There are two variants in pension plans:

• Traditional plans- Under the traditional plan the payout amount is guaranteed. As per irda guidelines pension plans are mandated to provide a non-zero positive return of premiums. Most traditional plans offer a minimum of 1% of total premium over the complete policy term.

• ULIPs- Under a ulip the premiums are invested in financial instruments where the returns are high when invested for a long period. It is advisable that if your investment tenure is 10 years or more then ULIP pension plans are the best bet.