|
A pension plan or an annuity is an investment that is made either in a single lump sum payment or through installments paid over a certain number of years, in return for a specific sum that is received every year, every half-year or every month, either for life or for a fixed number of years.Annuities differ from all the other forms of life insurance in that an annuity does not provide any life insurance cover but, instead, offers a guaranteed income either for life or a certain period.Typically annuities are bought to generate income during one's retired life, which is why they are also called pension plans. By buying an annuity or a pension plan the annuitant receives guaranteed income throughout his life. He also receives lump sum benefits for the annuitant's estate in addition to the payments during the annuitant's lifetime.Pension plans are perfect investment instrument for a person who after retiring from service has received a large sum as superannuation benefit. He can invest the proceeds in a pension plan as it is safest way of secured income for the rest of his life. One can pay for a pension plan either through an annuity or through installments that are annual in most cases.
Endowment insurance are policies that cover the risk for a specified period and at the end the sum assured is paid back to the policyholder along with all the bonus accumulated during the term of the policy. The Endowment insurance policies work in two ways, one they provide life insurance cover and on the other hand as a vehicle for saving. They are more expensive than Term policies and Whole life policies. Normally the bonus in calculated on the sum insured but the only draw back is that the bonuses are not compounded. Endowment insurance plans are best for people who do not have a saving and an investing habit on a regular basis. Endowment Insurance Plans can be bought for a shorter duration period.
|
Insurance Services
Life Insurance Plans
Children Insurance Plans
|
