copy of role of pension plans in the individual’s retirement2003

8/9/2019 Copy of ROLE OF PENSION PLANS IN THE INDIVIDUAL’S RETIREMENT2003

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Age

(Yrs)

Sum

assured

(Rs)

Tenure

(Yrs)

Annual

premiu

m (Rs)

Maturity amt

(@6%)

(Rs)

Maturityamt

(@10%)

(Rs)30 500,000 30 13,500 960,000 1,590,500

Actual rate of

return (%) 5.10 7.80

Annuity amt (Rs) 71,500 118,500



ICICI [ Get Quote

] Prudential

(ForeverLife)

Tata AIG

(Nirvana)

Bajaj [ Images ]

Allianz (Swarna

Vishranti)

LIC [ Get Quote ]

(Jeevan

Suraksha/ Jeevan

Dhara)

LIC (Jeevan

Nidhi)

HDFC [ Get

Quote ] Personal

Pension Plan

Product type

Regular pension

plan

Regular pension

plan

Regular pension

plan

Regular pension

plan

Regular pension

plan

Regular pension

plan

Minimum annual

premium (Rs) 6,000 - 5,000 2,500 3,000 2,400

Minimum cover

(Rs) 50,000 50,000 50,000 50,000 50,000 -

Min-Max. tenure(Yrs) 5 yrs - 30 yrs - 5 yrs- 40 yrs 2 yrs - 35 yrs 5 yrs - 35 yrs 10 yrs - 40 yrs

Min/Max Age at

entry (Yrs) 20-60 18-55 18-65

18-65 (for Jeevan

Dhara); 18-70 (for

Jeevan Suraksha) 18-65 18-60

Min-Max vesting

age (Yrs) 50-70 50-65 45-70 50-79 40-75 50-70

Riders available

Critical illness

rider , Accident and

disability benefit

rider

Term rider , Critical

illness rider ,

Accident rider

Term cover , Critical illness

cover , Hospital

cash benefit,

Accident benefit,

Family income

benefit

Term assurance

rider , Critical

illness rider

Accidental death

and disability

benefit rider , Term

assurance rider ,

Critical illness rider No

Life cover

available Yes - Yes Yes Yes -



Conventional pension plans invest moneyin bonds and G-Secs.

Returns on lower sideIf one were to factor into the equation anannual inflation figure of approximately 5%-6% per annum, then the real return figures

look even more unimpressive.



ULIPs have a mandate to also invest a portion of the

premium in the stock market apart from bonds and

G-Secs.

Studies have shown that from a long-term

perspective,equities are equipped to give a higher return

vis-à-vis other fixed income instruments like bonds and

G-Secs.



1.With & Without cover Plans

2.Immediate Annuity Plans & Deferred AnnuityPlans

Immediate Annuity ² Pension commences in 1

yearPremium paid ² Purchase priceEg: LIC·s Jeevan Akshay PlanDeferred Annuity ² Pension is deferred upto a time

Can be paid as single or regular premium



1. Lifetime annuity without return of purchase

price:

2. Annuity for life with a return of thepurchase price:

3. Lifetime annuity guaranteed for a certainnumber of years:

4. Joint life/ Last survivor annuity:

copy of role of pension plans in the individual’s retirement2003

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