Close
Close

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term

Protect Your family’s financial future with Kotak e-Term. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more

Kotak Lifetime Income Plan

Retirement years are the golden years of life. Know more

Close

Get a Call

Enter your contact details below and we will get in touch with you at the earliest.

  • Select your Query

Thank you

Our representative will get in touch with you at the earliest.

How To Choose The Right Pension Plan?

A pension plan is a smart way to receive a steady income for covering your post-retirement expenses. Read more to know how to choose the best pension plan for yourself.

  • Nov 26, 2021
  • 1,293 Views

A pension plan is a smart way to build a retirement corpus and use it for receiving a steady income for covering your post-retirement expenses. But with so many options now available, how will you pick the right pension plan?

Here are four factors that can help you make the decision-

1. Asset Selection Flexibility

One of the most critical features a pension plan should offer is the flexibility to choose your preferred asset classes so that you can diversify your investment. For instance, if you are in your 20s-30s, you can have a more aggressive investment approach, with equity being the significant component of your portfolio.

In the 40s-50s, the stability and safety offered by the debt class can help you keep your investment protected. The plan provider should offer this option to choose and switch between asset classes to help you make the most of your investment throughout the various stages of your life.

2. Guaranteed Additions and Bonuses

Many pension plans also come with guaranteed additions to the sum assured for up to 5 years from the plan purchase date. The additions are mostly a certain percentage of the basic sum assured and are payable either on demise or vesting.

Moreover, you can also find plans that offer additional bonuses from the 6th year of the policy. Note that these additions and bonuses are generally over and above the assured plan benefit, which can be up to 105% of the basic sum assured.

3. Life Cover and Add-ons

Pension plans are available with and without life cover. It is generally recommended that one choose a plan with life cover to ensure financial security for the family. With these plans, the nominee will receive the basic sum assured, along with the additions and bonuses, on the policyholder’s unfortunate demise.

Some insurers also offer additional riders such as accidental death benefits and permanent disability benefits for extra security.

4. Entry Age and Vesting Age

Like most other types of investments, the sooner you purchase a pension plan, the higher the probability of building a large retirement corpus. All the insurers have different entry age limits. In most cases, you should be able to purchase a pension plan if you are 30 years and above. However, you’ll mostly not be allowed to buy a pension plan if your age is already 55-60 years.

The vesting age is the age after which you’d like to start receiving the pension. In most plans, the vesting period is between 45-70 years. Do check the entry age and vesting age while browsing through the options to choose one that best meets your requirements.

Ensuring Financial Stability After Retirement with a Pension Plan

While there are options like PPF and EPF for private employees, inflation will hugely impact the corpus these investments generate for your retirement. A pension plan is a smart addition to any retirement plan to boost your corpus and ensure financial stability essential for living a comfortable retirement life.

Focus on the factors discussed in this post while comparing pension plans offered by top insurers to make the right decision.

In this policy, the investment risk in the investment portfolio is borne by the policyholder.

Kotak e-Invest

Download Brochure

Features

  • Return of Mortality Charges*$
  • Enhanced Protection
  • Multiple Plan Options
  • Zero Premium Allocation Charges
  • Tax Savings^

Ref. No. KLI/22-23/E-BB/521

T&C

- A Consumer Education Initiative series by Kotak Life

Similar Articles

What is an Annuity Plan, and How Does Annuity Plan Work?

The Significance of Number 8,000 in Retirement Planning

Different Types of ULIP Investments in India

NPS for Housewife

Can NRIs Invest in ULIP Plans Offered in India?

Worried About Running Out of Money in Retirement? 4 Tips to Avoid This Crisis

What are ULIPs and their Types?

What is the difference between Life Insurance and ULIP?

Retirement Planning at 50? You Are Still Good to Go

How Does NPS Work?

What are the Benefits of ULIP - Explained

How Safe is it to Invest in ULIP plans?

What are the Rules for Exit From NPS?

Demystifying the Retirement Planning Process

What is the Death Claim Payable in the Case of ULIP?

How Does Pension Plans in India Works?

What are the Differences Between ELSS ULIP and Mutual Funds?

What Happens If I Stop Paying My ULIP Policy Premium After Paying the First Premium? Will I Still Get The Return?

How To Keep Your Retirement Accounts from Being Hacked?

Saving for approaching retirement with retirement insurance

What is a Defined Benefit Plan and How it Works?

What Are Superannuation Benefits?

यूलिप में 8 शुल्क जो आपको अवश्य जानना चाहिए

How Can I Achieve My Wealth Goal with ULIP Investment?

Inflation: A Key Factor to Consider into Retirement Planning

5 Steps to Gift a Smart Retirement Plan to Your Parents

5 Retirement Planning Tips for a Financially Controlled Post-Employment Life

Calculating a Retirement Corpus that can Support Your Lifestyle

What Are Mortality Charges In ULIP?

Which Pension Plan Suits You best?

Top 6 Reasons Why You Should Get A Pension Plan

5 Notable Investment Options for Retirees

Is ULIP A Good Investment Option?

Do Pension Plans Allow any Death Benefits?

What are the Uses of ULIP?

Importance of Retirement Planning

Looking for Ways to Earn Lifetime Income in Retirement? Here Are 6 of the Top Options

Is ULIP Better Than FD?

Single Premium ULIP or a PPF - Which One is Better?

Top Investment Options for Retirement Planning

Retirement Planning - How To Calculate Your Retirement Premium in India?

Are Annuities Great For Early Retirement?

Retirement: A New Start to Life!

Terminologies You Should Understand About Retirement Plans

Understanding Annuity Plans

What are the minimum and maximum investment in ULIP? Would the Whole Amount Insured in The ULIP Insurance be Invested in the Market?

Which Is Better: ULIP or SIP?

Why Should You start Retirement Planning as soon as you start a job?

Is It Worth Buying ULIP Plans For 10 Years?

Is it Advisable to Withdraw the ULIP Insurance Policy After 5 Years?

Know Why You Should Stay Invested in Your ULIP Plan

What Happens to ULIP Premiums Paid if the Market Crashes?

What To Do With Your Retirement Accounts During An Employment Lapse?

Why ULIP Should Be a Part of Your Investment Portfolio?

What is Fund Value in ULIP?

5 Reasons to Buy ULIP for a Secured Financial Future

Is it Suggestible to Take a ULIP Plan Linked with a Term Plan?

How To Calculate The Present Value And Future Value Of Annuities?

10 Steps to Figure Out How Much Money You Will Need After You Retire

Un-Retirement - Are You Ready For It?

What tax benefits are there on saving for retirement?

5 Reasons Why ULIP Plans are One of The Best Retirement Planning Instruments

Retirement Planning: Use our Retirement Calculator to Plan Ahead

How can NPS help you save tax?

How To Make Most of Your Money After Retirement?

What is Lock-In Period in ULIPs?

Ten Signs That You're Ready to Retire

5 Common ULIP Myths That You Should Stop Believing

ELSS vs ULIP: Which is a Better Investment?

How Has NPS Performed in Comparison with Other Instruments?

Best Insurance Plans for a Guaranteed Monthly Income After Retirement!

Is ULIP a Complex Financial Product?

Top 4 Mistakes To Avoid While Planning For Your Retirement

A Quick Guide to Retirement Plans

How should one decide on fund allocation within NPS?

What is a Retirement Plan - What are its Features?

How Can ULIPs Help You Plan for Your Child's Future?

What are the Charges Levied on ULIP?

How to Maximize Your Retirement Savings with a Pension Scheme in India

Retirement Planning for Millennials

Top 6 Flexible Benefits That ULIPs Offer

Types of Annuity Plan | Annuity Definition - Meaning & Key Benefits

How to Win at Retirement Savings?

Annuity Plan | How to Choose the Right Annuity Plan | Kotak Life

A Beginner's Guide to Understanding 401k Retirement Plan

Benefits of Early Retirement Planning in India

Importance of financial Planning for Retirement

What are Fixed Maturity Plans and Why Should I Invest in Them?

Retirement planning with a systematic life insurance plan

ULIP: Can You Surrender ULIPs or Withdraw Money from It?

Why Should You Invest in NPS?

What are the Instruments Available for Building a Retirement Corpus?

Does Having Both ULIP Plan and Other Health Insurance Plan Make Sense?

Top 4 Myths About ULIP Investments You Should Know

Tips to invest your voluntary retirement scheme money

ULIPs or Pension Plans – Which is a Better Retirement Plan?

What are the things to consider before buying ULIPs?

How Quickly is Fund Switch Effected in ULIPs? Is it Done the Same Day or After a Particular Number of Days?

Advantages of Pension Schemes and Retirement Plans

Why Should Retirement Planning Be on Top of Your Priority List?

Can I Surrender My ULIP Policy after 2 Years?

Here's What Retirement Would Look Like 30 Years From Now

Is ULIP a Good Option for People Above 60?

Getting Close to Retirement? Six Key Retirement Planning Tips That Can Help You Retire

Who Gets the Benefit After the Maturity of ULIP: The Proposer or The Life Insured?

What is the Minimum Lock-in Period for ULIP?

10 Steps to Figure Out How Much Money You Will Need For Your Post Retirement Plans

Invest for your second innings with a guaranteed savings plan

EPF Grievance Management: All You Need to Know

Benefits Of Retirement & How Investments Can Help You Enjoy Them

How Does ULIP Work in India?

What is the Estimated Return Percentage on ULIP? Do Investors Get Compound Interest?

Different Types of Retirement Schemes

Important Questions To Ask Yourself Before Choosing A Good Retirement Plan

What are the Chances of Losing all my Money in ULIP and How Much Return Should I Expect?

Are You Planning an Early Retirement? Here's Why Buying Annuity Plan Will Make Sense

Pros and Cons of Retirement Annuities

यूलिप और उनके प्रकार क्या हैं?

What is Partial Withdrawal in ULIPs?

At What Age Should You Start Your Retirement Planning?

How Much Corpus Does One Need for Retirement?

Why You Should Invest In An Annuity Plan?

Types of Retirement Plans

How to Build a Tax-Free Pension Income for Retirement?

ULIP Tax Benefits: यहां निवेश करने पर मिलते हैं 5 बड़े फायदे

7 Secrets that can Make Your Post-Retirement Phase Prosperous

Give Your Retirement Savings A Booster-Shot with Annuities

What is the Difference Between EPF, VPF, and PPF? What are Their Tax Benefits?

Types of Pension Plans for Your Retirement

Benefits of Early Retirement Plans

6 Signs That You Are Not Financially Ready For An Early Retirement

Save Early to Keep Living Your Dreams Post Retirement

Is it possible to live a financially independent life, even after you retire?

Meaning of Sum Assured in a ULIP

Difference Between Unit-Linked Insurance Plans and Non-Linked Plans

What Are Retirement Pension Plans?

Retirement Planning Guide: These 5 Steps Will Help You Towards a Safe, Secure and Fun Retirement

Long Term Investment Guide for Your Retirement

Do ULIPs Give Good Returns On Investments?

Retirement and Pension Plans in India- What are Your Options?

What are the 4 Financial Phases of Retirement? How to Budget For Each One?

What is Premium Redirection in ULIPs Plans | ULIP Insurance Plans | Kotak Life Insurance

How Do Annuity Options Work In NPS

ULIP Plan or Traditional Insurance Plans - Which is better?

FAQs on Taxation of ULIPs

Retirement Planning Guide for Working Men and Women

How has ULIP Grown Over the Last 3 years?