Pension Plan Insurance
The increasing cost of health care and security system it has become imperative to have retirement plans. Pension plan insurance has been specially designed to celebrate life post retirement also. They provide financial stability after the retirement without compromising on the standard of living.
This policy is suitable for senior citizens who are planning to secure future. A defined benefit pension plan is a type of pension plan in which an employer/sponsor promises a specified monthly benefit on retirement that is predetermined by a formula based on the employee's earnings history, tenure of service and age, rather than depending directly on individual investment returns. The investment in life insurance provides exemptions and deductions under the Income Tax Act 1961 (Act).
The insured can avail deduction benefits under 80C. However the life insurance policy should be evaluated on the basis of protection benefits rather than tax exemption benefits.