Pension Plans

help plan for retirement and offer the security of insurance.

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Insurance Claims for a Pension Plan?

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A successful individual is one who not just thinks of his present but plans for future. The present may be looked after by your current earnings. But for the future, when you are not in shape to earn then it is a Pension plan that come in handy. It is a plan in which an individual gets a regular source of money to look after his basic needs and requirements

Thus, pension plans are an arrangement between the insurance company and the Insured whereby post retirement, Annuity is given. Apart from the regular payments, the insurance company provides your family with a lump sum amount in case of death. Nowadays, insurance companies give you the flexibility to chose for a monthly, quarterly, half yearly or annual annuity payment. Also, annuity are mostly payable for 5, 10, 15, 20 years or till the Policyholder is alive. There are many companies providing pension plans such as:

  • HDFC
  • ICICI Prudential
  • LIC
  • Kotak
  • SBI
  • Bajaj Allianz

There are a few types of pension plans also called as retirement or annuity plans. You should be very clear about these so that you can chose the right Policy based on your requirement.

Deferred Annuity Plan

Generally, you opt for this plan when you are working. Here, the annuity is paid after a certain time period since you don’t need the money at present. In case the policy matures and Insurer is alive, then the sum Assured and Bonus is invested to provide regular income.

Immediate Annuity Plan

Here, insurer can invest a lump sum amount which is later paid out at regular instalments as annuity.

Guaranteed Period Annuity

In this case, the number of years for which pension will be paid is fixed. Even if the policyholder ceases to exist, the nominee will be eligible to get pension for the remaining number of years.

Life Annuity

As the name suggests, regular annuity will be paid for the entire life of the policyholder. In case the policyholder ceases to exist, the Maturity amount and bonus will be paid to the nominee.

Having discussed the types, let’s talk about what happens once you need to take an insurance Claim on a pension policy. To begin with, the death of the policyholder has to be informed to the respective insurance company via agent or directly. The forms that need to be submitted are mentioned online on most of the sites. As per various companies’ requirements, the death claim form and other relevant documents need to be submitted. The documents needed would mainly comprise:

  • Original insurance policy
  • Proof of beneficiary’s identity
  • Proof of beneficiary’s residence
  • Copy of death certificate
  • Attested discharge certificate
  • Legal Evidence of Title in cases where nominee is not mentioned

Post a thorough check of all the submitted documents, the claim is honoured if no query arises from the company’s point of view. The payment is given to the Beneficiary whose name is mentioned on every policy. Otherwise, it is paid to the registered nominee or appointee that is registered with the insurance company. The payment is electronically transferred to the beneficiary’s bank account or settled through cheque post the verification of details submitted.

Thus, it is imperative to have a regular source of financial assistance even while you are unemployed. You need to calculate the pension factoring in rising Inflation and longer retirement plans with increasing life span. The pension plans will assure you similar lifestyles during retirement days.