Policyholders with insurance-linked pension plans can now withdraw up to 60 per cent of their maturity benefit at vesting age when regular payment begins. It was fixed at 33 per cent of the corpus so far. However, in pension plans, only the withdrawal of one-third of the corpus will remain tax-free and not the entire 60 per cent. “Even though the tax exemption remains the same, it gives the investor an option to withdraw a higher amount on maturity. Having such an option will make investors worry-free to meet the rising costs of living,” says Rakesh Goyal, director, Probus Insurance Broker Ltd.
“Looking at the life cycle of a human being, if one doesn’t review the life insurance cover at various stages of life, one might find themselves under-insured, which could pose a challenge to their family when they are not around,” says Rakesh Goyal, director, Probus Insurance Brokers.