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Traditional Plans


Traditional plans are the plans which gives you a guaranteed return on your investment. The traditional thought about the pension plans in tha these are the 'defined-benefit' plans. Any  variants to these plans are not viewed as the real-pension plans. There are many new retirement plans but the traditional ones have still not lost their appeal. Many would still bet on these as the best pension plan. 

In a traditional plan the insurance company guarantees a fixed return value. Investment risk is borne by the insurance company and not by the insured unlike a ULIP where the investment risk is borne by the policy holder. Here it becomes imperative for the insurance company to safeguard the customer's interest.

Besides the fixed amount there are guaranteed additions and bonuses announced by the company from time to time. These are for the participating policies where the company shares its growth with the customers. So it becomes insurance company's responsibility to invest the money such that the interests of the company as well as the policy holder are protected.

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