Retirement Plan

Retirement Plan: Every person want to get pension or regular income after a particular age, without working hard or without any work. As some people are very lucky who was employed with Central or State Government, who will get pension after their retirement, but what about the people who work other than Government Sector. Even in Government Sector and in Public Sector Undertaking (PSU), there is no pension for newly joining, I’m sure 90% people might not aware of it, but it’s true. To reduce the financial burden, Government has amended the Pension Scheme in Government Sector and PSU.

Now, the new Generation as well the employees of Private Sectors have to plan for their pension themselves to survive in their old age, since in old age the capacity of earning becomes lowest, at that time everybody need regular income without working hard or without any work.

There are many Retirement schemes in market today, and in Insurance Industry we have the best schemes to support our senior citizens. As we believe in “live like a King and there be enough money, to help someone at any age of you”.

If, you are aware and lower age group, you can start your retirement plan with low money for huge retirement fund with double tax benefits.

If, you are middle age group, you can plan great retirement plan with medium investment every year but double tax benefits.

Or if, you are about to retire, you can plan it but you need some huge money to invest and tax benefits will be as per the T&C of Income Tax Act.

What can be chosen for Retirement Plan;

  1. For Younger and Middle Age Group, you can choose Insurance Whole Life Policy with emergency withdrawals, Endowment Policy, ULIP with benefits of Systematic Transfer Plan; with your life coverage benefits, and at the maturity you can buy the Annuity plan or Guaranteed Lifetime Income Solution, in this plan your rate of return will be fixed and will continue for life long.
  2. For Middle Age Group and Near to Retirement, there one plan more which is most suitable for their age group, they can go for Guaranteed Monthly Income Plans, in this plan there will be premium for 12 to 15 year per your age and Guaranteed Monthly Income for next 10 Years and then after a handsome maturity (in this plan you will be eligible for double tax benefits) be there to purchase the Annuity product like Single Premium.
  3. For about to retire and Old Age Group, you can buy Annuity Plan with fixed returns for your life, then after your spouse life, then after entire money will go to your children/nominee (per the plan you select at time of Annuity purchasing). Annuity can be chosen from Traditional as well as ULIP in insurance, per your choice.

What is Double Tax Benefits:

  1. At time of premium paying you will enjoy the Tax Exemption under section 80(c)
  2. And all returns, monthly income, maturity will be Tax Free under section 10(10D), this will not applicable under some Annuity Products and the insurance where Sum-Assured is below 10 times of your first year premium.

Amit Saxena

Financial & Insurance Consultant
MaxLife Insurance Co Ltd & MaxBupa Health Insurance

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