RESUME APPLICATION PAY PREMIUM
Fund Performance

Fund Performance

Knowledge Center

Knowledge Center

About Us

About Us

Tools and Calculators

Tools & Calculators

Quick links

Mobile (Download app)
  • Webpages
  • Documents
  • HDFC Life ClassicAssure PlusInvestment
  • HDFC Life ClassicAssure PlusInvestment
  • HDFC Life ClassicAssure PlusInvestment

For NRI Customers

(To Buy a Policy)

(If you're our existing customer)

For Online Policy Purchase

(New and Ongoing Applications)

Branch Locator

For Existing Customers

(Issued Policy)

Fund Performance Check

RESUME APPLICATION PAY PREMIUM

What do you want to do?

Quick links

Mobile (Download app)

Download HDFC Life App

Buy plans, track your policy, make renewal payments & monitor fund performance with HDFC Life App, Download Now!

Apple Logo Go to Google Play Store

Top 10 Features of an Ideal Pension Plan

down-arrow
December 27, 2018

Retirement represents a milestone in a person’s professional life, where after decades of dedicated work and professional growth, a person finally attains superannuation. This also marks the beginning of a life where people generally prefer sending quality time with the loved ones and look forward to other pursuits that had to be earlier put on the backburner for taking care of life’s responsibilities. However, the absence of a regular monthly paycheck can put a significant stress on your finances and consequently on your savings. What is therefore required is to have a sufficiently viable system in place that offers guaranteed benefits in the form of regular payouts i.e. pension.

When it comes to choosing a pension plan, you must always take an informed decision since it is matter of long term advantages and must come with features that suit your needs and requirements.

So, following are the top 10 features of an ideal pension plan:

  1. Coverage scope and terms:

    The nature of retirement benefit and the annuity payouts is generally either immediate of deferred. In the immediate mode, the regular payouts begin soon after plan is purchased (i.e. when the premium payout is done by the subscriber). On the other hand, deferred annuity works in the mechanism of initial accumulation for a fixed number of years (generally up to retirement) and then the subscriber becomes eligible for the benefits. So, the coverage scope of the policy must be favorable for your needs.

  2. The duration of the fund build up:

    This feature indicates the number of years for which the policy allows you to build up the fund corpus from which the regular payouts in the form of pension can be made after retirement.

  3. The duration of the pension period:

    This is a very basic feature and denotes the time period (in years) after retirement when the subscriber will be entitled to receiving monthly payouts.

  4. The main fund coverage:

    This is also known as sum assured and indicates the total coverage for which the subscriber is entitled (in rupees). Before deciding on the pension plan, always make sure to check that the sum assured must offer you and your dependent spouse the guaranteed coverage after retirement.

  5. Option of partial withdrawal:

    This is a beneficial feature and ideally, the plan must not have rigid of inflexible terms of withdrawal during the period of fund build up. This feature can allow you to withdraw a particular percentage of the main corpus in the event of an emergency or requirement.

  6. The minimum assured amount:

    This is a very crucial feature and entitles you to be aware of the amount that the insurer will provide as annuity benefit after the term period is over.

  7. Flexibility of investment option:

    The annuity instrument that the plan provides must ideally offer you the choice of fund option, especially so if the returns are market-linked.

  8. Tax benefits:

    The pension plan that you wish to purchase must be income tax efficient and must allow you the mentioned benefits on tax exemptions as per the relevant sections of the Income Tax Act, 1961.

  9. The market value of the plan:

    This indicates the surrender value of the plan i.e. if you wish to surrender the policy before term maturity.

  10. Additional benefits:

    The plan must ideally offer additional benefits or riders for coverage of old age related expenses (medical bills, doctor visits etc.). You must choose carefully before opting for a rider as it impacts the payable premiums.

HDFC Life offers the HDFC Life Pension Guarantee Plan – a single premium annuity product that has been formulated for lighting up your golden years financially.

Term Plan Articles Term Plan Articles

Investment Articles Investment Articles

Savings Articles Savings Articles

Life Insurance Articles Life Insurance Articles

Tax Articles Tax Articles

Retirement Articles Retirement Articles

ULIP Articles ULIP Articles

Health Plans Articles Health Plans Articles

Child Plans Articles Child Plans Articles

Popular Calculators Popular Calculators

Francis Rodrigues Francis Rodrigues

Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.

LinkedIn profile
Author Profile Written By:
Vishal Subharwal Vishal Subharwal

Vishal Subharwal heads the Strategy, Marketing, E-Commerce, Digital Business & Sustainability initiatives at HDFC Life. He is responsible for crafting and ensuring successful implementation of the overall organisation strategy.

LinkedIn profile
Reviewed By Reviewed By:

Here's all you should know about life insurance.

We help you to make informed insurance decisions for a lifetime.

What is Family Pension?

What is Family Pension?

What is Family Pension? Explore its eligibility, benefits for government employees, retirees, widows, and tax implications. Understand the differences between regular pension and family pension.

Income Tax on Pensions: Are They Taxable?

Voluntary Retirement Scheme

Pension Payment Order: Definition, Steps, Importance

Pension Payment Order, abbreviated as PPO, is a unique 12-digit code assigned to every pensioner under the Employee Provident Fund (EPF). Read to know how to check it.

Pension Payment Order: Definition, Steps, Importance
ULIP Vs Pension Plans - Which is Better for Retirement? Previous
Understand NPS tier 2 Vs tier 1 accounts Next
HDFC life
HDFC life

HDFC Life

Reviewed by Life Insurance Experts

HDFC LIFE IS A TRUSTED LIFE INSURANCE PARTNER

We at HDFC Life are committed to offer innovative products and services that enable individuals live a ‘Life of Pride’. For over two decades we have been providing life insurance plans - protection, pension, savings, investment, annuity and health.

Popular Search

Popular Searches