This is in general about pension plans including LIC. At the end of contract period you can get back only 1/3 amount by cash. With the remaing 2/3 you have to buy low yielding ANNUITY. 2 important options for buying annuity are: **1.ANNUITY FOR LIFE WITHOUT CORPUS RETURN** ie they pay the interest till the curstomer is alive at 4.5% and take the priniple after the death of customer. **2. With****corpus return option** they pay 3.5 to 4% and return the money t;o kin after the death of the customer. All the pension plans are like booby traps. No way to get out of it. My advice to all those intereted in future is **NOT TO BUY ANY PENSION PLAN**.
Instead simple PPF/Post office monthly schemes/Band FDs give better returns and have good liquidity. I request all the Insurance agents not to promote pension plans for the sake of commission. The Annuity rates in India are very low and government is not interested in imporving the yield or finding way out. Once entered into the contract means 2/3 of money is kept in low yielding annuity. Any one already in the plan, stop paying further installments and wait for maturity.
This is not about BIRLA SUN LIFE AND THESE COMMENTS ARE IN GENERAL