Private Pension Insurance
Why do I need a private pension?
The state retirement pension is not always as high as you would like it to be, and it is not always paid on time. A private pension is supplied from a personal fund; therefore, it will always be paid on time. The funds accumulated are safely invested and the ensuing profit is added to the pension.
A person insured under private pension insurance will also receive his or her due state retirement pension in its entirety.
Pension insurance options:
Pension
Pension benefits begin at the age specified by you (retirement age) and continue for the rest of your life at agreed intervals.
If the annuitant dies within the guarantee period, pension benefits will be paid to the appointed beneficiary until the end of that period.
Immediate life annuity
It is offered to individuals who want to begin receiving pension benefits immediately and can pay a single premium. Pension benefits will be paid at specified intervals for the rest of the insured person's life. If a guarantee period has been additionally included into the annuity contract and the annuitant dies within that period, pension benefits will continue until the end of the guarantee period and will be paid to the beneficiary.
Eligible insured persons
Any person from 18 to 80 years of age shall be eligible for this type of coverage.
Payment of pension benefits
The amount of pension will be stated in Euros. Thus, the annuitants and beneficiaries are protected against possible devaluation of Litas. The minimal annual pension will be 200 Euros. An annuitant will decide on the amount of pension benefits and periodicity of payments himself/herself.
Pension benefits will be increased by annual contributions from the profits of the insurance undertaking; therefore, actual benefits are higher than specified in the policy.
Premiums
Premium amounts and premium payment periodicity is to be selected by the annuitant himself/herself. Premiums will be fixed in Euros and paid in Litas by applying the official currency exchange rate valid on the day of payment. A policyholder will pay annual premiums or follow other specified periodicity pattern. Payment of a single lump sum premium is also possible.
Advantages of pension insurance
Flexibility:
- You may select the following at your own discretion:
- retirement age
- premium amounts and periodicity
- guarantee period
- pension benefit amount and periodicity of its payment
- upon the annuity date: annuity payments or a single lump sum income payment
- You may vary premium amounts and periodicity
- You may change the appointed beneficiary
- You may include additional personal accident insurance into your annuity contract
Rationality:
- You are protected against possible devaluation of Litas, because pension amounts are fixed in Euros
- Profits of the insurance undertaking increase pension benefits
- Pension benefits are paid for the rest of the annuitant's life
- If the annuitant dies before the annuity date, premiums will be repaid
- Tax allowances provide saving opportunities