Gone are the days, where retired life was considered easy and hassle free, every individual has to work towards setting up a retirement plan for himself or herself.
Unlike other insurance plans, a retirement plan needs to be prepared to tackle problems like “retiring early” and “living too long” - both of which can mean lesser money for the retirement years!
These are endowment plans wherein a major portion of the premium is invested in safe investment instruments like government or corporate bonds and debt securities. Since the underlying investments are not aggressive, the returns and bonuses will be lower. However, the security of the principle is certain.
Annuity is the series of regular payments as an income from investments. In an Immediate Annuity Plan, the pension payment starts immediately after paying the first premium, whereas in case of a Deferred Annuity Plan, the pension payment starts after a certain period.
Life Insurance premiums up to Rs. 100,000 per annum are eligible for deduction under section 80C. Moreover, investments made towards pension plans are eligible for deduction under section 80CCC. The pension plan deduction falls under the 100,000 eligible under section 80C.
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