Pension Plans: Are you planning to invest in a pension plan? In order to secure your retirement, you should invest your money in the best pension plan suitable to you. It is very much important to select pension plan by keeping in mind various factors such as maturity benefits, non-zero returns on all premiums and various tax benefits. In India, there are a numerous number of companies which provide a wide range of pension plans. Here we will provide you the list of the best pension plans available in India.
Best Pension Plans available in India
The list of top 10 best Pension Plans is available below:
Read More: LIC Policy Status
LIC Jeevan Akshay 6 Plan
LIC Jeevan Akshay 6 Plan is an immediate annuity plan, which can be obtained by paying the lump-sum amount as a single premium. Thus, as soon as the individual purchases the plan, the pension plan starts immediately.
- Premium is to be paid in a one-time payment.
- Pension can be received either monthly, quarterly, half-yearly or yearly.
- No medical check-up is required in order to avail this plan.
- Minimum purchase price of Rs 1, 00,000 for Offline distribution channels while Rs 1, 50,000 for Online Distribution channels.
- It doesn’t contain any maximum limit of purchase plan, annuity, etc.
- There is no Loan option under this service.
- Entry age for this plan is 30 years and maximum entry age is 85 years.
- You have to compulsory provide your Age proof to LIC.
- You can convert the money earned into the regular income.
- You will get a regular pension for your whole life.
- After from this, you can leave behind your legacy for family members.
- Also, you will get the tax benefits.
LIC Jeevan Nidhi Plan
LIC Jeevan Nidhi Plan is pension plan with amazing profits. The major plan is to generate the pension for the policyholder as per his/ her survival past policy term. The plan is basically acquired to cover the risk of living too long and therefore it provides a wide range of pension options to cover.
- All the premium paid are released under section 80CCC of the Income Tax Act.
- The policyholder will receive an addition of Rs 50 per thousand Sum Assured every year for the first five years.
- The policy will offer the bonuses from the sixth year onwards.
- The Minimum Sum Assured under the policy is Rs 1 lakh in the regular premium while the maximum Sum Assured is Rs 1.50 lakhs in the Single premium.
- Minimum entry age for this policy is 20 years and Maximum entry age is 58 for Regular premium and 60 for singular premium.
- The policy term ranges from 5 years to 35 years for Single Premium.
- While policy term ranges from 7 years to 35 years for Regular Premium.
Read More: LIC Term Plan
HDFC Life Click 2 Retire
HDFC Life Click 2 Retire is an amazing online unit linked plan that provides the policyholder marked linked returns with minimum charges, which will be beneficial in meeting post-retirement demands.
- The policy offers Assured vesting benefit and gains from the upside market.
- There is no charge for Entry or Exit from the policy.
- Lowest age to invest in the policy is 45 years.
- Minimum Entry age for the plan is 18 years while maximum age is 65 years.
- Death Benefits that will be obtained from the plan will be much higher than fund value or it will be 105% of the total premium plans paid.
- Tax Benefits are available under the section 80C of the Income Tax.
- Maturity benefit obtained from the plan will be much higher than the fund value.
Read More: EPFO Login
Reliance Smart Pension Plan
Reliance Smart Pension Plan is one of the best pension plans as it gives chance to the policyholder to organize in a proper way in order to make lump sum to easily generate regular income after retirement.
- It is a unit linked pension plan which provides Guaranteed Additions.
- The policyholder can pay premium regularly, single time or small term.
- You will get some superb benefits such as surrender, death, and loyalty addition benefits.
- The policy provides a variety of premium payments with different options such as Regular premium, Limited premium, and Single premium payment.
- You don’t get any option to change the policy. Besides this, you will not be able to withdraw partially or fully till the end of 1st five years.
- The policy term ranges from 10-30 years.
- The policy offers you a chance to select the retirement age with policy vesting period of 45 years to 75 years. Later on, the retirement age for the policy can be expanded as per your need and the normal income can be fixed based on the annuity selected by you.
- In this policy, the policyholder will receive two times more benefit of equity participation along with the capital guarantee.
- Policyholder also receives more tax benefits under the section 80C of Income Tax.
- Due to any reason, if the policyholder surrenders the policy after the five years then he/she will get funds according to the base policy minus any discontinuation charges.
Read More: EPFO
Birla Sun Life Wealth Insurance
Birla Sun Life Wealth Insurance provides the long-term savings along with a coverage for the whole life which is particularly made to provide to concentrate on your goals and get the highest savings for the rest of your life.
- In this policy, you have to pay the premiums for a short term and then get the life cover for the whole life.
- You can add top ups whenever you have some extra savings in your life.
- You can easily take the partial withdrawals in order to satisfy your emergency needs.
- Select anyone investment plan from the 3 investment options.
- You will also get the Tax Benefits under the section 80C and the section 10(10D) of the Income Tax.
- The Minimum Entry age is 1 year and the maximum entry age is 60 years.
- The policy term is whole life.
- Freedom to choose the mode of payment, monthly, quarterly, semi-yearly and yearly.
- When you reach maturity, you will receive the total fund value of your investments.
- It offers Death Benefit, in which you will receive higher of the base Value or the base sum Assured.
Read More: UAN Member Portal
ICICI Pru Easy Retirement
With the help of this plan, the policyholder will be able to receive the regular income after his/ her salary stops post retirement by investing in such plan. This plan offers the best security against the changing market.
- In this policy, you have the flexibility to pay the premium for 5 0r 10 years for during the whole policy term.
- Every year you get additional savings which increase your fund value.
- You can select the vesting age as per your requirement.
- Minimum age to enter the policy is 18 years and maximum age is 70 years.
- Minimum age for the annuity is 45 years and the maximum age is 80 years.
- The policy term is between 10 to 30 years.
- Receive Tax benefits on premiums and some other benefits.
- You can pay a minimum premium of Rs 48,000. However, there is no upper limit to pay the premium.
Read More: UAN Activation
Max Life Forever young Pension Plan
In this plan, you will surely receive the maturity benefit. Besides, you have the freedom to select the maturity plan as per your requirement.
- In case you have chosen the Max Life Partner Care Rider, then your spouse will get the retirement benefit in case of your sudden death.
- You will receive Loyalty Additions for the fund from the 11th year.
- The minimum age to enter the plan is 30 years and the maximum age is 65 years.
- Minimum age for maturity is 50 years and the maximum age is 75 years.
- If you have chosen the Pension Maximiser option, you will receive 101% of the total premiums paid along with the riders charge.
- If you have chosen the Pension preserver option, you will receive 110% of the total premiums paid along with the riders charge.
- Also, you will get Death benefit, which includes higher of 105% of all the premiums paid.
- Tax Benefit under section 80C of the Income Tax.
Read More: EPF Balance
SBI Saral Pension Plan
SBI Saral Pension Plan is an individual, non-linked, traditional pension plan which provides better security against the market changeability.
- In this Plan, you will receive assured benefits for the first 4 years.
- On Maturity, you will receive the Sum Assured plus Vested simple Reversionary Bonuses plus the terminal bonuses.
- In a case of death of the policyholder, the nominee will receive the total premiums paid along with the interest of 0.25% p.a combined annually plus vested reversionary bonus plus a terminal bonus if there is any or you will get 105% of the total premiums paid.
- The plan consists of high loan tenure from 10 – 40 years.
- Minimum Age to enter this plan is 18 years and maximum age is 65 years.
- Minimum Maturity age for the plan is 40 years and the maximum age is 70 years.
- The minimum amount for premium payment is Rs 7,500 up to no upper limit.
- On reaching the maturity, you will receive vesting benefit plus vested simple reversionary bonus plus Terminal bonus. However, you can choose from the below options:
- Use the whole amount to buy the annuity from the policy.
- Withdraw 1/3rd of the vesting benefit under the Section 10A (A) while use the rest amount to buy the annuity from SBI Life.
- Use the whole amount to buy a Single Premium Deferred Pension plan from the SBI Life.
- In order to extend the collection period or postpone the vesting date, your age should be less than 55 years on vesting. The maximum extended period provided to you will be 70 years.
- In death Benefit, due to the sudden death of the annuity, the nominee will receive total premiums paid, combined with an interest rate of 0.25% p.a. combined annually plus Vested simple Reversionary bonus plus terminal bonus as death benefit which can be occupied by the nominee as a lump sum or as an annuity from the SBI Life.
Bajaj Allianz Pension Guaranteed Plan
Bajaj Allianz Guaranteed Pension Plan is a traditional pension plan which assures the policyholder for assured regular income after post retirement for the duration of his/her lifetime. This plan offers a wide range of annuities.
- It is basically an immediate pension plan.
- There are total 6 annuity options available in this plan, they are as follow:
- Annuity for Life.
- Annuity for 5, 10, 15 and 20 years and then pay annuity as long as you are alive.
3 .Lifetime annuity with return of the purchase price
- Lifetime annuity with return of the purchase price on the death of life survivor.
- Joint Life Last Survivor with 50% of annuity to the spouse.
- Joint Life Last Survivor with 100% of annuity to the spouse.
In a case of sudden death of the policyholder, the nominee receives:
- Life Annuity: The Annuity is given to the policyholder as long as he/she is alive.
- Life Annuity with Return of Purchase price: The Annuity is given to the policyholder as long as he/she is alive. Later, it is purchase price is been given to the nominee.
- Annuity after 5, 10, 15 and 20 years and live thereafter: Here, Annuity is given to the policyholder if he/she is alive for a certain period of time, or else it is given to the nominee.
- Joint Life Last Survivor with 50% of an annuity of the Spouse: Here, the policyholder and his/her wife are covered in the pension plan. The annuity is given to the policyholder as long as he/she is alive. While, on the death of the policyholder, the 50% of the annuity is contributed to the spouse till the spouse the alive.
- Joint Life Last Survivor with Return of Purchase Price on the death of the Last Survivor: Here, both the policyholder and the spouse are covered under the policy.
– The annuity is being paid to at least one of the policyholder. Later, on the death of the last survivor, the purchase price is been returned back to the owner.
- Joint Life Last Survivor with 100% of an annuity of the Spouse: Both policyholder and his/her spouse are covered in the policy. The annuity is been given to policyholder and/or spouse until any one of them is alive.
– Income tax benefits are provided under section 80C of the Income Tax.
Birla Empower Pension Plan
Birla Sun Life Empower Pension is a unit linked, non-participating pension plan which is being made in such a way to increase the policyholder’s saving post retirement.
- It is basically a non-participating unit linked pension plan which offers regular premium payment option.
- Extra Benefits are been added to the plan from the 6th year which enhances the fund value.
- The policy consists of tax benefits under the section 80CCC and Section 10A of the Income Tax Act, 1961.
- Minimum Entry age of the policy is 25 years and the maximum entry age is 70 years.
- The term of the policy is 5-30 years.
- Death Benefit: Due to a sudden death of the policyholder, the nominee will be paid assured death benefit or the fund value, either of them is greater.
- Surrender Benefit: The Policyholder will be able to surrender the policy after 5 years under following three conditions
- Choose an annuity income plan.
- Change the allowed extent and then receive the balance as your normal income.
- Select a deferred pension plan from the list of plans available at the time of surrender.
We Hope that you are now able to decide which pension plan is suitable as per your requirements. If you liked this article, then please share it with your family and friends.
- 1 Best Pension Plans available in India
- 1.1 LIC Jeevan Akshay 6 Plan
- 1.2 LIC Jeevan Nidhi Plan
- 1.3 HDFC Life Click 2 Retire
- 1.4 Reliance Smart Pension Plan
- 1.5 Birla Sun Life Wealth Insurance
- 1.6 ICICI Pru Easy Retirement
- 1.7 Max Life Forever young Pension Plan
- 1.8 SBI Saral Pension Plan
- 1.9 Bajaj Allianz Pension Guaranteed Plan
- 1.10 Birla Empower Pension Plan