What is the difference between a pension plan and term plan

The main difference is the aim of the plan. Term plans cover risk in the event of eath. Pension plans assure income to those who survive past their retirement age, enabling them to be financially independent. Term plans offer financial backup for the family in the event of the policyholder’s death while pension plans offer financial security both for policyholder and family after retirement. Pension plans include the eventuality of untimely death, in which case the pension is paid to the beneficiary. In term plans, maturity benefit is paid as a lump sum and is exempted from tax. In pension plans, 1/3 of the maturity amount is paid as a lump sum and is exempted from tax, while the remaining is paid as an annuity and attracts tax.


How to choose the right retirement plan?

Once you decide on investing in a retirement insurance policy, consider the following: • Whether the plan offers the option of long-term savings • Do you have the flexibility to select retirement /vesting age •…


Who can join Atal Pension Yojana?

Anyone who is in the age group of 18 to 39 years and 364 days is eligible for Atal Pension Yojana. It means if you complete 40 years, you are not eligible.

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What is Atal Pension Yojana?

Atal Pension Yojanaor APY, a pension scheme for Indians in the unorganized sector. According to this scheme there is a guaranteed minimum monthly pension of Rs.1000 to Rs.5000 on retirement age based on the subscriber’s…

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What are employment based pension plans

An employment-based Pension plan is retirement insurance plans or annuity plans where the employee allocates a portion of the current income to retirement income, usually tax exempt. These plans are of two types. Defined benefit…

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Can I get NPS if I am self-employed?

Yes. All Indian residents in the age group of 18-60 years can invest in the NPS. The scheme is mandatory for government employees and optional for private employees and self-employed.

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What happens if I move residence to another city?

The NPS is portable. Subscribers can keep the same PRAN regardless of whether they move residence or location. The same PRAN is valid across India for the subscriber to continue their investment via a local…

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Does the NPS send a monthly statement?

Yes. NPS sends a physical annual statement with details of unit holdings via the CRA within 3 months of the closing of each financial year.

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What will be my rate of return for my contribution?

The pension fund manager invests your savings in a scheme chosen by you. Investment allocations directly impact the growth of your pension fund. The rate of return depends on the return from the asset classes…

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Will the government contribute to my NPS account?

No. The Government will not contribute to your NPS account. However, if you have opted for the Swavalamban scheme, government contributions may be applicable subject to conditions of the scheme.

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Whom to contact if I have a grievance about my NPS?

A grievance about your NPS account can be registered via the Call Center or IVRS at a toll free phone number using T-PIN. There are dedicated call center executives. Grievances can also be registered via…