A retirement plan is an assurance that you will continue to earn a satisfying income and enjoy a comfortable lifestyle, even when you are no longer working. To understand why retirement planning is important, and why you should too, read on.
1. Independence is the new way of life: An increasing number of young Indian professionals are moving away from the traditional joint family structure. Since support no longer comes easily, parents have realized the need to provide for themselves during their retirement years.
2. Costs set to soar: Skyrocketing costs throw even a well-salaried person off balance. With rates rising everyday, you can imagine how high they will be when you are ready to retire. A retirement plan provides you with a steady income every month, to arm you in the face of rising costs.
3. Non-earning retirement phase is now longer: Only 4% of India working population- mostly government employees - are covered by pensions. The remaining 96% comprises self-employed and salaried professionals who do not have a formal, mandated provision for pensions.
4. Medical emergencies: With age come health problems. With health problems, come medical expenditure which may make a huge dent in your income post retirement. Failure here could lead you to liquidate (sell) your assets in order to meet such expenses. Remember mediclaims do not always suffice.
5. No government sponsored pension plan: Unlike the US and UK where they have IRA and state pension respectively as social security benefit during retirement, the government of India does not provide such benefits. So again you are on your own.
6. Inflation: As you need to worry about it you need to account for it as well. You need to take into account inflation while calculating your retirement corpus as well as your returns. Happy Jeevan Combination ensure you to meet all your retirement requirements. So you can retire peacefully from work, but not from life.
(*) Happy Jeevan is a combination of LIC plans specially researched to meet the objective of securing a financially independent life for yourself and your spouse on retirement.
(*) The benefits shown in this presentation have been calculated on the basis of reversionary bonuses declared by LIC for the last year ended. Actual results may deviate depending on the future bonuses declared by LIC.
(*) Loan calculation is done on the basis of present surrender value rates.
The Premium Paying period is the productive period of your life. During this period you have to make provision for your retirement by paying annual premium of 149479/-. There is high riskcover in this period ranging from 1937480/-(Age: 30) to 2734760/-(Age: 41). Loan facility is also available depending upon number of premiums paid. Premiums paid are available for exemption under section 80C upto 100000/- per annum. This presentation give an effective yield of 7.45%
(Click on Image To ZOOM)
Benefits During Retirement Period:
In Retirement period your physical strength will be low but as you made provision you need not to work and need not to pay premium. In this period you will start getting tax free pension. You will get pension from age 42 to age 100. The pension amount for every year is shown in following table. If required loan can be taken against insurance policy anytime in deferment and retirement period. Loan facility starts after payment of 3 years premium. This presentation give an effective yield of 7.45%
(Click on Image To ZOOM)
