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Preparing your life after retirement with top pension plans

Growing old is certainly something to celebrate each day. Growing old means you have taken good care of your health all these years and have a better experience of life. However, with old age, several diseases and health conditions also start developing. We do not feel the same energy as we feel in our younger years. This is why along with taking care of our health, having a health insurance plans is very important.

If you think that the organization you are working with has covered you with a health insurance policy in which your family is also included, you need to know that it will provide you coverage only for the years that you are associated with the company. Once you switch or retire, the health insurance policy will get deactivated. After that, you are just on your own. Therefore, you must get started with your retirement planning as soon as possible.

8 Things to consider while purchasing a retirement plan in India

  1. Inflation: It is one of the most important factors that you should always take into consideration while buying a retirement plan. You need to plan very carefully about the corpus that will be sufficient for you to maintain a secured lifestyle after retirement.
  2. Medical expenses: When we are young, we actually do not pay heed to the idea of future medical expenses. As we grow older, routine medical checkups and treatments become an important part of our life. Therefore, you need to find a health insurance policy that provides enough coverage and also can help you during a medical emergency.
  3. Monthly expenses: Our monthly expenses are something that we cannot avoid, right? We also need to keep in mind that once we are retired, we will not have the same kind of monthly income that we are getting today. Therefore, we need to create a financial corpus so that post-retirement we do not have to compromise on our monthly expenses.
  4. Life expectancy: None of us know for how long we are going to live. Therefore, we should always choose a health insurance plan that can help us in our retirement years.
  5. Understanding the various products in the market: There are several types of products available in the market. Therefore, you need to know which one is better for you. You will come across various types of retirement plans but not all of them will fulfill your financial requirements. Therefore, before you choose a retirement plan, you must try to find out as much information as possible.
  6. Find information about several retirement options: Just because someone has advised you about a certain retirement plan, you do not necessarily have to stick to it. You can explore almost all the plans that are available in the market and then you can choose the one that is the best for you.
  7. Do a bit of research: Proper research before buying anything will always help you. You need to make sure that you know everything about the pension plan that you intend to buy. And for that, you must do as much research as you can.
  8. Understanding the financial requirements: You first need to have a very clear idea about the financial needs you have and also the people who are going to be dependent on you even after your retirement. This will help you to decide the kind of sum insured and the plan that you should opt for.

What are the various types of retirement plans in India?

There are several types of insurance seekers in India, and so are the types of retirement plans. Based on the structure and benefits, these plans come with several classifications. These types of plans are mentioned herein below:

  • Annuity Certain
  • Life Annuity
  • Deferred Annuity
  • Immediate Annuity
  • Guaranteed Period Annuity
  • National Pension Scheme (NPS)
  • Whole Life ULIPs
  • Defined Benefit
  • Pension Funds
  • Defined Contribution

Know More: Top Pension Plans in India

Top retirement plans in India

Here are some of the best retirement plans that you can find in India.

1. LIC Jeevan Akshay 6 Plan

It is an immediate annuity plan that you can buy by paying a single premium, which is basically a lump sum amount. As soon as you buy the plan, it will get activated. The features and the benefits of the plan are mentioned herein below:

  • The premium is paid in a lump sum
  • You can receive the annuity payment on a monthly, quarterly, half-yearly, or annually basis
  • To avail of this plan, the policy buyer does not have to undergo a medical test
  • There is no maximum limit on the purchase price
  • The minimum age to buy this plan is 30 years while the maximum age is 85 years
  • Submitting an age proof is compulsory for all the policy buyers
  • The premium you pay will be exempted from tax.

2. SBI Life Saral Pension Plan

It is a traditional, participating, individual, and non-linked pension plan that protects the policyholders from market volatility. The features and benefits of the plan are discussed herein below:

  • In case of need, you can avail of a loan facility
  • If any particular critical illness is diagnosed, you will be given the option to surrender the policy
  • From the day of receipt of the policy, you will be given a freelook period of 15 days. If you are buying it online, the freelook period will be of 30 days
  • You will be able to enjoy tax benefits as per the applicable income tax law.

You can check out some more health insurance plans online. However, you must ensure to consider the above-mentioned points while buying a particular policy.

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Gayatri Prabhu, Head-Digital Business at Mahindra Insurance Brokers Limited (MIBL) is one those few digital leaders who has the width and depth that is required to execute an ROI driven holistic digital strategy. She cuts through the noise, identifies the critical levers and leads her team to successful execution of the defined strategy. Her core mantra to win new and retain existing customers is: understand the consumer behavior and craft experiences around it.

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