🚂 Current Fix Deposit Rates 🌞 SBI - General Citizen 3% to 7.10% Senior Citizen - 3.60% to 7.60% 🌞 HDFC - General - 3.00% to 7.25% Senior Citizen - 3.50% to 7.75% 🌞 ICICI - General - 3% to 7.10% Senior Citizen - 3.50% to 7.60% 🌞 PNB - General - 3.50% to 7.25% Senior Citizen - 4% to 7.75% 🌞 Kotak Mahindra - General - 2.75% to 7.20% Senior Citizen - 3.25% to 7.70% 🌞 Axis - General - 3.50% to 7.10% Senior Citizen - 3.50% to 7.85% 🌞 Bank of Baroda - General - 3% to 7.25% Senior Citizen - 3.50% to 7.55% 🚂 Current Recurring Deposit Rates 🌞 SBI - General 4.40% to 5.50% Senior Citizen 4.90% to 6.20% 🌞 ICICI - General 3.50% to 5.50% Senior Citizen 4% to 6.30% 🌞 HDFC - General 4.40% to 5.50% Senior Citizen 4.90% to 6.25% 🌞 KOTAK - General 4.30% to 5.20% Senior Citizen 4.80% to 5.70% 🌞 AXIS - General 4.40% to 5.75% Senior Citizen 4.65% to 6.50% 🌞 IDBI - General 7% to 7.15% Senior Citizen 7.50% to 7.65% ☁️ National Pension Scheme - 9% to 12% pa ☁️ Employees Provident Fund - 8.15% pa ☁️ Public Provident Fund - 7.1% pa Unit Linked Pension Plan

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Unit Linked Pension Plan

 

What is Unit Linked Pension Plan?

Unit Linked Pension plan is a type of investment plan for retirement savings, ULPP offers combine feature that is investment as well as life insurance.  Since it is linked with market, comparatively risky from others pension schemes.  In this plan the portion of the premium paid by investors is use to pay to insurance company to provide insurance protection or coverage to the investors and remaining amount invested in debt and equity securities.  In case unfortunate demise of the policy holder, the family or nominee will receive protection amount.  ULPP plan offers multiple tax benefits on investment returns.

Investment:  The premiums paid by investors are invested in equity funds, bonds etc., since the market is volatile, the value of pension fund fluctuates of the these underlying investments.

Insurance: It is a combination of investment and insurance, which provides a death benefit to the nominee in case the policy holder passes away before retirement or during the policy term.

Flexibility: Unit Linked Pension plans offer flexibility to the investors; investors can choose or allow to switch between different funds based on the investors risk tolerance.

Pension Options: After the retirement the scheme allows investors either he/she can take a lump sum, purchasing an annuity or opting for regular withdrawals.

Tax Benefits: If the premium of the year exceeds Rs. 2,50,000 then only it is taxable or if the return exceeds Rs. 1,00,000 per year the 10% of the tax charge applicable.

ECS Premium:  Investors can pay their premiums via Electronic Clearing System (ECS).  ECS is a electronic vehicle to transfer fund from one bank to another bank.

Fees and Charges:  Since the plan is linked with market, there are charges for fund management fees, administration fees, policy administrative charges, switching charges, surrender charges, servicing charges and education cess.  If the policy surrenders early or before the term period, the certain amount will charge by the financial institute.

Conclusion:

Overall, unit linked pension plan for individual looking for a retirement return and insurance protection.  It’s very important to carefully consider your investment objective, investment goal and risk tolerance before making any decisions.


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