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Life Insurance and Smart Retirement Planning


In the world of retirement planning, it could well be said- The earlier you start, the better it is. But, with so many different retirement planning options available today, it could be tricky for you to choose the one that suits the best according to your needs. We try to give you some insight on the things you need to keep in your mind, in order to make the best choice.

Life Insurance companies offer retirement and pension solutions that allow you to save systematically in equity and debt instruments. Further IRDAI regulations mandate capital protection as an integral part of any pension accumulation solution. With balanced investment in equity and debt, you can be assured of secure returns that ensure that your retirement corpus continues to grow. This time period when you pay your premiums is known as the accumulation period.

Following the accumulation phase is the vesting age. This is the period when you need steady retirement income or pension from your accumulated corpus. Depending on the plan you’ve chosen, the vesting age can be between 40 years to 70 years. At vesting age, when the pension accumulation plan policy matures, you will have the option to withdraw up to 33% of the amount you have accumulated, at once and utilize the remaining proceeds to generate a regular income. You could also choose to utilize the entire corpus for generating pension income post retirement.

There are also certain options available for you in case you did not do retirement planning at an early stage. One such option is to invest a lump sum amount in a single premium pension plan which can vest after 5 to 10 years as required by you. In case you have already reached your retirement milestone, you could opt for an immediate annuity option that allows you to pay a lump-sum amount and start getting your pension immediately.

While Pension accumulation plans can be offered on various platforms, ULIPs or Unit Linked Insurance Plans offer the most transparent and cost effective platform when choosing a pension accumulation plan.

Max Life Insurance has some great retirement and pension plans on offer. Do check them out if you’re starting early or have gotten late in order to make the most out of the time in your hands. A little awareness while choosing your insurance plan will go a long way and reap you good benefits in the years to come.

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: 104L075V02)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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