Life after Retirement
With the ever rising cost of living of the common man, there are more financial insecurities prevalent amongst the population of India. The recent crash in the share market brought about a mass disappointment amongst all the investors in the country. Job insecurities have become so common that people are ready to take up any job as long as they have a stable income.
In the earlier days, the retired section of the population would live in joint families and depend on their children’s income, but in recent times it is hardly impractical to think about supporting anyone apart from a person’s own wife and children. So it is imperative for the working population to pre plan their retirement and make arrangements for a hassle free life towards the final years of their lives.
In India there are a myriad of pension plans that offer varied packages. It is extremely difficult to churn out details of all these plans and compare each of them on every single aspect of the plans available. So here is a guide to some of the best pension plans in India to facilitate your decision making towards growing old gracefully and with a lot of content.
Kotak Retirement Income:
You can choose to retire at any age between 45yrs to 65yrs or even in an early age in the event of health problems. Top-ups can be made in the policy at any stage before retirement. You are allowed to reimburse up to a third of the basic sum assured or the accumulation amount whichever is higher, and the balance of the benefit that you are eligible for will be used to buy annuity of your choice. You have both early retirement benefits as well as late retirement benefits. There are also death benefits and tax benefits. The overall pension plan comes in two types viz. with cover and without cover. Under the with cover plan the death benefit for the beneficiary would be an amount that is greater of the sum assured of all the premiums due but not paid and accumulation account while in death benefits that comes in the without cover plan the beneficiary receives a sum greater of returns of premiums paid and accumulation account. There are other value added benefits like preferred term benefit, accidental death benefit, critical illness benefit, permanent illness benefit, life guardian benefit and accidental disability guardian benefit.
SBI Life – Unit Plus II Pension plan:
This is a unit linked pension plan where the policy holder chooses an investment period of 5 to 52 years for retirement in the ages between 50 to 70 years. There are two modes of payment, one is the single premium and the other is the regular premium. You have a choice between two plans viz. Pure Pension and Pension cum Life Cover. No medical is required for Pure Pension you are automatically accepted. You can increase your regular contribution to the plan. Top up payments can be done at any time before retirement with any amount. You are also given a free look period of 15 days. You have death benefits in this pension plan. Death benefits for Pure Pension are where the beneficiary is paid in lump sum the fund value, while that for Pure Pension Plan with Life Cover is where the greater of the fund value or the sum assured will be paid.
MetLife – Met Advantage Plus:
This unit linked pension plan consists of seven investment options and eight annuity options. Under this plan you can retire at the age of 45 to 65. Death Benefit with Life Cover is equal to 110% of the value of units in the unit account. Death Benefit without Life Cover is equal to 100% of the value of units in the unit account. The eight annuity options available with Met Advantage Plus are Life Annuity, Life Annuity with Return of Purchase Price, Life Annuity with Return of Balance (Purchase price minus Pension received), Annuity for 5 years certain and Life thereafter, Annuity for 10 years certain and Life thereafter, Annuity for 15 years certain and Life thereafter, Joint Life Last Survivor Spouse Annuity and Increasing Life Annuity.
Do you know where you stand financially? Most people have an idea, but they rarely see the whole picture.If you’re having trouble adding up your expenses, then search online for a budget spreadsheet.
One of the most popular ways is to invest the lot of money into a pension annuity. The best advice on this type of investment is to ensure that you use your right to the Open Market Option to get the best annuity rates.
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Some of these plans are also growth investment plans with assured Lump Sum Annuity in addition to some health coverage plans, etc. Some investment plans include payment of Lump Sum Annuity to the spouse or any other nominee either at the same rate or at a revised rate.
There are certain guidelines within the market place offering coverage for different reasons. Critical Illness Life insurance coverage offers a insurance with regard to critical ill problems. If the insurance policy holder can be “clinically determined” with any type of illness that is long-term then this coverage will payout “tax-free” large sums of funding for the insurance holder.
i have a best retirement plan………………………