Latest articles on Life Insurance, Non-life Insurance, Mutual Funds, Bonds, Small Saving Schemes and Personal Finance to help you make well-informed money decisions.
1 Insurance companies offer unit linked pension plans, which are marketlinked products, specifically designed for investors looking for retirement planning products.
2 Investors have a choice about the asset allocation of the fund they invest in. It can be 100% equity, 100% debt, or some sort of a mix of the two--depending on their risk profile.
3 Switching is also permitted in ULPP, thus allowing investors to change their fund-profile with life cycle changes. Young investors may start with 100% equity and gradually switch to debt as they near retirement.
4 When investors retire, they can withdraw onethird of the accumulated corpus, tax-free. The balance amount must be used to buy an annuity plan, which will be the source of regular but fully taxable pension.
5 Pension plans are meant to be longterm products.Premature exit from these plans is generally discouraged.Investors can withdraw 33% of the corpus at maturity.
The content on this page is courtesy Centre for Investment Education and Learning (CIEL).Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.
Follow us on our social media channels:
All Rights Reserved © 2019 www.quantumleapfs.com
Industry News