Get 5% Cash Back : Pay your all utility bills on Visa bill pay Avail 5% cash back !

Pension Plan

The terms retirement plan or superannuation refer to a pension granted upon retirement. Retirement plans may be set up by employers, insurance companies, the government or other institutions such as employer associations or trade union called as retirement plans or pension schemes. Retirement pensions are typically in the form of a guaranteed annuity.

A pension created by an employer for the benefit of an employee is generally referred to as an occupational or employer pension. Labor unions, the government, or other organizations may also fund pensions. Occupational pensions are a form of deferred compensation, generally advantageous to employee and employer for tax reasons. Many pensions also contain an insurance aspect, since they often will pay benefits to survivors or disabled beneficiaries, while annuity income insures against the risk of longevity. Other vehicles (certain lottery payouts, for example, or an annuity) may provide a similar stream of payments.

The common use of the term pension is to describe the payments a person receives upon retirement, generally under pre-determined legal and/or contractual terms. A recipient of a retirement pension is known as a pensioner or retiree.

BenefitsClick to expand

It is a happy combination. Pension plans from life insurance companies not only help you save for retirement, but also help create regular retirement income from the accumulated sum (see Pension Plan Demystified) . Tax deductions make them a potent investment tool - investments up to Rs 100,000 qualify for deductions under Section 80C.

Evaluate the investment proposition:

For long, pension plans have been sold primarily as a tax-saving tool that provided life insurance. The practice still continues. Since you can get a cost-effective cover from term plans, opt only for pure pension plans. With retirement life in India, on an average, stretching to more than two decades, pension investing is becoming crucial.

Participatory policies; security's flip side

Till a few years back, most pension plans were with-profit or bonus-based. In such plans, the insurers bear the investment risk. Your investment is not at risk, and your returns vary with the profits and surplus, depending on the investment performance of the insurer. But the flip side is that these policies don't disclose the investment performance and the costs incurred on fund management or administration. So, you make do with what is offered. Also, since such plans don't invest in equities, which typically provide high returns in the long term, their returns are in the range of eight per cent. Participatory policies might work for extremely risk-averse people with low income. It may even work for those who want to use it to create a base retirement income, supplemented by income from other sources. But, most of us need the equity exposure that unit-linked pension plans provide

Death Benefit

Upon the unfortunate event of death during the accumulation phase, the company will pay the fund value as a death benefit to your nominee. If the nominee is your spouse, the proceeds can be taken in a lump-sum or used to purchase an annuity.

Tax Benefits

Tax benefit governed by Section 80 CCC on premiums paid to a maximum of Rs. 1,00,000 and Section 10(10A) on the commuted value of the benefits on the vesting age of the Income Tax Act, 1961. In addition the benefits payable on death will be exempt from tax under Section 10(10D).

Service Tax and other levies

Service Tax and other levies, as applicable, will be levied as per the extant tax laws.

Apply now for Pension Plan

First name
City
Phone
Email
Age
Insurance Amount
Annual Income



I have read the privacy policy and agree to terms & conditions

All fields are required





I agree to receive promotional Emails.

Unicon

Name:	Email:
City:	Mobile:

Landline:	STD Phone