Pension Plans Of insurance Companies

Pension accumulative insurance can becomes actual for you if to you are 20 – 40 years old. It means you have time for money accumulating.

The choice of program duration depends on time which is available for you and decision in what age you would like to retire.

When the insurance program terminates, or time when it is necessary to make payment for insurance, you will be offered two options what to do with saved up money.

The first: you can receive all accumulated amount. The second – to receive monthly payments (pension) from accumulated funds.

So, what sum of pension will you receive? Let’s try to make a sample calculation. For example, the amount which is saved up by you constitutes 100 000 dollars. By 60 years, your pension will constitute 7714 dollars/year or 643 dollars/month. These payments will be paid till the end of your life.

What is the difference between insurance company and public pension funds?

The most important difference is that after death of the insured person the remaining balance of accumulated funds devolves.

One more difference is that you decide by yourself what pension you want to receive. In case of state insurance you can’t be sure that the size of your pension will correspond to your payments it does not depend on how much you allocate. The state can always think up the conditions which will make your pension minimal. For example, when the term of a retirement increases previously, but calculation will be done proceed from average salary.

And finally it is worth to say that capital is a thing which can be lost easily, but life goes on and every day means for its maintenance are necessary. Therefore, rent will be safer.

Comments are closed.