Retirement Insurance Plans

Retirement Insurance Plans

As living costs have increased, adequate finances are needed at every stage of life. Riskfreelife.com has opened gates to best retirement plans of various types to relieve your mind. You can enjoy a stress-free post-retirement life with best pension plans. Our website also allows you to do a well-informed pension plans comparison.

Types of Pension Plans

Immediate Annuity:

You need to deposit a collective amount to get benefit of pension, which is given to you immediately. It is classified into further categories:

Annuity Certain

The annuitant decides a specific period (a certain number of years), during which a fixed sum of amount is given. In case of the annuitant's death before expiry of the term period, the annuity is paid to the beneficiary.

Guaranteed Period Annuity

Here, the annuitant receives the sum amount during specified term period, and following its expiry as well. If the annuitant passes away in the policy term, then annuity is offered to the beneficiary. The pension continues for life in case the annuitant stays alive.

Life Annuity

Until the annuitant's death, he/she will receive regular pension income. If "with spouse" option is ticked by the annuitant, then the pension amount goes to the spouse after the annuitant's death.

Deferred Annuity

In such retirement plans, the intention is to form a financial corpus via consistent or single premiums through the policy term. After the policy term period expires, the pension amount will begin to go to the annuitant. The accumulated amount may incorporate bonuses, guaranteed additions, and sum insured in order to create a roadmap for a regular income.

National Pension Scheme

The Government has introduced new pensions plans for those who wish to build a pension sum. It will allow you to forward your savings to new pension plans. These savings can be invested in equity and debt market based on your choice.
During retirement, 60 percent of the total amount is what you can withdraw, while the 40 percent is utilized to buy annuity. These types of retirement plans, the maturity amount does not carry any tax benefits.

Pension Funds

This is one of the best retirement plans, where you can secure a collected amount for a long-term period as pension funds.

Tax Benefits

In most of the pension plans, the final payout is rolled out in two days. But, only 33 percent of it can be withdrawn as lump-sum, which is subjected (or not) to tax benefits. The rest of the amount could be taxable.

Minimum Guarantee

As per the guidelines of IRDA, there is a 'non-zero return' obligation on all premiums. It may even consist of maturity benefits for every pension plan in India. Most of the insurers will receive a minimum of 15 percent of their total premium through the whole policy term period.

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