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Benefits of a Retirement Plan


Retirement is said to be the golden period of life. It is the time where you are relieved of those impending deadlines and crushing workload. This is the time for yourself—to do all things you ever wished for but couldn’t. This is supposed to be the time you look forward to. However, retirement is also the time when your regular income (salary) stops. Now, you don’t want to find yourself making ends meet to survive through your time. Make your post-retirement planning wisely, so that you enjoy it like a fine dessert.

Thus, to not hamper your lifestyle even after you retire, a sufficient amount of fund needs to be there for us. To accumulate a sizeable amount of fund to enjoy your golden post-retirement years, insurance companies such as MaxLife have introduced various kinds of retirement plans in the market.

Apart from the fact that these plans are known to secure your post-retirement life financially, there are several other benefits that come with them, such as:

  1. Receive Lumpsum amount at the time of maturity

    Most of the retirement plans will offer maturity benefit: a large lump sum amount depending entirely on the plan selected. The money received at the time of maturity is equivalent to or more than the premium paid towards the purchase of retirement plan. The pay-out received can be used to fulfil such dreams as funding of that long-standing world tour plan or purchase of any item that you were longing for in the working years.

  2. Takes Care of your Family in your Absence

    Most of the retirement plans by default come equipped with Death Benefit cover. The plan will provide sufficient amount of monetary reimbursement to meet your family’s basic financial needs when you will be not around anymore. This amount can supplement the sum assured received from a life insurance plan, thereby providing financial cushioning after the loss of the breadwinner.

  3. Regular source of income

    After you retire, your regular stream of income, i.e., your salary, will not be available. The pension feature offered by retirement plans acts as an adequate source of income, thereby helping you sustain your current lifestyle even without a day job. Moreover, the factor of investment growth helps in tackling rate of inflation, thereby helping you receive adequate funds during the post-retirement age.

  4. Liberty to choose the underlying funds in different retirement plans

    The investment appetite of every investor is different. Some prefer aggressive portfolios, while others may stick to moderate or conservative ones. To help you maximize the returns, several retirement plans are known to provide you with options of choosing the underlying funds. Depending on the options you chose, the returns and pay-out amounts will vary.

  5. Availing Tax Benefits

    This is one of the key features of retirement plans; they offer significant tax benefits. Retirement plans are not only a tool to manage the expenses after you retire but they also will help you save on the tax paid to the government during the working years. For deductions done towards payment of premium of retirement plans, benefits are available under Section 80C and 80D of the Income Tax Act. Pension schemes qualify for special benefit under the Section 80CC of the Income Tax Act. The withdrawals done from these products are exempt from taxation under Section 10 (10D) of the Income Tax Act.

Thus retirement plans offer a host of benefits, so why not secure the future of your loved ones and yourself by buying a retirement plan today?

Unit Linked Insurance Products (ULIPs) are different from the traditional insurance products and are subject to the risk factors. The premium paid in the Unit Linked Life Insurance Policies is subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions. Max Life Insurance is only the name of the insurance company and Forever Young Pension Plan(UIN: 104L075V01)is only the name of the unit linked life insurance contract and does not in any way indicate the quality of the contract, its future prospects or returns. Please know the associated risks and the applicable charges from your Insurance agent or the Intermediary or policy document of the insurer. The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these funds, their future prospects or returns.For more details on risk factors, terms and conditions please read sales brochure carefully before concluding a sale. Past performance of the funds does not indicate the future performance of the funds. You may be entitled to certain applicable tax benefits on your premiums and policy benefits. Please note all the tax benefits are subject to tax laws prevailing at the time of payment of premium or receipt of benefits by you. Tax benefits are subject to changes in tax laws.


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