4 Best Pension Plan Companies for you in India

Pension-plan

Tomorrow is never predictable. And, securing your future with a proper future plan is must. Investments play a vital role in our lives. It never goes in vein and always has some or the other benefits and returns.  Yes, money is an important factor as it’s the base to secure our lives. And, there is no right time to start investing for your future. Pension plan is one such important investment. It secures your future and provide financial stability after your retirement.  

Let’s understand the pension plans:

Pension plans are long term investments for your post retirement period. There are various pension plans and your investment routine will depend on your plan. Mostly pension plans have a monthly investment scheme. This plan provides you with a regular income source after your retirement. Pension plans are classified into two:

  • The accumulation stage: here the person will invest in some amount annually or according to their plans requirement.  The payment process continuous till the age of retirement. The accumulation stage ends here. It is followed by the vesting stage.
  • The vesting stage: vesting is the second stage. Here in this stage the investor starts getting returns. They continue to receive annuities till their death. There are some pension plans where in the plan gets pass on to the nominee after the retiree’s death. And, the nomine gets benefit till his death.

Pension plans are majorly classified into three:

Sponsor plan: these pension plans are provided by an insurer. And, the investment of these plans are in debts.  It is suitable for conservative investors.

Unit link: these pension plans invests your money in debt as well as equity.

NPS:  National pension scheme is by the government of India. They brought NSP in 2004. Here the investment has three bases: 100% in government securities or debits or 75% in equity shares.


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List of top 4 companies in India that provides Pension plan.

We have ample choices in Pension plan market to choose from. However, a very basic tip is to study the background of the company thoroughly. From its shares, growth rate etc. It help us understand the company better and build up a trust worthy relation. Some of the best companies that provide pension plans are as follow:

HDFC Life Insurance Company Limited:

Click 2 Retire plan is one of the most trending policies in the market. Here HDFC follows Unit Linked Plan. This plan enables the investor or policy holder gain maximum benefits with minimal investment.

Benefits:

  • The vesting process has no delay. And in addition to it they provide you with extra gains from the market.
  • To start with this pension plan one should be minimum 18 years and maximum 65 years old.
  • The maturity age depends on the investor.
  • The lowest maturity is 45 years and the maximum maturity limit is 75.
  • The vesting process has no delay. And in addition to it they provide you with extra gains from the market.
  • Click 2 retire plan provides you with tax benefits following the government rules and regulations. Tax section taken into consideration for this plan are section 80C Section 10.
  • Income tax plan 1961 is been followed by HDFC.
  • Here the death benefits are also included in this plan. And according to this plan  the nomine will gain higher fund value.

Aditya Birla Sun Life Empower Pension.

It is a perfect savings plan for post retirement. Birla Sun life Pension policy follows Unit link. This plan is well known as Non-participating plan.

Benefits:

  • Vesting period can be selected by the policy holder themselves. Usually it has to complete 5 to 30 years of accumulation.
  • The premium amount that is applicable totally depends on the policy holder.
  • The person eligible to invest in this policy needs to be in the age group of 25-70 years.
  • The profit you gain totally depend on the risk your ready to take.

ICICI Prudential Pension Fund.

It is a long term pension plan with good returns policy. This plan provides the policy holder a stable source of income post retirement. It is been invested in equity. Moreover, the plus point is its safe and protects your investment from the market risk.

Benefits:

  • ICICI Prudential pension fund has a particular term. Where minimum 10 years and maximum 30 years is the limit.
  • Its premium limits are minimum premium of Rs 48,000 and maximum is up to you.
  • The eligibility of age criteria for this policy is 35 years to 70 years.
  • The lowest vesting age is 45 years. It completes 10 years of regular investment. And, the maximum vesting age is 80 years.
  •  For this ICICI Prudential pension fund one can pay the premium monthly, yearly or even half yearly. It gives flexibility to the investors. And the major attraction is it has tax benefits on both premium and the vesting.

LIC Pension Fund limited.

Government of India owns and controls LIC. It runs under the guidance of LIC of India act 1956.  One of the Pension plans that are highly in preference is LIC Jeevan Nidhi plan. The policy terms depends on the accumulation amount.

Benefits:

  • The policy time ranges from 5 to 35 years.
  • As LIC follow LIC act of India it exempts the premium paid under section 80 CC.
  • The vesting period minimum is 55 years to maximum 65 years. It doesn’t have any limit to the base sum.
  • Under single premium policy of jeeva nidhi plan Rs 1.50 lakh is the minimum base. And for regular premium it is Rs.1lakh
  • With 5 years of investment there is a guarantee of adding Rs50/- per thousand.
  • From the sixth year policy will gain profit. It is done by participating in determined corporation.

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