Understand How To Secure Your Old Age?

The quality of your lifestyle at your retirement age very much depends upon how you utilize your money in your earning years. The earlier you start saving, the better is your amount of investment and superior is your purchasing power during those sunset years.

Leverage the simplicity and insurance element

If you want to be self-sufficient while you are retired, you have to plan and choose the best way to save for the future now. You can acquire a land or a property for leasing, put your money in equity related funds, buy debentures and mutual funds or choose to deposit a part of your earnings with the bank for a fixed number of years. Nonetheless, if you want protection element embedded in your retirement savings plan, you can choose to buy a pension plan. Pension plans not only provide a financial stability but also a security in old age. Buying pension plans online can also be a convenient way of going through the terms and conditions of the policy online.

The best thing about pension plan is, it is not intricate like other investment sources and you have the liberty to choose the amount of your savings as well as what you want to receive as pension. But before this you need to understand the various types of pension plans.

Types of pension plans

Pension plans are also called as annuity plans. If we categorize broadly, you can choose either endowment/traditional or unit-linked plan. Annuity plans can be further classified on the basis of time period for which the insured receives the pension in form of regular income, as:

Deferred Annuity Plan: This is the pension plan that defers or postpones the receipt of pension for a fixed time period defined by the insured, which is up to the limit of retirement age. Till that time, the insured keeps on paying the premium or installments to only make the annuity reserve grow.

Immediate Annuity Plan: In this plan, the insured needs to put the lump sum amount once at the initial phase and then he is eligible to receive regular pension income immediately.

Annuity Certain: This is the plan that lets the insured to receive the pension for fixed number of years as defined by him in his policy at the time of acquirement.

Lifetime annuity: This plan provides pension to the insured for the life time. In case of insured’s death, the nominee is entitled to receive the total premium amount along with the bonuses accrued on it.

Guaranteed period annuity: The insured gets a fixed income for a particular period after the retirement, however in case of an eventuality his nominee is entitled to receive the compensation. In case the insured is able to survive, annuities are paid to him for the lifetime.

Joint life/ last survivor annuity: This plan allows regular income to the insured. In case of his demise, the joint life or the retirement planuse is entitled to receive the annuities for the lifetime.

You Money can be defined as the power to spend which enables you to acquire the lifestyle of your choice. Now it depends on how you utilize your power and invest it in credible sources. It is never too late or too early to save and plan for the old age. So that you are actually independent in your older years, do not think any more instead compare and buy best Retirement Pension Plan now.

The most important part of any insurance buying process is comparison. Comparing insurance policies online is the most recommended practice and websites like policy.com provide such detailed comparison of plans provided by various insurers.

Source: https://www.policyx.com/blogs/how-would-you-choose-to-spend-your-retired-life/