Saturday, February 18, 2012

What Private Life Insurer sell are not pension at all

IRDA has taken a great step towards redefining pension products... Good News for Investors because Most of the Private Life Insurer sell is not at all a pension product.. its simply Unit Linked Product without Risk Cover, so that it is easy to sell, Lesser time to issue a policy, and reasonably good commission..

Some of the features of the Current Pension Schemes are...???
  • The Maturity Amount is TAXABLE in the hand of Investor (only 1/3rd is tax free)
  • Compulsory Pension (Pension amount will be treated as an Income in the hand of Investor and taxed accordingly)
  • Despite of being a product for pension,  no guarantee, High Surrender Charges, and for few companies, No surrender possibilities before the age of 45.


 

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