Pension plans: These are most suitable riders one can opt for
Senior citizens of the country are facing very hard times due to crashing interest rates.
Pension plans are a type of investment plan, which help you to accumulate a part of your savings over a long-term period. With these plans one can not only deal with the uncertainties of post-retirement but also ensure a steady flow of income after retirement. There are different pension plans in the market that you can choose from. On the other hand, riders are the additional benefits which you can add to your retirement plan to make it more comprehensive. You can buy a rider by paying extra cost. Generally, the additional premium is very low.
Here’s a look at some of the riders available under pension plans:
Premium waiver benefit rider
A premium waiver benefit rider is a non-linked, non-participating individual rider. The rider is added to a pension policy for an additional fee. A rider can be opted for along with the base plan at the inception or at any time during the premium paying term of the base plan. Under this rider future premium payments by the insured are waived usually in case of accidents, disability or death of the policyholder.
Critical illness rider
Illnesses often come unexpectedly and affect your life and financial condition. Under critical illness rider, the insured receives a lump-sum on the diagnosis of critical illness pre-specified in the policy. Critical illness may either continue or terminate.
Term rider
This is a very important rider that can be opted with a pension plan. In the event of death of the life insured, his or her nominee will receive a lump-sum sum money or a monthly payout for a specified duration.
Senior citizens
Senior citizens are facing hard times due to declining interest rates, as they mostly depend on bank fixed deposits for regular income. But for those who are looking for alternatives and want to invest their funds for the long term, pension plans could be a good idea. As per 2011 population census report, the number of senior citizens was at 10.3 crore or around 8.6% of the population. The figure is estimated to reach almost 32.0 crore in the next three decades.