Outlook Money
In a pension plan, the subscribers deposit a fixed sum regularly until the scheme matures to help them build a robust retirement corpus.
It ensures financial security by providing income after retirement, so choose the plan that suits you best.
These plans invest in low-risk government securities, offering guaranteed steady income.
Unit-Linked Insurance Plans (ULIPs) invest in equities and bonds, providing potentially higher returns with some market risks.
People who invest in ULIPs have a high risk tolerance as the return is usually not guaranteed.
Although returns are not guaranteed, pension ULIPs can potentially generate inflation-beating returns in the long term.
These plans are of two types: differed and immediate. In the former, pensions come after retirement; in the latter, payments start immediately.
Life insurance add-ons can be added to a pension plan, which ensures a lump sum amount to the dependents upon the subscriber's death.