How to Choose the Best Retirement Plan
An ideal retirement plan is encompassed with dual benefits of insurance and investment. The retirement plans provided by various insurance companies are majorly divided in two phases.
The first step is where the capital is accumulated over the defined tenure by paying premiums. Later, the accumulated capital is invested in securities approved by the insurance regulator, Insurance Regulator and Development Authority (IRDA).
However, before you zero down on any particular company to provide you with the best retirement plan. Let us help you with some factors you should take into consideration before you make your decision.
When and what is the expected retirement
When it comes to retirement plans, they do come with pre-defined retirement tenure. However, it is very important on your end to decide before hand when you would like to receive the retirement benefits. Factors such as medical conditions, obligations towards children, and number of dependents should be taken into consideration.
Charges to be paid
Retirement plans are all about receiving the maximum and timely payment. Therefore, invest wisely. You are investing your lifetime earning in a certain avenue. So be completely sure of the premiums and additional charges that you might have to shell out of your pocket.
Features offered by the plan
Each retirement plan offered by Max Life, SBI Life Insurance and other different insurance company differs in characteristics. So it is very important to define your needs and accordingly shop for a plan that fits your bill.
Flexibility of the plan
It is very important to have a plan that is flexible enough to make any necessary changes as per the circumstances. For instance, in case of death of the insured, the money should automatically be transferred to the nominee. The retirement plan should offer you with enough riders for you to customize the plan as per your requirements.