How To Choose A Retirement plan

Retirement plans are a definitive way of ensuring that your current lifestyle is maintained years after you stop working. Average life spans are steadily increasing. This means that average retirement years are also on the rise.

The longer you live, the better it should be - and this is possible if you plan for the future. By investing early and regularly, you can be sure that you or your family members receive a regular pension. The earlier you start, the larger will be the corpus. So dont neglect your retirement needs.

It is prudent to plan for the do-anything-you-like years of your life in the active money-making years of your life. And the earlier you start the larger corpus you will be able to build. You have to decide whether you would be comfortable getting payments in installments or in a lump sum on an annual basis.

Though each plan is unique, certain important factors that one must keep in mind while selecting a retirement plan are:

(a) When and what is the expected requirement:*

For retirement plans, although you may not have a specific time to receive money it is always preferable to decide beforehand. For a life of pride and independence, you need to determine the age when you want to retire and the number of years thereafter. Also, take into consideration medical conditions, obligation towards children, number of dependents, etc.

(b) Charges to be paid:*

Your aim is to receive maximum and timely payments during the golden years of your life. So, plan wisely on the right amount and mode of payments. You need to check the bonus declaration clauses and see if limited period premium payment options are available or not.

(c) Features offered by the plan:*

All plans have different characteristics. You need to weigh out the options available and decide on the one that is most suitable to your needs and lifestyle. For example, if you are comfortable paying premiums for a limited period of time, you should make that clear to your agent. See how much terminal illness benefit is provided. Most of the insurance companies offer bonuses for Retirement Insurance Policy.

(d) Flexibility of the plan:*

Inspite of all predictions, what actually happens sometimes is different from what you had planned. In such cases, you need a plan that is flexible enough to suit the present demand. In case of death of Life Insured, the money should go to the nominee. With the various riders available you can customize your plan as per the need.