Best Pension Scheme for Disabled, Widow and Senior Citizens

Pension plans which are also known as retirement plans are an important part of the financial planning. It allows you to allocate a portion of your saving which accumulates over a period of time and provides you steady income after retirement benefits. Pension plans are important for even those people who have been able to accumulate enough saving because savings can get exhausted in an emergency or at crucial stages of life. That’s why opting for a pension plan allows you to secure your cash flow for meeting basic needs after retirement.

Pension plans play a significant financial role in the as far as some strata of the society like widows, disabled and senior citizens who struggle to manage the financial needs at a later stage of life. There are pension plans offered by government for widows, senior citizen and disabled, but understanding the various terms and condition of pension plans for widows, disabled and senior citizen is very much necessary, so that you can take advantage of your plan.

There are also various pension plans offered by private insurance companies which can fulfill the daily basic need of your life at an advanced age. But choosing the right pension plan is also very much important because there are various options to choose from.

That’s why we have mentioned the various aspects of government pension plans for widows which takes care of widow pension, disabled and senior citizen and have outlined some of the best private pension schemes in this article.

How the Pension Plan Works for Widows, Disabled and Senior Citizen?

The current pension scheme for widows is applicable for widows aged 40 years and above who are below the poverty line. The amount given under this scheme is Rs.300 per month till the age of 79 years and Rs.500 for widows who are 80 years and above. Similarly the current pension scheme for disabled is applicable for people aged 18 years and above with 80% disability, who are below the poverty line. The amount given under this scheme is Rs.300 per month till the age of 79 years and after that, Rs.500 is given. Now talking about senior citizen, the pension scheme is applicable for people who are 60 years and above, and are below the poverty line. The amount given under this scheme is Rs.200 per month for beneficiaries aged 60-79 years and Rs.500 for those who are 80 years and above.

But the government is looking to bring more people under this scheme by bringing changes in the definition of disability and reducing the age limit. For example, the government is planning to reduce the eligibility of 80% disability for pension benefits to 40%. To improve these schemes, the government is also planning to pay pension on a fixed day of the month.

Current Eligibility Criteria and Benefit of Pension Plans

Beneficiary Age Group Amount given
Widow 40-79 years,

80 years and above

Rs.300,

Rs.500

Disabled 18-79 years,

80 years and above

Rs.300,

Rs.500

Senior Citizen 60-79 years

80 years and above

Rs.200

Rs.500

Let’s look at some of the best pension plans available in the market.

Bajaj Allianz Retire Rich

Bajaj Allianz Retire Rich Pension Plan offered by Bajaj Allianz is a unit linked pension plan which is available for people aged 30 to 73 years. The maximum age at vesting in this policy is 80 years.

Key features

  • Option to choose from, regular, limited or single premium payment
  • Option to choose the premium payment term
  • Flexibility to pay top up premium
  • Guaranteed vesting benefit of 101% of the total premiums paid

HDFC Life Pension Super Plus

HDFC Life Pension Super Plus plan offered by HDFC Life is a unit linked pension plan which allows you to build a corpus over the policy term, so that you can fulfill your financial need after retirement. The entry age of this policy ranges from 35-65 years and the maturity age range from 55-75 years.

Key Features

  • Additional premium allocation rate of 102.5% from 11th year onwards
  • Guaranteed regular income on the annuity purchased
  • Flexibility to plan your retirement date and choose policy term
  • Assured benefit on maturity with 101% of all premiums paid

Max Life Forever Young Pension Plan

Max Life Forever Young Pension Plan offered by Max Life guarantees lifetime income for you and your spouse after retirement. The entry age of this plan ranges from 30-65 years and the maturity age range from 50-75 years.

Key Benefits

  • Vesting benefit
  • Death benefit
  • Loyalty benefit
  • Option of regular pay and single pay

HDFC Life Guaranteed Pension Plan

HDFC Life Guaranteed Pension Plan by HDFC Life is a traditional non-participating pension plan which comes with an entry age which ranges between 35-65 years. The age at maturity in this plan ranges from 55-75 years.

Key Benefits

  • Premium payment term of 5, 7 and 10 years
  • Policy term ranging from 10 to 20 years
  • Guaranteed addition of 3% of sum assured gets accrued for each completed policy year.

ICICI Pru Immediate Annuity Plan

ICICI Pru Immediate Annuity Plan by ICICI Pru invests your saving smartly and offers aregular payout for your daily expenses. The entry age of this policy ranges from 45-100 years, which is a uniqueness of this plan.

Key Benefits

  • Premium Discount for higher annuity
  • Option to receive your payout yearly, half yearly, quarterly or monthly
  • You can choose to increase the amount you receive by purchasing an annuity plan over the existing one.

Everybody wishes for a secured and peaceful life after retirement or at a later stage of their life and that can be achieved with a proper pension plan. There are various options of pension plans available in the market which can fulfill your daily needs at an advanced age of your life. All you need to do is analyze and compare different plans and choose the best one according to your need and situation.

Harjot Singh Narula

Harjot Narula is founder and CEO of ComparePolicy.com, an IRDAI approved insurance web aggregator focussed on selling online insurance for companies. Harjot has more than a decade of experience in software development and has also spent 5 years in US working for the mortgage and risk management industry.

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