Pension Plan Options You Need to Know in 2021

During your online search for one of the best pension plans in India, you must have come across a wide range of options. Note that there is a vast array of pension schemes available in India in 2021 that you can choose from. 

Pension Plan Types to Choose in 2021

Let us take a look at the type of pension plans you can choose from:

• Deferred Annuity

This pension plan type allows the policyholder to build up a corpus by either paying single or daily premiums. One of the key benefits of this plan is that it helps one in saving a significant sum in the form of a pension over the lifetime of the scheme. Moreover, through this pension plan type, one can also reap tax benefits.

• Immediate Annuity

This pension plan type is paid out right away. An individual starts receiving annuities in the form of a pension as soon as they deposit a lump sum amount. 

• Annuity Certain

This pension plan type helps an individual collect the annuity for a pre-set, specific number of years. It must be noted that the payment duration can be selected at one’s convenience. In the event of the unfortunate death of the policyholder, the contributions are given to the nominee of the pension plan.

• National Pension Scheme (NPS)

This pension plan type is one of the pension schemes offered by the government of India for the retired population. On investing in this pension scheme as an employee, a person can save at regular intervals in the pension account that is paid once they retire. 

• Life Annuity

This pension plan type is active until the death of the policyholder. In case the policy has a "with spouse" option, the spouse of the policyholder is entitled to the pension payout in the event of the unfortunate death of the life insured. 

• Life Insurance in Pension Plans

Pension plans comprise both life insurance and investment. Life insurance makes sure that on the unfortunate death of the policyholder, their family receives the lump-sum payout and stays financially stable. Nonetheless, it must be kept in mind that the insurance payout sum of this pension plan type might be lower as compared to a standalone insurance plan.

Also Read:- Top Questions To Ask When Buying Retirement Insurance Plans 

Are You Eligible to Buy a Pension Plan?

Like in the case of every other investment plan, pension plans too, come with an age requirement. Note that any individual who has reached the age of 18 years can buy a pension plan. Insurance companies have also set a maximum age limit till which the customer can buy a pension plan. In most cases, the maximum age limit is 65 to 75 years.  

Last but not the least, make sure you read the policy documents carefully and understand all the conditions well to avoid any confusion later. If you need help, contact InsuranceDekho experts today!

You may also like to read:- How to Get Your Retirement Planning on Track? 

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.