80C and Section 10(10A) under the Income Tax Act 1961

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