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Each one of us has defined a standard of living in the course of our employment phase. We fulfil our basic needs and provide financial protection to our family members. As a moral obligation, we have to continue to do so after retirement as well. However, as there is no regular employment income, you have to focus on an annuity pension plan. It should be based on a complete understanding of the essential expenses and long-term financial commitments. Let us discuss the importance of an annuity plan in detail here.
What is an annuity pension plan?
It is a type of financial plan by which you invest a lump sum amount for regular retirement income. It is important to have a secure financial life after retirement until death. Retirement funds received after the employment phase tend to get consumed faster than expected. Hence, it is advised to invest in a pension plan as early as possible to derive maximum benefits.
Why is a pension plan essential?
An annuity pension plan provides benefits for comfortable and peaceful living in the following ways.
Having seen the ever-ending financial obligations in your life, you will understand the importance of annuity pension plans and their benefits in the course of your employment phase. There are different types of annuity pension plans present in India.
Annuity Plans in India
In order to help people have a secured financial lifestyle after retirement, there are many annuity pension plans in India. Let us discuss in brief the three major types here.
The employers also define other pension plans for the benefit of employees in the organisation. These pension details can be reviewed by the employees anytime. Also, pension schemes are introduced by the Government of India, such as the National Pension Scheme (NPS), to build a retirement corpus in the long term.
Of all the different pension plans, the immediate annuity plan is preferred by many sections of people. Here is a brief about this plan and why it is essential for you.
Immediate annuity pension plan
Investors can avail of the immediate annuity plan by paying a one-time premium for the whole life annuity. It is also possible to receive the annuity along with the purchase price in some specific plans. The plan also provides the flexibility to choose the mode and frequency of the regular annuity income.
Tata AIA Life Insurance offers the Tata AIA Life Insurance Smart Annuity Plan (UIN: 110N150V05). This plan offers a choice of annuity options, top-up facility to enhance the offerings, choice of a joint life annuity, option to choose whole life annuity, loan against the policy, and so much more!
Such an annuity plan is essential because, on any day, a financial practice to save money without a defined structure will not work. The retirement fund received can be spent more often if there is no planned accounting. You cannot always rely on a friend or a family member for any expenses in your retirement life. Additionally, if you are the only earning member, it is your primary responsibility to ensure financial protection to your family at different stages in life.
We have discussed what an annuity pension plan is and its importance in a person's life. We have seen the benefits of a pension plan in different dimensions. This would have provided insight towards the practice for saving money for the retirement corpus. There are many ways to invest in pension plans. We have seen the most prominent ones in the market. Now, it is time to take the necessary steps to plan for your retirement life by incorporating the appropriate pension plan for you!
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