Start you Retirement Planning now

Retirement is like a long vacation. You get all the time in the world to travel, have long lunches and siestas and pursue your hobbies. As India does not offer one of the best environment for senior citizens* it is important to plan for your retirement in advance. India’s consistently high inflation is noted as one of the big concern. This is why, timely investment in retirement plans is very crucial. Retirement Planning can provide you a stable source of income even after you stop working. Max Life offers one of the best retirement plans in India that will help you meet your post-retirement financial needs.

*(News Source:  No country for old men! India is the worst place for retirement, says global index - ET

Original Source: https://ngam.natixis.com/us/resources/2017-global-retirement-index)

 

What are retirement plans?

 

Retirement plans are insurance products designed to provide you financial security once your working income stops. With the proceeds of the retirement plans, you can also opt for monthly pension benefits by purchasing annuity plans. They help you invest your earnings over the years and create a fund which you can withdraw as a whole or in parts during your retirement years. Further, with dual benefits of protection with investment, these plans are ideal for covering your financial needs in the golden years of your life.

Why you should invest in retirement plans?

In our ultra-stressful modern lifestyle, we barely get time to plan for future and give a conscious thought about retirement planning. However, if we can pause a little, understand current and the possible future expenses based on our lifestyle and start investing in a life insurance retirement plan, we can relieve ourselves from retirement woes. What’s important to understand is that:

It is a disciplined, affordable, and secure way for retirement planning.

You can get protection for your family, along with your retirement savings.

You can also choose to invest in market-linked pension plans or stick with a conventional pension plan.

Read More Read Less

What are retirement plans?

Why you should invest in retirement plans?

Who should invest in retirement plans:

  • You want to secure a financially independent life for your spouse in your absence
  • You wish to have a fund to cover high health care costs in future
  • You would like to maintain your lifestyle even post retirement

How to choose the best retirement plan?

How to choose the best retirement plan?

  • plan-icon

    Vesting age: it is the age at which your pension will start. Retiring early or late will depend on your career and financial status.

  • plan-icon

    Premium payment term: define the period for which you will pay policy premiums.

  • plan-icon

    Annuity options: determine how much income will be enough to cater to your needs post retirement.

  • plan-icon

    Rider Options: decide what all additional benefits you will need to provide a comprehensive cover to your family.

  • plan-icon

    Policy surrender charges: take note of these charges, in case you have to surrender the policy.

Our range of retirement plans

Our range of retirement plans

Why Choose Max Life

Here are some of the numbers which speak about our accomplishments

Why Choose Max Life

Here are some of the numbers which speak about our accomplishments
Claims Paid Percentage

97.81%

97.81%

Individual death claims paid in FY'17 (Src: IRDAI Annual Report FY 2016-17)

Max Life Presence

143 Cities

143 Cities

With 210 offices

Sum Assured

₹3,77,572 Cr.

₹3,77,572 Cr.

In force (individual) till FY'17 (Src: Public Disclosure, FY2016-17)

Assets Under Management

₹44,370 Cr.

₹44,370 Cr.

Till FY'17 (Src: Public Disclosure, FY2016-17)

More reasons why our customers choose us
See what people have to say about our retirement plans
See what people have to say about our retirement plans

Frequently Asked Questions

Frequently Asked Questions

1. What is a Pension Plan?

Pension plans or retirement plans are insurance + investment plans that help an individual create a corpus for their own future, over a period of time (policy term). On maturity (retirement), a third of the accumulated corpus can be withdrawn as a lump sum and the rest in parts in the form of a pension. The regular payout portion is called an annuity. The payout frequency can be monthly / quarterly / half-yearly or annual. In the event of the policyholder’s death anytime during the policy term, the nominee receives the lump sum amount as promised at the time of purchasing the policy. 

With a pension plan you can get a regular income post retirement, which is a great way of becoming financially independent.

2. What are the types of retirement plans?

Retirement plans can be classified in 3 ways:

Nature of investment

Investment plans - In this plan, you pay regular premiums which are invested in both equity and debt instruments. You can choose from fund options based on your financial risk appetite 

Savings plan – These plans that do not invest in the market. You pay regular premiums and at the end of the policy term, you receive pay-outs with a regular frequency. Additionally, you receive any earned bonus. 

 

Time when the payout starts

Immediate – You can pay a one-time premium and opt for immediate annuity that continues throughout your life

At a fixed time in the future - You can choose to receive payouts starting at a date in the future (say your retirement). 

 

Type of Annuity Plans:-

Single Life with return of premium – You will receive income throughout your life and on your death, nominee will receive the amount invested as an annuity.

Single Life without return of premium – You will receive income throughout your life. 

Joint Life with return of premium – You and your spouse will continue to receive income till either of you is alive. Nominee will receive the amount invested in annuity, post death of second life.

Joint Life without return of premium – You and your spouse will continue to get income throughout life.

3. I already have a PF account. Do I still need a pension plan?

With inflation and the ever-increasing costs of living and health-care your PF corpus will not be sufficient for meeting your retirement needs. As a thumb rule, the corpus that a person needs for a financially independent retirement (assuming retirement age to be 58-60) is 100 time of the last drawn monthly salary. However one should do a proper calculation before starting on this journey. Use a retirement calculator to ascertain the inflation-adjusted amount you will need for ensuring a comfortable retirement. Being market linked, retirement plans can give good returns over a long policy term and help you save enough money to lead a comfortable life.

4. What is the right time to buy a retirement plan?

Every individual needs to plan for his/her retirement. Earlier people used to spend 20-25 years in the retirement phase. However, because of people seeking early retirement and with increased life expectancy, the retirement phase has increased to 30-35 years. With increasing costs of lifestyle, medicines, and healthcare, the corpus required for ensuring a financially independent retirement, becomes quite huge. During your earning years, you are also working towards fulfilling your dreams like buying a new car, house and meeting responsibilities like children’s education. Therefore it is important to start early even if it means starting small. Retirement plans offer a disciplined and secure method of saving money to safeguard your future. Starting early on this journey will help you build a significant corpus for meeting your future needs.

5. Things to consider while buying a retirement plan?

Corpus required at retirement - The first step is estimating the amount of money you will need to fulfill dreams of a good post-retirement life. It is important to account for all sources of funds like your PF and having a sufficient outlay for any medical contingencies. 

Fund options – Most pension policies offer multiple fund options with varying degrees of risk (equity-debt allocation). Based on your financial risk appetite and investment tenure, choose the fund that meets your requirements. Equities should be given a particular place in your pension planning, as the returns in the longer term are generally better than other asset classes.

Flexibility – As pension schemes are long-term investments and personal, financial and economic circumstances will certainly change over the policy period, your plan should offer the choice to choose the type of investment suited to your financial risk appetite and the option to switch between funds as your outlook towards risk changes. 

Additional features - A retirement plan can have the option to purchase additional life cover for your spouse. An ideal retirement solution should also provide you the option of increasing your savings in a systematic manner.

Most popular articles !

Most popular articles !

Why Should I Buy a Pension Plan?

With an improvement in life expectancy the retirement phase in an individual’s life can go upto 30-35 years. That means your post retirement years would be approximately as long as your earning years. With increasing costs of lifestyle, medicines and healthcare, the corpus required for ensuring a financially independent retirement, becomes quite huge. Your PF corpus will not be sufficient for meeting your retirement needs. Pension plans offer a flexible and scalable investment option that can help you with insurance. Read about more reasons to buy in the article here.

Retirement Plan Benefits

Retirement plans offer benefits during working years as well as post retirement. In your working years, you can get significant tax benefits. Premium paid towards retirement plans is exempt under Section 80C 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. After retirement, you can get maturity benefit which is a large lump sum amount and also get a regular stream of income in the form of annuity. Read more about the benefits in this article.

How do Unit Linked Pension Plans Work

Unit Linked Pension Plans (also known as pension ULIPs) are insurance plans where some portion of your premium is invested in the market and the rest in life insurance. Based on your financial risk appetite, a pension ULIP plan allows you to choose from an aggressive to a conservative approach for investing your money. You can choose to pay single premium in lump sum at the beginning of policy term or pay regular premiums. The invested amount grows over the years and is made available to you at the time of retirement. Read more details of pension ULIPs here.

Benefits of Early Retirement Planning

By starting early, you give your money more time to compound. A quick head start gives you the flexibility to put aside smaller amounts and still achieve a huge corpus as compared to someone who delays investments. For instance, by starting at age 25, you would need to set aside about half the amount than what you would need starting at age 35 for the same retirement goal. Read more in this article.

How Much Would You Need Post Retirement?

Estimating the corpus you would need to lead a comfortable retirement is a serious task. Your future expenses can be determined by assessing the extent of current expenses housing costs, utility payments (such as water, electricity, and gas), food and clothing expenditure, transportation cost, and other sundry expenses and factoring in inflation. Healthcare and medical costs that would be required at an advanced age would also need to be accounted for. Read about the guide here

Let’s Connect

Let’s Connect

Buy an Insurance Plan
1800 200 5577
1800 200 3383 (Online Term Plan)

online@maxlifeinsurance.com
SMS 'LIFE' to 542524

Let us call you back
Customer Service
1800 200 5577

service.helpdesk@maxlifeinsurance.com
SMS 'QUERY' to 542524

Write to us
NRI Helpdesk
0124 - 2385240; 2542001; 3812932

nri.helpdesk@maxlifeinsurance.com