Retirement plans offered by life insurance companies are bundle products offering the benefits of both insurance and investment. A typical retirement plan has two phases
- 1. First is the accumulation phase. During this, you pay premiums and the money accumulates through the tenure of the plan. The accumulated money is then invested in a Pension Plan.
- 2. Second is the pension phase. At this age you can start getting the pay-outs from the accumulation phase. The pension phase for most plans should last anywhere between 60-100 years.
The period when a person gets pension is also called the annuity phase. During this phase, the person who receives the money will have the choice to receive it on a monthly, quarterly, half-yearly or annual basis