Retirement is an inevitable phase of life. One of the many products life insurance companies offer people for retirement planning is pension. Pension is aimed at securing your post retirement life, be it related to financial security, pursuing a hobby or planning a legacy. There are many reasons why one needs to plan well for retirement - increase in life expectancy, inadequate employer funded pension, change of social structures, absence of social security system, desire to remain a contributor or rest and relaxation.
Pension products can be offered either on ULIP (market linked) or Traditional (non linked) platforms (difference betweem ulip & traditional plans). Given the nature of these products, ideally one would want to de-risk his/her retirement plan from market volatility. That’s where traditional Pension products have an edge and have been quite popular among customers. Traditional retirement solutions are of 2 types:
How does a Pension Product work?
An illustrative representation of how the plans works is as below:
You save regularly till you reach your retirement or do it using a lump sum as per the availability of funds. On maturity, the benefits are mandated by regulations to be reinvested, in order to generate a regular income stream, which is referred to as annuity. This feature is what makes pension plans a good fit for retirement planning.
Key advantages of buying traditional pension plans:
An individual should always keep the following in mind while planning their retirement:
Mr. Tripathy joined HDFC Life in 2004 and has been responsible for Marketing Strategy, Brand Planning, Advertising, Communication & Media, Customer Insights, New Product Development, Product Life Cycle Management, Online and Digital Strategy, E-Commerce, Customer Analytics, & Corporate communication. He started his career with GCMMF Ltd. in 1992. Since then he has worked with various reputed organizations like Frito-Lay (PepsiCo), Mattel and Reliance Infocomm before moving on to his current role at HDFC Life.View Complete Profile
A critical aspect of a retirement plan is how and where to invest. The assets you choose to invest will vary depending on several factors, which include your risk tolerance and investment time horizon.
According to a study by the Insured Retirement Institute, only a few women consider becoming financial planners because they deem the job stressful and uninteresting. The time has come to stop relying on someone else for financial security. Financial planning is nothing but determining short and long-term financial goals, and creating a balance to meet these goals.
Swabhimaan Careers is one of HDFC Life’s strategic initiatives to build long-term customer relationships. The overall objective of insurance is to compensate the financial loss caused due to untimely death of a bread winner.
The Vision and the Mission continue to be relevant and set out aspirations for an organization. But the question that an organization needs to ask is how do they get there? Is it possible to define a 'decision architecture' that guides actions of each employee?
For millions of people in India, the concept of life insurance still remains a mystery. Thanks to the new media channels, more and more people are becoming aware of the significance of life insurance. For those, who wish to develop fundamental understanding of the concept of life insurance, here is a quick snapshot.
Consumer is king. With the shifting of focus on the goods and services reaching out to the consumer rather than the other way round, Mobile learning embodies just that, by taking training not just to the doorstep but also to the learner in person. Just as an individual is empowered to carry his office with him at all times, M Learning empowers him to carry his training program with him, shattering the barriers of space and time.
Reinsurance is an insurance that is purchased by an Insurance company from one or more other insurance companies to manage the risk. Reinsurance helps in transfer of risk from one insurance company to another. It is also called “insurance for insurers” or “stop-loss insurance”.Read More