Business Identification Blog

A retirement plan-not to be confused with pension plans, life insurance is that a client hires an insurance company, in order that the capital gain upon retirement or death. Liquidity can be highlighted as a relevant difference between a retirement plan and a pension plan. The first withdrawal can make money when they want, conditional upon the payment of commissions. In the second, liquidity is subject to regulation for pension plans. For more information see benefits and contingencies. Other differences between the pension plan and pension plan are:

* It is managed by an insurance company.

* The distribution of retirement plan can be performed by entities other than insurance, but must have a contract with the insurer.

* You can access the capital ahead of schedule, although this is high fees. This is what is called rescue.

* The date to be agreed with the entity to receive contributions, does not necessarily coincide with the date of retirement.

* Allows cancellation or partial repayment plan without penalty and the possibility of putting it back up again.

* Capital received by the customer is different in case of retirement in the event of death.

* No benefit from tax relief.

* It has lower profitability and a fixed interest rate.

Features
Regarding the performance of retirement plans should take into consideration:

* Capital Guaranteed: This is the amount the policyholder will receive at the end of your policy, whether the insurer has suffered a bankruptcy, since this capital has been deposited in a bank previously.

* The estimated capital: this is the amount the insurer must pay estimated that upon completion of the policy, taking into account accrued interest.

Taxation of retirement plans
It should be pointed out that the capital received, once the stipulated period concludes by insurance, is considered as investment income for the purposes of income tax (income tax on individuals). During the insurance contract there is no relief in the tax base of personal income tax as with pension plans. However, the pension plan gives a tax deferral that the beneficiary must pay tax when you receive benefits in accordance with the amounts received. This postponement has no place in the retirement plan, so that the policyholder will pay a very small percentage compared to the amount received.

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