What is pension plan and what is the difference between pension plan and unit linked pension plan?



1) Also explain about the tax benefit rules
2) Factors to be consider while choosing a plan
3)Who has the best pension plan(e.g. ICICI, HDFC or any other)
4) Also suggest some websites.

3 Replies to “What is pension plan and what is the difference between pension plan and unit linked pension plan?”

  1. Pension plan covers the risk of living too long while Life Insurance covers the risk of dying early. They are opposite in nature and purpose as well.

    ULIPs are unit linked plans and there are ULIP Pension Plans as well. Hence they are different concepts and hence cannot be compared.

    1. In life insurance ULIPs the maturity benefit is tax free under section 10(10)D if the investment is not withdrawn within 5 years and the sum assured is at least 5 times the premium amount. However in pension plan, the maturity benefit is not tax free. under section 10(10)A only 1/3 rd the amount is tax free.
    2. in ULIP, the charges and the terms and conditions need to be considered very carefully, whether it is pension or life insurance. The fund need to be carefully selected according to risk appetite
    3. IPru has many options of pension plans from deferred to immediate ones and provide very good pension rates as well

    compare and choose the best plan before buying


  2. There are two types of plans. One is Traditional Pension Plan & another is Non Tradition Pension Plans. Non Traditional is also called as Unit Linked Pension Plans. Call us on 9825472919 for more inforamtion.


  3. 1) Presently an annual premium of maximum Rs 1 Lac is exempted from tax. But it may change with the introduction of DTC.)
    2) Make sure that the premium choosen is convenient and you will be able to pay premiums throghout the policy term. Then ofcourse, benefits such as risk cover, and maturity benefits.
    3) I would suggest LICs Jeevan Nidhi, which is a traditional pension plan with good benefits.
    4) http://www.licindia.com





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