A life income fund (LIF) is a type of registered retirement income fund (RRIF) offered in Canada that can be used to hold locked-in pension funds as well as other assets for eventual payout as retirement income. A life income fund cannot be withdrawn in a lump sum. Owners must use the fund in a manner that supports retirement income for their lifetime.
How LIF And Fit into Your Financial Plan
What are Retirement Plans?
Retirement Plans are insurance products, which helps you accumulate savings over a long period of time and provide financial security for your future. Pension plans help you in building a corpus to ensure a steady income flow after your retirement. ensure a steady income flow after your retirement. With the proceeds of the retirement/pension plans, you can also opt for monthly pension benefits by purchasing annuity plans. Further, with dual benefits of protection with investment, pension plans are ideal to help you prepare for your financial needs in the golden years of your life.
3 reasons why you should get retirement plan?
Guaranteed income for your needs, as long as you live In your absence, your partner can continue receiving the income under the joint life annuity With Deferred Annuity variant, after the death of the annuitant(s), nominee will get minimum purchase price of the policy
Why Do You Need to Invest in Retirement and Pension Plans?
It is a disciplined, affordable, and secure way for retirement planning You can get protection for your family, along with your retirement savings You can also choose to invest in market-linked pension plans or stick with a conventional pension plan providing guaranteed income after retirement to cater to your financial needs. Not only this, Retirement & Pension Plans also provides death benefit which is payable on the death of the policyholder. Retirement & Pension Plans also provides death benefit which is payable on the death of the policyholder. With Retirement Plans, you get the flexibility to save while you are earning to build a large corpus of funds for retirement. You can start your retirement planning as soon as you start earning. You can start by saving smaller amounts on regular intervals to meet unexpected expenses and provide financial security post
Benefits of Retirement Plans & Pension Plans
Guaranteed Vesting Benefit: With Retirement plans, you will get a fixed or guaranteed income to help you with your retirement planning. Not only this, but you might also get an option to provide the income to your spouse in case of your untimely death Death Benefit: Pension plans also provide death benefit for financial security of your family in your absence. The nominee will get the sum assured or death benefit in case of your untimely demise. Flexible Premium Payment Terms: With retirement and pension plans, you also get the flexibility to choose the premium payment term. You can select your premium payment term depending upon your financial goals Customize your Retirement Plan: With additional riders, you can customize your retirement plans to help you and your family avail additional protection
How to Choose the Best Retirement Plan?
You can choose the most suitable pension plan and retirement plan by keeping the following things in mind: Vesting age: It is the age at which your pension will start. Retiring early or late will depend on your career and financial status Premium payment term: Define the period for which you will pay policy premiums Annuity options: Determine how much income will be enough to cater to your needs post retirement Rider Options: Decide what all additional benefits you will need to provide a comprehensive cover to your family Policy surrender charges: Take note of these charges, in case you have to surrender the policy