Retirement is a time when you can focus on yourself and your loved ones. It is a time to enjoy life without worrying about life. But if you don’t plan ahead, you may not be able to afford it. The first thing to do is save for retirement. Pension life insurance plans are designed with the goal of giving individuals an income in retirement, as well as protecting their family and loved ones if they die prematurely. So, save more money for retirement by purchasing a best pension life insurance scheme in India.
What is Pension Plan?
Pension plans are also called Retirement plans. They are insurance plans which help people meet their expenses after their retirement with periodic payments by the insurance company. Retirement plans can generally be of two types: One is where the policyholder will invest the amount over some time to attain a corpus and after which the insurance company will pay periodic installments to the policyholder after his/her retirement. The other is where the policyholder can purchase an annuity plan by paying a lump sum amount and the insurance company will start paying the monthly amount immediately or after some time as selected by the policyholder.
Types of Pension Plans in India
- Defined Benefit Plan
- Defined Contribution Plan
- Deferred Annuity
- Immediate Annuity
- Guaranteed Period Annuity
- Annuity Certain
- With and Without Cover Pension Plans
- Pension Funds
- National Pension Scheme
- Whole Life ULIPs
- Life Annuity
Advantages of Life Insurance Pension Plans
Life insurance pension Policy is an important part of any retirement strategy and should be considered an important financial tool. Some of the advantages of pension plans are
- Investment Option: The major advantage of pension plans is that insurance coverage is also available with the investment option. The amount collected from the policyholder is invested in safe bonds by the insurance companies and the period installments are paid to the policyholder. The policyholder can opt for the same amount of payout each month or increase payout depending on the expenses of the policyholder.
- Savings for a Long Term: Pension plans assure with a retirement plan is savings for the long term. Pension plans in India mainly focus on creating the annuity that can further invest in creating a steady flow of cash for your post-retirement years.
- Regular Income: Retirement plans also have the option of including your spouse in the same plan in which the survivor will receive the pension amount in case of the death of a member. The accumulated amount over years is given back to the policyholder as a monthly pension or annuity at regular intervals of time depending on the option selected by the policyholder.
- Tax Benefits: Pension plans help you to save money on your tax. You can avail of tax benefits under section 80C of the income tax Act 1961.
- Insurance Cover: Most life insurance companies offer an insurance cover benefit under various retirement plans so that the spouse does not have to face any financial difficulty if the unfortunate happens.
- Option to Enhance Protection: by adding add-ons/ Riders you can enhance your coverage on your retirement plans in India. Some retirement plan riders worth considering are disability due to an accident rider, critical illness rider, etc.
Who Should Buy Pension Plans?
Any person who wishes to have a steady income after retirement can take Retirement or Annuity plans. Annuity plans or Retirement plans are the most famous retirement tools which help customers with their post-retirement requirements. The lifestyle after retirement can be balanced by investing in the best retirement plans in India at a very early stage of purchasing the annuity plan after getting the retirement corpus.
In the case of long-term savings for Annuity plans, the premium amount to be paid depends on the sum assured required at the time of retirement. The higher the investment amount, the higher would be the payout at the time of retirement.
Best Pension Life Insurance Plans in India
Many companies offer life insurance for employees and retirees. This can be a great way to help ensure that your family is taken care of if you happen to die suddenly. The best companies to get life insurance from are those with a good reputation, low rates, and a lot of options. The companies that offer the most options will often have the lowest rates as well.
There are many types of retirement life insurance plans available for people to choose from. It can be difficult for people to choose the best pension plan in India for their needs and budget, so we have made a list of the top 10 best pension life insurance plans on the market today.
Top 10 Best Life Insurance Pension Plans
Life insurance pension plans are an important part of financial planning, as they provide financial security and peace of mind. Therefore, choosing the right plan that best suits your needs is important. Following are the top 10 pension plans in India available in the market today.
1. LIC’s Jeevan Akshay - VII
This plan is an immediate annuity plan where there are 10 available options on payment of a lump sum amount. The annuity rates are guaranteed at the policy and annuities are payable through the lifetime.
Key Features:
- Entry age: 30 years
- Maturity Age: 85 years
- Sum Assured: Rs. 1000 per month
- Policy Term: 10 to 40 years
- Premium Payment Term: Based on yearly, half-yearly, quarterly, monthly.
2. LIC’s New Jeevan Shanti
This plan has the dual benefit of single-life and joint-life annuity plans. The annuity premium rates are payable through postponement to a lifetime.
Key Features:
- Entry age: 79 years
- Maturity Age: 80 years
- Premium: Rs. 1000 per month
- Policy Term: 12 years
- Premium Payment Term: Based on monthly, quarter, half-yearly, annually.
3. SBI Life Saral Pension plan
This plan secures you with a regular pension for the rest of your life.
Key Features:
- Entry age: 18 years
- Maturity Age: 40 years
- Sum Assured: Rs. 1 Lakh to No limit
- Policy Term: 10 to 40 years
- Premium Payment Term: Based on monthly, half-yearly, annually, single
4. HDFC Life Click 2 Retire:
This unit-linked pension plan with assured vesting benefits, no premium allocation charges no policy charges, and no exit charges.
Key Features:
- Entry age: 16 to 75 years
- Maturity Age: 45 years
- Sum Assured: Rs. 1 Lakh to No limit
- Policy Term: 10 to 35 years
- Premium Payment Term: annually, quarterly, and monthly.
5. HDFC Life Assured Pension Plan
This protection plan specially designed for coronavirus/ covid-19 defeaters.
Key Features:
- Entry age: 16 to 75 years
- Maturity Age: 45 years
- Sum Assured: Rs. 156 to 2,230 per Month
- Policy Term: 10 to 35 years
- Premium Payment Term: annually, quarterly, and monthly.
6. ICICI Pru Easy Retirement Plan
This plan provides regular income with potential growth of equity and debt funds.
Key Features:
- Entry age: 35 to 70 years
- Maturity Age: 45 years to 80 years
- Sum Assured: Rs.48000 per year
- Policy Term: 10, 15, 20, 25, 30 years
- Premium Payment Term: Monthly, half-yearly, and yearly
7. Reliance Nippon Life Smart Pension Plan
Reliance Nippon Life Smart Pension Plan is a Unit Linked and Non-Participating, Individual Pension Plan that provides you a regular income after your retirement.
Key Features:
- Entry Age: Minimum 18 years to Maximum 65 years
- Maturity Age: Minimum 45 years to Maximum 75 years
- Policy Term: Minimum10 years (For Single pay), 15 years (For Regular pay/Limited pay), Maximum 30 years
- Premium Payment Mode: Yearly, Half-yearly, Quarterly, Monthly
- Premium Payment Term: 10 to 30 years
8. Aditya Birla Sun Life Insurance Empower Pension
This plan is a single premium pension plan designed especially for your retirement life.
Key Features:
- Entry Age: Minimum 25 years to Maximum 70 years
- Maturity Age: 80 years
- Sum Assured: Rs. 1 Lakh to No limit
- Policy Term: 5 to 30 years
- Premium Payment Mode: Yearly, Half-yearly, Quarterly, Monthly
9. Bajaj Allianz Life Guaranteed Pension Goal
Bajaj Allianz Life Guaranteed Pension Goal assures your Lifestyle goals by giving guaranteed income throughout life as per your choice and need. Hence, we need to have a guarantee that our lifestyle goals are done even in our second innings of life- retirement.
Key Features:
- Entry Age: 30 years
- Maturity Age: 85 years
- Sum Assured: It depends on the annuity amount
- Policy term: 5, 10 years
- Premium Payment Term: Single premium
10. Max Life Forever Young Pension Plan
This plan helps create savings for retirement as well as safeguards you from the volatility of the equity market. It offers an additional annuity plan and secures your family against unforeseen events.
Key Features:
- Entry Age: 30 years to 65 years
- Maturity Age: 50 to 75 years
- Sum Assured: Rs. 10,000/- per month
- Policy term: 20 years
- Premium Payment Term: As per Policy Term
Premium Table for Top 10 Best Retirement Plans in India
| Company Name |
Plan Name |
Premium(Per Annum) |
|
| SBI Life Insurance |
SBI Life Saral Pension plan |
25415/- |
Buy |
| HDFC Life Insurance |
HDFC Life Click 2 Retire |
18947/- |
Buy |
| ICICI Prudential Life Insurance |
ICICI Pru Easy Retirement Plan |
23548/- |
Buy |
| LIC Life Insurance |
LIC’s New Jeevan Shanti |
24154/- |
Buy |
| Reliance Nippon Life Insurance |
Reliance Nippon Life Smart Pension Plan |
23145/- |
Buy |
| Bajaj Allianz Life Insurance |
Bajaj Allianz Life Guaranteed Pension Goal |
21457/- |
Buy |
| HDFC Life Insurance |
HDFC Life Assured Pension Plan |
20365/- |
Buy |
| Aditya Birla Sun Life Insurance |
Aditya Birla Sun Life Insurance Empower Pension |
21458/- |
Buy |
| LIC Life Insurance |
LIC’s Jeevan Akshay - VII |
19548/- |
Buy |
*The above-given premiums are just for illustration purposes only* Compare quotes for the exact values.
How to Buy Retirement or Pension Plans in India?
Life insurance is an essential part of your financial portfolio, making it possible for you to give your loved ones a secured future. The process of buying life insurance for senior citizens online has become simple with PolicyBachat. For buying a life insurance plan online please visit our website Policybachat.com Following steps to purchase the life insurance policy online in our portal
- Step 1: Firstly, Enter the details such as Gender, Annual income from all the sources, Alcohol consumption and tobacco consumption, type of occupation, salary, and Date of Birth. After this, you need to enter your contact details to facilitate a call from our agent.
- Step 2: Now the premium from different insurance companies will be displayed on the screen. You can edit the details such as Coverage, Term, Premium payment method, Mode of claim settlement, etc. Submit the details to get the desired premium. The premium can be changed by changing other factors such as Coverage required, mode of payment, etc.
- Step 3: The next step is to select the best life insurance plan and pay the premium to the insurance company before proceeding to fill out the proposal form details.
Conclusion
Retirement planning is an important part of financial planning. It is essential to have a secure retirement plan in place to ensure that you can live comfortably during your post-retirement years. In India, several retirement plans are available for individuals and families, ranging from traditional pension plans to market-linked products.
In this article, we have discussed the best retirement plans in India and their features. We have also outlined the key factors to consider when selecting a retirement plan based on your individual needs and goals. So, Compare quotes now and grab the best retirement planning plan.