DIFFERENT FACTS TO GLANCE ABOUT PENSION SCHEMES
Imagine you are working hard in a company for many years. You earned lot of money and then one fine day, the retirement day comes. At this juncture, you need the protection from unforeseen situations. The pension schemes do come into the picture.
Factors like the enhanced life expectancy, increase in the cost, nonexistence of social security system; nuclear family system has made the retirement planning in India very important.
Various factors are responsible, while taking into account the pension schemes in India. Moneymindz is best in offering personalized financial guidance to customers in India.
Phases About The Pension Schemes In India
Various features play a crucial role in selection of the pension schemes in India and they are given below as follows:
Accumulation Phase: It is the chief part of the life, where in you invest in certain pension plan on a regular basis. You will try to invest in ULIP, Mutual Funds, Direct Stocks and others.
Distribution Phase: An exclusive situation, where in one start withdrawing money from wealth accumulated.
Features of Pension Schemes In India:
Long Term Protection: A major feature of the pension scheme in India is to offer the extended term protection to citizen till the person lives.
Premium Options: The chief part of the pension plan is to opt for the premium option to suit various needs of the customers in a logical fashion. Some plans will have higher premium and some will have lower premiums. You need to be careful in selecting correct plan with reasonable premium option.
Death Benefits: After the death of the policyholder, while policy is in force, the nominees will receive sum assured, fund related values and a huge percentage of premium paid by policyholder.
Life Time Income Plan: A good pension scheme in India offers regular income to the policyholder after the retirement. Pension can be received by person on a monthly, quarterly, half-yearly and yearly basis.
Effective Insurance Benefits: You must select a proper pension plan, offering good insurance benefits, to get high taxation.
Superior Tax Benefits: A good tax rebate will play a vital role in getting financial relief. This will also play essential role in planning your retirement life in a good manner.
Fundamental Concepts You Must Know Relating To Pension Schemes:
Vesting Age: It is the age, where one starts receiving the pension.
Annuity: It is a regular monthly pension payment, available to a person, after you reach a particular age.
Sum Assured: The amount received by the nominee, during the death of the insured person.
Accumulation Period: A place, where in you pay the premium to gather the funds for retirement purposes.
Surrender Charges: A type of charge introduced by insurance company, if you stop policy before vesting age.
The pension schemes are the first-class option to give you peace of mind during old age.
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