Single Premium Pension Plans: Meaning, Types & Features Explained

What is a Single Premium Pension Plan?

Types of Single Premium Pension Plans

How to Get Started with a Single Premium Pension Plan?

What are the Benefits of Single Premium Pension Plans?

How to Choose the Best One-Time Investment Pension Plan?

FAQs about Single Premium Pension Plan

Why should I choose a one-time investment plan?

If you want a hassle-free investment plan while simultaneously benefiting from regular income during your golden years of retirement, this is the best plan for you. It eliminates the hassle of regular premium payment and offers a plethora of benefits.

What happens to the pension plan if a policyholder passes away before retirement?

In such a case, the single premium pension plan will provide death benefits to the nominee or policyholder’s children.

What is the main difference between a single and regular premium pension plan?

A single premium pension plan is more convenient and requires only a single payment to offer lifetime benefits. In a regular plan, individuals need to pay frequent premiums at regular intervals to get plan benefits.

How do I know if a single premium pension plan is good?

If your chosen single premium pension plan offers a lifetime steady income after the one-time lump sum and allows tax-saving benefits on the invested amount and withdrawals, then it is considered an excellent one-time investment pension plan.

Will I receive tax benefits on the maturity amount from a single premium pension plan?


You can only receive tax exemption under Section 10D(D) on the maturity amount if the premium paid is up to 10% of the sum assured.