Unit linked pension plans combine investment with life cover and pension. We at Consumer VOICE compare pension plans on the basis of maximum and minimum vesting age, maximum and minimum policy term, minimum premium, maximum and minimum entry age, charges for premium allocation etc. to help you find the best pension plans available. The brands which were compared included: Aditya Birla Sun Life, Bajaj Allianz Life, Canara HSBC OBC, Edelweiss Tokio, HDFC Life, ICICI Prudential, IDBI Federal, SBI Life, Max Life, and Reliance Life.
Why Should You Invest In Retirement Pension Plans?
- RISE IN LIFE EXPECTANCY
With improved healthcare and availability of/accessibility to super-specialty hospitals, life expectancy has improved significantly, from 67.29 per cent (2012) to 69.09 per cent (2018). More people now expect financial support after their retirement. These plans offer excellent financial support for aged persons, especially those from unorganized sectors.
- LACK OF ADEQUATE SOCIAL SECURITY SYSTEM IN INDIA
There is at present no social security in place for people in India who have no means of receiving any income after their working years are over. There is an absolute need for such pension plans in India.
- RISING HEALTH EXPENSES
Pension plans provide additional financial support when medical expenses run high. This is especially true of plans that provide for maturity amount in lump sum or that provide for partial withdrawals. Before you choose a policy, make sure you go over the details of the policy so you know exactly what you will be getting from it.
- ENSURES REGULAR FLOW OF INCOME
These plans offer regular pension income that can be in addition to any other pension fund one may be receiving as an employee of an organization.
- BENEFITS UNDER INCOME TAX ACT
Under sections 80 (C), 10 (10A) and 10 (10D) of the Income Tax Act, there are exemptions on premium paid, commuted pension received and maturity lump-sum amounts received.
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