Pension Plans by Insurance Companies | PlanYourWorld

Pension Plans by Insurance Companies in India

There are many insurance companies in India, which provide you different ready made plans to invest for your retirement.

LIC Life Insurance Corporation of India.

HDFC Life Insurance.

ICICI Prudential Life Insurance.

Birla Sunlife Insurance.

Tata AIG Life Insurance.

Reliance Life Insurance.

Aegon Religare Life Insurance.

Aviva Life Insurance.

Edelwise Life Insurance.

Kotak Mahindra Life Insurance.

Which plan is better Traditional Pension Plan or Unit Linked Pension Plan?

Mostly these can be of two types Traditional Plans – with guaranteed or declared bonus, these don’t give more than 7% per annum.

Unit linked Pension Plans – market linked these give better yield in longer term with volatility.

Is there any Tax benefits?

These plans have deferment of Tax, at the time of investment you get tax benefit up to 1 lac but surrender value, premature withdrawal and pension are fully taxable in your hands.

Which plan should be bought?

You should not buy any plan without planning your need at retirement. These plans have high charges attached with them, which makes you earn less on your investments and finally that tends to postponement of your Retirement.

The answer is comprehensive life planning, this makes you plan your life with approximately all the domains of life.

Buy paying Rs. 25000 a year in pension plan can you think of getting pension of Rs. 25000(in today’s value) per month at retirement?

The answer is ‘NO’

You need to earn higher than inflation and Tax to maintain your savings purchasing power.

Your Saving Your Inflation Your Tax Rate Your minimum required return Minimum Maturity value of your savings after 1 year
1 Lac 8% Nil 8.0000% 108000.00
8% 10.3% 8.9186% 108918.60
8% 20.6% 10.0756% 110075.60
8% 30.9% 11.5774% 111577.40

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