4 Replies to “Which is the best(& cheapest) equity linked pension product in India? pls provide the insurer name. thnx?”

  1. Hi, You can try bajaj allianze or max new york life. Before investing find out how much is the allocation charge. If you take out pension plan then you will be forced to take the pension even if the rate is low. In my opinion go for a simple unit linked policy or mutul fund. When your policy matures, at that time you can think about investing your money which gives you higher returns.

  2. What a pension fund do?

    It accumulate a corpus for you so that at time of maturity, you get one third of total tax free & rest is used to buy annuity from any provider.

    I will share issues of all pension plan.

    1. Pension received is taxable & added to your income.
    2. annuity rate is low (not even 5%) so if your accumulation is 1.5 Crore, you will get 50 lakh taxfree & a taxable pension of 5 Lakh per annum ( 1 crore will be returned to you or your nominee after some years as per the plan)
    3. Insurance company charges too much initially so that your corpus do not grow for 4 years(time taken for break even). This is issue with all insurance companies.

    Alternative to pension plan — Accumulate through other means like Mutual Fund, Debt fund, PPF etc & live on its interest at that time.

    If you have already decided to go for a pension plan , go for a single premium pension plan with minimum allowed premium . Check if the product allow unlimited topup. In place of giving regular premium, pay topup. It will save a lot of initial costs for you.

  3. Sorry to interrupt you.

    Pension plans are usually not linked to equity because of the inherent risks involved in equity investments. Equity schemes do not guarantee a specified return. That is not the case with pension plans. There is a guaranteed return for a specific period – usually a predetermined percentage of the Sum Assured.

    Equity linked plans are called ULIPs – on maturity they can be converted into a pension plan.

    Have a nice day !!!

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