Pension plans offer policyholders a chance to secure themselves financially after retirement. While pension plans are great financial products, buying pension plans in India can be complex. Millions get confused while choosing the right pension plan since they are not familiar with the best options out there. That’s why we decided to list out the best pension policies out there!
In this article, Aapka Policywala – trusted for buying pension plans in India – will share the top 8 pension plans in India. Make sure you read all the details carefully before buying! Let’s start.
Top Pension Plans in India
There is no dearth of pension policy providers in India but below are the top 8 trusted pension plans that make sense in almost every way:
HDFC Life Click 2 Retire
HDFC Life Click 2 Retire is a straightforward hassle free pension policy specially designed to increase your wealth. This pension plan offers an assured vesting benefit that allows policyholders to capitalize on any upside in the market and secure the financial future post-retirement.
HDFC Click Life 2 Retire provides a choice of 6 investment funds to maximize returns and also provides death benefits. This pension policy offers a surrender benefit equal to the fund value at the time of surrendering the policy.
By choosing this pension plan, policyholders can also avail tax benefits under section 80CCC of the Income Tax Act, 1961.
Max Life Guaranteed Lifetime Income Plan
This pension policy is a non-linked traditional annuity plan and provides comprehensive retirement benefits. Max Life Guaranteed Lifetime Income Plan is ideal for people who plan to live their lives with guaranteed payouts after retirement. The policyholder can choose between joint life annuity and single annuity policies. Plus, there is no limit for minimum and maximum payment.
Max Life Guaranteed Lifetime Income Plan offers flexibility in receiving the payout. Policyholders can choose to receive the payout on a monthly, yearly, half-yearly, or quarterly basis depending on their needs. The policy accepts premium payments via cheque and annuity payments via electronic transfer.
After the policyholder’s death, the nominee receives the purchase price of the pension policy.
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SBI Life Saral Retirement Plan
For those who don’t know, SBI is currently offering three pension plans in India, and SBI Life Saral Retirement Plan is one of them. It is an individual, non-linked, participating savings pension plan, which provides a secure future retirement. The individual is also offered the option of additional life coverage through SBI Life – Preferred Term Rider. SBI Life Saral Retirement Plan is completely safe from market volatility.
Policyholders can revive the policy within 5 years from the date of the first unpaid premium and the nominee can also claim the death benefit. Staff discount of up to 2.25% on the tabular premium is provided to employees, retired employees, VRS holders, minor children, and spouses of SBI Life Insurance employees.
LIC New Jeevan Shanti Plan
The New Jeevan Shanti Policy is offered by Life Insurance Corporation (LIC) of India. Two deferred annuity options are offered by LIC named single-life deferred annuity and joint-life deferred annuity. Nominees can avail of the death benefit under both options. Beneficiaries get instalment benefits for the amount payable on death over the selected period of 5, 10, or 15 years.
Policyholders can surrender the insurance as per their convenience over the policy tenure. The plus point of the LIC New Jeevan Shanti plan is that no medical examination is required. Policyholders can also avail of add-on cover for dependent people with disabilities under the pension plan.
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IndiaFirst Life Guaranteed Annuity Plan
To apply for the IndiaFirst Life Guaranteed Annuity Plan, the applicant must be a minimum of 40 years of age at the time of applying and a maximum of 80 years of age when first applying for the plan. It is a traditional immediate annuity plan and the premium must be paid in a single lump sum amount and can be paid via cheque, demand draft, or ECS. There is no surrender value available under this pension plan.
IndiaFirst Life Guaranteed Annuity Plan is a single life annuity plan that pays annuity yearly to the policyholder. There is no bonus available as this is a non-participating plan but it gives you the freedom to choose the age at which you wish to retire. You can also cancel this policy within 15 days from the receipt of the cancellation request if you are not satisfied with the terms and conditions of this pension plan.
ABSLI Empower Pension Plan
ABSLI Empower Pension Plan is a unit-linked, non-participating single pay pension plan that entails a single premium and retirement corpus. The minimum premium is INR 10,00,000 and there is no limit for maximum premium. The minimum entry age for this pension plan is 25 and the maximum age is 70 years. On each anniversary of the policy, the fund value will be rebalanced according to prevailing percentages.
The accumulation phase of the ABSLI Empower Pension Plan is 5 years and should be completed before a policyholder decides to vest. The risk profile which is selected at the time of submitting the application form cannot be changed throughout the accumulation period. The nominee will be paid the greater of the guaranteed death benefit or fund on the intimation of death.
Kotak Premier Pension Plan
This pension plan in India offers various advantages such as guaranteed addition, and assured benefits so that you can live a stress free retirement life. Monthly, quarterly, half-yearly, and yearly premium payment methods are available with this pension plan. The policyholder can earn the bonus from the 6th policy year onwards.
A certain percentage of the basic sum assured will be paid in the form of guaranteed addition in the first 5 policy years. The assured benefit is available either on death or vesting. It is equal to 105% of total premiums paid till the date of death or vesting. You can also get tax benefits as per Section 80CCC of the Income Tax Act, 1961.
Kotak Life also offers two additional protections named Kotak Accidental Death Benefit Rider and Kotak Permanent Disability Benefit Rider.
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ICICI Pru Easy Retirement Plan
The minimum age of entry in ICICI Pru Easy Retirement Plan is 35 years and the maximum age at entry is 70 years. Monthly, semi-annually, and annually are the premium payment methods offered in this pension plan. You can change your vesting date any number of times and you can also top up the sum assured of your policy with any amount.
Once the policy completes the 10th year and on completing 5 years after that, the policyholder will be guaranteed pension booster provided that given that 5 year’s premiums have been paid. The nominee receives a higher guaranteed death benefit and fund value in case of the unfortunate death of the insured during the policy term. You can also reduce the taxable amount with this pension policy.
Top Pension Plans in India: Wrapup
We hope that the above post helped you learn about the top 8 pension plans in India to live your life without stress after retirement. Before buying a pension plan in India, make sure to get in touch with pension experts at Aapka Policywala to learn about the top affordable pension plans for a better future after retirement.
Do you have any queries about pension plans in India? Email us at info@aapkapolicywala.com to get them answered by our pension experts.