FAQ - Retirement Plans
What are the features of Pension Plan?
Some of the features of Pension Plan are:
- Corpus of Funds- with Pension plans you can build a corpus of funds which can be used to satisfy you financial needs post retirement.
- Limited premium payment term- You can pay premiums for a limited term of 5/7 or 10 years based on your requirements.
- Life Long Income- Retirement plans provide lifelong guaranteed income as annuity.
- Minimum Guarantee: Pension plans offer Minimum Guaranteed amount. Based on IRDA guidelines, there should be “on Zero Returns” on all premiums or guaranteed maturity benefit. Most companies offer a minimum of 1% of total premium over the complete policy term.
- Tax Benefits: Pension plans are eligible for a tax deduction under Sec. 80CCC.