What is Pension Plan

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What is Pension Plan
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Pension Plan

• What is Pension Plan? A pension plan is a type of
  retirement insurance designed to cover your
  living and medical costs once you retire. You
  must make premium payments over a period of time
  at regular intervals under this
  specially-created retirement plan. These modest
  deposits grow into a sizable corpus, and once it
  has reached maturity, it can provide you with a
  generous income in the years after your work.
• The maturity amount or annuity is the sum of
  money you get when the plan matures. Depending
  on the parameters of the plan, you may get the
  maturity amount as a lump sum or in installments.
  Consequently, a pension plan is essentially an
  investment that will serve as a reliable source
  of income during your retirement.

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Benefits of retirement plan

• A steady stream of income- With no other means of
  support after retirement, keeping up with your
  expenses might be a challenge. Meeting the costs
  of growing costs of living might be difficult
  when there is no monthly paycheck in the bank.
  In these situations, purchasing a retirement plan
  that can provide income in your senior years
  becomes essential.
• Independence in retirement-After retiring, most
  parents want to spare their kids any financial
  worry. After retirement, a pension plan grants
  you this freedom. You won't need to rely on
  anyone else to take care of your needs because
  the pension plan is a guaranteed source of
  income.
• Tax Benefits-You can receive tax advantages under
  the pension plan just like you can under any
  other insurance plan. According to Section 80CCC
  of the Income Tax Act of 1961, tax benefits are
  available and can be deducted from total income
  up to a maximum of Rupees 1.5 lakh in the prior
  year. The maturity amount you receive will
  therefore be tax-free.
• Insurance protection-Many insurance providers
  have developed appealing insurance coverage with
  pension programs. Consequently, a pension plan
  will also give you and your family financial
  security from life's risks.
• Rider benefits- Your pension plan may also
  include add-on rider benefits. In the event of
  your passing, a
• Critical Illness Rider or an Accidental Death
  Rider can provide your dependents with a
  settlement.
• Risk-free plans- Pension plans have elements of
  investments, but they are exempt from hazards
  associated with investments, such as changes in
  the market. Pension plans are the best choice for
  any risk-averse person who wants to live well
  after leaving the workforce.

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Thank You