Aditya Birla Sun Life Insurance Company Limited

What is Retirement Plan?

Retirement planning requires you to make contributions into a pool of funds which are set aside for your secure future. This pool of fund is invested by the insurer on your behalf and the earnings on the investment generate income on your retirement. This enables you to live a blissful retirement life.

For your retirement plan, there is ample number of pension plans available in the market. These plans vary from one another. Retirement plans are basically an investment or saving tool to provide for your future retirement needs.

Why do you need Retirement Plan?

Today, life has become uncertain and we don't know what the next moment has in store for us. It is better to lead a healthy and secure future than an unstable one. Retirement Pension plans help you save today for a bright and stress free tomorrow.

All the miscellaneous expenses post retirement; be it a vacation or your will to pursue your hobby can be covered with this plan. One can be rest assured that he/she would receive the benefits of the plan and live the peaceful retirement plan they deserve. Retirement Pension plans also gives you the financial independence and keeps your life going with the amount you receive on a monthly basis.

Retirement Plans By ABSLI

ABSLI Empower Pension Plan

Linked insurance products do not offer any liquidity during the first five years of the contract. The policyholder will not be able to withdraw/Surrender the monies invested in Linked Insurance Products completely or partially till the end of the fifth year from inception. Retirement is the time of life when the worries of working... KNOW MORE

ABSLI Immediate Annuity Plan

You strive hard all your life to ensure you have enough money for a comfortable life after retirement. While your income stops, your expenses don't. With increasing life expectancy and rising medical costs, the need to have an alternate income after retirement is important... KNOW MORE

ABSLI Empower Pension- SP Plan

The linked Insurance Products do not offer any liquidity during the first five years of the contract. The policyholder will not be able to surrender/withdraw the monies invested in Linked Insurance Products completely or partially till the end of the fifth year. Your retirement years are your second innings... KNOW MORE

ABSLI Empower Pension Plan

Linked insurance products do not offer any liquidity during the first five years of the contract. The policyholder... KNOW MORE

ABSLI Immediate Annuity Plan

You strive hard all your life to ensure you have enough money for a comfortable life after retirement. While... KNOW MORE

ABSLI Empower Pension- SP Plan

The linked Insurance Products do not offer any liquidity during the first five years of the contract. The policyholder... KNOW MORE

  • Tax benefits: Retirement plans in India provided by life insurance companies qualify for tax deduction for the premiums paid. You get annual deduction from total income of up to Rs 1.5 lakh under Section 80CCC of the Income-tax Act, 1961. On reaching vesting age, the policyholder can get up to one third of the retirement savings as a tax-free lump sum under Section 10(10A) of the Income-tax Act, 1961 which is subject to the terms and conditions stated therein.

  • Regular income: One would be habituated to the amount they earn and in case of retirement there is no regular source of income. Retirement Pension Plans help you to lead a normal life without the worry of regular income as you receive it from the insurer.

  • Financial independence: Future planning helps you in a long run and so it is wise to opt for Retirement Planning to avoid being financially dependent on your children. This ensures that you live your life on your terms plus complete your wish list with your spouse.

  • Inadequate provident fund savings: As Indians, we tend to depend on provident fund and gratuity but in the long run they turn to be inadequate. Retirement Planning meets your financial demands and thus fulfils every need.

  • Wealth accumulation: Retirement Pension Plans have long investment terms. So, a regular and disciplined investment in retirement plans helps you have enough savings for your retirement and enables you to maintain a standard of living.

How does Retirement Plan work?

A retirement pension plan has a simple way of functioning - You insure plus the insurer invests your money and on retirement you receive it in the form of monthly income. It is always wise to start so you start securing your retired life well in advance.

For retirement planning, one needs to set aside his/her savings from the salary and have the insurer invest as per his/her needs. The returns you receive can either be in lumpsum or a fixed monthly payout, as selected at the time of purchase.

Tomorrow is yet to come and it is always considered that one should save enough to have a relaxed future. However, when you choose one plan it is better to consider the following factors to ensure that you get the best.

  • Start early: To have ample retirement savings, you need to buy the pension plan early in your work life. This will make sure you have ample time to make small investments so that you can save a large amount.

  • Premium payment period: It is always advisable to know the time period for which you need to pay the premiums. This enables you to be well aware of the financial commitment to your retirement plan.

  • Determine savings target: When you start saving for a retirement plan, you need to set a savings target for your retirement life. It is mandatory to take into account of the family members dependent on you and accordingly set the savings target for your retirement.

  • Retirement income needs: If you receive pension from the company then you might not need the monthly income but if not then it is essential. Typically, the lumpsum amount received in the immediate annuity type of plan helps one for a long term plan but the monthly income plan helps one lead a secure retired life.

  • Tax saving: Although tax saving is one of the plus points of the retirement pension plan, one must not invest or insure for the sake of it. It is wise to choose a plan that would satiate all your financial needs that would make you independent and help you lead a carefree life.

Typically, a conventional retirement plan circumscribes following features:

  • Annuity: Generally annuity comes in two types, immediate and deferred. The immediate annuity is paid to the annuitant right after the receipt of lumpsum premium. The deferred annuity plans start paying a certain amount after a few years. The insurance companies have a wide range of plans and the option to choose the period for which you want the annuity to be paid.

  • Sum Assured: The sum assured is the life cover the policyholder receives during the term of the plan. The insured's dependents can receive the benefit in an event of any mishap. This enables the insured and his/her dependents to live a tension free retired life.

  • Payment period: The period in which the investor starts receiving the payments from the insurer is called as payment period. This period is generally is well distinguished from the accumulation phase and thus helps the investor to increase his/her retirement collection.

  • Vesting Age: The age in which the investor starts receiving the retirement income is known as vesting age. The vesting age can also be your current age if you choose for the retirement plan payment to start immediately i.e. immediate annuity or after a few years. The minimum average vesting age is 50 for most of the insurance companies.

Toll free (Within India):

1800 270 7000

Outside India: :

+91 22 66917777

(Call charges apply)

Between 9 am to 9 pm, All 7 Days

Send an Advisor

Mail on:

care.lifeinsurance@adityabirlacapital.com

Get to a branch closest to you

Types of Life Insurance Plans

Health

Health Plans

saving

Saving with Protection

  • Tax benefits: Retirement plans in India provided by life insurance companies qualify for tax deduction for the premiums paid. You get annual deduction from total income of up to Rs 1.5 lakh under Section 80CCC of the Income-tax Act, 1961. On reaching vesting age, the policyholder can get up to one third of the retirement savings as a tax-free lump sum under Section 10(10A) of the Income-tax Act, 1961 which is subject to the terms and conditions stated therein.

  • Regular income: One would be habituated to the amount they earn and in case of retirement there is no regular source of income. Retirement Pension Plans help you to lead a normal life without the worry of regular income as you receive it from the insurer.

  • Financial independence: Future planning helps you in a long run and so it is wise to opt for Retirement Planning to avoid being financially dependent on your children. This ensures that you live your life on your terms plus complete your wish list with your spouse.

  • Inadequate provident fund savings: As Indians, we tend to depend on provident fund and gratuity but in the long run they turn to be inadequate. Retirement Planning meets your financial demands and thus fulfils every need.

  • Wealth accumulation: Retirement Pension Plans have long investment terms. So, a regular and disciplined investment in retirement plans helps you have enough savings for your retirement and enables you to maintain a standard of living.

How does Retirement Plan work?

A retirement pension plan has a simple way of functioning - You insure plus the insurer invests your money and on retirement you receive it in the form of monthly income. It is always wise to start so you start securing your retired life well in advance.

For retirement planning, one needs to set aside his/her savings from the salary and have the insurer invest as per his/her needs. The returns you receive can either be in lumpsum or a fixed monthly payout, as selected at the time of purchase.

    Tomorrow is yet to come and it is always considered that one should save enough to have a relaxed future. However, when you choose one plan it is better to consider the following factors to ensure that you get the best.

  • Start early: To have ample retirement savings, you need to buy the pension plan early in your work life. This will make sure you have ample time to make small investments so that you can save a large amount.

  • Premium payment period: It is always advisable to know the time period for which you need to pay the premiums. This enables you to be well aware of the financial commitment to your retirement plan.

  • Determine savings target: When you start saving for a retirement plan, you need to set a savings target for your retirement life. It is mandatory to take into account of the family members dependent on you and accordingly set the savings target for your retirement.

  • Retirement income needs: If you receive pension from the company then you might not need the monthly income but if not then it is essential. Typically, the lumpsum amount received in the immediate annuity type of plan helps one for a long term plan but the monthly income plan helps one lead a secure retired life.

  • Tax saving: Although tax saving is one of the plus points of the retirement pension plan, one must not invest or insure for the sake of it. It is wise to choose a plan that would satiate all your financial needs that would make you independent and help you lead a carefree life.

    Typically, a conventional retirement plan circumscribes following features:

  • Annuity: Generally annuity comes in two types, immediate and deferred. The immediate annuity is paid to the annuitant right after the receipt of lumpsum premium. The deferred annuity plans start paying a certain amount after a few years. The insurance companies have a wide range of plans and the option to choose the period for which you want the annuity to be paid.

  • Sum Assured: The sum assured is the life cover the policyholder receives during the term of the plan. The insured’s dependents can receive the benefit in an event of any mishap. This enables the insured and his/her dependents to live a tension free retired life.

  • Payment period: The period in which the investor starts receiving the payments from the insurer is called as payment period. This period is generally is well distinguished from the accumulation phase and thus helps the investor to increase his/her retirement collection.

  • Vesting Age: The age in which the investor starts receiving the retirement income is known as vesting age. The vesting age can also be your current age if you choose for the retirement plan payment to start immediately i.e. immediate annuity or after a few years. The minimum average vesting age is 50 for most of the insurance companies.

Why choose ABSLI?

Why choose ABSLI?

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Claim Settlement Ratio

It is often said that higher the claim settlement ratio, better it is. ABSLI has an astounding claim settlement ratio of 97.15%.

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Strong legacy

Aditya Birla Capital is one of the most trusted brands & its joint venture with Sun Life Insurance has gained accolades in the industry with the name Aditya Birla Sun Life Insurance.

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Simple & need based products

ABSLI aims to make savings and living easier for each individual. So, each product has been made in accordance with the basic and simple needs of every customer.

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Frequently Asked Questions

A.

There is no age to take this step. It is always considered 'earlier the better' So, start when you think it's time.

A.

No, the retirement plans are not taxable. However, any withdrawal made can be taxable.

A.

The premium amount for most of the retirement plans is decided by the insurer according to the plan you choose. Various factors like age, lifestyle play a pivotal role in deciding the premium amount.