Posts Tagged ‘About Pension Plans’

About Pension Plan

Pension policy or Pension plan is a plan offered by insurance companies that provides individuals with regular income in their old age or after retirement. There are different type of pension plans which include Social or State pension plan, Disability pension plan and Employment-based pension plan. Employment-based pension plan helps individuals financially after their retirement.

Disability pension plan is a plan in which an individual is provided with regular income if he becomes disable before his retirement age. Social or State pension plan requires individuals to invest through their working life to enjoy the benefits in future or if they are disabled. Insurance can be taken by any person between 18 to 55 years of age.

The advantage of having a Pension plan is that you need not depend on anyone after your retirement or in old age. Out of the total sum assured you can withdraw maximum 1/3rd of your amount if you are in need after your policy is matured. The rest of the remaining amount is to be taken monthly into parts. There is no need of any medical examination if the person is between 18 and 45 years of age. If you have completed 3 three years paying the premium for this policy, you can also purchase Critical Illness coverage. The amount paid to the individual is tax-free after his retirement or in an unfortunate event of death.

In this policy Accident and term riders are also available as an added protection.