Planning for the old age when the ability to earn diminishes while the expenses to live a dignified and healthy life start rising is of utmost importance.

1. Pension Plan
Planning for the old age when the ability to earn diminishes while the
expenses to live a dignified and healthy life start rising is of utmost
importance.
A lot of companies and consultants offer a host of financial products so
that you save enough money for the golden years of your life. However,
the rising costs ensure that no amounts of savings are enough to meet
the daily expenses.
Also, savings are depleted fast in case of an emergency. This is where
you need to factor in the pension plans.
Pension plan is an investment tool that helps you to save money for
your post-retirement life.
After the term of the plan is over, the insurance company pays you
monthly income for a pre-decided period of time to meet your financial
requirements apart from paying a substantial amount as lump sum.
This ensures you have a steady income flow even during your old age
and you will never be dependent on others for your monetary needs.
Investing in a pension plan is to give yourself a gift in the old age: a gift
in the form of money that will help you to meet routine expenses as
well as manage any medical emergencies with your head held high!
We are her to help you choose the best pension plan! Just start your
comparison at easypolicy.com!

2. • Eligibility to Buy Pension Plans!
• Any resident or non-resident Indian between the ages of 18 to 55 years can buy a
pension plan.
The documents that you need to produce while buying are:
• Photo Identity Proof
• Address Proof
• Date of Birth Proof
• PAN Card
• Crossed Cheque of First Premium Payment or Online Transfer Availability
• Key Advantages and Features of Pension Plans!
• Pension Plans come with distinctive features, which help to frame a policy specially
meant for people who wish to plan for old age and do not want to depend on
anyone for financial needs in later years.
Here are the most important features of pension plans you must know and
understand:

3. • Sum Assured Insurance Cover
Sum assured is part of particular pension plans that come with attached insurance
cover. This sum is offered as life insurance to the pension plan buyer, which comes
in handy in the scenario where the buyer needs to provide for the dependent
family in their absence. The sum assured can be 10 times the premium amount or
a lump sum fund value of the policy bought. It depends on the choice of pension
plan taken. The advantage of this feature is security for family and a stress-free life.
• Immediate and Deferred Returns (Annuity)
All pension plans come with an annuity attached: deferred or immediate. Based on
individual requirement, whether you need funds immediately or after a certain
age, you can buy pension plan accordingly. In case of immediate annuity, the
insurance provider will pay the pension plan amount immediately after receiving
the single lump sum premium. In case of deferred annuity, the insurance provider
will start paying a certain amount only after a few years. The advantage of this
feature is that you get to choose as per your foreseen needs.

4. • Funds Accumulation and Payment Period
There is a certain period where the buyer is required to pay regular premiums to
the insurance company. This period is called the accumulation period. There is an
option to keep paying the part premiums from receivables during the term, and
use the rest of the money on other requirements. This makes the availability of
small funds throughout. Some insurance companies keep the accumulation period
completely different from the payment period. The payment period is the time
when you start withdrawing the money from the corpus generated. This means
the premiums are paid first and the returns come later. This helps to save and
withdraw at the time of need. Both kinds of plans are available, depending upon
your individual requirement.
• Surrender Value Plan
If, for any reasons, you need to surrender the plan, the insurance company will pay
a certain amount, that only if the minimum period premiums are paid. This
surrender value is not of great use as the rest of the benefits such as life cover etc.
become void. Also, the surrender value feature is added only with insurance based
plans where there is a provision of creating a corpus of funds. With sole term
plans, this feature is not available. If you foresee a reason to surrender, you may
opt for insurance based plans with corpus accumulation. This brings the advantage
of getting some amount back in case you cannot carry on the plan or cannot pay
future premiums.
• These features help you to understand your requirement of a pension plan. Now
go ahead and buy the most suitable one, only at easypolicy.com!

5. • Benefits of Pension Plan!
• Pension plans are an absolute gift when it comes to financial independence post
retirement. A carefully studied and selected pension plan can help you enjoy your
old age without worrying over money matters.
Easypolicy presents the benefits of a pension plan that make life easy and
comfortable after retirement:
• 1) Income Guarantee After Retirement
These plans offer you guaranteed income post retirement, when your salary is not
available to you. You can avail this income either monthly/quarterly/half-yearly or
annually depending on your requirements. Whether you buy deferred annuity
plans or immediate annuity plans, the income is secure and guaranteed.
• 2) Investment Returns With Fixed Amount Guarantee
As per the guidelines issued by Insurance Regulatory and Development Authority
of India (IRDAI), the insurers are mandated to offer positive no-zero returns.
Complying with the orders, the insurance companies now offer a minimum of 1%
returns on investment. This way you’re assured of returns and your investment will
not lead to any losses.

6. • 3) Takes Care of Your Family With Death Benefits
Not only a pension plan pays you regular income when you’re alive, it also ensures
that your nominee receives death benefits in case you pass away. These benefits
can also include any bonuses, if applicable. Your family can use the lump sum
death benefit pay-out for many major expenses.
• 4) Choice of Investment In Different Pension Plans
Every buyer or investor comes with a different preference and limitation to invest.
Some may prefer aggressive portfolios offering various benefits, while others may
just want moderate or conservative ones, helping the basic needs. A host of
retirement or pension plans offer the options of choosing the underlying funds.
Depending on the options you chose, the returns and pay-out amounts will vary.
• 5) Tax Benefits On Pension
The Section 80CCC of the Income Tax Act offers you a tax deduction towards
premium for pension plans. The deduction allowed is up to a maximum amount of
Rs. 1.5lakhs in a financial year.
• Start your search now, at easypolicy.com, to reach the best suited pension plan for
your coming years.

7. • Riders (Additional Benefits) That You Can Avail With Pension Plans!
• A basic pension plan may not suffice for your critical needs. You may want to avail
some additional benefits with the regular pension plan. These additional benefits
are offered by insurance providers at some additional premium cost and are
known as Riders.
Here are the types of riders you can choose with your pension plan:
• Accidental Disability Rider
If the insured suffers a permanent or partial disability in an accident, during the
term of the plan, the insurance company will pay an amount equal to or less than
the rider sum assured. However, pay-out terms and conditions vary from company
to company. Some companies offer a disability benefit only in case of permanent
disability. Some offer a percentage of the rider sum assured depending upon
permanent or partial disability.
• Term Benefit Rider
This rider is similar to term life insurance. If the plan buyer dies during the term of
the plan, then the rider sum assured is paid to the nominee. Since, this is a pure
insurance product; therefore, it comes at a lower additional premium. For this
reason, insurance providers put a limit to the maximum sum assured under this
rider.

8. • Critical Illness Benefit Rider
This rider brings the benefit of a lump sum amount provided to the beneficiary in
case he is diagnosed of a critical illness. This amount is equal to the rider sum
assured. Usually, insurance providers stipulate an upper limit to it
• Waiver of Premium Benefit Rider
In the case, where the plan buyer faces a critical illness or physical injury and is
unable to pay further premiums, this rider helps to wave off the premiums till the
insured is ready to pay again. If the insured dies during the term, the policy
remains in force even in the Auto Cover Period, and payments due in the auto
cover periods are also waived. This must be informed that Auto Cover Period is
duration of two years for which the policy continues, if the insurer is not able to
pay the premiums. But, the auto cover period comes in force only if two years' full
premium is paid.
• Accidental Death Benefit Rider
This rider is a protection against accidental death. In the unfortunate event where
the policyholder dies in an accident, the rider sum assured is paid to the nominee,
appointed by the policyholder. This is in addition to the sum assured of your base
term policy.

9. • Hospital Cash Benefit Rider
This is a useful rider in case of a sudden hospitalization is faced by the
policyholder, due to an injury, sickness or critical disease. A small amount
is paid daily to take care of the hospital expenses. This is valid for a
hospitalization of more than 2 to 3 days. It can be a percentage of room
charge in hospital or a set amount for daily hospital cash, whichever is
lower. There is a set limit to the benefit under this rider. This rider comes
in force only after 2-3 months of policy being alive.
There is a catch here. If the policyholder claims this rider along with
critical illness rider, the insurance company may not provide against
hospital cash and only pay against critical illness rider. In such case, the
further additional premiums for hospital cash rider are waived off.
• Riders always strengthen your basic pension plan. Make sure you choose
your riders as per your significant individual needs.

10. • Importance of Having Pension Plans!
• Pension Plans are important for all those who look forward to a safe and financially
secure future!
They serve as crucial instruments that facilitate financial stability in the retirement
years. They also replace the insurance plans while providing the life coverage for
old age. The best part of pension plan buying is that they are funded by your salary
if you are in a job, or through your income if you are self-employed or in business.
This means, a certain amount of your earnings are systematically saved and stored
for your future.
There are other reasons that describe the importance of pension plans. Let us go
through them to gain clarity.
• They Are Important Because They Help To Develop A Saving Habit
As we know that usual pension plans are long term investments. You are required
to pay small periodical premiums to build a large corpus of funds which is available
to you in your retirement years. If you do not invest in a pension plan, you may or
may not save otherwise. But, a pension plan ensures you are taking out a chunk of
money and saving it purposefully for your secure future.

11. • They Are Important Because They Brings Gains from Compounding
The investment made is compounded over the years in form of rate of interests on
investments. Therefore, the longer you stay invested in an investment instrument,
the more you gain. Pension plans can be launched as early as 20 years and the
compounded returns by the age you are ready to retire, say around 60, you will
have a substantial amount in your pension account, to live a happy and
comfortable life.
• They Are Important Because They Offer a Flexible and Scalable Investment Plan
The most important factor about pension plans is that they offer options of
investment based on your investment and risk appetite. Based on your need of
returns, immediate or deferred, you can choose your investment form, be it
aggressive (large and small period investments), balanced (medium and periodical
investments), conservative (small one time investment). Also, you have the option
to switch between debt based and equity based instruments, based on the market
changes and personal needs & preferences. Pension plans are long-term financial
planning where personal, financial and economic conditions will demand such
flexibility in changing circumstances.

12. • They Are Important Because They Offer Life Cover Too
Along with the investment instrument and the financial security that they offer in
later years, with-cover pension plans offer a life insurance component too, which
keeps the family and dependents financial needs safe, in case of demise of the
policyholder. Through the insurance-led pension plans one can secure the future
for self and provide for the family in their absence. The dual benefit makes
pension plans very important investment of life.
• Here is a clear comparison with or without pension plans:

13. With Pension Plan Without Pension Plan
Financial Future Secured Not Sure
Investment
Compounding
Yes No
Family's Future Secured Uncertain
Corpus of Funds Available Not Available
Stable Savings Yes No
Old Age Dreams Fulfilled Not Fulfilled
Life Cover Available May or May Not Be
Flexible Investment Yes May or May Not Be
Flexible Returns Yes May or May Not Be

14. • Once you have understood the utmost importance of pension plans, you
must reach the best pension plan suited to your distinctive investment
and financial needs. Here at easypolicy.com, you can compare and buy the
best pension cum investment plan.
• Types of Pension Plans
• Each individual has different needs pre and post retirement. Therefore,
the pension plans come in various forms too, with different features,
which can take care of your individual needs. Usually, pension plans differ
on the basis of annuity (regular or lump sum returns) that they offer to the
policyholder.
Here are the types of pension plans you can choose from, depending as
per your financial planning before and after your retirement.

15. • Immediate Annuity Pension Plans
In this type of plan, your returns start immediately as soon as you make the
investment. A lump sum premium is required to be paid to the insurance provider
and as per that premium; a set amount is available to the policyholder. In case the
policy holder dies, his/her nominee shall receive the payable amount over the
stipulated duration. The premiums paid for the immediate annuity plans are tax
exempted, under Income Tax Act, 1961. These plans are suitable if you have a
portion of spare money to be invested suitably.
• Deferred Annuity Pension Plans
As the name suggests, the returns are not immediate, they are deferred for a later
period, which is called pay-out or payment period. The policyholder is allowed to
accumulate a corpus over a term by paying regular premiums or a single lump sum
premium. This period of paying premiums is called accumulation period. Once the
accumulation term is over, the returns in form of pension are received by the
policyholder. The premiums paid (regular or one time) are exempted of tax.
Deferred Annuity Plans are suitable for both kind of investors, the one who want
to invest systematically and periodically, and the ones who have an amount to be
invested in one single go.

16. • With Cover Pension Plans
These pension plans come with a life cover component. This works as a
term insurance plan, where a lump sum assured against life cover is paid
to the family members, if the policyholder dies during the term of the
plan. Do not take this lump sum amount as substantial, because, usually
the major part of premium for such plans goes towards building the
corpus of pension funds. Hence, the life cover component brings a
nominal amount as returns. As per current trends, Deferred Annuity Plans
come with life cover. This is a good plan to invest, and save money on term
insurance.
• Without Cover Pension Plans
There is no life cover component with such plans. The nominee of the
policyholder receives the corpus accumulated over a period of time, till
the death of policyholder. As per current trends, insurance providers offer
Immediate Annuity Plans without life cover. You can buy this plan if you
already have a separate life insurance policy.

17. • Annuity Certain Pension Plans
Here the return (annuity) is paid to the policyholder for a certain number of years. It is
up to the policy holder to choose that period of payments. If, in any case, the
policyholder dies within those years, then the annuity is paid to the beneficiary
nominated by the policyholder. One can nominate children or grandchildren to
receive the benefits.
• Guaranteed Period Annuity Pension Plans
Under this plan, the policyholder receives the returns for a set number of years such
as 5, 10, 15 or 20. These limits are set by the insurance provider and one of them is
chosen by the policyholder. It is irrespective whether the policyholder remains alive
for the chosen years, the annuity is offered for those years only.
• Life Annuity Pension Plans
Choosing this plan, makes the policyholder entitled to annuity until his/her death, and
entitles the spouse to receive the annuity after the policyholder dies. This is a very
important plan if you wish to secure the financial future of your spouse, especially in
old age.
• National Pension Scheme (NPS)
This is a pure government initiative to facilitate the citizens of the country who wish
to build pension funds. Under this pension scheme, one can invest the savings in
equity or debt based instruments, as per the preference. Out of the entire maturity
amount, one can withdraw 60% to take care of regular needs, while the remaining
40% must go into the annuity. The receivable maturity amount under NPS is not tax
free.

18. • Investing in a good pension plan will prove to be the most sensible step of your
financial planning. These plans ensure a secure future in late years of life and also
help to save money systematically.
PFRDA (Pension Fund Regulatory And Development Authority) has allowed 6
private companies to sell and manage pension plans.
• Factors That Affect Returns On Pension Plans!
• Retirement planning is crucial! Everyone wants a comfortable and secure old-age
where they do not have to worry about funds in hand for basic needs and comfort.
A good retirement plan helps to fulfil the needs in the age when we are not able to
work.
What makes all this possible are the Pension Plans chosen carefully, and each
pension plan proves to be successful only if the returns are just what one expects.
Now, the question is how to determine the returns? What are the factors that
affect returns on pension plans?
Here are some very important factors those if considered can help you to choose
the correct pension plan for you.

19. • Annuity Option Chosen
Based on the annuity option you choose; deferred or immediate, your investment
on pension plans will bring returns to you. For example, in a deferred plan, the
funds are accumulated first in accumulation period and you can withdraw in
payment period, in a lump sum, quarterly or yearly based on your requirement. In
an immediate plan your returns start immediately as soon as you pay the one time
premium. The returns are affected as per your choice on annuity.
• Market Risks
ULIP Pension plans are based on debt or equity. Therefore, there is a component
of market risk involved which may affect your returns. The performance of
financial and securities market, going up or down, will equally affect your returns.
For example if the large component of your pension investment was sent to stocks,
and if the price of the stocks you invested in, go high, you will garner higher
returns, and vice versa.
• Early Retirement
Retirement depends on what you want, and when you want. According to
retirement research, saving 15% or more of your income, starting from an early
stage for 10-20 years in your career can ensure that you save enough to retire
comfortably at 60. Retirement plan does not mean saving higher amount; it is also
possible to save substantial by investing a small amount systematically, starting
from young age.

20. • Invested Period And Withdrawals
The period for which you remain invested directly affects your returns. The longer
the period, the greater are the returns. In case you need to withdraw from your
investments to supplement for your needs, you can withdraw 1/3rd amount from
the vesting corpus amount. For example, if you are collecting 10,00,000 vesting
corpus amount as your retirement plan/saving then you can withdraw around
3,00,000 from the corpus vesting amount, for immediate needs.
• Good Credit Habits
Even if you have been diligent about building a solid foundation of retirement
income, good credit habits are an important part of the retirement equation.
Balancing unnecessary debt during your retirement can have high-interest
payments with a limited cash flow.
• Taxes On Investments And Returns
Often, the effect of taxes on your pension plan investments and returns are missed
out. Taxes can significantly reduce the corpus you have available for you when you
retire. So it is important to be aware of how your pension plans are taxed. Though
pension plans provides the tax benefit of U/S 80(C), you should be aware that the
pension received is Taxable. Not all the premiums paid and withdrawals made are
tax exempted. For example, some income, like interest, is taxed at ordinary income
tax rates.
When planning for your retirement and investing in a sound pension plan, it is
important to consider these common factors that can affect your returns largely.

21. • Why You Should Invest In Pension Plans!
• Around the retirement age, the mounting challenges to lead a peaceful life are
huge. Especially with the income drop and increasing expenses of medical care!
That is the time when a sound investment plan will come in handy and save you
from all the trouble of low finances.
Understand with clarity why you should invest in a pension plan:
• Guaranteed Stream of Income
Pension Plans offer a regular income. As per the Insurance regulatory and
Development Authority of India (IRDAI), the insurance providers are bound to
provide a no-zero return on all premiums or guaranteed maturity benefits
attached with pension plans. In order to adhere to this, insurance companies offer
a guaranteed return of 1% of total premium over the complete policy term.
• Post Retirement Years Are Taken Care Of
After you get retired, you require better medical care, which needs adequate
funds. With a pension plan and regular income coming in, you can look forward to
a healthy life your post-retirement and take care of other necessary expenses.
• Pensions Offered By Employers Are Not Sufficient
Employer companies offer a standard pension provision which may overlook your
individual needs. Therefore, you must invest in a separate pension plan, keeping in
view your actual requirements.

22. • Social Security System Does Not Exist In India
The concept of social security, which is prevalent in many foreign countries, does
not exist in our country. This means that government will not be available to take
care of your particular needs in old age. Therefore the onus lies on you to invest in
pension plans and secure your later years.
• It Generates A Corpus of Funds
While you are still earning, you can start investing in a good pension plan, to
accumulate a corpus of funds for life goals and family responsibilities, at the time
when you are unable to work and earn.
• It Helps To Pursue A Relaxed Life
Post retirement, when you no longer want to work, but enjoy a relaxed life, follow
some ambitions such as travelling to places, or pursuing a hobby, funds returned
from pension plan will become a large support. Hence, investing in a pension plan
is a must in your young years.
• Investing in Pension Plans is important because they sustain life in weaker years
and fulfil your dreams.
• There is a range of pension plans available in the market. Make a good comparison
at easypolicy.com and buy a pension plan now!

23. • Tips To Invest In A Pension Plan
• When you can’t earn anymore or don’t want to earn anymore, it is a better idea to
make your money earn for you by investing sensibly!
Pension plans investments do exactly that by ensuring that you receive substantial
income in your golden years without having to step out of your house!
However, you need to be smart enough to invest correctly in a pension plan for it
to offer hefty returns.
Here are the important tips you need to keep in mind when it comes to buying or
investing in pension plans:
• 1) Start Early
– Starting early has its benefits since you get more time to make your money grow. Pension plan
investments grow based on the compounding effect and the longer these plans stay invested
in the equity markets, better are the returns.
– The volatility of the markets gets nullified over a long term period so that by the time you
retire, your investments would have multiplied into a substantial amount resulting in adequate
pension for a longer period of retired life.
– If you invest at the age of 25 compared to at the age of 35 years, you get a decade to make
your money multiply and offer handsome returns.

24. • 2) Start Small
• There is never the right amount to begin with when it comes to investing
in pension plans. The idea is not to invest huge or substantial amounts,
but to invest at the right time, even if the amounts are small.
• Do remember that small amounts invested with discipline over a long
period of time in equity based markets are known to offer exemplary
returns and build a solid corpus of funds for you to enjoy later in life.
• Don’t wait to save some money and then invest; instead start investing
immediately with whatever little you can spare after meeting your survival
expenses.
• A pension plan is your friend, companion and support in the later years of
life. Check all the investment plans at easypolicy.com and invest wisely!

25. • How Easypolicy Helps You To Choose Best Pension Plan!
• The decision and choice to invest in pension plans is a complicated process
for most people.
But, Easypolicy is here to make the process smooth and easy for you.
Here's how we do it:
• 1) It Is Effortless
Surfing Easypolicy website for information has been kept absolutely user-
friendly and simple so that you can sail through it without any trouble.
Whatever information you require about the pension plans, it is easily
available and presented in an easy to understand manner supported by
expert advice.
• 2) It Provides Quick Access
Easypolicy values your time and therefore it is our endeavour to provide
you every bit of information as fast as possible. Also, to make things even
clearer, all information is up to date so you can take well-informed
decisions.

26. • 3) Assistance With Processing Of Claims
We will not only help you to buy an insurance policy, but will also help you to
understand the entire claim process and even guide you during filing of the claims
and the processing of the same.
• 4) Uncomplicated Formalities
To dispel the most common perception that buying pension plans require
complicated paperwork, Easypolicy brings to you simplified procedure of filling up
forms. Not only the language is easy to understand, there are experts, who will
guide you during every step of the process.
• 5) Facility To Collect The Documents
We understand you have busy schedules and deadlines and that’s why we offer
you the option of picking up necessary documents from your home and delivering
it to the concerned insurer within mandated timelines.
• 6) Tracking The Policy From Start To Finish
With Easypolicy, you can be assured of getting up to date information about your
pension plans. Right from the time you buy it, till you file a claim for it, we will
keep a track of every little detail and will even remind you about paying premiums.

27. • 7) Special Features At Your Service
Everyone has different needs and priorities and we totally understand that. That’s
why we help you sort down the requirements, through as many filters as possible,
and provide you with specific information about pension plans that meet your
criteria.
• Easypolicy is your one stop shop for getting all answers and investing in all kinds of
pension plans! Start now!
• Step Wise Process To Buy Pension Plans Online!
• Buying your pension plan online is the wisest thing to do, as it saves a lot of time,
effort and paperwork.
Here is how you can buy your pension plan online in few easy steps.
• Login to an insurance comparison website or the insurer's website directly if you
have chosen your insurer already.
• Read through the various plans available and make a study as per your individual
needs.
• Choose the coverage amount that you need.
• Choose the riders (additional benefits) with your policy.

28. • Fill in the details required by the insurance company such age, gender,
illness etc.
• Calculate the premium. The premium amount is usually determined as per
the filled details and chosen riders.
• Pay the premium online through credit card, debit card, or net banking.
• The pension plan will be generated in your name and issued by the
company. You will receive the documents online, in your mail and the hard
copies via post.
• At easypolicy.com, we make insurance buying very easy for you. We are
your #1 trusted partner, when it comes to effective solutions related to
insurance products.
• Resource From: https://www.easypolicy.com/life-insurance/pension-plans