All You Need To Know About A Pension Planning
Pension plans vary in their terms of benefits and the structure of the investment. Basically, there are two pension plans such as defined contribution plan and defined benefit plan that people choose according to their need. These plans consider some more pension terms like life annuity, guaranteed period annuity, and a deferred annuity. Here is the small overview of such pension plans. Take a look: Life pension plan By choosing this plan, an individual can ensure a stipulated income throughout his/her life. In case of death, the invested amount will be refunded to his/her nominee. Deferred pension In this type of pension, the policyholder defers the pension up to a certain time period so it doesn't commence instantly. Guaranteed period annuity According to this plan, the policy provides regular fixed income during an individual's life. In the case of a policyholder's death, it guarantees payment for the specified number of years to the nominee.