Khota Paisa

Comparison of Pension Plans

Posted in Retirement Planning by khotapaisa on June 30, 2009

A lot of people want to know as to which is the best pension plan. So, I did a comparison of few ULIP plans available in the market. Based on the brochure available on the insurer’s website, I calculated the fund value of the plan (@10% returns) for a fixed premium. Then I ranked the plans based on the fund value. The plan with higher ranking here is cheaper and hence better (on cost basis). The plans that I compared  are –

Birla Sunlife Flexi SecureLife II (seems to have been withdrawn)
– HDFC Unit Linked Pension II
– ICICI Pru LifeTime Super Pension
– SBI Life Horizon II
– Bharti-AXA DreamLife Pension

Here is the how the funds fared.


The difference in fund value (hence ULIP cost)  for the first three funds was not big but the fund ranked 1 gave ~10% more corpus than no. 5.
I guess you can select any of the top three plans here. But, please remember that this comparison is only on the basis of ULIP cost (cheaper the better). Though, the fund performance should also be factored in while selecting the plan.


– All the calculations were based on data available in the respective product brochure.

– The calculation didn’t consider mortality charges.

– The ranking didn’t use the illustration available on the insurer’s website because of lack common standard for illustration. Some of the insurers don’t even provide online illustration.

– There may well be better options in market, as I didn’t analyse all of them.

Update :
I have reviewed LIC Market Plus I pension plan. You can read the review here.


One Response

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  1. Kanwar meet singh said, on September 19, 2010 at 7:55 am

    Dear Sir, Gud Morning.
    Sir, i’ve bought two policies,,,(1) LIC’s Market Plus, table #181 on dated Sept. ’06 of Rs.20000.00 per annum.
    (2). ICICI Prudential’s Life Time Super on dated Nov.’07 of Rs. 20000.00 with Accident Ben. Rider.

    Sir, i’m now 35 yrs old havin 2 kids of 8yr. n 5 yr. For their better future, I wanna urs help tat which one is d best policy among these,,,so tat i wud continue payin tat policy.

    Besides these wud u pls suggest d best child plan for their future studies etc. I can invest app. Rs 5000.00 per month. Can u tell me tat wheather i hav 2 invest in child plan or mutual funds.

    With Regards,
    Kanwar Sandhu

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