Pension insurance, also known as retirement insurance, helps you get a regular income after you retire. It’s a long-term plan where you pay regularly during your working years, and after retirement, the insurance company gives you a monthly pension.
There are two main types:
- Deferred Pension Plan – you pay premiums for some years and get pension later.
- Immediate Pension Plan – you invest a lump sum and get pension right away.
This insurance is useful because, after retirement, your regular salary stops. But your expenses continue. Pension insurance helps cover these expenses so you can live peacefully in old age.
Some retirement plans also give life cover and tax benefits. You can choose how much pension you want and for how long.
Planning for retirement is important. The earlier you start, the more you save. Pension insurance is a secure way to ensure you never run out of money in your golden years.
