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Pension Plan Insurance to Manage Post Retirement Life

Everybody's life reaches a stage when they stop getting paychecks. However, there is a life post retirement and nobody wants to compromise with their existing lifestyle. In a scenario, when you don't have any other source of income you will have to rely only on pension.

Most of the employers currently do not offer any pension facility including GOI. This means that you will have to make your own arrangements to manage your expenses. Pension Plan Insurance is the best way to manage your post retirement life. Some pension plans are generous enough to start your pension at age as low as 18!

What are the types of Pension Plan Insurance?

There are 2 types of Pension Plans available in the market.

1.   Deferred Annuity: Investors pay a regular or single premium over a policy term, after which the policy begins. Deferred Plans may also have life cover with them.
2.   Immediate Annuity: Investor pays a single lump sum premium and the pension starts instantly. The immediate Pension Plans do not have any life cover with them.

These plans come with various options to suit the needs of the Investor.

What are the advantages of Pension Plans?

Pension Plans offer multiple benefits to the investors.

1. Regular income after Retirement.
2. Tax advantage under section 80C, 80CCC and 80CCD.
3. Insurance Cover (in certain plans)
4. Liquidity
5. Peace of Mind.

What are the things to be considered before buying an Insurance Pension Plan?

Don't forget to consider these things before buying a pension Plan:-

1. Make an assessment of your financial goals as well as available corpus.
2. Find out how much pension does you need and whether you need immediate or deferred annuity.
3. Do an independent research and assess all the Pension Plans available in the market.
4. Do not buy a plan just for availing tax benefits. Do not invest in cheap plans.
5. Do not jump to a conclusion without getting approval from your advisor.

The Swaraj Wealth Advantage!

Pension Plan is an important aspect of Financial Planning. There are a variety of products available in the markets. Swaraj Wealth first ascertains the needs of investors and then recommends a pension plan based on his or her financial needs and availability of the corpus.

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